Channel structure and differential pricing strategies in dual-channel e-retail considering e-platform business models

2020 ◽  
Vol 32 (1) ◽  
pp. 91-114
Author(s):  
Yufang Fu ◽  
Bojun Gu ◽  
Yuying Xie ◽  
Jun Ye ◽  
Bin Cao
Keyword(s):  
Service Quality ◽  
Business Models ◽  
Dynamic Game ◽  
The Self ◽  
Channel Structure ◽  
Third Party ◽  
Pricing Strategies ◽  
Dual Channel ◽  
Channel Preference ◽  
Retail Prices

Abstract Although online business has been growing for some time, third-party e-platforms and their impact on e-channels are an under-explored area in the literature on dual-channel supply chains. Considering different combinations of open and self-support e-platform, this paper develops dynamic game models in four dual-channel e-retail structures to study pricing strategies and channel preference for manufacturers. The results provide interesting insights. First, a manufacturer’s optimal prices vary in different e-channels. Second, e-retail prices on the self-support e-platform and open e-platform are both affected by the e-platform’s service quality and commission fee. Regardless of the channel structure, a better service quality by one e-platform leads to an increase in its own e-retail prices and forces the competing e-platform to either improve its service quality or take a lower price. Lastly and more importantly, we compare the manufacturer’s pricing strategies and performances in different dual-channel e-retail structures and identify its preferences. Specifically, if the commission fee is dynamic, we find that the manufacturer always prefers to use two e-channels provided by different e-platforms, and at least one of the e-channels is the self-support model, although it is a sub-optimal strategy.

Equal Pricing Strategies in a Dual Channel Supply Chain

2013 ◽  
pp. 230-249 ◽  
Author(s):  
Ue-Pyng Wen ◽  
Yun-Chu Chen ◽  
Kam-Hong Cheung
Keyword(s):  
Supply Chain ◽  
Service Quality ◽  
Wholesale Price ◽  
Retail Price ◽  
Pricing Strategy ◽  
Pricing Strategies ◽  
Direct Channel ◽  
Cooperative Strategy ◽  
Dual Channel ◽  
Dual Channel Supply Chain

In this article, equal pricing strategies are studied in a dual channel supply chain where a manufacturer sells to a retailer as well as to consumers through a direct channel according to the assumption that the manufacturer commits setting the same retail price as the traditional channel to reduce the channel’s conflict. The authors first analyze the effect of different pricing strategies on the retail price, wholesale price and profits. The cooperative strategy is also studied to see how it benefits both parties in the dual channel supply chain. Finally, through a numerical example, it is demonstrated that providing convenience of the direct channel is important for the manufacturer and service is a distinctive advantage for the retailer. Furthermore, the paper shows that if the service quality has a significant effect on the direct channel, then the manufacturer tends to abandon commitment of equal pricing strategy.

scholarly journals Strategic Analysis of the Online Recycler’s Reselling Channel Selection: Agency or Self-Run

2019 ◽  
Vol 12 (1) ◽  
pp. 78
Author(s):  
Qiang Guo ◽  
Zenglu Li ◽  
Jiajia Nie
Keyword(s):  
Environmental Sustainability ◽  
Rapid Development ◽  
Consumer Surplus ◽  
Channel Selection ◽  
The Self ◽  
Channel Structure ◽  
Agency Model ◽  
Recycling Industry ◽  
Channel Preference ◽  
Better Than

With the rapid development of the internet, many WEEE (Waste Electrical and Electronic Equipment) online recyclers have emerged and developed. They improve recycling efficiency significantly and bring hope for sustainable development. Unfortunately, few works in the literature are concerned about it, with many questions still unanswered. The WEEE online recyclers always face a challenge with regard to how to strategically design their reselling channel structure in fact. In this paper, we examined this challenge by two decision models: agency and self-run. We derived the performance of the self-run model and agency model by backward induction and then examined the desirability from different stakeholders’ perspective. The results suggested that WEEE online recyclers prefer the self-run model to the agency model when the unit recycling cost is low and a conflict exists between the WEEE online recycler and e-retailer for the resale channel preference. Interestingly, the manufacturer shows consistent resale channel preference with the WEEE online recycler when the unit recycling cost is low. Our further analysis revealed that all players can agree on the agency model in a certain case. In addition, we found that the consumer surplus and the recovery ratio in the self-run model are always better than that in the agency model. Our work provides insight into the promotion of the WEEE online recycling industry and into the resale channel selection for online recyclers. The study also generates managerial insights for environmental sustainability.

