Istrazivanja i projektovanja za privreduJournal of Applied Engineering Science

NEW PREMIUM CARS SALES PROMOTION BASED ON THE SYSTEM OF PRE-OWNED CARS SALES TO LOYAL CUSTOMERS


DOI: 10.5937/jaes15-11481
This is an open access article distributed under the CC BY-NC-ND 4.0 terms and conditions. 
Creative Commons License

Volume 15 article 407 pages: 1-8

Mark Evgenyevich Koryagin
Kemerovo State Agricultural Institute, Russia

The decline in sales of new cars in Russia leads to the necessity for a more complicated procedure connected with the sale of pre-owned cars. Creating a sequence of premium brand pre-owned cars purchasing and selling will lead to an increase in new car sales and increase customers` loyalty. A mathematical model of the formation of car purchase and transaction chains is proposed. The developed program module allows creating the required number of transaction chains based on customers` requirements. A numerical example demonstrating the effectiveness of the module for the regional car dealerships is provided.

View article


1. Abraham, R., Zikiye, M.W., & Harrington, C. (2015). A Theoretical Model of Competitive Equilibria in the New Car Market. Theoretical Economics Letters, 5, 196-211. doi:10.4236/tel.2015.52024

2. Albuquerque, P., & Bronnenberg, B.J. (2012). Measuring the Impact of Negative Demand Shocks on Car Dealer Networks. Marketing Science, 31(1), 4-23. doi:10.1287/mksc.1110.0659

3. Anurit, J. (2002). An investigation into consumer behaviour towards the purchase of new luxury cars in two culturally distinct countries: The UK and Thailand. Middlesex University. PhD diss.

4. Buskens, V., & Weesie, J. (2000). An Experiment on the Effects of Embeddedness in Trust Situations: Buying a Used Car. Rationality and Society, 12(2), 227-253. doi:10.1177/104346300012002004

5. Chen, Y., Yang, S., & Zhao, Y. (2008). A Simultaneous Model of Consumer Brand Choice and Negotiated Price.Management Science, 54(3), 538-549. doi:10.1287/mnsc.1070.0815

6. Duvan, B.S., & Ozturkcan, S. (2009). Used Car Remarketing. In: International Conference on Social Sciences (ICSS), Izmir, Turkey.

7. Esteban, S., & Shum, M. (2007). Durable-goods oligopoly with secondary markets: The case of automobiles. The RAND Journal of Economics, 38(2), 332-354. doi:10.1111/j.1756-2171.2007.tb00071.x

8. Haan, M.A., & de Boer, H. (2010). Has the Internet Eliminated Regional Price Differences?, Evidence from the Used Car Market. De Economist, 158(4), 373-386. doi:10.1007/s10645-010-9151-4

9. Kapferer, J.N. (2008). The new strategic brand management: Creating and sustaining brand equity long term. Kogan Page.

10. Morton, F.S., Zettelmeyer, F., & Silva-Risso, J. (2004). A test of bargaining theory in the auto retailing industry. Working Paper, Yale University.

11. Odekerken-Schröder, G., Hennig-Thurau, T., & Knaevelsrudd, A.B. (2010). Exploring the Post-Termination Stage of Consumer-Brand Relationships: An Empirical Investigation of the Premium Car Market. Journal of Retailing, 86, 372-385. doi:10.1016/j.jretai.2010.09.004

12. Odekerken-Schröder, G., Ouwersloot, H., Lemmink, J., & Janjaap, S. (2003). Consumers' trade-off between relationship, service package and price: An empirical study in the car industry. European Journal of Marketing,37(1), 219-242. doi:10.1108/03090560310454262

13. Schiraldi, P. (2011). Automobile Replacement: A Dynamic Structural Approach. The RAND Journal of Economics,42(2), 266-291. 10.1111/j.1756-2171.2011.00133.x.

14. Verhoef, P.C., Langerak, F., & Donkers, B. (2007). Understanding Brand and Dealer Retention in the New Car Market. The Moderating Role of Brand Type Journal of Retailing, 83(1), 97-113. doi:10.1016/j.jretai.2006.10.00

15. Vigripat, T., & Peng, C. (2007). An Empirical Investigation of the Relationship Between Service Quality, Brand Image, Trust, Customer Satisfaction, Repurchase Intention, and Recomendation to Others. Bangkok: Asia Pacific Decision Sciences Institute

16. Yee, C.J., San, N.C., & Khoon, C.H. (2011). Consumers' Perceived Quality, Perceived Value and Perceived Risk Towards Purchase Decision on Automobile. American Journal of Economics and Business Administration, 3(1), 47-57.