scholarly journals Strategic Customer Behavior and Pricing Strategy Based on the Horizontal Differentiation of Products

2020 ◽  
Vol 2020 ◽  
pp. 1-13
Author(s):  
Yang Zhao ◽  
Guojun Ji ◽  
Yue Jiang ◽  
Xiaopei Dai
Keyword(s):  
High Performance ◽  
Pricing Strategy ◽  
Chain Model ◽  
Horizontal Differentiation ◽  
Strategic Customers ◽  
Sales Channels ◽  
Dual Channel ◽  
Supply Chain Model ◽  
Low Performance ◽  
Dual Channel Supply Chain

Manufacturers produce products with horizontal differences to meet different needs of customers. This paper compares the influence of three different sales channels on strategic customers’ choice and the pricing strategy of products with horizontal differentiation. The results show that the strategic customers whose willingness to pay (WTP) is close to 1 will buy high-performance products and whose WTP is close to 0 will not purchase any kind of products in the two dual-channel models. If the manufacturers adopt dual channel to sell products with horizontal differences, the retailers agree that the manufacturers sell high-performance products in the traditional channel and sell low-performance products in the electronic channel. In dual-channel supply chain model I, the higher the satisfaction of high-performance products and the lower the satisfaction of low-performance products, the more conducive to the retailers.

Research on the Complexity of Dual-Channel Supply Chain Model in Competitive Retailing Service Market

2017 ◽  
Vol 27 (07) ◽  
pp. 1750098 ◽  
Author(s):  
Junhai Ma ◽  
Ting Li ◽  
Wenbo Ren
Keyword(s):  
Equilibrium Points ◽  
Basin Of Attraction ◽  
Chain Model ◽  
Service Market ◽  
Optimal Decisions ◽  
Dual Channel ◽  
Supply Chain Model ◽  
The Stability ◽  
Dual Channel Supply Chain ◽  
Theoretical Results

This paper examines the optimal decisions of dual-channel game model considering the inputs of retailing service. We analyze how adjustment speed of service inputs affect the system complexity and market performance, and explore the stability of the equilibrium points by parameter basin diagrams. And chaos control is realized by variable feedback method. The numerical simulation shows that complex behavior would trigger the system to become unstable, such as double period bifurcation and chaos. We measure the performances of the model in different periods by analyzing the variation of average profit index. The theoretical results show that the percentage share of the demand and cross-service coefficients have important influence on the stability of the system and its feasible basin of attraction.

Pricing Strategies in Dual-Channel Supply Chain with Retailer Direct Marketing

2014 ◽  
Vol 933 ◽  
pp. 902-906 ◽  
Author(s):  
Shu Juan Li ◽  
Ai Jun Liu
Keyword(s):  
Supply Chain ◽  
Direct Marketing ◽  
Chain Model ◽  
Pricing Strategies ◽  
Direct Channel ◽  
Dual Channel ◽  
Supply Chain Model ◽  
Brand Promotion ◽  
The Difference ◽  
Dual Channel Supply Chain

A two-level dual-channel supply chain model was established in which retailer had his own direct channel. Game model was constructed based on two cases of decentralized and centralized decision-making. Pricing strategies of manufacturer and retailer were studied. Impacts of different channel and different sale entities on manufacturer and retailer were examined. Results show that when channel substitution increases and market share of retailer direct channel is small, retailer should choose to give up direct channel and focus on retail channel sales and take direct channel as means of propaganda and brand promotion. When the difference of sale entities reduces, consumers can get more surplus.

