The effect of customer value and power structure on retail supply chain product choice and pricing decisions

In the retail industry, customer value has become the key to maintaining competitive advantages. In the era of new retail, customer value is not only affected by the product price, but it is also closely related to innovations, such as value-added services and unique business models. In this paper, we study the joint innovation investment and pricing decisions in a retailer–supplier supply chain based on revenue sharing contracts and customer value. We first find that, in the non-cooperative game, equilibrium only exists in the supplier Stackelberg game. However, revenue sharing contracts cannot coordinate the supply chain in the non-cooperative game. By considering supply chain members’ bargaining power, we find that there exists a unique equilibrium for the Nash bargaining product. In addition, revenue sharing contracts can coordinate the supply chain and achieve the optimal consumer surplus. When the supply chain is coordinated, supply chain profit is allocated to the supply chain members based on their bargaining powers.

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Pricing Decisions on Online Channel Entry for Complementary Products in a Dominant Retailer Supply Chain

Sustainability ◽

10.3390/su12125007 ◽

2020 ◽

Vol 12 (12) ◽

pp. 5007 ◽

Cited By ~ 1

Author(s):

Qiongqiong Gu ◽

Xiaodong Yang ◽

Bin Liu

Keyword(s):

Supply Chain ◽

Power Structure ◽

The Other ◽

Complementary Products ◽

Pricing Decisions ◽

Online Channel ◽

Stackelberg Model ◽

Dominant Retailer ◽

Marketing Actions ◽

Offline Channels

This study considered the supply chain that two manufacturers sell green complementary products to a dominant offline retailer. We investigated whether a manufacturer (the integrated manufacturer) should add an online channel and examined how it affects channel members’ decisions and profits. We formulated the power structure as the retailer-Stackelberg model and analyzed the pricing decisions for the supply chain. The results demonstrate that the integrated manufacturer prefers not to add the online channel when online and offline market bases are comparable and the level of complementarity is moderate. The integrated manufacturer gains more power at the expense of the offline retailer and the other manufacturer (the traditional manufacturer) when the complementarity between the offline and online channel is the same as offline channels with the addition of a new online channel; furthermore, the retailer earns less, while the traditional manufacturer’s profit hinges on the complementarity between the online and offline channels. It is beneficial for the offline retailer to balance the online and offline market bases of product 1 by improving the sales environment of the physical store. The integrated manufacturer can benefit from varying their marketing actions to decrease the degree of complementarity between the retail and online channels for the two products, while the traditional manufacturer can be better off from the online channel introduction by taking steps to increase the complementarity of the two products between the offline channels.

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Optimal innovation investment: the role of subsidy schemes and supply chain channel power structure

Computers & Industrial Engineering ◽

10.1016/j.cie.2021.107291 ◽

2021 ◽

Vol 157 ◽

pp. 107291

Author(s):

Chaofan Li ◽

Qiliang Liu ◽

Pin Zhou ◽

Hongjun Huang

Keyword(s):

Supply Chain ◽

Power Structure ◽

Channel Power

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Pricing decisions with different time sequences in a cross‐border dual‐channel supply chain

International Transactions in Operational Research ◽

10.1111/itor.12937 ◽

2021 ◽

Author(s):

Xue Chen ◽

Bo Li ◽

Simin An ◽

Yanran Li

Keyword(s):

Supply Chain ◽

Pricing Decisions ◽

Cross Border ◽

Dual Channel ◽

Dual Channel Supply Chain ◽

Time Sequences

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A Model of Waste Price in a Symbiotic Supply Chain Based on Stackelberg Algorithm

Sustainability ◽

10.3390/su13041740 ◽

2021 ◽

Vol 13 (4) ◽

pp. 1740

Author(s):

Cheng Che ◽

Xiaoguang Zhang ◽

Yi Chen ◽

Liangyan Zhao ◽

Zhihong Zhang

Keyword(s):

Sensitivity Analysis ◽

Supply Chain ◽

Comparative Analysis ◽

Power Structure ◽

Income Level ◽

Power Structures ◽

Optimal Price ◽

Supply Chain System ◽

Chain System ◽

Revenue Model

By establishing a two-level symbiotic supply chain system consisting of one supplier and one manufacturer, we use Stackelberg method to analyze the optimal price and revenue model of supplier and manufacturer in the symbiotic supply chain under two power structures in which the supplier and manufacturer are dominant respectively, and analyze the influence of the degree of symbiosis and power structure on the model. Through comparative analysis, we find that: There is a relationship between the income level and the degree of symbiosis in the symbiotic supply chain. The change of power structure will affect the relative benefits of suppliers and manufacturers in the symbiotic supply chain. The manufacturer’s expected unit product revenue will affect the supply chain revenue when the manufacturer is dominant. Finally, the sensitivity analysis of relevant parameters is carried out through an example analysis, and the validity of the conclusion is verified. This paper has a guiding significance for the behavior of enterprises in the cogeneration supply chain.

