The Decision-making And Modeling Of Dual-channel Pricing On Online Direct Marketing And Traditional Distribution Of Small And Midsize Manufacturing Enterprises

The Internet began to develop rapidly around the world since the 90s of the 20th century, which had brought great changes to the traditional method of distribution. Many companies have introduced online channel to sell their products directly. The use of e-business can improve the competitive advantage for small and midsize manufacturing enterprises significantly, bring them more business opportunities and help them to develop in the fierce competition. However, despite the online channel can be a complement for the traditional channel, there may be a competition between them. How to integrate and coordinate online channel and traditional channel and develop an effective dual-channel pricing strategy to achieve a balance between the two channels and maximize the overall profits have became a big problem of e-business enterprises.This paper reviewed some theories and methods of dual-channel and pricing at first, and then built a dual-channel pricing model, analyzed the influence of product digital attributes and consumer acceptance of online shopping on dual-channel pricing decisions and compared the dual-channel pricing strategy in two cases. At last, this paper calculated and simulated the dual-channel pricing model with Matlab in order to give some advises on pricing to the managers of small and midsize manufacturing enterprises.This paper concluded that product digital attributes and consumer acceptance of online shopping can affect the dual-channel pricing decisions. If the retailer can take charge of the supply chain, it's better for the manufacturer to price products according to the retailer's price, which will bring benefits to both sides.