{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2025,2,21]],"date-time":"2025-02-21T11:35:12Z","timestamp":1740137712777,"version":"3.37.3"},"reference-count":42,"publisher":"Wiley","issue":"2","license":[{"start":{"date-parts":[[2018,8,13]],"date-time":"2018-08-13T00:00:00Z","timestamp":1534118400000},"content-version":"vor","delay-in-days":0,"URL":"http:\/\/onlinelibrary.wiley.com\/termsAndConditions#vor"}],"content-domain":{"domain":["onlinelibrary.wiley.com"],"crossmark-restriction":true},"short-container-title":["Decision Sciences"],"published-print":{"date-parts":[[2019,4]]},"abstract":"ABSTRACT<\/jats:title>We consider a manufacturer who produces and sells a new product in a monopoly market. The new product quality is unobservable to consumers before purchase. Consumers make purchase decisions based on their perception of product quality. In addition, consumer valuation toward the product will be reduced if a product failure is experienced. We formulate a two\u2010period model to analyze the impact of consumer quality perception and consumer valuation change on manufacturer's optimal decisions over quality, warranty, price, and market coverage strategies. We find that it is optimal for the manufacturer to offer warranty compensation that is higher than the purchase price when he has a low quality reputation but is offering a high\u2010quality product. We also identify the optimal strategy for the manufacturer in terms of market coverage. Specifically, when the consumer valuation discount factor due to product failure experience is high, it is optimal for the manufacturer to serve only the high segment in the second period. Otherwise, serving both the high and the low segments generates more profit. We further investigate consumer welfare and identify win\u2010win conditions, where the optimal strategy of the manufacturer benefits the consumers as well.<\/jats:p>","DOI":"10.1111\/deci.12331","type":"journal-article","created":{"date-parts":[[2018,8,13]],"date-time":"2018-08-13T14:43:19Z","timestamp":1534171399000},"page":"311-339","update-policy":"https:\/\/doi.org\/10.1002\/crossmark_policy","source":"Crossref","is-referenced-by-count":20,"title":["The Impact of Quality Perception and Consumer Valuation Change on Manufacturer's Optimal Warranty, Pricing, and Market Coverage Strategies"],"prefix":"10.1111","volume":"50","author":[{"ORCID":"https:\/\/orcid.org\/0000-0003-4291-7207","authenticated-orcid":false,"given":"Kunpeng","family":"Li","sequence":"first","affiliation":[{"name":"Department of Systems and Operations Management California State University Northridge, 18111 Nordhoff St Northridge CA 91330"}]},{"given":"Lan","family":"Wang","sequence":"additional","affiliation":[{"name":"Department of Management, College of Business and Economics California State University East Bay Hayward CA 95452"}]},{"given":"Dilip","family":"Chhajed","sequence":"additional","affiliation":[{"name":"Department of Business Administration University of Illinois at Urbana\u2010Champaign 350 Wohlers Hall, 1206 South Sixth Street Champaign IL 61820"}]},{"ORCID":"https:\/\/orcid.org\/0000-0001-8503-6843","authenticated-orcid":false,"given":"Suman","family":"Mallik","sequence":"additional","affiliation":[{"name":"School of Business University of Kansas 1654\u00a0Naismith Dr Lawrence KS 66045"}]}],"member":"311","published-online":{"date-parts":[[2018,8,13]]},"reference":[{"key":"e_1_2_7_2_1","doi-asserted-by":"publisher","DOI":"10.1002\/mar.20590"},{"key":"e_1_2_7_3_1","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.1050.0408"},{"key":"e_1_2_7_4_1","doi-asserted-by":"publisher","DOI":"10.2307\/2526951"},{"key":"e_1_2_7_5_1","doi-asserted-by":"publisher","DOI":"10.1002\/(SICI)1520-6793(199608)13:5<445::AID-MAR1>3.0.CO;2-9"},{"key":"e_1_2_7_6_1","doi-asserted-by":"publisher","DOI":"10.1086\/209337"},{"key":"e_1_2_7_7_1","unstructured":"Cabral L.(2008).Optimal brand umbrella size. 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