Equal Pricing Strategies in a Dual Channel Supply Chain

2011 ◽  
Vol 2 (4) ◽  
pp. 34-51 ◽  
Author(s):  
Ue-Pyng Wen ◽  
Yun-Chu Chen ◽  
Kam-Hong Cheung
Keyword(s):  
Supply Chain ◽  
Service Quality ◽  
Wholesale Price ◽  
Retail Price ◽  
Pricing Strategy ◽  
Pricing Strategies ◽  
Direct Channel ◽  
Cooperative Strategy ◽  
Dual Channel ◽  
Dual Channel Supply Chain

In this article, equal pricing strategies are studied in a dual channel supply chain where a manufacturer sells to a retailer as well as to consumers through a direct channel according to the assumption that the manufacturer commits setting the same retail price as the traditional channel to reduce the channel’s conflict. The authors first analyze the effect of different pricing strategies on the retail price, wholesale price and profits. The cooperative strategy is also studied to see how it benefits both parties in the dual channel supply chain. Finally, through a numerical example, it is demonstrated that providing convenience of the direct channel is important for the manufacturer and service is a distinctive advantage for the retailer. Furthermore, the paper shows that if the service quality has a significant effect on the direct channel, then the manufacturer tends to abandon commitment of equal pricing strategy.

scholarly journals Pricing Decisions of Competing Tobacco Enterprises with Online Channel

2015 ◽  
Vol 2015 ◽  
pp. 1-8
Author(s):  
Rong Zhang ◽  
Jackson Jinhong Mi ◽  
Bin Liu
Keyword(s):  
Stackelberg Game ◽  
Channel Structure ◽  
Pricing Strategies ◽  
Equilibrium Pricing ◽  
Sales Channels ◽  
Pricing Decisions ◽  
Online Sales ◽  
Dual Channel ◽  
Online Channel ◽  
Channel Structures

According to the new measurement of launching online distribution channels of tobacco enterprises in China, this paper investigates the tobacco firm’s pricing decisions on the supply chain which consists of two manufacturers and one retailer under three dual-channel structures. Three dual-channel structures include no online channel, only one online channel by one manufacture, and two online channels by two manufacturers. We apply the Stackelberg game to analyze the equilibrium pricing strategies under different structures and try to explore the necessity and advantages of launching online sales channels. The results demonstrate that the substitutability of a product has significant impact on introducing online sales channels, and the online dual-channel structure could result in less profit for manufacturers compared to the traditional retail channel structure; and thus, a dual-channel structure with online sales is not the best strategy for traditional manufacturers. Moreover, when the product is less substitutable, the effect of the tobacco control on the online sales channel is inferior to the traditional channels and vice versa.

Manufacturers Satisfaction on Third Party Logistics Providers’ Service Quality

2020 ◽  
Vol 24 (02) ◽  
pp. 2622-2632
Author(s):  
Abdul Khabir Rahmat ◽  
Nasruddin Faisol ◽  
Adi Aizat Yajid ◽  
Muhammad Izwan Mohd Badrillah
Keyword(s):  
Service Quality ◽  
Third Party ◽  
Third Party Logistics

Customer-Oriented Constructive Deviance as a Reaction to Organizational Injustice Toward Customers

2021 ◽  
pp. 193896552110123
Author(s):  
Taeshik Gong ◽  
Pengchang Sun ◽  
Min Jung Kang
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Servant Leadership ◽  
Survey Data ◽  
Third Party ◽  
Service Climate ◽  
Perceived Service Quality ◽  
Hotel Managers ◽  
The Relationship ◽  
Organizational Injustice

To date, research on the deontic model and third-party reactions to injustice has focused primarily on individuals’ tendency to punish the transgressor. In this study, we seek to extend the extant research by arguing that punishment may not be the only deontic reaction and that third-party observers of injustice should engage in activities that help the victim. More specifically, we explore employee’s customer-oriented constructive deviance as a reaction to organizational injustice toward customers. We also investigate how this deviance influences customer satisfaction. In addition, we explore service climate, driven by servant leadership as a moderator on the relationship between employees’ perceptions of organizational unfairness and customer-oriented constructive deviance. The study collected three-level survey data from 95 hotel managers, 396 employees, and 1,848 customers. We find that servant leadership increases service climate, which in turn strengthens the relationship between organizational injustice toward customers and customer-oriented constructive deviance. The findings also reveal that customer-oriented constructive deviance increases perceived service quality, leading to customer satisfaction. Our study significantly contributes to the emerging theory concerning customer-oriented constructive deviance by explaining the antecedents, consequences, and moderators. The study also helps managers deal with customer-oriented constructive deviance in the workplace.

