The Choice of Product-service Quality and Service Differentiation Model Research

Abstract: Along with social development, Enterprise's competition, the products quality, services quality and sales price which Enterprises should provide are the most important factors for the Enterprises' success. Consumers bought products and services is aimed at bringing material and spiritual satisfaction from consuming products , but the extent of consumer satisfaction is relate to the consumers' net utility, however, product quality, service quality and sales prices are the most important factors for the customers to buy or not. Therefore, enterprises should provide a certain level of product quality, service quality and the price to meet the needs of some consumers, so that the enterprises can made the biggest profit, but the level of the quality and price are placed at the enterprise must address. The main purpose of this paper is that the use of utility function, cost function, profit function to solve the problem which the enterprises are faced with resolving product quality, service quality and price balance optimal.First, Studying the optimal product quality, optimal price and optimal service quality which the enterprise should provide in monopoly conditions. In this part, using the basic knowledge of economics, to establish the corporate profit function models. We concluded the monopoly enterprise's optimal product quality and service quality by solving the model. after, we discussed the changes of the quality and the price when the in external factors changing.Second, we studied the optimal quality and the optimal price when duopoly's products homogeneous of serious, to achieve the maximizing profits so that to enhance the competitiveness of enterprises. In duopoly competition, We got the equation about quality and price by subdivided the market, but it's very difficult t…
Key words: Service quality; Product quality; Quality utility; Monopoly; Duopoly

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