Three stage game research of dual-channel supply chain of fresh agricultural products under consumer preference

Author(s):  
Zhenguo Liu ◽  
Zhiqiang Yu ◽  
Shuangshuang Zhang ◽  
Jianliang Peng
2020 ◽  
Vol 15 (4) ◽  
pp. 453-466
Author(s):  
Y.S. Hu ◽  
L.H. Zeng ◽  
Z.L. Huang ◽  
Q. Cheng

Facing competition from manufacturers' online direct channels, how retailers make sales channel decisions to increase consumer stickiness has become the core concern of the industry and academia. Empirical research showed that delivery lead time is a key factor that affects consumers' preference for online channels. To analyze the impact of consumer delivery time preference on channel selection and pricing strategy of retailers, consumer delivery lead time preference function was improved from a linear function to an exponential function and consumer demand under the mixed dual-channel supply chain of manufacturer and retailer was derived. Then, the Stackelberg game models under different channel strategies of retailer were established and solved. Results show that consumer preference for delivery lead time has four implications on the channel decision of retailers under manufacturer encroachment in the dual-channel supply chain. First, the dual retail channels strategy is the optimal choice for retailers, and the profit margins that a retailer obtains from dual retail channels supply chain and single online retail channel supply chain will increase as consumers' delivery lead time preference coefficient increases. Second, the optimal pricing of online retail channel and offline retail channel is positively related to consumers' delivery lead time preference coefficient. By contrast, the optimal pricing of online direct channel is negatively related to consumers' delivery lead time preference coefficient. Third, the optimal pricing of online retail channel is higher than that of offline retail and online direct channels. Fourth, a retailer and a manufacturer can adopt a compensation-based whole price contract to address the conflict brought about by the optimal channel choice of the retailer. This study introduces consumer delivery lead time preference into retailer channel decision making and provides a theoretical reference for retailer's mixed channel construction in practice.


2017 ◽  
Vol 5 (6) ◽  
pp. 189-195
Author(s):  
N. Arunfred ◽  
D. Kinslin

We study a dual channel supply chain in perishable agricultural products. In which one channel is producer (farmer) sells the produce directly to the customer and the other channel is about transfer of produce to different channel players and reach the final customer. Consumers choose the purchase channel based on price, availability, accessibility, product quality, trust-ability and service qualities. The producer decides the price of the direct channel and the intermediaries decides both price and order quantity in the traditional method. We show that the difference in problem faced by the producers’ of the two channels plays an important role in determining the existence of dual channels in equilibrium. For the study Erode and Kanyakumari districts were chosen purposively. A sample of 80 farmers was selected randomly who are involved in both of the channels. In the case that the producer and the retailer coordination and to follow a centralized decision approach, we find that a direct channel will be an optimum solution for improving the overall effectiveness. Our results show that an increase in retailer’s service quality may increase the producer’s profit in dual channel and a larger range of consumer service sensitivity may benefit both parties in the dual channel. The results suggest that both the channel have problem and the optimum solution lies in between two channels.


Author(s):  
Qi Duan ◽  
Chengcheng Li

The establishment of online direct sales channels influences the selection of pricing strategies and promotion information disclosure strategies of manufacturers and retailers. Considering the consideration of consumer preference, this paper studies the influence of different promotion information disclosure modes on the promotion effect and the income of supply chain members in the dual-channel supply chain with direct online channels. Based on hoteling model, the authors establish a model on market demand of the two channels and analyze the pricing and disclosure strategies of manufacturers and retailers under different concerns of consumers. It is found that there is a unique equilibrium threshold between the two disclosure modes. Only when the selling price after promotion is lower than the threshold are manufacturers or retailers willing to make information disclosure. It is also found that the disclosure intention and strategy of manufacturer or retailer will change with different customers' concerns and the relationship between the difference of two channels promotion and the threshold value.


Author(s):  
Peng Li ◽  
Di Wu

The rapid development of e-commerce technologies has encouraged collection centers to adopt online recycling channels in addition to their existing traditional (offline) recycling channels, such the idea of coexisting traditional and online recycling channels evolved a new concept of a dual-channel reverse supply chain (DRSC). The adoption of DRSC will make the system lose stability and fall into the trap of complexity. Further the consumer-related factors, such as consumer preference, service level, have also severely affected the system efficiency of DRSC. Therefore, it is necessary to help DRSCs to design their networks for maintaining competitiveness and profitability. This paper focuses on the issues of quantitative modelling for the network design of a general multi-echelon, dual-objective DRSC system. By incorporating consumer preference for the online recycling channel into the system, we investigate a mixed integer linear programming (MILP) model to design the DRSC network with uncertainty and the model is solved using the ε-constraint method to derive optimal Pareto solutions. Numerical results show that there exist positive correlations between consumer preference and total collective quantity, online recycling price and the system profits. The proposed model and solution method could assist recyclers in pricing and service decisions to achieve a balance solution for economic and environmental sustainability.


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