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The Impact of Food Quality Information Services on Food Supply Chain Pricing Decisions and Coordination Mechanisms Based on the O2O E-Commerce Mode

Journal of Food Quality ◽

10.1155/2018/8956820 ◽

2018 ◽

Vol 2018 ◽

pp. 1-18 ◽

Cited By ~ 2

Author(s):

Xiaoqiu Yu ◽

Xiaoxue Ren

Keyword(s):

Supply Chain ◽

Food Quality ◽

Food Supply ◽

Food Processing ◽

Stackelberg Game ◽

Information Service ◽

Quality Information ◽

Food Supply Chain ◽

Quantity Discount ◽

Pricing Decisions

This paper considers the price conflict problem between the online channel of a food processing factory and the offline channel of the food retailers in food supply chains by analyzing the pricing decisions and coordination mechanisms between the food processing factory and food retailers under the influence of a food quality information service. First, the Stackelberg game method and the Bertrand game method are used to optimize the pricing decisions with the goal of maximizing the profits of the food processing factory and retailer. The analysis shows that the food quality information service level is positively correlated with the price of the factory’s own channel, and the influence of the food quality information service level on the price of the food processing factory’s or the food retailer’s own channel is stronger than its influence on the price of a competitor’s channel. Second, the food supply chain members’ pricing decisions are analyzed using the case analysis method by considering practical problems in the food supply chain. The results indicate that the food processing factory should use the Stackelberg game to make pricing decisions. However, it is optimal for the food retailer to make pricing decisions under the Bertrand game, and the total profit of the food supply chain is optimized under centralized decision making. Finally, we use both the quantitative discount mechanism and the Stackelberg game method to analyze the profits obtained by the food processing factory and retailer. The results indicate that the food processing factory should implement a quantitative discount mechanism when the quantity discount coefficient is greater than 0.4, and the retailer should implement a quantity discount mechanism when the quantity discount coefficient is in the range of 0.25 to 0.4.

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Supply chain practices and organizational performance

The International Journal of Logistics Management ◽

10.1108/ijlm-06-2015-0090 ◽

2017 ◽

Vol 28 (1) ◽

pp. 75-101 ◽

Cited By ~ 18

Author(s):

Shrikant Gorane ◽

Ravi Kant

Keyword(s):

Supply Chain ◽

Customer Satisfaction ◽

Financial Performance ◽

Organizational Performance ◽

Customer Value ◽

Structural Equation ◽

Decision Makers ◽

Current Status ◽

Content Type ◽

Manufacturing Organizations

Purpose The purpose of this paper is to empirically test a framework which identifies the relationships between various supply chain practices (SCPs) and organizational performance (operational performance (OP), customer satisfaction, and financial performance) in the context of Indian manufacturing organizations. Design/methodology/approach From the literature, ten SCPs are selected which finally influences the organizational performance. In order to understand the interactions between SCPs and organizational performance, this paper grouped the ten SCPs into four constructs namely: information and communication technology, supply chain (SC) integration, operational responsiveness, and closed loop green practices. Three levels of firm performance are also examined, including OP, customer satisfaction, and financial performance. The paper-based and web-based survey yielded 292 responses from the Indian manufacturing organizations. The data collected were put through rigorous statistical analysis to test for the content, construct, and criterion-related validity, as well as reliability analyses. Further a structural equation model was developed to test the relationships between SCPs and organizational performance. Findings The finding suggests that a successful SCPs implementation not only improves the OP, but also enhances customer satisfaction and financial performance. In addition, higher financial performance is also attributable to better customer value resulting from the achievement of better customer satisfaction. Research limitations/implications SCPs are complex constructs. While this study shows the effect of broadly accepted SCPs on organizational performance, not all possible practices are covered in this study. Again the study can be further extended to sector specific so that the results can be further refined. Practical implications This is one of the few studies which attempts to investigate whether there is any relationship exits between SCPs and organizational performance. The finding will help decision makers in the organization to know the importance of SCPs and how SCPs influence the organizational performance. Second, this study has developed and validated a multi-dimensional construct of SCPs, which can assist decision makers of Indian organizations to evaluate the competence of their current status of SCPs in the organization. Originality/value As per the knowledge of the authors, this is the first kind of study which empirically investigated the relationships between SCPs and organizational performance in the context of Indian manufacturing organizations.

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