scholarly journals The Implication of Channel Discrepancy in a Dual-Channel Supply Chain

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-13
Author(s):  
Zhenyang Pi ◽  
Weiguo Fang
Keyword(s):  
Supply Chain ◽  
The Other ◽  
Optimal Pricing ◽  
Backward Induction ◽  
Pricing Strategies ◽  
Power Structures ◽  
Induction Method ◽  
Dual Channel ◽  
Online Channel ◽  
Dual Channel Supply Chain

This paper studies the implication of channel discrepancy between the retail and direct channels in a dual-channel supply chain consisting of one common retailer and two manufacturers in which the manufacturers may have different market powers. Each manufacturer provides a substitutable product and opens an online channel to customers directly. We develop an analytical model to derive the optimal pricing strategies by using game theory and the backward induction method, and we examine related properties under three market power structures while considering channel discrepancy, including the Nash equilibrium, the Manufacturers leader Stackelberg, and the M1 leader Stackelberg models (denoted as the N, MS, and M1S models, respectively). Numerical simulations are examined to reveal and verify the effect of channel discrepancy on optimal prices, demands, and profits. We find that a higher level of channel discrepancy induces higher prices, demands, and profits for each member in both channels, while this kind of stimulating impact for the leader manufacturer who obtains a higher level of channel discrepancy will be more significant than it is for the other members in the three models. In addition, the profit of the supply chain in the N model is always higher than it is in the MS model, while it may be higher or lower than it is in the M1S model depending on the level of channel discrepancy.

scholarly journals The Impact of Price Comparison Service on Pricing Strategy in a Dual-Channel Supply Chain

2013 ◽  
Vol 2013 ◽  
pp. 1-13 ◽  
Author(s):  
Qi Xu ◽  
Zheng Liu ◽  
Bin Shen
Keyword(s):  
Supply Chain ◽  
Numerical Study ◽  
Profit Maximization ◽  
Pricing Strategy ◽  
Optimal Pricing ◽  
Pricing Strategies ◽  
Price Comparison ◽  
Dual Channel ◽  
Dual Channel Supply Chain ◽  
The Impact

Recently, price comparison service (PCS) websites are more and more popular due to its features in facilitating transparent price and promoting rational purchase decision. Motivated by the industrial practices, in this study, we examine the pricing strategies of retailers and supplier in a dual-channel supply chain influenced by the signals of PCS. We categorize and discuss three situations according to the signal availability of PCS, under which the optimal pricing strategies are derived. Finally, we conduct a numerical study and find that in fact the retailers and supplier are all more willing to avoid the existence of PCS with the objective of profit maximization. When both of retailers are affected by the PCS, the supplier is more willing to reduce the availability of price information. Important managerial insights are discussed.

scholarly journals The Optimal Pricing of Dual-Channel Supply Chain with the Third Party Product Recovery and Sales Effort

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-18 ◽  
Author(s):  
Limin Wang ◽  
Qiankun Song ◽  
Zhenjiang Zhao
Keyword(s):  
Supply Chain ◽  
Product Recovery ◽  
Third Party ◽  
Optimal Pricing ◽  
The Third ◽  
Dual Channel ◽  
Retail Channel ◽  
The Third Party ◽  
Dual Channel Supply Chain ◽  
Decentralized Model

The optimal pricing of dual-channel supply chain with the third party product recovery and sales effort is considered in this paper. The optimal selling pricing of direct channel and retail channel in the forward supply chain and the optimal collection pricing of retail channel and the third party in the backward supply chain are given for the general case under the centralized and decentralized model. Then, the effect of sales effort of the retailer and the optimal pricing strategy with sales effort under the centralized and decentralized model are provided and analyzed. Finally, the comparative analysis of four situations is carried out by numerical results.

Pricing Strategies in Dual-Channel Supply Chain with Retailer Direct Marketing

2014 ◽  
Vol 933 ◽  
pp. 902-906 ◽  
Author(s):  
Shu Juan Li ◽  
Ai Jun Liu
Keyword(s):  
Supply Chain ◽  
Direct Marketing ◽  
Chain Model ◽  
Pricing Strategies ◽  
Direct Channel ◽  
Dual Channel ◽  
Supply Chain Model ◽  
Brand Promotion ◽  
The Difference ◽  
Dual Channel Supply Chain

A two-level dual-channel supply chain model was established in which retailer had his own direct channel. Game model was constructed based on two cases of decentralized and centralized decision-making. Pricing strategies of manufacturer and retailer were studied. Impacts of different channel and different sale entities on manufacturer and retailer were examined. Results show that when channel substitution increases and market share of retailer direct channel is small, retailer should choose to give up direct channel and focus on retail channel sales and take direct channel as means of propaganda and brand promotion. When the difference of sale entities reduces, consumers can get more surplus.

scholarly journals Optimal channel decision of retailers in the dual-channel supply chain considering consumer preference for delivery lead time

2020 ◽  
Vol 15 (4) ◽  
pp. 453-466
Author(s):  
Y.S. Hu ◽  
L.H. Zeng ◽  
Z.L. Huang ◽  
Q. Cheng
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Time Preference ◽  
Consumer Preference ◽  
Optimal Pricing ◽  
Online Retail ◽  
Dual Channel ◽  
Retail Channel ◽  
Dual Channel Supply Chain ◽  
Preference Coefficient

