Pricing decisions with different time sequences in a cross‐border dual‐channel supply chain

Xue, Chao; An, Simin; Li, Yanran

doi:10.1111/itor.12937

Cited by 10 publications

(6 citation statements)

References 79 publications

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“…Additionally, both players making decisions simultaneously is defined as a Nash game (Shi et al, 2013). Many existing studies analyze the impact of decision sequences in an e-commerce supply chain setting, including Taleizadeh et al (2019), Hu et al (2021), Chen et al (2021), andChai et al (2021). These studies reveal that decision sequences have a non-negligible impact on the pricing decisions and profitability of firms in e-commerce supply chains.…”

Section: Decision Sequences In E-commerce Supply Chainsmentioning

confidence: 99%

“…When the e‐commerce platform and the retailer sell the same product, price competition is inevitable. In the reality of business competition, different decision sequences between competitors can affect their products’ prices (Chen et al., 2021). Moreover, businesses prefer to choose the decision sequence that is favorable to them (Chen et al., 2021).…”

Section: Introductionmentioning

confidence: 99%

“…In the reality of business competition, different decision sequences between competitors can affect their products’ prices (Chen et al., 2021). Moreover, businesses prefer to choose the decision sequence that is favorable to them (Chen et al., 2021). For example, when competing with unknown retailers, large e‐commerce platforms, such as JD.com, Amazon, and Tmall, have the ability to choose the decision sequence.…”

Section: Introductionmentioning

confidence: 99%

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Optimal pricing strategies of e‐commerce supply chain considering consumers’ anticipated regrets under the background of blockchain anti‐counterfeiting technology

Yu,

Guan,

et al. 2023

Int Trans Operational Res

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In this study, we investigate pricing decisions with different decision sequences in an e‐commerce supply chain. The e‐commerce platform sells blockchain‐compatible products through a self‐operated model, while the retailer operating on the platform sells general products. Furthermore, we take into account the impact of counterfeits infiltrating the general product market. This can trigger consumers’ anticipated regrets, including high‐price regret and fake purchase regret. We design three scenarios: Scenario ES (the e‐commerce platform makes the decision first), Scenario RS (the retailer makes the decision first), and Scenario VN (they make decisions simultaneously). We study the impact of consumers’ anticipated regrets and the decision sequence on pricing strategies, as well as the profits of the e‐commerce platform and the retailer. Our results show that the optimal retail prices of the two versions of the products and the profits of the e‐commerce platform and the retailer are negatively correlated with the relative regret intensity. The profits of the e‐commerce platform and the retailer are the lowest under Scenario VN due to the fiercest competition. The e‐commerce platform prefers Scenario RS to Scenario ES. If the counterfeit penetration rate is small and the commission rate is large, the retailer prefers Scenario RS to Scenario ES. However, if the counterfeit penetration rate is high, or if both the counterfeit penetration rate and the commission rate are low, the retailer prefers Scenario ES to Scenario RS. Furthermore, if government penalties (or consumer claims) exist, the retailer should combat counterfeiting appropriately for better financial performance.

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Section: Decision Sequences In E-commerce Supply Chainsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Optimal pricing strategies of e‐commerce supply chain considering consumers’ anticipated regrets under the background of blockchain anti‐counterfeiting technology

Yu,

Guan,

et al. 2023

Int Trans Operational Res

View full text Add to dashboard Cite

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“…Our work is related to the literature on dual-channel supply chains. There are many works focusing on the pricing strategy in a dual-channel supply chain (Chen et al, 2021;Liao et al, 2019;Niu et al, 2021;Taleizadeh and Noori-daryan, 2016;Ye et al, 2019;Zhang et al, 2018). By noticing the importance of sustainability, some studies investigate the dual-channel (or multi-channel) closedloop supply chain, which involves environment and social liability issue, see, for example, Alizadeh-Basban and Taleizadeh (2020), , Taleizadeh et al (2017), andZerang et al (2018).…”

