The Impact of Long-Term Provision Costs on Performance of Trade in Serbia
Abstract
Long-term provision costs in trade are based on uncertain obligations in the future in relation to the goods sold. They mostly refer to warranty costs. Warranty costs are caused by repair and servicing of the sold products during the warranty period. They are function of the quality, usage and maintenance (storage) of sold product. In marketing sense, warranty costs are increasingly treated as an instrument of sales and customer satisfaction in terms of functionality and durability of the product. Regarding the above mentioned this paper primarily investigates the impact of the cost of long-term provisions - warranty costs on the performance of retailers, with special emphasis on Serbia. These theoretical, methodological and empirical findings should serve as a basis for retailers to efficiently manage warranty costs in order to achieve the target profit with maximum customer satisfaction.
Keywords:
quality, warranty, customer satisfaction, retail profitReferences
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Amberkar, S.; Jagtap, M.M. (2014). Warranty Cost Modelling and Analysis. International Journal of Scientific & Engineering Research 5(12): 40-44.
Chatzipetrou, E.; Moschidis, O. (2016). Quality costing: a survey in Greek supermarkets using multiple correspondence analysis. International Journal of Quality & Reliability Management 33(5): 615-632.
Greuning, H. V.; Scott, D.; Terblanche, S., (2011). International Financial Reporting Standards, A Practical Guide. Sixth Edition. The Washington, D.C.
Hanić, H.; Radojko, L. (1978). Analiza likvidnosti radnih organizacija na bazi matrice rasta. Knjigovodstvo 12: 64-69.
Is Tesla Adequately Reserving For Warranty Expenses? Available at: http://seekingalpha.com/article/3525116-teslaadequately-reserving-warranty-expenses. Accessed 16 November 2016.
Kieso, D.E.; Weygandt, J.J.; Warfield, T.D. (2016). Intermediate Accounting. Wiley.
Kulkarni, V.; Resnick, S.I. (2008). Warranty claims modelling. Naval Research Logistics 55(4): 339–349.
Lukić, R. (2014). Utjecaj povrata roba na performanse u maloprodaji. Ekonomski pregled 65(1): 89-104.
Lukić, R. (2015). Računovodstvo trgovinskih preduzeća. Beograd: Ekonomski fakultet.
Mai, D. T.; Liu, T.; Morris, M. D. S.; Sun, S. (2017). Quality coordination with extended warranty for store-brand products. European Journal of Operational Research 256: 524-532.
Maronick, T.J. (2007). Consumer perceptions of extended warranties. Journal of Retailing and Consumer Services 14: 224-231.
Murthy, D.N.P. (2007). Product reliability and warranty: an overview and future research. Produção 17(3): 426-434.
Settlements and Plans: Calculation Expense Account in the Warranty and Warranty service overhaul. Available at: http://www.busel.org/texts/cat3at /id5rwecnb.htm. Accessed 28 November 2016.
Stojanovic, D (1986b). A Comparative Analysis of the Economic Movements. The Basis of a Growth Matrix. SocioEconomic Planning Science, 20(2): 75-78.
Stojanovic, D (1988).The Growth Matrix of the Sale. Journal of the Operational Research Society 39(11): 1051-1055.
Stojanovic, D. (1985a). An Extended Matrix of Economic Growth And Corresponding Dynamic System. SocioEconomic Planning Sciences 19(1): 17-19.
Stojanovic, D. (1985b). A Model of the Economy Based On An Interpolated Growth Matrix. Socio-Economic Planning Sciences 19 (3):201- 2014.
Stojanovic, D. (1986a). Coefficient of Stability of Economic Movements. Socio-Economic Planning Sciences 20(1):1-3.
Stojanović, D. (1990). Ekonomsko matematički metodi i modeli, dodatak: Matrica rasta. Beograd: Ekonomski fakultet.
UK retailers count the cost of returns. Available at: https://www.ft.com/content/52d26de8-c0e6-11e5-846f79b0e3d20eaf. Accessed 17 November 2016.
UK retailers count the cost of returns. Available at: https://www.ft.com/content/52d26de8-c0e6-11e5-846f79b0e3d20eaf. Accessed 17 November 2016.
Warranty Cost: An Introduction. Available at: https://www.quanterion.com/warranty-cost-an-introduction/. Accessed 16 November 2016.
Warranty Week - Three German OEMs Auto Warranty Claims Rates, 2002-2015 (as a % of product sales). Available at: http://www.warrantyweek.com/archive/ww20160630.html. Accessed 18 November 2016.
Warranty Week - US Service Contract Industry Premiums Paid by Consumers, 2006 to 2016 (in US $ billions per year). Available at: http://www.warrantyweek.com/archive/ww20160929.html. Accessed 28 November 2016.
Гарантийный ремонт: учет и налогообложение у продавца или производителя. Available at: http://glavkniga.ru/elver/2013/11/1069-garantijnij_remont_uchet_nalogooblozhenie_prodavtsa_proizvoditelja.html. Accessed 28 November 2016.
Расчеты и планы: Учет в калькуляции расходов на гарантийный ремонт и гарантийное обслуживание. Available at: http://www.busel.org/texts/cat3at/id5rwecnb.htm. Accessed 28 November 2016.
LUKIC, R. (2020). The Impact of Long-Term Provision Costs on Performance of Trade in Serbia. Economic and Environmental Studies, 17(3 (43), 455–474. https://doi.org/10.25167/ees.2017.43.1
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