Modeling Dual-Channel Supply Chain Based on Fuzzy System and Genetic Algorithm

2017 ◽  
Vol 25 (04) ◽  
pp. 573-598
Author(s):  
Amin Mahmoudi ◽  
Hassan Shavandi ◽  
Mohammad Reza Vakili
Keyword(s):  
Genetic Algorithm ◽  
Supply Chain ◽  
Fuzzy System ◽  
Fuzzy Systems ◽  
Test Problems ◽  
Chain Model ◽  
Dual Channel ◽  
Supply Chain Model ◽  
Hybrid Solution ◽  
Dual Channel Supply Chain

In this paper, we have proposed a dual-channel supply chain model in uncertain environment to analyze the demand of manufacturer and retailer demand in which the profit being maximized. Linguistic terms are also utilized to establish two fuzzy systems for estimating the demand in direct and retail channels. In order to do that, a mathematical model is proposed based on decentralized situation of supply chain. To solve the model, we have developed a hybrid solution method of genetic algorithm, fuzzy system, and L-P metric. Finally, several test problems are first generated; then, the computational results are analyzed.

scholarly journals A Modified Customization Strategy in a Dual-Channel Supply Chain Model with Price-Sensitive Stochastic Demand and Distribution-Free Approach

2021 ◽  
Vol 2021 ◽  
pp. 1-25
Author(s):  
Ruchi Chauhan ◽  
Varun Kumar ◽  
Tapas Kumar Jana ◽  
Arunava Majumder
Keyword(s):  
Supply Chain ◽  
Stochastic Demand ◽  
Threshold Value ◽  
Chain Model ◽  
Distribution Free ◽  
Dual Channel ◽  
Supply Chain Model ◽  
Distribution Free Approach ◽  
The Difference ◽  
Dual Channel Supply Chain

With the advancement of technology, many companies provide customization facilities to customers. This facility provides a vast variety to customers which enhances the level of customer satisfaction. This approach helps various technologically advanced companies to increase their profit. In this paper, a dual-channel supply chain model is developed with the aforementioned customization strategy with the target of increasing the profit of the firm. In dual-channel, the core or standard product is provided to the customer through a traditional retail channel, whereas the customized product is made available through the online channel. This article incorporates a modification in the existing dual-channel policy on the number of customers that switch between the offline and online channels. Moreover, a preassigned threshold value is also assumed which signifies the decrease in demand that takes place if the difference between the selling price of offline and online channels crosses a fixed specified threshold value. In addition to that, due to fluctuation and uncertainty of demand, both variability and randomness may occur simultaneously. Thus, the price-sensitive stochastic demand is considered to develop the dual-channel centralized supply chain model with customization. A max-min distribution-free approach is applied to deal with the randomness and variability of demand. The model is analyzed and validated with numerical experiments and graphical analysis. Consequently, the article concluded that it is better to adopt a dual-channel supply chain policy for better profitability than the traditional single-channel supply chain as this firm will be able to provide customized products to customers. Moreover, if the difference between the selling prices of the offline and online channels is greater than the preassigned threshold value, then the shifting of customers takes place depending upon the factor that which channel’s selling is less in comparison to another.

scholarly journals A Three-Echelon Dual-Channel Supply Chain Model with Learning Effect Under the Return Policy

2021 ◽  
Vol 22 (2) ◽  
pp. 155-170
Author(s):  
Sujata Saha
Keyword(s):  
Supply Chain ◽  
Learning Effect ◽  
Commodity Prices ◽  
Integrated Approach ◽  
Chain Model ◽  
Return Policy ◽  
Dual Channel ◽  
Retail Channel ◽  
Supply Chain Model ◽  
Dual Channel Supply Chain

In today's competitive and technologically developed era, many retailers have adopted an e-channel to increase sales, in addition to the existing traditional retail channel. Although many researchers studied this issue, there is hardly any research that comprehensively considers the learning-effect and return-policy. Therefore, this research aimed to develop an imperfect production dual-channel supply chain model consisting of a supplier, a manufacturer, and a retailer. The manufacturer also has a refurbishment unit adjacent to its production hub, where it reworks all the defectives. The main objective is to maximize the supply chain profit by considering factors, such as inspection error, return policy, and learning-effect of the employees. Finally, this model is analyzed with the Leader-follower relationship strategy and an integrated approach. The research found that the integrated approach is profitable for the entire supply chain, while commodity prices can be minimized. Sensitivity analysis is also presented in this study.

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