Logistics Service Quality Control And Pricing Based On Online Shopping

Since the concept of e-business put forward, the e-commerce of online shopping is developing rapidly, which contributed to the development of third-party logistics market directly. And the third-party logistics is becoming increasingly important in the fierce competition of the market. So we should explore the effective method of logistics service pricing in our research, which combine the actual logistics of the online shopping service processes, under the control of logistics services quality of online retailer.Based on the purposes above, this paper made a research of comprehensive review and summary about the existing literature, which is about logistics service quality and service pricing. This study found that the price of services is no longer the only factor which logistics service providers considered in the competition of the market. The quality of logistics service is becoming an important factor. Therefore, when we constructed the model of logistics service pricing, we considered the impact of the quality of logistics service in the market. In other words, it would affect the customer’s willingness when the evaluation of the logistics service quality is good or bad.Secondly, we divided the cost of online shopping service processes by the theory of quality cost. And we set up a cost function of the model. Further, we considered the level of the supervision of logistics service quality of online retailers, and also the mechanism of the responsibility due to service failure. On this basis, we constructed a model of logistics service pricing, which the quality of logistics service is controled by online retailers. Then, according to the scope of the price which logistics service providers offer, we divided the model into two decision-making status. and we solved the equilibrium strategies under different decision-making status by Game Theory and mathematical methods.Finally, we had a comparative analysis of the results of different equilibrium strategies, and obtained the optimal choice in different scenarios. It verified the importance of the cooperation game of logistics service provider and online retailer. Further, we study the sensitivity analysis of the equilibrium strategies in cooperative game mode. Then, we made a simulation about different parameters. It found that the trend of equilibrium outcome in cooperative game mode changed with each parameter. So this paper had great significance to guide online retailer and logistics service provider cooperative game, and also guide them how they should strive to achieve their profit maximization.