Jointed Pricing Decision of Brick-and-Click Retailers under Uncertain Demand

Qing Guo Wang; Zhi Xia Liu; Yao Hua Wang

doi:10.4028/www.scientific.net/AMR.860-863.3108

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HomeAdvanced Materials ResearchAdvanced Materials Research Vols. 860-863Jointed Pricing Decision of Brick-and-Click...

Jointed Pricing Decision of Brick-and-Click Retailers under Uncertain Demand

Abstract:

This paper studies on jointed pricing decision of Brick-and-Click Retailers under uncertain demand, based on the two-item newsvendor model. Firstly, the two-item newsvendor model is built based on profit maximization. Then, the concavity of objective function is proved and the solving method is given. Moreover, the solutions of the model and the influence of demand transfer coefficient to pricing, productivity and profit are analyzed numerically. The results show that the traditional retail channels pricing and productivity will decrease while e-commerce channels pricing and productivity and retailer profits will grow with the increase of demand transfer coefficient.

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Periodical:

Advanced Materials Research (Volumes 860-863)

Pages:

3108-3113

DOI:

https://doi.org/10.4028/www.scientific.net/AMR.860-863.3108

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Online since:

December 2013

Authors:

Qing Guo Wang, Zhi Xia Liu, Yao Hua Wang

Keywords:

Dual Channels, Jointed Pricing, Two-Item Newsvendor Model, Uncertain Demand

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