Abstract: This article established a duopoly game model of manufacturing enterprises carrying out services in the product life cycle with the premise of customer’s rational perception of service, and developed Nash equilibrium of the game model. With the method of numerical simulation, the dynamic process under the change of variable influence factors was displayed. The result shows that, when the manufacturing enterprises carry out the product life cycle services, manufacturers and independent service companiescan both have benefits from the service market. With marginal cost of service quality factor increasing, the balanced price of service increases, however, with the customer perception of the initial service price factor increasing, the price decreases. As the remaining life of product reduces, manufacturers need to reduce service quality and price to occupy the independent service company’s service area.

Key words: product full life cycle, productservice system, game theory