Pricing decision of a dual-channel supply chain with different payment, corporate social responsibility and service level

Strategies such as price, CSR, and service have an important impact on enterprises and supply chains. This paper proposes a two-echelon dual-channel supply chain composed of a manufacturer and a retailer. Considering the product pricing, CSR level, and service level in the supply chain, this paper employs the Stackelberg game to depict supply chain participants' optimal decisions and analyze the influence of explanatory variables on the optimal decision with retailer's payment methods. The results state that market share, service level, CSR, and financing interest rate significantly impact the pricing decision of all participants in the supply chain. In addition, strategies of CSR level and service level are also affected by the discount rate of advance payment, financing interest rate, return on investment, and opportunity cost rate. This paper incorporates CSR and service level into the objective function, considers a variety of retailers' payment methods, enriches the supply chain's pricing model, and is of great value to scientific decision-making of enterprises and sustainable development of supply chains.

Pricing strategy and product substitution of bullwhip effect in dual parallel supply chain: aggravation or mitigation?

The bullwhip effect (BE) affects not only the revenue of the retailer but also the revenue of the manufacture. Thus, a lot of retailers and manufacturers aim to attenuate the negative impact of the BE. In this research, two parallel supply chains distributing two substitutable products with price-sensitive demands are considered, the order-up-to inventory policy, as well as the MMSE forecasting method, are employed by retailers in these chains. The retailer’s price-setting follows the first-order vector autoregressive process, suggesting that its pricing decision depends on its previous price as well as its rival’s price, owing to the BE. The analytical expression of the BE is calculated by the statistical method. Besides, the effects of pricing strategy and product substitution on the BE are studied through simulation. A conclusion can be drawn that the BE of the two parallel supply chains will be affected by lead time, product substitution rate, and pricing coefficient. Of particular interest is that the BE can be efficiently alleviated by adopting a price strategy with many correlations and a small coefficient of autocorrelation.

Research on Pricing Decision of Direct Sales Green Supply Chain Based on Consumers’ 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.

Comprehending the Pricing Decision of Online Car-Hailing Services in China: Price Regulation Vs Entry Limitation

Online car-hailing service has had an exponential growth in recent years, and poses a substantial threat to taxi service. Yet how to regulate online car-hailing service has not been adequately studied. Based on the regulation of tradition taxi service, price regulation and entry limitation are used to regulate online car-hailing service in this paper. Moreover, we consider two types of online car-hailing service, i.e., high-end service(e.g. UberBlack) and low-end service (e.g., UberX), according to the perceived service level. Then, the optimal platform’s price is formulated. The result shows that the price regulation are likely to increase the optimal platform price, depending on the service type and the taxi price. When the platform offers low-end service and the taxi price is low, the optimal platform price does not change. In contrast, the entry limitation reduces the optimal platform’s price when it achieves the regulation target.

The effect on pricing strategies in the process of strategic decision making in view of cost of produced goods

This research examined the effect of the cost of produced goods on pricing strategies in the process of strategic decision. Also examined in this research is the extended effect of pricing strategies on consumers purchase decision making. The research aimed to answer questions on the extent to which cost of produced goods affects pricing strategies of products, how decision makers realize the value-based pricing strategy of corporations and the extent to which pricing policy help consumers to make purchase decisions. This research being historical and descriptive depended basically on secondary sources of information. The research used a historical and descriptive method and depended basically and simply on secondary devices as sources of data. Results from the data acquired reference that customers have an understanding of fair value reflected in prices of the firm's products. The researcher will use both analytical and descriptive methods which appropriate the context of the current research which is generally based on the theoretical underpinnings and fieldwork. The outcomes indicate that the cost of produced products used in organizations provides quality information; there is an effect of this information on the pricing decision-making; there are parts in which pricing strategy much relied on the information provided by the cost systems.

