Research On Supply Chain Pricing Decision Based On Extended Service

With the intensification of market competition,as well as changes in consumer attitudes,consumers in the purchase of products,not only focus on product entities themselves,people pay more attention to product after-sales service.Therefore,enterprises which provide high quality,cheap products and comprehensive after-sales service,have become a new focus of modern market competition.Especially in the automotive,home appliances,personal computers and other highly competitive industries,the successful manufacturing enterprises will be particularly strengthened after-sales service construction.In addition to the product's free warranty service,the market also provides paid warranty service to get a lot of profits.The emergence of the extended service market has made competition between manufacturers and retailers competing for profits more intense.Now the commercial competition vary from the original competition between the individual enterprises into the supply chain as a whole competition,and supply chain members of the internal competition will affect the overall efficiency of the supply chain,this paper is based on the extension of the service within the supply chain,there is a pricing problem of vertical competition and horizontal competition in the multi-competitive situation.This paper constructs two types of secondary supply chains: one for a manufacturer and two retailers,the manufacturer as a leader of Stackelberg,providing extended warranty services,and three types of horizontal competition between retailers(Bertrand Model,Collusion Model,Stackelberg Model),representing the retailer's horizontal competition type;the other is made up of two manufacturers with a retailer,retailer as Stackelberg leader,providing extended warranty service,two manufacturers have horizontal competition between the three Models(Bertrand competition,Collusion competition,Stackelberg competition),on behalf of The manufacturer's horizontal competition type.According to these two types of supply chain,the research Model is established by using the principle of economics,the game Model is used to solve the Model variable,obtain the optimal wholesale price of the manufacturer,the optimal retail price of the retailer,the optimal extended Service pricing,the optimal extension service period and the supply chain members of the maximum profits.This paper analyzes the influence of customers' sensitivity to the Model results and the comparative analysis of the results of the Model,and draws some important conclusions.In the retail competition type,the optimal retail price of the retailer is the highest in the Collusion Model,and the profit of the two retailers in the Stackelberg Model when the customer is sensitive to the price of the extension service to a certain extent Is better than the profit of the two retailers in the Bertrand Model.The optimal extended warranty services price set by the manufacturer is the lowest in the Collusion Model,the optimal extended warranty services term is the shortest in the Collusion Model,and the optimal wholesale price is the highest in the Collusion Model,And its profit is lowest in Collusion Model,highest in pattern B;the profit of the supply chain system is the highest in the centralized decision,followed by the Bertrand Model,again for the Collusion Model.The optimal retail price and the optimal wholesale price are positively related to the customer's sensitivity to the price of the extension service,and negatively related to the sensitivity of the extended service period.The optimal guarantee service price and the extended service period,the profit of the members and the system of the supply chain is negatively correlated with the customer's price sensitivity to the extended service price,and it is positively related to the sensitivity of the extended service period.In the type of horizontal competition of the manufacturer,the example shows that the optimal retail price is positively related to the sensitivity of the customer to the extended service price of the unit extension service time,The optimal price of the extended warranty service,the wholesale price,the profit of the supply chain member and the total profit of the system are negatively correlated with the price sensitive degree of the extended service price of the customer;the total profit of the supply chain system is the largest in concentrated decision,followed by Stackelberg Model,again for Bertrand Model,and Collusion Model is the lowest.The innovation of this research is to combine the two kinds of extended service Model of supply chain in reality: a class of supply chains is controlled by strong manufacturing and is provided by the manufacturer to consumers with extended warranty services(such as Apple and its retailers),another type of supply chain is controlled by large retailers and is provided by retailers to consumers with extended warranty services(such as Gome and Suning and its upstream manufacturers).This paper analyzes the influence of the three Models from the perspective with Multi-directional competition on the pricing decision of supply chain members,especially in the case of vertical competition in the supply chain.This study not only enriches the theory of supply chain warranty services pricing decision,but also provides a theoretical basis for supply chain members to realize the overall profit maximization decision of supply chain.