Online advance selling or not: Pricing strategy of new product entry in a supply chain

2020 ◽  
Vol 41 (8) ◽  
pp. 1446-1461
Author(s):  
Yawen Zhang ◽  
Bo Li ◽  
Xue Chen ◽  
Shuang Wu
Keyword(s):  
Supply Chain ◽  
New Product ◽  
Pricing Strategy ◽  
Advance Selling ◽  
Product Entry

scholarly journals The Impact of Advance Selling Strategies on a Three-Echelon Supply Chain in the Presence of Social Influence

2020 ◽  
Vol 2020 ◽  
pp. 1-19
Author(s):  
Qianyu Niu ◽  
Feng Yang
Keyword(s):  
Supply Chain ◽  
Social Influence ◽  
Stackelberg Game ◽  
New Product ◽  
Order Quantity ◽  
Minimum Order ◽  
Advance Selling ◽  
Minimum Order Quantity ◽  
Selling Strategies ◽  
The Impact

As the quality of new products is ex-ante uncertain, social influence plays an important role in the diffusion of a new product. An important question is how to expand public knowledge about consumer experience with a new product by using promotion strategies. This paper discusses the impact of advance selling strategies on a three-echelon supply chain when upstream enterprises launch a new product facing strategic consumers under social influence. This problem is modeled as a Stackelberg game, and a two-advance-selling-discount model is presented. Furthermore, we consider the impact of advance purchase behavior on the financing strategy when the retailer places an advance order. Several results are obtained: (i) the consumers’ utility in the second period is increasing in the number of predecessors. (ii) Upstream enterprises will provide deeper advance selling discounts when consumers become more patient or predecessors have a greater influence on imitators. Moreover, the total demand will increase when the consumer’s discount factor decreases or the impact intensity of predecessors increases. However, high innovation levels will drive enterprises to set high advance selling discounts. We also obtain the condition under which the total demand increases quickly as the innovation level changes. (iii) The two-advance-selling-discount model yields Pareto-improved results compared with the case where there is no advance purchase, though it cannot coordinate the supply chain. Finally, we extend the model to analyze the two-advance-selling-discount model with a minimum order quantity constraining the precommitted order quantity, and we show this can allow the enterprises to increase their profits. We also determine a condition under which the upstream enterprises should put a constraint on the minimum order quantity.

scholarly journals Sustainable Supply Chain Decisions under E-Commerce Platform Marketplace with Competition

2021 ◽  
Vol 13 (8) ◽  
pp. 4162
Author(s):  
Junbin Wang ◽  
Xuan Gao ◽  
Zhiguo Wang
Keyword(s):  
Supply Chain ◽  
Theoretical Model ◽  
Analytical Framework ◽  
Third Party ◽  
Pricing Strategy ◽  
Green Product ◽  
Sustainable Supply Chain ◽  
Green Products ◽  
Game Theoretical Model ◽  
Product Entry

Motivated by the industrial observation that the e-commerce platform marketplaces (e.g., Amazon) are increasingly launching sustainable strategies, this study aims to build an analytical framework to guide managers on making sustainable decisions. This study builds a stylized game-theoretical model in the sustainable supply chain context, where the competitive traditional product manufacturers sell their products through the platform’s marketplace, while the platform decides whether to introduce the green products and the pricing strategy. We find that, when the evaluation difference for the green product is sufficiently low, the introduction of the green product by the platform benefits the manufacturers (or third-party sellers). Interestingly, a higher platform fee makes a higher likelihood of a win-win situation between the platform and manufacturers. Moreover, when consumers value green products sufficiently higher than traditional products, the traditional products’ manufacturers can also benefit from the green product entry.

RIGIDITIES CONSIDERED: SUPPLIER STRATEGIES FOR INTEGRATED INNOVATION

2011 ◽  
Vol 15 (01) ◽  
pp. 95-119 ◽  
Author(s):  
Thorsten Teichert ◽  
Ricarda B. Bouncken
Keyword(s):  
Supply Chain ◽  
Dynamic Capabilities ◽  
New Product ◽  
Survey Results ◽  
Strategic Issue ◽  
Innovation Strategies ◽  
Product Concepts ◽  
Market Success

Innovation is a strategic issue in need of internal and external alignment. This is particularly the case for supplier innovations, as new product concepts and strategies must cope with supply chain interfaces. Suppliers' strategies are oftentimes confronted by innovation rigidities resulting from a manufacturers' need to manage the integration of several components from various suppliers into a coherent innovation. Suppliers can follow different innovation strategies derived from a deliberate planning or a emerging as suppliers incrementally learn and experiment along their path. A survey of 241 suppliers illustrates that these two strategic types effect on market success depends on the level of the rigidities. The survey results also illustrate that two dynamic capabilities, the planning capability and the innovation orientation, act as intermediary variables to increase success under specific rigidity conditions. The findings further illustrate that dynamic capabilities can be enhanced by an adequate strategy.

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