scholarly journals Research on Pricing Strategy of Dual-Channel Supply Chain Based on Customer Value and Value-Added Service

Mathematics ◽  
2020 ◽  
Vol 9 (1) ◽  
pp. 11
Author(s):  
Shiming Yi ◽  
Liying Yu ◽  
Ziyuan Zhang
Keyword(s):  
Supply Chain ◽  
Customer Value ◽  
Distribution Channel ◽  
Value Added ◽  
Online Retail ◽  
Customer Perception ◽  
Direct Sales ◽  
Dual Channel ◽  
Total Profit ◽  
Dual Channel Supply Chain

Considering customer value and value-added services provided by the online retail platform, this paper studies the differential pricing of a dual-channel supply chain consisting of one manufacturer and one online retail platform. Taking customer value into account in the dual-channel supply chain, this paper constructs separate and unified pricing of the direct sales channel and online retail platform’s distribution channel, and discusses each pricing model under a decentralized decision scenario and centralized decision scenario respectively. The results show that the total profit of a supply chain under the centralized decision scenario is better than the decentralized decision scenario in different ways, and the customer value of the two channels is also higher. Compared with the unified pricing of the two channels, the profit of the manufacturer is larger while the profit of the online retail platform is smaller under the separate pricing of the two channels. Moreover, the benefit of value-added services remains important to maximize the profit of the online retail platform and the customer value at the same time. Whether it is under separate pricing or unified pricing of the two channels, the antinomies effect always exists between the customer value and the profit per unit product. In order to further improve each party’s profit in the dual-channel supply chain under the decentralized decision scenario, it is necessary to improve the customer perception of profit as much as possible, and reduce the customer perception of loss as much as possible.

scholarly journals Research on Cost Information Sharing and Channel Choice in a Dual-Channel Supply Chain

2016 ◽  
Vol 2016 ◽  
pp. 1-12 ◽  
Author(s):  
Huihui Liu ◽  
Shuguang Sun ◽  
Ming Lei ◽  
G. Keong Leong ◽  
Honghui Deng
Keyword(s):  
Supply Chain ◽  
Information Sharing ◽  
Channel Structure ◽  
General Distribution ◽  
Cost Information ◽  
Direct Sales ◽  
Channel Choice ◽  
Dual Channel ◽  
The Cost ◽  
Dual Channel Supply Chain

Many studies examine information sharing in an uncertain demand environment in a supply chain. However there is little literature on cost information sharing in a dual-channel structure consisting of a retail channel and a direct sales channel. Assuming that the retail sale cost and direct sale cost are random variables with a general distribution, the paper investigates the retailer’s choice on cost information sharing in a Bertrand competition model. Based on the equilibrium outcome of information sharing, the manufacturer’s channel choice is discussed in detail. Our paper provides several interesting conclusions. In both single- and dual-channel structures, the retailer has little motivation to share its private cost information which is verified to be valuable for the manufacturer. When the cost correlation between the two channels increases, our analyses show that the manufacturer’s profit improves. However, when channel choice is involved, the value of information could play a different role. The paper finds that a dual-channel structure can benefit the manufacturer only when the cost correlation is sufficiently low. In addition, if the cost correlation is weak, the cost fluctuation will bring out the advantage of a dual-channel structure and adding a new direct channel will help in risk pooling.

scholarly journals Optimal channel decision of retailers in the dual-channel supply chain considering consumer preference for delivery lead time

2020 ◽  
Vol 15 (4) ◽  
pp. 453-466
Author(s):  
Y.S. Hu ◽  
L.H. Zeng ◽  
Z.L. Huang ◽  
Q. Cheng
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Time Preference ◽  
Consumer Preference ◽  
Optimal Pricing ◽  
Online Retail ◽  
Dual Channel ◽  
Retail Channel ◽  
Dual Channel Supply Chain ◽  
Preference Coefficient

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.

scholarly journals Model Three-Level Dual-Channel Supply Chain pada Sistem Sentralisasi dengan Memertimbangkan Waktu Tunggu Pengiriman

d'CARTESIAN ◽  
2020 ◽  
Vol 9 (1) ◽  
pp. 72
Author(s):  
Shinta Nur Pratiwi Ramadhani ◽  
Ririn Setiyowati ◽  
Titin Sri Martini
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Nonlinear Function ◽  
Optimal Solution ◽  
Global Market ◽  
Centralize System ◽  
Dual Channel ◽  
Total Profit ◽  
Online Channel ◽  
Dual Channel Supply Chain

AbstrakEra pasar global telah mengubah kebiasaan konsumen dalam membeli produk, sehingga konsumen dapat membeli produk melalui media online. Oleh karena itu, produsen mengembangkan media penjualannya melalui media online dan offline. Pada penelitian ini dikembangkan model three-level dual-channel supply chain dengan memertimbangkan waktu tunggu pengiriman pada penjualan melalui media online yang dilakukan oleh produsen serta mengembangkan media penjualan distributor sehingga distributor dapat menjual produk secara langsung ke konsumen. Konstruksi model bertujuan untuk mengoptimalkan keuntungan gabungan produsen, distributor, dan pengecer dengan sistem sentralisasi. Fungsi keuntungan gabungan merupakan fungsi nonlinear tanpa kendala dengan tiga variabel keputusan yaitu harga jual produsen pada media online, harga jual distributor langsung ke konsumen, dan harga jual pengecer ke konsumen. Selanjutnya, ditentukan solusi optimal model berdasarkan syarat perlu dan syarat cukup untuk fungsi multivariabel tanpa kendala. Berdasarkan simulasi numerik dan analisis sensitivitas dapat dilihat pengaruh faktor waktu tunggu pengiriman terhadap fungsi keuntungan gabungan yang optimal. Ditunjukkan bahwa lamanya waktu tunggu pengiriman sangat berpengaruh pada besarnya keuntungan optimal gabungan produsen, distributor, dan pengecer.Kata Kunci: Sentralisasi, Three-Level, Waktu TungguAbstractThe global market era changes the consumer behavior to shop the product, so the consumer can buy through online channel. Therefore, the producer develop the selling channel to sell their products through online channel and offline channel. In this research, we develop the three-level dual-channel supply chain by notice delivery lead time in the online channel used by the producer and develop selling channel from distributors so distributors can sell their product to consumer with direct selling. We construct the model with profit maximization motive of the system that consists producer, distributors, and retailer in the centralize system. The total profit function is nonlinear function without constrains with three decision variables. Furthermore, we determine the optimal solution of the model based on necessary and sufficient condition. Based on numerical simulations and sensitivity analysis we analyze the effect of delivery lead time strongly influences the optimal total profit system.Keywords: Centralize, Lead Time, Three-Level

