Coordinating a supply chain with negative effect of retailer’s local promotion on goodwill and reference price

2017 ◽  
Vol 51 (1) ◽  
pp. 227-252 ◽  
Author(s):  
Lihao Lu ◽  
Jianxiong Zhang ◽  
Wansheng Tang
Keyword(s):  
Supply Chain ◽  
Reference Price ◽  
Negative Effect

scholarly journals Strategic Analysis of the Pricing Mechanisms in an Online Book Supply Chain in the Presence of Reference Price Effects

2021 ◽  
Vol 16 (5) ◽  
pp. 1492-1516
Author(s):  
Wenhua Hou ◽  
Yuwen Zeng
Keyword(s):  
Supply Chain ◽  
Discount Rate ◽  
Reference Price ◽  
Stackelberg Game ◽  
Lower Boundary ◽  
Retail Price ◽  
Reference Points ◽  
Price Effects ◽  
Retail Prices ◽  
Online Book

(1) Background: A binding recommended retail price has been used in several markets in a variety of forms, and the book market is a typical example. Publishers sell books to online retailers at a unit wholesale discount computed on the cover price. Retailers are then allowed to set the retail price. Therefore, if consumers regard the cover prices as reference points, then they may be more likely to purchase books if retail prices are lower than the cover prices. (2) Methods: We develop a Stackelberg game model for a book supply chain to investigates how reference price effects affect retailers and publisher’s pricing strategies. (3) Results: The results show that retailers will sell printed books at a discount only when the publisher’s wholesale discount rate is not high. Further, as the intensity of the reference price effects increases, (a) the lower boundary of the wholesale discount rate rises, (b) publishers’ profits increase and (c) retailers’ profits increase relative to the level of consumers’ e-books acceptance. (4) Conclusions: This result is related to the fact that the online retailer, such as Amazon and JD.com, like to invoke reference price effects in consumers’ minds by highlighting the printed book’s discount rate.

scholarly journals Research on Pricing Decision of Direct Sales Green Supply Chain Based on Consumers’ Valuation

2021 ◽  
Vol 2021 ◽  
pp. 1-17
Author(s):  
Yong-Gang Ye ◽  
Xiao-Feng Liu
Keyword(s):  
Supply Chain ◽  
Simulation Analysis ◽  
Stackelberg Game ◽  
Game Model ◽  
Direct Sales ◽  
Equilibrium Prices ◽  
Theoretical Support ◽  
Pricing Decision ◽  
Negative Effect ◽  
Product Valuation

Consumer’s valuation of merchandise is an important factor affecting consumer buying behavior. When the consumer’s valuation exceeds the price of product, the consumer generally makes a decision to purchase the product; conversely, when the consumer’s estimate is lower than the price of product, the consumer will usually refuse to buy the product. From the perspective of consumer product valuation, this study assumed that the consumer’s product valuation obeys a uniform distribution, and a novel consumer demand function was proposed. On this basis, we studied enterprises’ pricing decisions in the supply chain of green agricultural products and obtained the equilibrium prices and optimal profits of the enterprises in several different scenarios, including Vertical Nash game model (VNM), firm A Stackelberg game model (FASM), firm B Stackelberg game model (FBSM), and cooperative game model (CM). In addition, the influence of parameters, such as green level, green preference payment coefficient, and green cost on the optimal profit, was discussed based on game theory and numerical simulation analysis. It was found that equilibrium prices always existed in several different scenarios, and when consumer’s green preference payment coefficient was large enough, the optimal profit of firm B was greater than the optimal profit of firm A. Furthermore, in CM, the sum of optimal profit of firm A and optimal profit of firm B is maximum for four scenarios. Finally, in the three competitive scenarios, green level, green preference payment coefficient, and green cost, have a positive or negative effect on the optimal profits of firm A or firm B. The research conclusions of this study provided theoretical support for the decision-making of enterprises and related management departments.

scholarly journals A Building-Material Supply Chain Sustainable Operations under Fairness Concerns and Reference Price Benefits

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-14
Author(s):  
Huimin Xiao ◽  
Youlei Xu ◽  
Shiwei Li
Keyword(s):  
Supply Chain ◽  
Building Material ◽  
Cost Sharing ◽  
Reference Price ◽  
Dynamic Models ◽  
Stackelberg Game ◽  
Noncooperative Game ◽  
Sustainable Operations ◽  
Effort Level ◽  
Fairness Concerns