scholarly journals Decisions and Coordination in E-Commerce Supply Chain under Logistics Outsourcing and Altruistic Preferences

Mathematics ◽  
2021 ◽  
Vol 9 (3) ◽  
pp. 253
Author(s):  
Yuyan Wang ◽  
Zhaoqing Yu ◽  
Liang Shen ◽  
Runjie Fan ◽  
Rongyun Tang
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Stackelberg Game ◽  
Consumer Preferences ◽  
Third Party ◽  
Altruistic Behavior ◽  
Fixed Cost ◽  
Equilibrium Solutions ◽  
Factors Affecting ◽  
Dual Channel

Considering the peculiarities of logistics in the electronic commerce (e-commerce) supply chain (ESC) and e-commerce platform’s altruistic preferences, a model including an e-commerce platform, third-party logistics service provider, and manufacturer is constructed. Based on this, three decision models are proposed and equilibrium solutions are obtained by the Stackelberg game. Then, an “altruistic preference joint fixed-cost” contract is proposed to maximize system efficiency. Finally, numerical analysis is used to validate the findings of the paper. The article not only analyzes and compares the optimal decisions under different ESC models, but also explores the intrinsic factors affecting the decisions. This paper finds that the conclusions of dual-channel supply chains or traditional supply chains do not necessarily apply to ESC, and that the effect of altruistic behavior under ESC is influenced by consumer preferences. Moreover, there is a multiparty win–win state for ESC, and this state can be achieved through the “altruistic preference joint fixed-cost” contract. Therefore, the findings of this paper contribute to the development of an e-commerce market and the cooperation of ESC members.

scholarly journals ANALISIS PENGARUH PERSEPSI KUALITAS PELAYANAN DAN PERCEIVED VALUE TERHADAP KEPUASAN RELIGIUS UNTUK MENINGKATKAN MINAT MENABUNG ULANG (Studi Pada BNI Syariah Semarang)

2016 ◽  
Vol 13 (1) ◽  
pp. 14
Author(s):  
Hibba Al Kanzu ◽  
Harry Soesanto
Keyword(s):  
Service Quality ◽  
Perceived Value ◽  
Third Party ◽  
Islamic Banking ◽  
Repurchase Intention ◽  
Perceived Service Quality ◽  
Data Analyst ◽  
Regression Test ◽  
Independent Variable ◽  
Positive Effect

The problem in this research is a decrease in the amount of third party funds (savings)are decreased and the high number of closing the savings account of Islamic banking.This research aims to test the power of perceived service quality and perceived value toreligious satisfaction to improve consumer resaving interest in an Islamic Banking insemarang (study in BNI Syariah). This study using three independent variable isperceived service quality and perceived value , variable resaving intention consumer as adependent variable and variable religious satisfaction as intervening.A method of this research technique using probability sample that is random samplingand clusters of sampling to sample as many as 100 of respondents in the middle class andover who had bought an apartment in semarang .A method of data analyst using atechnique double regression analysis , the analysis includes: test the validity of , a test ofreliability , test the assumption of the classics , linear regression test doublet test , test f ,test the coefficients determined and test sobel.The results show significant and positive effect perceived service quality to religioussatisfaction and resaving intention, significant and positive effect perceived value toreligious satisfaction and repurchase intention, and then significant and positive effectreligious satisfaction to repurchase intention.Keywords : Perceived Service Quality, Perceived Value, Religious Satisfaction,Repurchase Intention.

Study on the Competence Factors of Clothing Store Online Based on Website

2014 ◽  
Vol 644-650 ◽  
pp. 5644-5647
Author(s):  
Kang Shao ◽  
Hui Xu ◽  
Kun Wang
Keyword(s):  
Service Quality ◽  
Rapid Development ◽  
Third Party ◽  
Target Market ◽  
Factors Affecting ◽  
Online Sales ◽  
Logistics Services ◽  
Clothing Store ◽  
Principal Factors ◽  
Store Management

With the rapid development of e-commerce, online store, characterized in less investment and operating flexibility, are favored by more entrepreneurs. This paper analyzes the principal factors, affecting the competitiveness of online clothing shop, based on third-party platform with online sales of conduct, and the intrinsic link between them. And emphasis should be placed on the network store management, target market, products value, service quality, network store promotion, prestige image and logistics services to cultivate and raise the competence of network store so as to get unique competitive edges.

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