Pricing Decision under Dual-Channel Structure considering Fairness and Free-Riding Behavior

Under dual-channel structure, the free-riding behavior based on different service levels between online channel and offline channel cannot be avoided, which would lead to channel unfairness. This study implies that the dual-channel supply chain is built up by online channel controlled by manufacture...

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Main Authors: Yongmei Liu, Chunjie Ding, Chen Fan, Xiaohong Chen
Format: Article
Language:English
Published: Wiley 2014-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2014/536576
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author Yongmei Liu
Chunjie Ding
Chen Fan
Xiaohong Chen
author_facet Yongmei Liu
Chunjie Ding
Chen Fan
Xiaohong Chen
author_sort Yongmei Liu
collection DOAJ
description Under dual-channel structure, the free-riding behavior based on different service levels between online channel and offline channel cannot be avoided, which would lead to channel unfairness. This study implies that the dual-channel supply chain is built up by online channel controlled by manufacturer and traditional channel controlled by retailer, respectively. Under this channel structure, we rebuild the linear demand function considering free-riding behavior and modify the pricing model based on channel fairness. Then the influences of fair factor and free-riding behavior on manufacturer and retailer pricing and performance are discussed. Finally, we propose some numerical analysis to provide some valuable recommendations for manufacturer and retailer improving channel management performance.
format Article
id doaj-art-06572361bc0f43f78a0b05846aa78d8c
institution Kabale University
issn 1026-0226
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language English
publishDate 2014-01-01
publisher Wiley
record_format Article
series Discrete Dynamics in Nature and Society
spelling doaj-art-06572361bc0f43f78a0b05846aa78d8c2025-02-03T06:11:46ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2014-01-01201410.1155/2014/536576536576Pricing Decision under Dual-Channel Structure considering Fairness and Free-Riding BehaviorYongmei Liu0Chunjie Ding1Chen Fan2Xiaohong Chen3Business School, Central South University, Changsha, Hunan 410083, ChinaBusiness School, Central South University, Changsha, Hunan 410083, ChinaBusiness School, Central South University, Changsha, Hunan 410083, ChinaBusiness School, Central South University, Changsha, Hunan 410083, ChinaUnder dual-channel structure, the free-riding behavior based on different service levels between online channel and offline channel cannot be avoided, which would lead to channel unfairness. This study implies that the dual-channel supply chain is built up by online channel controlled by manufacturer and traditional channel controlled by retailer, respectively. Under this channel structure, we rebuild the linear demand function considering free-riding behavior and modify the pricing model based on channel fairness. Then the influences of fair factor and free-riding behavior on manufacturer and retailer pricing and performance are discussed. Finally, we propose some numerical analysis to provide some valuable recommendations for manufacturer and retailer improving channel management performance.http://dx.doi.org/10.1155/2014/536576
spellingShingle Yongmei Liu
Chunjie Ding
Chen Fan
Xiaohong Chen
Pricing Decision under Dual-Channel Structure considering Fairness and Free-Riding Behavior
Discrete Dynamics in Nature and Society
title Pricing Decision under Dual-Channel Structure considering Fairness and Free-Riding Behavior
title_full Pricing Decision under Dual-Channel Structure considering Fairness and Free-Riding Behavior
title_fullStr Pricing Decision under Dual-Channel Structure considering Fairness and Free-Riding Behavior
title_full_unstemmed Pricing Decision under Dual-Channel Structure considering Fairness and Free-Riding Behavior
title_short Pricing Decision under Dual-Channel Structure considering Fairness and Free-Riding Behavior
title_sort pricing decision under dual channel structure considering fairness and free riding behavior
url http://dx.doi.org/10.1155/2014/536576
work_keys_str_mv AT yongmeiliu pricingdecisionunderdualchannelstructureconsideringfairnessandfreeridingbehavior
AT chunjieding pricingdecisionunderdualchannelstructureconsideringfairnessandfreeridingbehavior
AT chenfan pricingdecisionunderdualchannelstructureconsideringfairnessandfreeridingbehavior
AT xiaohongchen pricingdecisionunderdualchannelstructureconsideringfairnessandfreeridingbehavior