Research on the Trade-In Pricing Strategy of New Energy Vehicle Producers Considering the Consumers' Heterogeneous Behavior

<!DOCTYPE html> <html lang="en" xml:lang="en"> <head> <meta charset="utf-8"> <meta name="viewport" content="width=device-width, initial-scale=1.0"> <title> Research on the Trade-In Pricing Strategy of New Energy Vehicle Producers Considering the Consumers' Heterogeneous Behavior | Green and Low-Carbon Economy </title> <link rel="icon" href="https://ojs.bonviewpress.com/public/journals/6/favicon_en_US.png"> <meta name="generator" content="Open Journal Systems 3.4.0.7"> <meta name="gs_meta_revision" content="1.1"/> <meta name="citation_journal_title" content="Green and Low-Carbon Economy"/> <meta name="citation_journal_abbrev" content="GLCE"/> <meta name="citation_issn" content="2972-3787"/> <meta name="citation_author" content="Xiaoqing Zhang"/> <meta name="citation_author_institution" content="School of Business, Jiangsu Normal University, China"/> <meta name="citation_author" content="Xigang Yuan"/> <meta name="citation_author_institution" content="School of Business, Jiangsu Normal University and School of Economics and Management, Southwest Jiaotong University, China"/> <meta name="citation_author" content="Wenbo Li"/> <meta name="citation_author_institution" content="School of Business, Jiangsu Normal University, China"/> <meta name="citation_author" content="Yongjian Wang"/> <meta name="citation_author_institution" content="School of Business, Jiangsu Normal University, China"/> <meta name="citation_title" content="Research on the Trade-In Pricing Strategy of New Energy Vehicle Producers Considering the Consumers' Heterogeneous Behavior"/> <meta name="citation_language" content="en"/> <meta name="citation_date" content="2024"/> <meta name="citation_volume" content="2"/> <meta name="citation_issue" content="4"/> <meta name="citation_firstpage" content="219"/> <meta name="citation_lastpage" content="230"/> <meta name="citation_doi" content="10.47852/bonviewGLCE32021036"/> <meta name="citation_abstract_html_url" content="https://ojs.bonviewpress.com/index.php/GLCE/article/view/1036"/> <meta name="citation_abstract" xml:lang="en" content="In practice, trade-ins are offered by new energy vehicle (NEV) producers and include trade-in-for-new fuel vehicles and trade-in-for-NEVs. By using the game-analytical method, we mainly analyze the optimal pricing strategy of NEV producers when they provide both of the above-mentioned trade-in services. The results show that automobile producers should consider the production cost of new vehicles and the trade-in rebate when they provide a trade-in strategy. On the one hand, when the production cost of new vehicles is high but the trade-in rebate is very low, automobile producers do not provide the trade-in service. On the other hand, when the production cost of new vehicles is very low but the trade-in rebate is very high, automobile producers should provide trade-in services to heterogeneous consumers. Moreover, when the heterogeneous behavior of consumers is strong and the innovation value of new-generation fuel vehicles is low, automobile producers should choose the preannounce pricing strategy. Otherwise, these producers should adopt the dynamic pricing strategy. Received: 4 May 2023 | Revised: 27 June 2023 | Accepted: 25 July 2023 Conflicts of Interest Wenbo Li is an Editorial Board Member for Green and Low-Carbon Economy, and Lead Guest Editor of the special issue, and was not involved in the editorial review or the decision to publish this article. The authors declare that they have no conflicts of interest to this work. Data Availability Statement Data available on request from the corresponding author upon reasonable request. Author Contribution Statement Xiaoqing Zhang: Conceptualization, Software, Formal analysis, Investigation, Data curation, Writing - original draft, Writing - review &amp; editing, Visualization. Xigang Yuan: Conceptualization, Methodology, Software, Validation, Data curation, Writing - original draft, Visualization, Project administration. Wenbo Li: Validation, Supervision, Funding acquisition. Yongjian Wang: Formal analysis, Investigation, Writing - original draft, Writing - review &amp; editing, Supervision, Funding acquisition."