This paper incorporates fairness concerns and consumer reference price effects into a two-echelon building-material closed-loop supply chain consisting of a manufacturer and a retailer. By establishing four differential game models, we investigate the sustainable operations and cooperation of this supply chain. The four game models are a Nash noncooperative game, Stackelberg game with cost sharing, Stackelberg game with fairness concerns and cost sharing, and centralized decision model. By using dynamic models and optimal control theory, we obtain the two members’ optimal equilibrium strategies in the supply chain. Analytical results show that the consumer reference price effect has a positive impact on the manufacturer’s effort level, retailer’s publicity level, and product brand goodwill, which can improve the supply chain performance. The retailer’s partial commitment to cost sharing can enhance the production enthusiasm of the manufacturer, improve the brand reputation of the product, and enhance the two members’ individual profitability. The distributional fairness concerns of the manufacturer not only prevent the manufacturer and retailer from achieving Pareto improvement but also lead to the decline of the manufacturer’s effort level and profitability. The research conclusions of this paper can provide some insights into the cooperation and sustainable development of the supply chain.

scholarly journals Disclosure Integration of Lean Six Sigma Principles in Sustainable Supply Chain in Poultry Industry

2021 ◽  
Vol 4 (1) ◽  
pp. 300-312
Author(s):  
Ratna Yulia Kusumastuti ◽  
Heti Mulyati ◽  
Gendut Suprayitno
Keyword(s):  
Supply Chain ◽  
Environmental Sustainability ◽  
Six Sigma ◽  
Management System ◽  
Security Management ◽  
Lean Six Sigma ◽  
Poultry Industry ◽  
Supply Chain Security ◽  
Negative Effect ◽  
Positive Effect

The poultry industry has been in the spotlight for its enormous potential economic development. However, poultry industry is still not implementing the concept of sustainability properly. There are still many wastes that have not been managed properly and there are still many problems in the supply chain that require more systematic handling. Many studies have shown that the implementation of Lean Six Sigma (LSS) and sustainability has positive results on the company's bottom line performance. This research tried to integrate the application of LSS principles and sustainability along the supply chain in the poultry industry in Indonesia. Data were collected from 4 listed poultry firms in Indonesia. The research method used SEM PLS with SmartPLS software. The results showed that supply chain security management system disclosure as the principle of LSS had a positive effect on the collaboration of supply chain disclosure and collaboration of supply chain disclosure had a positive effect on sustainability. The results also showed that risk management disclosure had a negative effect on the collaboration of supply chain disclosure and economic sustainability had a negative effect on environmental sustainability, but social sustainability had a positive effect on environmental sustainability. Based on the results of this study, there is a need to improve supply chain security management system and supply chain collaboration in order to advance sustainable poultry industry.

scholarly journals Healthcare Supply Chain Network Coordination Through Medical Insurance Strategies with Reference Price Effect

2019 ◽  
Vol 16 (18) ◽  
pp. 3479
Author(s):  
Gao ◽  
Wang
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Healthcare System ◽  
Reference Price ◽  
Medical Insurance ◽  
Patient Choice ◽  
Insurance Fund ◽  
Supply Chain Network ◽  
Price Effect ◽  
The Social

China has established the universal medical insurance system and individual out of pocket costs have decreased, however, the average healthcare expenditure of the Chinese population and the expenses of the whole society have increased substantially. One major challenge which impedes the progress of attaining sustainable development of the social healthcare system in China is that the number of hospital admissions is disproportionate. Superior hospitals are overcrowded, whereas subordinate hospitals are experiencing low admissions. In this paper, we apply the game theory model to coordinate the healthcare supply chain network, which is composed of the government, medical insurance fund, superior hospitals, subordinate hospitals and patients. Especially by taking the reference price effect into account, this paper analyzes different medical insurance reimbursement strategies and their influence on patient choice and the healthcare supply chain network. The result shows that the reference price effect increases the leverage of medical insurance, guides patients’ choice, optimizes the allocation of medical resources and reduces the medical expends. In comparison to a decentralized decision- making strategy, a centralized decision- making strategy can stimulate both superior hospital and subordinate hospital’s cooperative intentions which benefits the social healthcare system.

Supply chain coordination through cooperative advertising with reference price effect

Omega ◽  
2013 ◽  
Vol 41 (2) ◽  
pp. 345-353 ◽  
Author(s):  
Juan Zhang ◽  
Qinglong Gou ◽  
Liang Liang ◽  
Zhimin Huang
Keyword(s):  
Supply Chain ◽  
Reference Price ◽  
Supply Chain Coordination ◽  
Cooperative Advertising ◽  
Price Effect

Counterfeiting and piracy in supply chain management: theoretical studies

2017 ◽  
Vol 32 (1) ◽  
pp. 98-108 ◽  
Author(s):  
Fan Li ◽  
Zelong Yi
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Social Acceptance ◽  
Future Research ◽  
Chain Management ◽  
Content Type ◽  
Management Perspective ◽  
Negative Effect ◽  
Negative Impacts ◽  
Key Aspects

