Channel selection and pricing in the presence of retail-captive consumers

Khouja, Moutaz; Park, Sungjune; Cai, Gangshu

doi:10.1016/j.ijpe.2010.01.005

Cited by 99 publications

(43 citation statements)

References 19 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Especially, consumer's channel preference is a hot topic in supply chain research. Khouja et al [8] analyzed the manufacturer's channel selection and pricing problem. They considered consumer's preferences under different distribution strategies.…”

Section: Introductionmentioning

confidence: 99%

Research on Supply Chain Stability Driven by Consumer’s Channel Preference Based on Complexity Theory

Tian

Lou

2018

Complexity

View full text Add to dashboard Cite

At present, most of the manufacturers are increasingly laying emphasis on dual-channel selling. The level of consumer's preference is diverse with different channels. This study discusses a supply chain where one common manufacturer uses two different channels to sell product. The bounded rationality expectation has been applied to explore the decision-making mechanism in finalizing the wholesale prices and sales commissions for the manufacturer and retailers. In addition, the dynamic features of the system are simulated by 2D bifurcation diagram, the largest Lyapunov exponent, attractor variation, and time series. The simulation results suggest that if the adjustment speeds of the wholesale prices and sales commissions change drastically, the system would fall into a chaotic state. If the consumers prefer the online channel, the wholesale prices and sales commissions may be raised and vice versa. However, too strong preference of each channel will make the system appear to have a considerably periodic fluctuation, even chaos. In the meantime, the parameter adjustment method can help make the periodic or chaotic system go back to stability. Therefore, the significance of this study is with a practical meaning to make better pricing strategy for players in dual-channel selling supply chain system.

show abstract

Section: Introductionmentioning

confidence: 99%

Research on Supply Chain Stability Driven by Consumer’s Channel Preference Based on Complexity Theory

Tian

Lou

2018

Complexity

View full text Add to dashboard Cite

show abstract

“…Some of the few articles on this field include: Khouja et al [26] analyze channel selection and price setting of a manufacturer who has several distribution options including direct channel, manufacturerowned retail channel, and/or independent retail channel. Li et al [27] analyze the price competition of the dual-channel supply chain composed of two oligopoly retailers (one sells through network and traditional store, the other sells only through the Internet).…”

Section: Literature Reviewmentioning

confidence: 99%

Price competition and equilibrium analysis in multiple hybrid channel supply chain

Guihua

Ai-hu

Jiang

2017

IOP Conf. Ser.: Mater. Sci. Eng.

View full text Add to dashboard Cite

Abstract. The amazing boom of Internet and logistics industry prompts more and more enterprises to sell commodity through multiple channels. Such market conditions make the participants of multiple hybrid channel supply chain compete each other in traditional and direct channel at the same time. This paper builds a two-echelon supply chain model with a single manufacturer and a single retailer who both can choose different channel or channel combination for their own sales, then, discusses the price competition and calculates the equilibrium price under different sales channel selection combinations. Our analysis shows that no matter the manufacturer and retailer choose same or different channel price to compete, the equilibrium price does not necessarily exist the equilibrium price in the multiple hybrid channel supply chain and wholesale price change is not always able to coordinate supply chain completely. We also present the sufficient and necessary conditions for the existence of equilibrium price and coordination wholesale price. IntroductionWith the rapid development of information technology, human way of life and work has been changed completely. Using Internet, consumers can search, compare and get plenty of information about the goods they want to buy conveniently and economically without restrictions of time, space, weather, etc. On the other hand, the improvement in the efficiency of merchandise delivery provided by the third-party logistics enterprises such as Federal Express and UPS makes merchants have the ability to deliver their products to customers quickly but not costly. The combination of traditional business model with information technology and logistics industry promotes the emergence and development of e-commerce and makes it no longer be a novelty.The shortening of the length and the reduction of the intermediate links number of supply chain caused by online shopping reduce the price of products and benefit the customers. Meanwhile direct sale online makes enterprises more close to their customers and can obtain more accurate information for production operations management. Sale and purchasing through network became more and more popular and changed both enterprises' sales model and consumers' consumption patterns significantly. When electronic channel has become a critical selling and buying channel, manufacturers who sold only with the help of traditional retailers began to sell products to end customers directly via Internet. Such as IBM, Hewlett-Packard, Nike, Pioneer Electronics, Mattel, Estee Lauder and Cisco Systems, many prominent manufacturers had adopted primarily direct marketing techniques to sell their

show abstract

“…Batarfi et al [9] investigated the effect of adopting a dual channel on the performance of a two-level supply chain; their results show that adding a customized-product online channel would increase the profit of the centralized supply chain system. Huang and Swaminathan [10] and Khouja et al [11] studied the optimal pricing strategy when a retailer sells its product though an dual channel. Schneider and Klabjan [12] analyzed conditions for known inventory control policies to be optimal in presence of two different sales channels.…”

Section: Introductionmentioning

confidence: 99%

Interactions of Bargaining Power and Introduction of Online Channel in Two Competing Supply Chains

Wei

Shao

Zhao

2018

Mathematical Problems in Engineering

View full text Add to dashboard Cite

This paper studies the effect of dual-channel format on supply chain's competition ability and the effect of different bargaining powers on the competition between two supply chains and the optimal pricing decisions of all supply chain members when one supply chain introduces an online retailing channel. We develop four game models and obtain the optimal pricing decisions in closed form of these models and give some sensitivity analysis through numerical approach. Some new managerial insights are obtained as follows: Regardless of the two supply chain members' bargaining forms, the optimal price, the maximal demand, and the maximal profit decrease as the self-price sensitivity decreases. The industry holds advantage in getting higher profit when the supply chain without online retailing channel is led by the retailer. In addition, we find that a manufacturer as a leader of its supply chain can get more profit when the competing supply chain's leader is the manufacturer than when the competing supply chain's leader is the retailer.

show abstract

Channel selection and pricing in the presence of retail-captive consumers

Cited by 99 publications

References 19 publications

Research on Supply Chain Stability Driven by Consumer’s Channel Preference Based on Complexity Theory

Research on Supply Chain Stability Driven by Consumer’s Channel Preference Based on Complexity Theory

Price competition and equilibrium analysis in multiple hybrid channel supply chain

Interactions of Bargaining Power and Introduction of Online Channel in Two Competing Supply Chains

Contact Info

Product

Resources

About