Section: Literature Reviewmentioning

confidence: 99%

The impact of production diseconomies on manufacturer encroachment

Chen

Tang

2022

Int Trans Operational Res

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We consider a supply chain with a manufacturer and a retailer, where the manufacturer is diseconomy of scale regarding production and may encroach into the downstream market. We prove that the production diseconomy changes the traditional wisdom regarding the impact of manufacturer encroachment on supply chain performance. First, we show that the production diseconomy disincentivizes the manufacturer's encroachment. Second, different from the literature that believes retailer can be better off as long as it has a selling cost advantage compared with the manufacturer, we establish the condition where encroachment always hurts the retailer regardless of the selling cost advantage. Third, we find that when the price does not respond sensitively to the quantity, an encroaching manufacturer would increase the wholesale price. Surprisingly, the supply chain's profit still could increase. Finally, we check how the retail competition, imperfect substitution, and price competition affect the corresponding results shown above. We show that the retail competition disincentivizes the manufacturer's encroachment and weakens the whole industry's profit benefit from the encroachment. In contrast, imperfect substitution increases the manufacturer's encroachment incentives and strengthens the industry's profit benefit from the encroachment. In the case of imperfect substitution with quantity competition, the consumers might be worse off after the manufacturer encroaches; otherwise, they benefit from the manufacturer's encroachment.

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“…Due to cost control factors, manufacturers have a huge advantage in selling online over retailers and manufacturers are often in a dominant position to influence retailer's price setting in the CLSC. Mainly the manufacturers determined the direct sales price in the MLSG [91][92][93]. In this case, of MLSG the retailer only able to set its retail price after the manufacturer's direct price has been set.…”

Section: Manufacturer-led Stackelberg Game (Mlsg)mentioning

confidence: 99%

A Two-Stage Closed-Loop Supply Chain Pricing Decision: Cross-Channel Recycling and Channel Preference

Pan

Lin

2021

Axioms

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This paper focuses on the pricing problem of a two-stage closed-loop supply chain (CLSC) considering the cross-channel recycling and channel preference based on a single manufacturer and a single traditional retailer. The pricing decision problem raises from the manufacturer’s direct sales and the retailer’s retailing including recycling. Managers need to focus on intelligible management considering consumer channel preferences, cross-channel recovery and pricing strategies. According to game theory, centralized and decentralized CLSC decision models are used to provide an efficient solution to managers for the pricing problem. The centralized model consists of differential and uniform pricing strategy and the decentralized model consists of manufacturer-led Stackelberg, retailer-led Stackelberg and Nash equilibrium game, respectively. The impact of cross-channel recycling rate and channel preference on pricing and profitability in a two-stage CLSC system is explained elaborately in this study. The results show that cross-channel recovery rates and consumer channel preferences have a direct significant impact on pricing strategies including profit allocation decisions in CLSC. It demonstrated that different channel preferences leading to different pricing strategies and decision for manufacturers and retailers choices. Manufacturer’s pricing decreases when channel preferences are constant and cross-channel recovery rates increase. Retailer’s pricing remains stable as the cross-channel recovery rate has less affected on it. Furthermore, if the cross-channel recovery rates increase, then the manufacturers pricing decreases and retailers pricing increases. This information will be a helpful guideline for the manager to select suitable pricing strategies based on the company scenario.

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Pricing decisions with different time sequences in a cross‐border dual‐channel supply chain

Cited by 10 publications

References 79 publications

Optimal pricing strategies of e‐commerce supply chain considering consumers’ anticipated regrets under the background of blockchain anti‐counterfeiting technology

Optimal pricing strategies of e‐commerce supply chain considering consumers’ anticipated regrets under the background of blockchain anti‐counterfeiting technology

The impact of production diseconomies on manufacturer encroachment

A Two-Stage Closed-Loop Supply Chain Pricing Decision: Cross-Channel Recycling and Channel Preference

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