Research On Pricing Strategy Of Furniture Retailer In Different Circulation Channel Structures

The development of furniture industry is gradually mature in China. Manufacturers and distributors are developing network channels. There are network channel, traditional channel and dual-channel which is the integration of the two modes. The network of distribution channels has a great influence on circulation structure. It’s very significant to study the pricing strategy in different circulation structures.In this paper,I will study the main circulation structures and the optimal price strategy based on Stackelberg.I will do research from the following three aspects:Firstly, I will analyze the main circulation channels of China furniture industry through the literature and the actual investigation. The circulation channel is divided into single channel and dual-channel. The single channel mainly includes network channel such as" LINSY" and the traditional channel. Dual-channel mainly includes independent competition mode, manufacturers forward integration as the "e word" of "QuMei", and vendors introducing network channels as "HOBA" built "Hobalife" network mall.Secondly, I research the distributors’ optimal pricing strategy in single channel. In network channel, the market demand only affected by price.In traditional channel the market demand affected by price and service.In Dual-channel environment, consumers have free-riding behavior base on the service and the market demand affected by price, service and consumers’free-riding behavior. In this case, I’ll study the distributors’ optimal pricing strategy in independent competition mode, manufacturer forward integration and vendor introducing network.