Pricing Strategy In Dual Channel Supply Chain Under Fairness And O2O Business Model

At present, when the Internet has penetrated our daily life, the convenience of E-commerce has brought huge threats to the traditional off-line enterprises. At the same time, the lack of direct experience has limited the development of E-commerce. Based on the O2 O business model, the dual channel supply chain has developed in two kinds of business models. One is that the traditional offline enterprises open their own online channel, in order to let the online consumers shop and experience in the offline store. The other one is that the traditional E-commerce develops the offline store, in order to attract more consumers to trade in the online channel under direct experience. This new business model, O2 O, who integrates the online and offline resource by combining the traditional and Internet wisdom, creates a new opportunity for traditional enterprises and E-commerce. Under the O2 O business model, the dual channel supply chain can make full use of the abundant information, low transaction cost and convenient payment from online channel with the direct experience and real service from offline channel.This paper will chose retailer dual channel supply chain as the object of study, break the assumption of economic rationality and use the Stackelberg game, fairness concerns, and optimization theory to analyze the pricing strategy under the lead of supplier or retailer. This paper will describe the fairness concerns of supply chain in three aspects: the fairness just in supplier, just in retailer and in both parties. Finally, this paper will get the pricing strategy of retailer dual channel supply chain in each case under the O2 O business model.From the result, the wholesale price, the online retail price and the offline retail price of retailer dual channel supply chain have positive correlation with the fairness concerns of supplier under the lead of supplier. And in the retailer dual channel supply chain under the lead of retailer, the wholesale price and offline retail price have negative correlation with the fairness concerns of retailer, but the fairness concerns of supplier has no impact to the pricing strategy of this supply chain.