Purpose This paper aims to generate novel insights in supply chain management by reviewing studies related to counterfeiting and piracy issues with a particular emphasis on theoretical works. Design/methodology/approach A systematic literature review of more than 100 peer-reviewed academic papers is conducted. The authors first introduce the social acceptance of counterfeiting and piracy to explain the existence of these illegal products. After that, they focus on the negative effect of counterfeiting and piracy on supply chain management and society while mentioning their positive and normative effects carefully under certain circumstances. Findings People have been attempting to reveal the impacts of counterfeiting and piracy on customers, licit firms, industry sectors, governments and the society as a whole. The negative impacts of counterfeiting and piracy on legal firms and licit supply chains is examined thoroughly in the literature; however, benefits from counterfeiting and piracy are also pointed out. Additionally, researchers are interested in firms’ reactions toward this phenomenon. Based on heuristics from the above analysis, it is fruitful to conduct this research in a theme of supply chain management. Originality/value Most studies on counterfeiting and piracy are not from a supply chain management perspective and mainly focus on their effect on consumers or a single firm. To the best of the authors’ knowledge, this paper is one of few studies that incorporate the key aspects of counterfeiting and piracy into supply chain management and also highlight several important directions for future research in the sense of supply chain.

scholarly journals Equilibrium decisions on pricing and innovation that impact reference price dynamics

2021 ◽  
Vol 0 (0) ◽  
pp. 0
Author(s):  
Shaokun Tao ◽  
Xianjin Du ◽  
Suresh P. Sethi ◽  
Xiuli He ◽  
Yu Li
Keyword(s):  
Supply Chain ◽  
Steady State ◽  
Reference Price ◽  
Stackelberg Game ◽  
Interactive Effect ◽  
Wholesale Price ◽  
Retail Price ◽  
Price Ratio ◽  
Reference Prices ◽  
Consumer Memory

<p style='text-indent:20px;'>Previous studies have confirmed that reference prices play an essential role in consumer purchasing decisions, and some researchers have suggested that reference prices are positively influenced by innovation. Therefore, we construct an interactive effect of innovation and reference price to study their combined impact on supply chain decisions. We model a supply chain, where a manufacturer determines the innovation level and the wholesale price while the retailer controls the retail price, as a dynamic Stackelberg game. We show that the interactive effect causes the steady-state wholesale and retail prices to increase, thus motivating the manufacturer to increase innovation investment. We see that the retail price and the level of innovation increase in reference price effect whereas they decrease in consumer memory. The centralized firm has a higher steady-state innovation level and innovation/price ratio and lower steady-state retail price compared to the decentralized supply chain. Consumers also benefit from the interactive effect as well as from centralization. Finally, we use numerical analysis to demonstrate our results and offer some managerial implications.</p>

Contracting Emissions Reduction Supply Chain Based on Market Low-Carbon Preference and Carbon Intensity Constraint

2020 ◽  
Vol 37 (02) ◽  
pp. 2050003
Author(s):  
Jiaping Xie ◽  
Jing Li ◽  
Ling Liang ◽  
Xu Fang ◽  
Guang Yang ◽  
...  
Keyword(s):  
Supply Chain ◽  
Cost Sharing ◽  
Numerical Study ◽  
Carbon Intensity ◽  
Emissions Reduction ◽  
Low Carbon ◽  
Cost Coefficient ◽  
Carbon Emissions Reduction ◽  
Negative Effect ◽  
The Impact

Carbon emissions reduction has become a frequently discussed topic in industry and academia. However, how can reduction effects be enhanced with dominant brand and downstream manufacturer? This paper incorporates emissions reduction into a green supply chain which considers consumers’ low-carbon preference behavior and government intensity regulations, in order to discuss the impacts of consumers’ environmental awareness and government constraints on optimal emissions reduction and profit, respectively. The paper first constructs three reduction models on the basis of reality: independent reduction by manufacturer, contractual reduction by brand and collaborative reduction by both. Then it concludes the optimal decisions and compare the models. The results show that both the profits and emissions reduction will be decreased with the strengthened carbon intensity constraint, but the cost-sharing contract can mitigate this negative effect on dominant brand and society. Meanwhile, the acceptable range of cost-sharing ratio will be smaller with a lower cost coefficient of emissions reduction and a higher consumers’ preference. Furthermore, government should design the incentive method or regulate the carbon market to improve the social welfare level. Lastly, a numerical study is conducted, the impact of several key factors on supply chain performance and model selection are presented for management decisions.

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