Pricing Strategies in Dual-Channel Supply Chain with Retailer Direct Marketing

Abstract:

A two-level dual-channel supply chain model was established in which retailer had his own direct channel. Game model was constructed based on two cases of decentralized and centralized decision-making. Pricing strategies of manufacturer and retailer were studied. Impacts of different channel and different sale entities on manufacturer and retailer were examined. Results show that when channel substitution increases and market share of retailer direct channel is small, retailer should choose to give up direct channel and focus on retail channel sales and take direct channel as means of propaganda and brand promotion. When the difference of sale entities reduces, consumers can get more surplus.

• Periodical: Advanced Materials Research (Volume 933)
• Pages: 902-906
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.933.902
• Online since: May 2014
• Authors: Shu Juan Li, Ai Jun Liu*
• Keywords: Dual-Channel, Game Theory, Pricing Strategies, Supply Chain

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