Pricing strategy and coordination mechanism of dual-channel supply chain based on reference quality effect

Yan, Lizhao; Li, Xiulian; Teo, Kok Lay; Xu, Fei; Liu, Jian

doi:10.1051/ro/2022126

Cited by 6 publications

(1 citation statement)

References 44 publications

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“…Dehghan-Bonari and Heydari (2022) designed a penalty-based contract, which is a modified call option contract mixed with a cost-sharing mechanism. Yan et al (2022) constructed cost-sharing contracts and two-part tariff contracts to discuss the consistency of the dual-channel supply chain. Based on a stackable game model, Peng et al (2022) analyzed the contract methods for the cases of revenue sharing and no revenue sharing.…”

Section: Related Literaturementioning

confidence: 99%

A pricing strategy of dual-channel supply chain considering online reviews and in-sale service

Liu,

Lin,

Zhao

2024

JBIM

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Purpose The paper attempts to discuss the optimal pricing decisions under the decentralized and centralized decision and analyze the influence of online reviews and in-sale service on dual-channel supply chain. Finally, the authors design a two-part tariff coordination mechanism. Design/methodology/approach To deal with this pricing conflict problems of dual-channel supply chain consisting of dominant manufacturer and a retailer, considering the fact that online reviews and in-sale service are important factors on consumers’ purchase decisions, the authors establish some basic models and exploit them to discuss the optimal pricing decisions under the decentralized and centralized decision and analyze the influence of online reviews and in-sale service on dual-channel supply chain. Finally, the authors design a profit-sharing coordination mechanism. Findings The results show that the optimal online direct selling price is positively correlated with product perceived quality obtained from online reviews and negatively correlated with the in-sale service. The traditional retail price is positively correlated with the in-sale service and weakly correlated with online reviews. For the manufacturer and retailer, whether decentralized decision or coordination contract, their profits increase with the increase of the in-sale service in a certain range and quality perceived from spontaneous online reviews. Online reviews and in-sale service are important factors on consumers’ purchase decisions. Positive in-sale services and online reviews can provide consumers with a better shopping experience, thereby promoting their enthusiasm for shopping and improving their quality of life. The two-part tariff coordination mechanism improves the profits of the manufacturer and the traditional retailer, respectively, through the transfer fee. Originality/value The proposed approach can well analyze the channel conflicts and pricing problems between retailers and manufacturers with respect to product offline price and online price. The analysis and results can inform decision-making for manufacturers and retailers.

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Section: Related Literaturementioning

confidence: 99%

A pricing strategy of dual-channel supply chain considering online reviews and in-sale service

Liu,

Lin,

Zhao

2024

JBIM

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Optimal decisions in a dual-channel remanufacturing supply chain with reference quality effect under WTP differentiation

Dai,

Peng,

Zheng

2024

Oper Res Int J

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The value of the blockchain platform for shipping logistics considering the perceived utility of consumers

Chen¹

2023

RAIRO-Oper. Res.

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Blockchain has been widely used to trace logistics information from sources to destinations in shipping logistics practices. Motivated by market practices, this study intends to discuss the potential application value of blockchain platforms in shipping logistics, considering the perceived utility of consumers. For this purpose, to investigate the shipping logistics supply chain ( SLSC ) of a shipping company (SC) and a freight forwarding company (FFC), in which FFC decides whether to introduce a blockchain platform and its introduction channel. Specifically, three channel models are considered: Model T (i.e., traditional logistics supply chain channel), Model B (i.e., FFCs applied a blockchain platform via a self-built platform channel), and Model J (i.e., FFCs applied a blockchain platform via joining a third-party platform channel). Meanwhile, the Nash and Stackelberg game are used to characterize the companies’ equilibrium outcomes under different power structures. By comparing these three modes, some interesting results are found: consumer perception of the level of service and privacy protection and consumer sensitivity to price has critical effects on the value of blockchain platforms. Results also show that the blockchain platform does not always motivate the members of the SLSC to become better. Whether the power structure is symmetrical or asymmetrical, FFC adopts Model B instead of Model J, in which the blockchain platform can help FFC increase profits, and the value of blockchain is significant. Moreover, the FFC can obtain at least approximately 78% more benefit when the power structure is symmetrical than asymmetrical. However, the value of blockchain platforms to SC is not necessarily significant. The value of the blockchain platform for SC is significant only in Model B with the power structure asymmetric. Therefore, the value of the blockchain platform in Model B with the power structure asymmetrical for both FFCs and SCs is significant, achieving a win-win situation. Also, an extensive numerical analysis showing the optimal channel strategy in the three models generated additional management insights.

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Pricing strategy and coordination mechanism of dual-channel supply chain based on reference quality effect

Cited by 6 publications

References 44 publications

A pricing strategy of dual-channel supply chain considering online reviews and in-sale service

A pricing strategy of dual-channel supply chain considering online reviews and in-sale service

Optimal decisions in a dual-channel remanufacturing supply chain with reference quality effect under WTP differentiation

The value of the blockchain platform for shipping logistics considering the perceived utility of consumers

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