Pricing Game Models of Hybrid Channel Supply Chain: A Strategic Consumer Behavior Perspective

Zhang, Xuelong; Li, Yufei; Zhu, Jianhua; Zhou, Xuequan

doi:10.3390/jtaer18030060

Cited by 3 publications

(2 citation statements)

References 35 publications

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“…To the best of our knowledge, this paper is among the first to investigate the impact of offering limited-time discount and threshold discount policies under MFS on online retailers' profit and consumers' welfare based on the heterogeneity of consumer shopping behaviors and order structures. The contributions of this study are as follows: (1) We propose limited-time discount and threshold discount policies and derive optimal price discounts for online retailers under the MFS, with the aim of ensuring online retailers are not hindered in profitability because of the high-frequency and small-scale purchase behavior of consumers. Unlike previous studies, we make a theoretical contribution to this field by considering scenarios of consumer order consolidation and additional purchases under different policies.…”

Section: Contributions and Paper Arrangementmentioning

confidence: 99%

“…Global e-commerce retail sales have grown rapidly in recent years [1,2], increasing from USD 2382 billion in 2017 to USD 5211 billion in 2022 [3]. Given that shipping surcharges play a key role in online consumers' purchase decisions and satisfaction [4,5], online retailers have incorporated free shipping into their business models.…”

Section: Introduction 1background and Motivationmentioning

confidence: 99%

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Have Your Cake and Eat It? Price Discount Programs under the Membership Free Shipping Policy in Online Retailing

Tang,

Hua,

Cheng

et al. 2024

JTAER

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Online retailers offer free shipping services, such as threshold free shipping (TFS) and membership free shipping (MFS), to promote sales and provide a better shopping experience to consumers in online retailing. Although MFS attracts more member-consumers, it encourages consumers to place more small orders than TFS, which significantly increases the operational costs of the online retailer. To address this issue, we propose two price discount policies under the MFS service, namely the limited-time discount and the threshold discount. Then, we build analytical models under these two policies to explore the impacts of offering price discounts on the retailer’s profit and consumers’ welfare. We find that no matter which discount policy is adopted, consumers are more likely to consolidate several small orders from different time periods into a big one to obtain the discount. The economies of scale generated by consumers consolidating their orders under these discount policies can help reduce online retailers’ operational costs. Therefore, regardless of any discount policy offered by the online retailer under the MFS service, consumers will place more big orders and more member-consumers are attracted, i.e., the online retailer can have its cake and eat it too. Our research findings provide decision-making insights for practitioners who offer free shipping services and price discounts to consumers in online retailing.

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Section: Contributions and Paper Arrangementmentioning

confidence: 99%

Section: Introduction 1background and Motivationmentioning

confidence: 99%

Have Your Cake and Eat It? Price Discount Programs under the Membership Free Shipping Policy in Online Retailing

Tang,

Hua,

Cheng

et al. 2024

JTAER

View full text Add to dashboard Cite

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Pricing of medical services and channel selection strategies for pharmaceutical supply chain under the zero‐markup drug policy

Li,

Kong

et al. 2024

Manage Decis Econ

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This paper studies the channel strategies of drug suppliers in the drug supply chain under the zero‐plus drug pricing policy. With the popularity of e‐commerce and online shopping, supply chain firms have begun considering expanding their business to online channels. In this paper, we construct a game model to explore the impact of the pharmaceutical supply chain's development of online channels on supply chain members. We conclude that under the zero profits policy, increasing the public hospital's public welfare level will increase the price of drugs, decrease the price of medical services, and reduce the overall cost of patients. In addition, the greater the sensitivity of medical services, the lower the likelihood that a drug supplier will open an online pharmacy, and the lower the level of public good, the greater the likelihood that a drug supplier will open an online pharmacy. In addition, under certain conditions, patients can receive a higher level of medical service and spend less on healthcare under a dual‐channel strategy. Finally, under a dual‐channel strategy, an appropriate profit‐sharing mechanism can eliminate instability in the pharmaceutical supply chain.

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Simultaneous or Sequential? Supplier Product Launch Strategy through E-Commerce Channels with Different Models

Li,

Wang,

2024

JTAER

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As the e-commerce landscape diversifies, suppliers are faced with the critical decision of how to effectively launch their products through e-commerce channels with varying business models. This study aims to explore the strategic considerations for a supplier launching products through two distinct e-commerce channels: one based on a direct sale model and the other on a reselling model. It builds a theoretical model to examine the supplier’s decision-making across three strategic options: a simultaneous launch through both channels, a sequential launch starting with the direct sale model followed by the reselling model, and vice versa. The equilibria of those options are derived through game analysis and further compared. The results reveal that for suppliers under a non-alliance pricing contract, a simultaneous product launch across both channels is the most advantageous approach. Conversely, in scenarios where an alliance pricing contract is in place, the optimal strategy shifts towards a sequential launch. The decision of which channel to ally with—whether the direct sale or the reselling model—hinges critically on the difference in service efficiency and the intensity of competition between the channels. This nuanced analysis highlights the importance of strategic flexibility and alignment with channel dynamics in maximizing product launch success in the evolving e-commerce environment.

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Pricing Game Models of Hybrid Channel Supply Chain: A Strategic Consumer Behavior Perspective

Cited by 3 publications

References 35 publications

Have Your Cake and Eat It? Price Discount Programs under the Membership Free Shipping Policy in Online Retailing

Have Your Cake and Eat It? Price Discount Programs under the Membership Free Shipping Policy in Online Retailing

Pricing of medical services and channel selection strategies for pharmaceutical supply chain under the zero‐markup drug policy

Simultaneous or Sequential? Supplier Product Launch Strategy through E-Commerce Channels with Different Models

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