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

Abstract

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 & 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 & editing, Supervision, Funding acquisition.