/> <meta name="citation_keywords" xml:lang="en" content="trade-ins"/> <meta name="citation_keywords" xml:lang="en" content="heterogeneous consumers"/> <meta name="citation_keywords" xml:lang="en" content="preannounce pricing strategy"/> <meta name="citation_keywords" xml:lang="en" content="dynamic pricing strategy"/> <meta name="citation_keywords" xml:lang="en" content="trade-in-for-new fuel vehicles"/> <meta name="citation_keywords" xml:lang="en" content="trade-in-for-new energy vehicles"/> <meta name="citation_pdf_url" content="https://ojs.bonviewpress.com/index.php/GLCE/article/download/1036/595"/> <link rel="schema.DC" href="http://purl.org/dc/elements/1.1/" /> <meta name="DC.Creator.PersonalName" content="Xiaoqing Zhang"/> <meta name="DC.Creator.PersonalName" content="Xigang Yuan"/> <meta name="DC.Creator.PersonalName" content="Wenbo Li"/> <meta name="DC.Creator.PersonalName" content="Yongjian Wang"/> <meta name="DC.Date.created" scheme="ISO8601" content="2023-08-02"/> <meta name="DC.Date.dateSubmitted" scheme="ISO8601" content="2023-05-04"/> <meta name="DC.Date.issued" scheme="ISO8601" content="2024-10-23"/> <meta name="DC.Date.modified" scheme="ISO8601" content="2024-11-05"/> <meta name="DC.Description" xml:lang="en" content="In practice, trade-ins are offered by new energy vehicle (NEV) producers and include trade-in-for-new fuel vehicles and trade-in-for-NEVs. By using the game-analytical method, we mainly analyze the optimal pricing strategy of NEV producers when they provide both of the above-mentioned trade-in services. The results show that automobile producers should consider the production cost of new vehicles and the trade-in rebate when they provide a trade-in strategy. On the one hand, when the production cost of new vehicles is high but the trade-in rebate is very low, automobile producers do not provide the trade-in service. On the other hand, when the production cost of new vehicles is very low but the trade-in rebate is very high, automobile producers should provide trade-in services to heterogeneous consumers. Moreover, when the heterogeneous behavior of consumers is strong and the innovation value of new-generation fuel vehicles is low, automobile producers should choose the preannounce pricing strategy. Otherwise, these producers should adopt the dynamic pricing strategy. Received: 4 May 2023 | Revised: 27 June 2023 | Accepted: 25 July 2023 Conflicts of Interest Wenbo Li is an Editorial Board Member for Green and Low-Carbon Economy, and Lead Guest Editor of the special issue, and was not involved in the editorial review or the decision to publish this article. The authors declare that they have no conflicts of interest to this work. Data Availability Statement Data available on request from the corresponding author upon reasonable request. Author Contribution Statement Xiaoqing Zhang: Conceptualization, Software, Formal analysis, Investigation, Data curation, Writing - original draft, Writing - review &amp; editing, Visualization. Xigang Yuan: Conceptualization, Methodology, Software, Validation, Data curation, Writing - original draft, Visualization, Project administration. Wenbo Li: Validation, Supervision, Funding acquisition. 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University and School of Economics and Management, Southwest Jiaotong University, China </span> </li> <li> <span class="name"> Wenbo Li </span> <span class="affiliation"> School of Business, Jiangsu Normal University, China </span> <span class="orcid"> <svg class="orcid_icon" viewBox="0 0 256 256" aria-hidden="true"> <style type="text/css"> .st0{fill:#A6CE39;} .st1{fill:#FFFFFF;} </style> <path class="st0" d="M256,128c0,70.7-57.3,128-128,128C57.3,256,0,198.7,0,128C0,57.3,57.3,0,128,0C198.7,0,256,57.3,256,128z"/> <g> <path class="st1" d="M86.3,186.2H70.9V79.1h15.4v48.4V186.2z"/> <path class="st1" d="M108.9,79.1h41.6c39.6,0,57,28.3,57,53.6c0,27.5-21.5,53.6-56.8,53.6h-41.8V79.1z M124.3,172.4h24.5 c34.9,0,42.9-26.5,42.9-39.7c0-21.5-13.7-39.7-43.7-39.7h-23.7V172.4z"/> <path class="st1" d="M88.7,56.8c0,5.5-4.5,10.1-10.1,10.1c-5.6,0-10.1-4.6-10.1-10.1c0-5.6,4.5-10.1,10.1-10.1 C84.2,46.7,88.7,51.3,88.7,56.8z"/> </g> </svg> <a href="https://orcid.org/0000-0003-3599-3324" target="_blank"> https://orcid.org/0000-0003-3599-3324 </a> </span> </li> <li> <span class="name"> Yongjian Wang </span> <span class="affiliation"> School of Business, Jiangsu Normal University, China </span> <span class="orcid"> <svg class="orcid_icon" viewBox="0 0 256 256" aria-hidden="true"> <style type="text/css"> .st0{fill:#A6CE39;} .st1{fill:#FFFFFF;} </style> <path class="st0" d="M256,128c0,70.7-57.3,128-128,128C57.3,256,0,198.7,0,128C0,57.3,57.3,0,128,0C198.7,0,256,57.3,256,128z"/> <g> <path class="st1" d="M86.3,186.2H70.9V79.1h15.4v48.4V186.2z"/> <path class="st1" d="M108.9,79.1h41.6c39.6,0,57,28.3,57,53.6c0,27.5-21.5,53.6-56.8,53.6h-41.8V79.1z M124.3,172.4h24.5 c34.9,0,42.9-26.5,42.9-39.7c0-21.5-13.7-39.7-43.7-39.7h-23.7V172.4z"/> <path class="st1" d="M88.7,56.8c0,5.5-4.5,10.1-10.1,10.1c-5.6,0-10.1-4.6-10.1-10.1c0-5.6,4.5-10.1,10.1-10.1 C84.2,46.7,88.7,51.3,88.7,56.8z"/> </g> </svg> <a href="https://orcid.org/0000-0002-2654-049X" target="_blank"> https://orcid.org/0000-0002-2654-049X </a> </span> </li> </ul> </section> <section class="item doi"> <h2 class="label"> DOI: </h2> <span class="value"> <a href="https://doi.org/10.47852/bonviewGLCE32021036"> https://doi.org/10.47852/bonviewGLCE32021036 </a> </span> </section> <section class="item keywords"> <h2 class="label"> Keywords: </h2> <span class="value"> trade-ins, heterogeneous consumers, preannounce pricing strategy, dynamic pricing strategy, trade-in-for-new fuel vehicles, trade-in-for-new energy vehicles </span> </section> <section class="item abstract"> <h2 class="label">Abstract</h2> <p>In practice, trade-ins are offered by new energy vehicle (NEV) producers and include trade-in-for-new fuel vehicles and trade-in-for-NEVs. By using the game-analytical method, we mainly analyze the optimal pricing strategy of NEV producers when they provide both of the above-mentioned trade-in services. The results show that automobile producers should consider the production cost of new vehicles and the trade-in rebate when they provide a trade-in strategy. On the one hand, when the production cost of new vehicles is high but the trade-in rebate is very low, automobile producers do not provide the trade-in service. On the other hand, when the production cost of new vehicles is very low but the trade-in rebate is very high, automobile producers should provide trade-in services to heterogeneous consumers. Moreover, when the heterogeneous behavior of consumers is strong and the innovation value of new-generation fuel vehicles is low, automobile producers should choose the preannounce pricing strategy. Otherwise, these producers should adopt the dynamic pricing strategy.</p> <p> </p> <p><strong>Received:</strong> 4 May 2023 |<strong> Revised: </strong>27 June 2023 |<strong> Accepted: </strong>25 July 2023 </p> <p> </p> <p><strong>Conflicts of Interest </strong></p> <p>Wenbo Li is an Editorial Board Member for <em>Green and Low-Carbon Economy</em>, and Lead Guest Editor of the special issue, and was not involved in the editorial review or the decision to publish this article. The authors declare that they have no conflicts of interest to this work.</p> <p> </p> <p><strong>Data Availability Statement </strong></p> <p>Data available on request from the corresponding author upon reasonable request.</p> <p> </p> <p><strong>Author Contribution Statement </strong></p> <p><strong>Xiaoqing Zhang</strong>: Conceptualization, Software, Formal analysis, Investigation, Data curation, Writing - original draft, Writing - review & editing, Visualization. <strong>Xigang Yuan</strong>: Conceptualization, Methodology, Software, Validation, Data curation, Writing - original draft, Visualization, Project administration.<strong> Wenbo Li</strong>: Validation, Supervision, Funding acquisition. <strong>Yongjian Wang</strong>: Formal analysis, Investigation, Writing - original draft, Writing - review & editing, Supervision, Funding acquisition.</p> </section> <br /><div class="separator"></div><div class="item abstract" id="trendmd-suggestions"></div><script defer src='//js.trendmd.com/trendmd.min.js' data-trendmdconfig='{"journal_id":"87934", "element":"#trendmd-suggestions"}'></script> </div> <div class="entry_details"> <div class="item cover_image"> <div class="sub_item"> <a href="https://ojs.bonviewpress.com/index.php/GLCE/issue/view/97"> <img src="https://ojs.bonviewpress.com/public/journals/6/cover_issue_97_en_US.png" alt=""> </a> </div> </div> <div class="item galleys"> <h2 class="pkp_screen_reader"> Downloads </h2> <ul class="value galleys_links"> <li> <a class="obj_galley_link pdf" href="https://ojs.bonviewpress.com/index.php/GLCE/article/view/1036/595"> PDF </a> </li> </ul> </div> <div class="item published"> <section class="sub_item"> <h2 class="label"> Published </h2> <div class="value"> <span>2023-08-02</span> </div> </section> </div> <div class="item issue"> <section class="sub_item"> <h2 class="label"> Issue </h2> <div class="value"> <a class="title" href="https://ojs.bonviewpress.com/index.php/GLCE/issue/view/97"> Vol. 2 No. 4 (2024) </a> </div> </section> <section class="sub_item"> <h2 class="label"> Section </h2> <div class="value"> Special Column: Transport Transition towards a Net-Zero Future </div> </section> </div> <div class="item copyright"> <h2 class="label"> License </h2> <p>Copyright (c) 2023 Authors</p> <a rel="license" href="https://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" src="//i.creativecommons.org/l/by/4.0/88x31.png" /></a><p>This work is licensed under a <a rel="license" href="https://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> </div> <div class="item citation"> <section class="sub_item citation_display"> <h2 class="label"> How to Cite </h2> <div class="value"> <div id="citationOutput" role="region" aria-live="polite"> <div class="csl-bib-body"> <div class="csl-entry">Zhang, X., Yuan, X., Li, W., & Wang, Y. 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Research on the Trade-In Pricing Strategy of New Energy Vehicle Producers Considering the Consumers' Heterogeneous Behavior | Green and Low-Carbon Economy