Pricing and bargaining strategy of e-retail under hybrid operational patterns

Han, Shuihua; Fu, Yufang; Cao, Bin; Luo, Zongwei

doi:10.1007/s10479-016-2214-4

Cited by 35 publications

(11 citation statements)

References 43 publications

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“…Research on the dual channel supply chain is mainly concentrated on the price decision, channel coordination, and channel selection. Han et al [16] thought the online channel decreased the offline retailers' revenue but increased consumers' surplus. Yao et al [17], Xu et al [18] and Saha et al [19] studied the impact of price on manufacturers' channel selection and price decision.…”

Section: B Distribution Channelmentioning

confidence: 99%

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Choice of Distribution Channels for Experience Products Using Virtual Reality

Lü

Zhang

et al. 2019

IEEE Access

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Research on product distribution channels has mainly focused on channel cost, risk aversion, consumer fairness preference, price decision, channel coordination, and channel selection while paying less attention to the product experience. Compared with offline channels, the online channel is at a disadvantage with regards to the product experience. For experience products, consumers cannot accurately access the value of the products through online channels because of its virtuality. In contrast, offline channels can attract more consumers with real product experience. However, the application of virtual reality technology has become increasingly more extensive in recent years. Virtual reality technology enhances the interaction level between online consumers and experience products, and it can help consumers assess product value more accurately, which has a greater impact on consumers' purchase decisions. Manufacturers can make full use of virtual reality technology to expand online sales. To maximize the manufacturers' revenue, this paper uses consumer utility theory and game theory to design four experience products' distribution channel models and analyzes the relationship between the manufacturers' revenue in different distribution channel models and virtual reality technology. The results show when the interaction level of virtual reality technology is low, manufacturers tend to choose a dual distribution channel, but when the interaction level of virtual reality technology is high, a single online distribution channel is the best choice for manufacturers. INDEX TERMS Virtual reality technology, experience products, consumer utility, game theory, distribution channel, purchase decisions. I. INTRODUCTION During the period since electronic commerce was introduced, many manufacturers, such as Clarks, Lenovo, Panasonic, Mattel, P&G, and H2O, have pioneered an online channel strategy using e-commerce platforms or their own online platforms. Manufacturers have found that the online channel strategy has benefited them by increasing their profits [1]-[3]. At the same time, an online channel can help consumers to find diverse products and learn about more products' information in a short time. However, subsequent manufacturers have realized that these benefits came with a disadvantage. When the manufacturers open an online channel to sell products to consumers, the online channel only describes products with words, pictures, and video, which make consumers not able to accurately assess the value of the product. However, the offline channel can make consumers determine The associate editor coordinating the review of this manuscript and approving it for publication was Nikhil Padhi.

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Section: B Distribution Channelmentioning

confidence: 99%

“…The manufacturer's decision is how to set the wholesale price w o to maximize the revenue. (17) We obtain the optimal w o through formula (16) and formula (17):…”

Section: B Dual Distribution Channel Modelsmentioning

confidence: 99%

Choice of Distribution Channels for Experience Products Using Virtual Reality

Lü

Zhang

et al. 2019

IEEE Access

View full text Add to dashboard Cite

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“…Dual-channel structure is widely and successfully employed in practice, which brings huge benefits to enterprises [4]. For example, manufacturers such as Apple, Nike, and Dell have opened online shops through their own websites or through the third-party Internet platforms [5,6]. Some retailers such as Wal-Mart, Suning, and Gome have opened online shops for achieving onlineoffline channel integration [7,8].…”

Section: Introductionmentioning

confidence: 99%

Impact of Retailer’s Vertical and Horizontal Fairness Concerns on Manufacturer’s Online Channel Mode

Zhang

Chen

et al. 2021

Discrete Dynamics in Nature and Society

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This paper investigates a dual-channel supply chain consisting of a manufacturer and a retailer, where the retailer exhibits vertical and horizontal fairness concerns. The manufacturer or the retailer direct selling and e-commerce platform agency selling modes are employed to characterize the impact of retailer’s fairness concerns on the online channel mode strategy. Results show that the retailer’s fairness concerns only affect the wholesale price and online channel mode strategy. Without the retailer’s fairness concerns, the manufacturer direct selling mode is the best strategy for the manufacturer, which harms the retailer’s utility. With the retailer’s fairness concerns, the manufacturer may choose the manufacturer direct selling or e-commerce platform agency selling mode. When the fairness concern parameters meet a certain range, the e-commerce platform agency selling mode strategy is better for the supply chain members, which can solve the interest conflict between supply chain members. These research findings help dual-channel supply chain members understand how to choose the channel structure strategy to balance the supply chain members’ interests by considering fairness concerns.

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“…Revenue management aims at selling the right product to the right customer at the right price, time and place ensuring the optimal usage and minimum wastage of available resources which in turn maximises the revenue of a firm (Cross, 1997) One of the most common and successfully practiced revenue management techniques in the Electronic Commerce segment by many multinationals including Amazon, Walmart etc. is the dynamic pricing strategy in which the price of a product is determined in accordance with its corresponding market demand and supply (Han et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

Pricing strategies in the era of digitalisation and the perceived shift in consumer behaviour of youth in Poland

Victor¹,

Thoppan²,

Fekete-Farkas³

et al. 2019

Journal of International Studies

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The advent of industry 4.0 along with the spread of Information and Communication Technology has brought about many pivotal changes in the E-Commerce segment. Technology driven pricing strategies like dynamic pricing has become very common across different industries all over the world. Today, online pricing has evolved into a very efficient and sophisticated pricing strategy where product prices are personalised and tailored to the last conceivable individual buying unit possessing similar characteristics. This study examines various traits exhibited by online consumers in a dynamic pricing environment and figure out the reasons for the display of strategic purchase behaviour by the consumers in response to the dynamic pricing strategy adopted by the sellers. The study was conducted among the Polish millennials as Poland has the median online market size and growth rate among the Central and Eastern European

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Pricing and bargaining strategy of e-retail under hybrid operational patterns

Cited by 35 publications

References 43 publications

Choice of Distribution Channels for Experience Products Using Virtual Reality

Choice of Distribution Channels for Experience Products Using Virtual Reality

Impact of Retailer’s Vertical and Horizontal Fairness Concerns on Manufacturer’s Online Channel Mode

Pricing strategies in the era of digitalisation and the perceived shift in consumer behaviour of youth in Poland

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