Complementary Product Pricing and Service Cooperation Strategy in a 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 on...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Wiley
2020-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2020/2314659 |
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| _version_ | 1832546905988530176 |
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| author | Minglun Ren Jiqiong Liu Shuai Feng Aifeng Yang |
| author_facet | Minglun Ren Jiqiong Liu Shuai Feng Aifeng Yang |
| author_sort | Minglun Ren |
| collection | DOAJ |
| description | 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. |
| format | Article |
| id | doaj-art-d21b08bd4a9e49f396a8f38c93a365bb |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2020-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-d21b08bd4a9e49f396a8f38c93a365bb2025-02-03T06:46:39ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2020-01-01202010.1155/2020/23146592314659Complementary Product Pricing and Service Cooperation Strategy in a Dual-Channel Supply ChainMinglun Ren0Jiqiong Liu1Shuai Feng2Aifeng Yang3School of Management, Hefei University of Technology, Hefei 230009, ChinaSchool of Management, Hefei University of Technology, Hefei 230009, ChinaSchool of Management, Hefei University of Technology, Hefei 230009, ChinaSchool of Management, Hefei University of Technology, Hefei 230009, ChinaThis 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.http://dx.doi.org/10.1155/2020/2314659 |
| spellingShingle | Minglun Ren Jiqiong Liu Shuai Feng Aifeng Yang Complementary Product Pricing and Service Cooperation Strategy in a Dual-Channel Supply Chain Discrete Dynamics in Nature and Society |
| title | Complementary Product Pricing and Service Cooperation Strategy in a Dual-Channel Supply Chain |
| title_full | Complementary Product Pricing and Service Cooperation Strategy in a Dual-Channel Supply Chain |
| title_fullStr | Complementary Product Pricing and Service Cooperation Strategy in a Dual-Channel Supply Chain |
| title_full_unstemmed | Complementary Product Pricing and Service Cooperation Strategy in a Dual-Channel Supply Chain |
| title_short | Complementary Product Pricing and Service Cooperation Strategy in a Dual-Channel Supply Chain |
| title_sort | complementary product pricing and service cooperation strategy in a dual channel supply chain |
| url | http://dx.doi.org/10.1155/2020/2314659 |
| work_keys_str_mv | AT minglunren complementaryproductpricingandservicecooperationstrategyinadualchannelsupplychain AT jiqiongliu complementaryproductpricingandservicecooperationstrategyinadualchannelsupplychain AT shuaifeng complementaryproductpricingandservicecooperationstrategyinadualchannelsupplychain AT aifengyang complementaryproductpricingandservicecooperationstrategyinadualchannelsupplychain |