Research On Dynamic Pricing Considering Service In Dual Channels

In recent years, with the development of Internet technology, online shopping channels is developing to meet the demand of the consumers’ online shopping. Therefore, there exists the dual channels. Although a large number of scholars did a lot of research on dual channel supply chain, most of these papers focus on supply chain coordination problems in terms of pricing and inventory. Thus there is less study on channel service quality competition issues.Based on considering the quality of service, this thesis study the strategy of dynamic pricing and service quality of the manufacture considering the strategic consumer.On the basis of previous studies, this thesis aims at maxing the manufacturer’s profit by establishing a two-stage dynamic game model. First of all, this paper study the non-cooperative case, in which the manufacturer’s optimal pricing strategy and the factors that affect the optimal strategy when there exists strategic consumer. Then, adding the factor of service quality, the chapters discuss the manufacturer’s of optimal pricing strategy and the optimal service level considering the strategic consumer.Through the analysis of the model and numerical simulation, the results found that in the non-cooperative case, the ascension of manufacturer’s service quality is beneficial to the manufacturers profit growth but growth is slow, and the level of the online retailer profits are coming down. In the case of cooperation, the manufacturer can attract the consumer with high reservation price by improving the service quality in traditional retail channel, at the same time, it also can retain the consumers with low reservation price by reducing the price in online retail channel. And weakening the negative effects of consumer strategy behavior by making a strict control of the probability of obtaining product in sales period, consequently, the manufacturer can improve the level of supply chain profit.However, as the sensitive coefficient of service quality increases gradually, the advantage of cooperation with the online retailer will gradually reduce. In the future, the study can focus on loss aversion and appetite for risk of the market subjects on the basis of this study.