Journal ArticleDOI
Competitive pricing of mixed retail and e-tail distribution channels
Dong-Qing Yao,John J. Liu +1 more
TLDR
In this paper, the authors considered the price competition between e-tail and retail distribution channels under two market game settings: the Bertrand and the Stackelberg price competition models.Abstract:
In addition to regular retail distribution channels, a firm nowadays can avail themselves of such information technology (IT) as the Internet to distribute products directly “on line” (referred to as an “e-tail” distribution channel). The mix of retailing with e-tailing has added a new dimension of competition to the firm's distribution channels. The central issue of this competition is the competitive pricing policies between retail and e-tail distribution channels. In this paper, we consider the price competition between these two channels under two market game settings: the Bertrand and the Stackelberg price competition models. In the Bertrand competition, the manufacturer and retailer simultaneously select e-tail and retail price, respectively, while in Stackelberg competition, the manufacturer as a leader selects the e-tail price, then the retailer selects retail price. We obtain both the Bertrand and Stackelberg equilibrium pricing policies, and compare the profit gains under these two competitions. Based on our results, we propose an appropriate strategy for the manufacturer to adopt when adding an e-tail channel. We also show that an optimal wholesale price exists under a different market structure that could be used to encourage the retailer to accommodate the additional e-tail channel.read more
Citations
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Journal ArticleDOI
Implementing coordination contracts in a manufacturer Stackelberg dual-channel supply chain
Jing Chen,Hui Zhang,Ying Sun +2 more
TL;DR: In this paper, the authors examine a manufacturer's pricing strategies in a dual-channel supply chain, in which the manufacturer is a Stackelberg leader and the retailer is a follower.
Journal ArticleDOI
Price and lead time decisions in dual-channel supply chains
TL;DR: It is analytically show that delivery lead time strongly influences the manufacturer's and the retailer's pricing strategies and profits, and the difference between the demand transfer ratios in the two channels with respect to delivery leadTime and direct sale price, customer acceptance of the direct channel, and product type have great effects on the lead time and pricing decisions.
Journal ArticleDOI
Pricing policies of a competitive dual-channel green supply chain
TL;DR: In this paper, the authors examined a dual-channel supply chain in which the manufacturer makes green products for the environmental conscious and discussed the pricing and greening strategies for the chain members in both centralized and decentralized cases under a consistent pricing strategy.
Journal ArticleDOI
Pricing policies in a dual-channel supply chain with retail services
Bin Dan,Guangye Xu,Can Liu +2 more
TL;DR: In this article, the optimal decisions on retail services and prices in a centralized and a decentralized dual-channel supply chain using the two-stage optimization technique and Stackelberg game were examined.
Journal ArticleDOI
Price and service competition of supply chains with risk-averse retailers under demand uncertainty
Tiaojun Xiao,Danqin Yang +1 more
TL;DR: In this article, the authors developed a price-service competition model of two supply chains to investigate the optimal decisions of players under demand uncertainty, and analyzed the effects of the retailers' risk sensitivity on the players' optimal strategies.
References
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Book ChapterDOI
A new product growth model for consumer durables
TL;DR: In this article, a growth model for the timing of initial purchase of new products is proposed, and a behavioral rationale for the model is offered in terms of innovative and imitative behavior.
Journal ArticleDOI
Frictionless Commerce? A Comparison of Internet and Conventional Retailers
TL;DR: The authors empirically analyzes the characteristics of the Internet as a channel for two categories of homogeneous products-books and CDs-using a data set of over 8,500 price observations collected over a period of 15 months, comparing pricing behavior at 41 Internet and conventional retail outlets.
Posted Content
Frictionless Commerce? A Comparison of Internet and Conventional Retailers
TL;DR: The authors empirically analyzes the characteristics of the Internet as a channel for two categories of homogeneous products (books and CDs) using a data set of over 4,500 price observations collected over a period of 9 months.
Journal ArticleDOI
Direct Marketing, Indirect Profits: A Strategic Analysis of Dual-Channel Supply-Chain Design
TL;DR: This model constructs a price-setting game between a manufacturer and its independent retailer and shows that the mere threat of introducing the direct channel can increase the manufacturer's negotiated share of cooperative profits even if price efficiency is obtained by using other business practices.
Journal ArticleDOI
Price Competition in a Channel Structure with a Common Retailer
TL;DR: In this article, the authors studied three noncooperative games of different power structures between the two manufacturers and the retailer, i.e., two Stackelberg and one Nash games, and showed that an exclusive dealer channel provides higher profits to all than a common retailer channel given a power structure.