Pricing Strategies in Dual-Channel Supply Chain with a Fair Caring Retailer
Manufacturers add online direct channels that inevitably engage in channel competition with offline retail channels. Since price is an important factor in consumers' choice of purchasing channel, pricing strategy has become a popular topic for research on dual-channel competition and coordinati...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Wiley
2019-01-01
|
| Series: | Complexity |
| Online Access: | http://dx.doi.org/10.1155/2019/1484372 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1832551153339990016 |
|---|---|
| author | Lufeng Dai Xifu Wang Xiaoguang Liu Lai Wei |
| author_facet | Lufeng Dai Xifu Wang Xiaoguang Liu Lai Wei |
| author_sort | Lufeng Dai |
| collection | DOAJ |
| description | Manufacturers add online direct channels that inevitably engage in channel competition with offline retail channels. Since price is an important factor in consumers' choice of purchasing channel, pricing strategy has become a popular topic for research on dual-channel competition and coordination. In contrast to previous research on pricing strategies based on the full rationality of members, we focus on the impact of retailers' fairness concerns on pricing strategies. In this study, the hybrid dual-channel supply chain consists of one manufacturer with a direct channel who acts as the leader and a retailer who acts as the follower. First, we use the Stackelberg game approach to determine the equilibrium pricing strategy for a fair caring retailer. Simultaneously, we consider a centralized dual-channel supply chain as the benchmark for a comparative analysis of the efficiency of a decentralized supply chain. Furthermore, we study pricing strategies when the retailer has fairness concerns and determine the complete equilibrium solutions for different ranges of the parameters representing cross-price sensitivity and fairness. Finally, through numerical experiments, the pricing strategies, the profit and utility of the manufacturer and retailer, and the channel efficiency of the supply chain are compared and analysed for two scenarios. We find that fairness concerns reduce the manufacturer's profits, while for the most part, the retailers’ profit can be improved; however, the supply chain cannot achieve complete coordination. |
| format | Article |
| id | doaj-art-e4b9d435146740449e68290dd15e3ad1 |
| institution | Kabale University |
| issn | 1076-2787 1099-0526 |
| language | English |
| publishDate | 2019-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Complexity |
| spelling | doaj-art-e4b9d435146740449e68290dd15e3ad12025-02-03T06:04:56ZengWileyComplexity1076-27871099-05262019-01-01201910.1155/2019/14843721484372Pricing Strategies in Dual-Channel Supply Chain with a Fair Caring RetailerLufeng Dai0Xifu Wang1Xiaoguang Liu2Lai Wei3School of Traffic and Transportation, Beijing Jiaotong University, Beijing, ChinaSchool of Traffic and Transportation, Beijing Jiaotong University, Beijing, ChinaSchool of Traffic and Transportation, Beijing Jiaotong University, Beijing, ChinaSchool of Traffic and Transportation, Beijing Jiaotong University, Beijing, ChinaManufacturers add online direct channels that inevitably engage in channel competition with offline retail channels. Since price is an important factor in consumers' choice of purchasing channel, pricing strategy has become a popular topic for research on dual-channel competition and coordination. In contrast to previous research on pricing strategies based on the full rationality of members, we focus on the impact of retailers' fairness concerns on pricing strategies. In this study, the hybrid dual-channel supply chain consists of one manufacturer with a direct channel who acts as the leader and a retailer who acts as the follower. First, we use the Stackelberg game approach to determine the equilibrium pricing strategy for a fair caring retailer. Simultaneously, we consider a centralized dual-channel supply chain as the benchmark for a comparative analysis of the efficiency of a decentralized supply chain. Furthermore, we study pricing strategies when the retailer has fairness concerns and determine the complete equilibrium solutions for different ranges of the parameters representing cross-price sensitivity and fairness. Finally, through numerical experiments, the pricing strategies, the profit and utility of the manufacturer and retailer, and the channel efficiency of the supply chain are compared and analysed for two scenarios. We find that fairness concerns reduce the manufacturer's profits, while for the most part, the retailers’ profit can be improved; however, the supply chain cannot achieve complete coordination.http://dx.doi.org/10.1155/2019/1484372 |
| spellingShingle | Lufeng Dai Xifu Wang Xiaoguang Liu Lai Wei Pricing Strategies in Dual-Channel Supply Chain with a Fair Caring Retailer Complexity |
| title | Pricing Strategies in Dual-Channel Supply Chain with a Fair Caring Retailer |
| title_full | Pricing Strategies in Dual-Channel Supply Chain with a Fair Caring Retailer |
| title_fullStr | Pricing Strategies in Dual-Channel Supply Chain with a Fair Caring Retailer |
| title_full_unstemmed | Pricing Strategies in Dual-Channel Supply Chain with a Fair Caring Retailer |
| title_short | Pricing Strategies in Dual-Channel Supply Chain with a Fair Caring Retailer |
| title_sort | pricing strategies in dual channel supply chain with a fair caring retailer |
| url | http://dx.doi.org/10.1155/2019/1484372 |
| work_keys_str_mv | AT lufengdai pricingstrategiesindualchannelsupplychainwithafaircaringretailer AT xifuwang pricingstrategiesindualchannelsupplychainwithafaircaringretailer AT xiaoguangliu pricingstrategiesindualchannelsupplychainwithafaircaringretailer AT laiwei pricingstrategiesindualchannelsupplychainwithafaircaringretailer |