Complementary Product Pricing and Service Cooperation Strategy in a Dual-Channel Supply Chain. (29th September 2020)

• Record Type: Journal Article
• Authors: Ren, Minglun; Liu, Jiqiong; Feng, Shuai; Yang, Aifeng
• Other Names: Borondo Florentino Academic Editor.
• Is Part Of: Discrete dynamics in nature and society. Volume 2020(2020)
• Publication Date: 2020-09-29
• Subjects: System analysis -- Periodicals; Dynamics -- Periodicals; Chaotic behavior in systems -- Periodicals; Differentiable dynamical systems -- Periodicals; 003.05
• DOI: 10.1155/2020/2314659
• Languages: English
• ISSNs: 1026-0226

Abstract

Abstract : This paper investigates a pricing game and service cooperation for complementary products in a dual-channel supply chain composed of two manufacturers and one retailer. The products of the two manufacturers are complementary products. One manufacturer sells products simultaneously through its own online channel and the traditional retailer, and the manufacturer delivers the product's service to the retailer in its network direct sales channel by cooperating with the retailer in the form of service cost sharing. Considering the different market power structures of channel members, we establish three different pricing game models. By using the backward induction method and game theory, we obtain the corresponding analytical equilibrium solutions. Then, the service cooperation strategy of using the channel service sensitivity coefficients to construct the weight to share the service cost is proposed. Finally, numerical examples of optimal pricing strategies and profit conditions in different game situations are given, and sensitivity analysis of some key parameters is selectively performed, in which some valuable management insights are obtained.