ONLINE PRICING FOR SMALL MEDIUM ENTERPRISES’ PRODUCTS IN THE EX-LOCALIZATION OF DOLLY SURABAYA

Numerous Small and Medium Enterprises (SMEs) do not have a basic method in pricing decisions. Many times, this decision comes up based on an intuitive probe instead of a detailed analysis. This could lead to marketing problems, which may result in disruptions of financial liquidity. This also applies to SMEs wishing to sell products through the online channel. They need a proper pricing strategy, considering its different marketing strategies. Sales made through both offline channels (conventional stores) and online channels are known as Dual-Channel Supply Chain (DCSC). It is argued that the pricing decision at DCSC needs to consider consumer preferences in selecting the sales channel. One assumption commonly adopted in the DCSC pricing model is that the lost value if consumers purchase products through online channels. Therefore, the pricing decision for the online channel should be cheaper than the price on the offline channel. This study aims to assist SMEs in the ex-localization of Dolly in Surabaya in determining the price of products to be sold through online channels. Three types of products: batik, chips, and leather shoes were selected as research samples to represent the product groups: craft, fashion, and processed food. This study proposes an optimal online price strategy through experiments with a mathematical model. Model parameters, namely consumer preferences in choosing sales channels, are obtained through surveys. Apart from that, surveys are also used to reveal which platforms consumers are interested in shopping online. Shopee and Instagram were chosen by respondents as the most popular marketplaces and social media for online shopping. Finally, the online prices proposed for the batik product are IDR 82,500-IDR 66,000; chips Rp7,620-Rp6,336; and leather shoes Rp.103,800-Rp82,200.

THE EFFECT OF TAX EXPENSE, BONUS MECHANISM, AND TUNNELING INCENTIVE TOWARDS TRANSFER PRICING DECISION IN COMPANIES WITH PROFITABILITY AS A MODERATING VARIABLE

<span class="s13"><span class="bumpedFont15">This research aims to obtain empirical evidence about the effe</span></span><span class="s13"><span class="bumpedFont15">ct of tax expense, bonus mechanism, and tunneling incentive partially towards transfer pricing decision in companies and the effect of profitability as a moderatin</span></span><span class="s13"><span class="bumpedFont15">g variable towards that effect.</span></span><span class="s13"><span class="bumpedFont15"> </span></span><span class="s13"><span class="bumpedFont15">The data used is secondary data obtained from the annual repo</span></span><span class="s13"><span class="bumpedFont15">rts of mining companies companies listed on the Indonesia Stock Exchange 2016 – 2020. The sample selection used is purposive sampling method and the number of mining companies sampled in this research were 14 companies with 7</span></span><span class="s13"><span class="bumpedFont15">0 observation data for 5 years.</span></span><span class="s13"><span class="bumpedFont15"> </span></span><span class="s13"><span class="bumpedFont15">The data analysis technique used in this study is linear multiple regression equations wit</span></span><span class="s13"><span class="bumpedFont15">h Moderated Regression Analysis </span></span><span class="s13"><span class="bumpedFont15">which is a special application of linear</span></span><span class="s13"><span class="bumpedFont15"> multiple regression equations. </span></span><span class="s13"><span class="bumpedFont15">The results this research are (1) tax expense has a significa</span></span><span class="s13"><span class="bumpedFont15">nt postitive effect towards transfer pricing decision; (2) bonus mechanism has no effect towards transfer pricing decision; (3) tunneling incentive has a significant postitive effect towards transfer pricing decision; (4) profitability moderate (strengthen</span></span><span class="s13"><span class="bumpedFont15">) the effect of tax expense towards transfer pricing decision; (5) profitability does not moderate (not strengthen nor weaken) the effect of bonus mechanism towards transfer pricing decision; (6) profitability moderate (strengthen) the effect of tunneling </span></span><span class="s13"><span class="bumpedFont15">incentive towards transfer pricing decision.</span></span>

Optimal Internet of Things Technology Adoption Decisions and Pricing Strategies for High-Traceability Logistics Services

The Internet of Things (IoT) technology-based tracking system can reduce freight loss/damage during delivery, thereby avoiding wasting social resources. In this study, we address the issue of whether an E-retailer with a logistics arm should provide high-traceability logistics value-added service (based on IoT technology) in two customer segments and analyze their pricing decision. We found that companies always adopt IoT when equipment operation cost is low and not when the cost is high. Otherwise, the optimal IoT adoption strategy for a company depends on multiple factors, for example, the internal operation efficiency of a company. Providing high-traceability service as one kind of public service does not necessarily optimize social welfare even if the overall delivery failure is reduced. The customers’ preference for traceability significantly affects the company’s decision. Hence, we suggest that the company should implement a comprehensive investigation before launching a specific strategy.