scholarly journals Price and Service Competition in a Dual-Channel Supply Chain with Product Customization

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-35
Author(s):  
Jian Wang ◽  
Huijuan Jiang
Keyword(s):  
Supply Chain ◽  
Price Competition ◽  
Service Cost ◽  
Service Levels ◽  
Service Competition ◽  
Direct Sales ◽  
Dual Channel ◽  
Product Customization ◽  
Customized Products ◽  
Dual Channel Supply Chain

This paper considers a dual-channel supply chain with product customization. One manufacturer and one retailer are involved. The online direct sales channel sells standard and customized products, and the offline retail channel sells standard products. The prices and service levels of products sold via different channels are differentiated, and the customization level which influences the customization cost and choices of customers is decided by the manufacturer. Three game models are proposed: the manufacturer Stackelberg (MS) model, the retailer Stackelberg (RS) model, and the Nash game model. The price and service decisions of the players are derived. Meanwhile, a service-cost-sharing contract is designed for the MS model. The impacts of price and service competition, service cost, and customers sensitivity to the customization level on the optimal decisions are investigated. Through the numerical analysis, we find that, among the three models, the manufacturer Stackelberg model is the most beneficial game structure for the overall supply chain but has the largest revenue gap between the two members. Second, under price competition and service competition, the manufacturer should differentiate the prices and services for direct sales standard products and customized products according to his market status. Third, the manufacturer should increase customization expenditures to construct his customization production line and provide more diversified products when consumers are more sensitive to product customization.

scholarly journals The Impact of Different Government Subsidy Methods on Low-Carbon Emission Reduction Strategies in Dual-Channel Supply Chain

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-9
Author(s):  
Cheng Che ◽  
Yi Chen ◽  
Xiaoguang Zhang ◽  
Zhihong Zhang
Keyword(s):  
Supply Chain ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Low Carbon ◽  
Carbon Emission Reduction ◽  
Direct Sales ◽  
Dual Channel ◽  
The Government ◽  
Dual Channel Supply Chain ◽  
Low Carbon Emission

With the implementation of national carbon emission reduction policies and the development of online shopping, manufacturers are making low-carbon efforts and selling products through dual channels. This paper constructs a dual-channel supply chain decision-making model composed of low-carbon emission reduction manufacturers and retailers and studies the optimal decision-making problem of the supply chain under subsidies by the government based on emission reduction R&D and per unit product emission reduction. The research results show the following: (1) when the government subsidizes emission reduction R&D, the emission reduction will have an impact on retailers’ optimal prices, manufacturers’ optimal wholesale prices, and optimal direct sales channel sales prices. The profit of the manufacturer increases with the increase in carbon emissions, and the profit of the manufacturer increases to a certain level and then appears to decline. (2) When the government adopts a subsidy method based on the emission reduction per unit product, the manufacturer’s wholesale price and the selling price of direct sales channels, as well as the retailer’s own optimal price, will increase with the increase in emission reductions. Retailers’ profits will increase linearly with the increase in carbon emissions. Manufacturers’ profits will first increase in a straight line and then increase in a curve.

scholarly journals Complementary Product Pricing and Service Cooperation Strategy in a Dual-Channel Supply Chain

2020 ◽  
Vol 2020 ◽  
pp. 1-22
Author(s):  
Minglun Ren ◽  
Jiqiong Liu ◽  
Shuai Feng ◽  
Aifeng Yang ◽  
Florentino Borondo
Keyword(s):  
Supply Chain ◽  
Service Cost ◽  
Equilibrium Solutions ◽  
Power Structures ◽  
Complementary Products ◽  
Direct Sales ◽  
Dual Channel ◽  
Complementary Product ◽  
Cooperation Strategy ◽  
Dual Channel Supply Chain

This paper investigates a pricing game and service cooperation for complementary products in a dual-channel supply chain composed of two manufacturers and one retailer. The products of the two manufacturers are complementary products. One manufacturer sells products simultaneously through its own online channel and the traditional retailer, and the manufacturer delivers the product’s service to the retailer in its network direct sales channel by cooperating with the retailer in the form of service cost sharing. Considering the different market power structures of channel members, we establish three different pricing game models. By using the backward induction method and game theory, we obtain the corresponding analytical equilibrium solutions. Then, the service cooperation strategy of using the channel service sensitivity coefficients to construct the weight to share the service cost is proposed. Finally, numerical examples of optimal pricing strategies and profit conditions in different game situations are given, and sensitivity analysis of some key parameters is selectively performed, in which some valuable management insights are obtained.

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