Facing competition from manufacturers' online direct channels, how retailers make sales channel decisions to increase consumer stickiness has become the core concern of the industry and academia. Empirical research showed that delivery lead time is a key factor that affects consumers' preference for online channels. To analyze the impact of consumer delivery time preference on channel selection and pricing strategy of retailers, consumer delivery lead time preference function was improved from a linear function to an exponential function and consumer demand under the mixed dual-channel supply chain of manufacturer and retailer was derived. Then, the Stackelberg game models under different channel strategies of retailer were established and solved. Results show that consumer preference for delivery lead time has four implications on the channel decision of retailers under manufacturer encroachment in the dual-channel supply chain. First, the dual retail channels strategy is the optimal choice for retailers, and the profit margins that a retailer obtains from dual retail channels supply chain and single online retail channel supply chain will increase as consumers' delivery lead time preference coefficient increases. Second, the optimal pricing of online retail channel and offline retail channel is positively related to consumers' delivery lead time preference coefficient. By contrast, the optimal pricing of online direct channel is negatively related to consumers' delivery lead time preference coefficient. Third, the optimal pricing of online retail channel is higher than that of offline retail and online direct channels. Fourth, a retailer and a manufacturer can adopt a compensation-based whole price contract to address the conflict brought about by the optimal channel choice of the retailer. This study introduces consumer delivery lead time preference into retailer channel decision making and provides a theoretical reference for retailer's mixed channel construction in practice.

scholarly journals Model Three-Level Dual-Channel Supply Chain pada Sistem Sentralisasi dengan Memertimbangkan Waktu Tunggu Pengiriman

d'CARTESIAN ◽  
2020 ◽  
Vol 9 (1) ◽  
pp. 72
Author(s):  
Shinta Nur Pratiwi Ramadhani ◽  
Ririn Setiyowati ◽  
Titin Sri Martini
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Nonlinear Function ◽  
Optimal Solution ◽  
Global Market ◽  
Centralize System ◽  
Dual Channel ◽  
Total Profit ◽  
Online Channel ◽  
Dual Channel Supply Chain

AbstrakEra pasar global telah mengubah kebiasaan konsumen dalam membeli produk, sehingga konsumen dapat membeli produk melalui media online. Oleh karena itu, produsen mengembangkan media penjualannya melalui media online dan offline. Pada penelitian ini dikembangkan model three-level dual-channel supply chain dengan memertimbangkan waktu tunggu pengiriman pada penjualan melalui media online yang dilakukan oleh produsen serta mengembangkan media penjualan distributor sehingga distributor dapat menjual produk secara langsung ke konsumen. Konstruksi model bertujuan untuk mengoptimalkan keuntungan gabungan produsen, distributor, dan pengecer dengan sistem sentralisasi. Fungsi keuntungan gabungan merupakan fungsi nonlinear tanpa kendala dengan tiga variabel keputusan yaitu harga jual produsen pada media online, harga jual distributor langsung ke konsumen, dan harga jual pengecer ke konsumen. Selanjutnya, ditentukan solusi optimal model berdasarkan syarat perlu dan syarat cukup untuk fungsi multivariabel tanpa kendala. Berdasarkan simulasi numerik dan analisis sensitivitas dapat dilihat pengaruh faktor waktu tunggu pengiriman terhadap fungsi keuntungan gabungan yang optimal. Ditunjukkan bahwa lamanya waktu tunggu pengiriman sangat berpengaruh pada besarnya keuntungan optimal gabungan produsen, distributor, dan pengecer.Kata Kunci: Sentralisasi, Three-Level, Waktu TungguAbstractThe global market era changes the consumer behavior to shop the product, so the consumer can buy through online channel. Therefore, the producer develop the selling channel to sell their products through online channel and offline channel. In this research, we develop the three-level dual-channel supply chain by notice delivery lead time in the online channel used by the producer and develop selling channel from distributors so distributors can sell their product to consumer with direct selling. We construct the model with profit maximization motive of the system that consists producer, distributors, and retailer in the centralize system. The total profit function is nonlinear function without constrains with three decision variables. Furthermore, we determine the optimal solution of the model based on necessary and sufficient condition. Based on numerical simulations and sensitivity analysis we analyze the effect of delivery lead time strongly influences the optimal total profit system.Keywords: Centralize, Lead Time, Three-Level

scholarly journals Managing a Dual-Channel Supply Chain with Fairness and Channel Preference

2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Xianjin Du ◽  
Weijie Zhao
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Retail Price ◽  
Supply Chain Design ◽  
Operational Strategies ◽  
Dual Channel ◽  
Channel Preference ◽  
Online Channel ◽  
Set Up ◽  
Dual Channel Supply Chain

This paper investigates a dual-channel supply chain in which a manufacturer sells the product via an offline retailer or online store. The manufacturer sets the wholesale and online price, and the retailer decides the retail price with the retailer’s fairness preference and consumer’s online channel preference. Through investigating the combined impacts of fairness preference and channel preference on the enterprises’ operational strategies, this paper obtains some meaningful results. If a manufacturer thinks over the fairness preference, he decreases the wholesale price to mitigate a loss of retailer and benefit the supply chain design. The manufacturer intends to set up the online channel with a lower acceptance as the fairness preference grows. However, the gains from enhanced online channel acceptance cannot compensate for the manufacturer’s loss by the fairness effect that benefits the retailer. Moreover, the manufacturer cannot neglect the retailer’s fairness preference generating a “lose-lose” case for both members.

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