Abstract This paper aims to investigate the emerging trend of a new warranty policy in industries, namely, complimentary extended warranty. For the warranty with complimentary extended service, customers can enjoy a free extended warranty if they register online before expiration of the base warranty. At present, with frequent technological innovations, customers are more willing to replace the product instead of repair, which makes traditional warranty less attractive. Since the warranty with complimentary extended service does not charge extra fees for the customers and the option of online registration is open to customers, it can attract a broad range of customers. Compared with traditional warranties, the proposed warranty provides flexibility for customers in their post-purchase choice of online registration. We develop a warranty model to investigate the popularity of the warranty. It turns out that the proposed warranty model exhibits advantages over the traditional warranties. The proposed warranty is profitable for risk averse customers and for products that heap benefits from customer information. We design and price the warranty for unit product when the customers have heterogeneous risk attitudes. In addition, we analyze the total profit and determine the optimal selling price considering the customer demand. Finally, a numerical example is presented to illustrate the effectiveness of the proposed warranty policy.

中文翻译：

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免费延长保修：利润分析和定价策略

摘要 本文旨在探讨行业新保修政策的新趋势，即免费延长保修。对于提供免费延长服务的保修，客户在基本保修期满前在线注册可享受免费延长保修。目前，随着技术创新的频繁，客户更愿意更换产品而不是维修，这使得传统保修没有吸引力。由于提供免费延长服务的保修不向客户收取额外费用，而且客户可以选择在线注册，因此可以吸引广泛的客户。与传统保修相比，建议的保修为客户在购买后在线注册的选择上提供了灵活性。我们开发了一个保修模型来调查保修的受欢迎程度。事实证明，提议的保修模式比传统保修更具优势。对于规避风险的客户和从客户信息中获益的产品，建议的保修是有利可图的。当客户具有不同的风险态度时，我们为单位产品设计和定价保修。此外，我们分析总利润并考虑客户需求确定最佳销售价格。最后，给出了一个数值例子来说明所提议的保修政策的有效性。对于规避风险的客户和从客户信息中获益的产品，建议的保修是有利可图的。当客户具有不同的风险态度时，我们为单位产品设计和定价保修。此外，我们分析总利润并考虑客户需求确定最佳销售价格。最后，给出了一个数值例子来说明所提议的保修政策的有效性。对于规避风险的客户和从客户信息中获益的产品，建议的保修是有利可图的。当客户具有不同的风险态度时，我们为单位产品设计和定价保修。此外，我们分析总利润并考虑客户需求确定最佳销售价格。最后，给出了一个数值例子来说明所提议的保修政策的有效性。