Pricing Strategies in a Two-Echelon Supply Chain With Sales Efforts and Channel Conflicts

Cai, Huan; Song, Qian

doi:10.1109/access.2020.2991673

Cited by 6 publications

(5 citation statements)

References 31 publications

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“…In the mixed-channel supply chain, consumers' channel preference and product pricing strategy will impact their ultimate decision [8]. For instance, Cai et al [9] studied the impact of service quality on dual-channel optimal price; Liao et al [10] discussed the impact of consumers' green preference on supply-chain pricing decisions; Chen et al [11] studied the impact of consumer comments on supplier pricing; and Zhang et al [12] studied the impact of consumer scarcity sensitivity on pricing. In addition, the network acceptability [13], patience [14], and preferences [15,16] of consumers as well as other factors influence the multi-channel price.…”

Section: Literature Reviewmentioning

confidence: 99%

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

Zhang

Zhu

et al. 2023

JTAER

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The current sales model combining online and offline channels meets the diverse requirements of consumers. However, consumers’ inter-channel switching behavior and strategic behavior also pose significant challenges to pricing decisions in the hybrid channel. Using game theory and consumer utility theory, a retailer-driven pricing model is developed to study the optimal pricing problem for each channel in a mixed-channel supply chain considering the characteristics of channel competition and the waiting behavior of strategic consumers. Study results show there is a negative correlation between the proportion of strategic consumers and the optimal pricing and profit of each channel, and as the proportion of strategic consumers rises, the optimal pricing and profit of manufacturers and retailers all trend downward. Incorporating strategic consumers into the pricing model will assist the supply chain in elucidating the behavior of consumer heterogeneity during various decision-making periods and in making reasonable pricing decisions. Effective guiding strategies, such as pre-discount and purchase restrictions, can reduce the profit loss caused by strategic consumer behavior. The optimal combination of pre-announcement discount and strategic consumer ratio can generate the greatest profit for retailers and the supply chain.

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Section: Literature Reviewmentioning

confidence: 99%

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

Zhang

Zhu

et al. 2023

JTAER

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“…Tian et al considered that market demand is influenced by consumer channel preferences and sales efforts and verified the multichannel supply chains' coordination and control mechanism based on delayed decision making [53]. Cai et al studied the price tactics in a two-stage supply chain with sales effort and channel conflict [54]. Saha et al investigated the impact of product market demand on price and sales effort level.…”

Section: Literature Reviewmentioning

confidence: 99%

Retailer-Led Low-Carbon Supply Chain Coordination Considering Sales Effort

Zhang

Ding

2023

Sustainability

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This paper develops a Stackelberg game model for a retailer-led secondary low-carbon supply chain (L-CSC) comprising a manufacturer and a retailer. Then, a two-part pricing contract is designed to investigate the product pricing, carbon reduction, and sales effort decision problems, and relevant management insights are obtained through numerical analysis. The study shows an efficiency loss in decentralized decision making compared to centralized decision making. Considering the sales effort improves the efficiency of the supply chain, retail price, carbon emission reduction (CER), sales effort level, and supply chain profit positively relate to product low carbon preference and sales sensitivity coefficients. The designed two-part pricing contract can increase the profit of the entire L-CSC and optimize the decision level under centralized decision making.

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“…Similarly, a customer purchases a product from the manufacturer 1 when α ≤ υ 1p 1wθ, whereas they purchase it from manufacturer 2 when α ≤ υ 2p 2w(1 -θ). Following Cai et al [37], we may calculate the customer demand for manufacturers' q 1 and q 2 as follows:…”

Section: Problem Description and Study Assumptionsmentioning

confidence: 99%

Warranty and Bundling Strategies for Pricing Decisions in a Duopoly

Andriani

Tseng

2023

IEEE Access

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This study examines pricing decisions by considering two manufacturers' warranty and bundling strategies using spatial competition in a duopolistic market. With the development of advanced technology and evolving societal needs, manufacturers now sell a product with its complement-a warrantyusing either a bundled base warranty or an unbundled extended warranty strategy. To investigate the impact of the bundling strategy on warranty and pricing models, we develop two scenarios for the pure bundling and mixed bundling scenarios. By constructing a Nash equilibrium model and assessing customer preferences, we determine the optimal warranty length and level of customer demand corresponding to a manufacturer's pricing and strategic decisions. The analysis demonstrates that one manufacturer's strategic decisions are interdependent with those of its competitor. Moreover, a longer warranty period in the unbundled extended warranty strategy not only attracts customers and increases demand but also imposes additional costs on manufacturers. As a result, while providing more personalized features and flexibility, the unbundled extended warranty strategy is not always more profitable. Thus, a manufacturer must carefully evaluate its warranty and bundling strategies when making pricing decisions to gain a competitive advantage. Finally, numerical and sensitivity analyzes confirm the results of the theoretical analysis and provide managerial insights.

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Pricing Strategies in a Two-Echelon Supply Chain With Sales Efforts and Channel Conflicts

Cited by 6 publications

References 31 publications

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

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

Retailer-Led Low-Carbon Supply Chain Coordination Considering Sales Effort

Warranty and Bundling Strategies for Pricing Decisions in a Duopoly

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