Research On Channel Strategy Of Product Line

With rapid development of the Internet,Chinese online retail market is uninterruptedly developing and spreading.The market share of the online retail market is growing,such as Alibaba,Jingdong,Jumei.In the new competition situation,the traditional(stores)companies begin with a new strategy of increasing the competitive advantage by adding online e-commerce channel,they sell high price-quality ratio goods,such as companies Huawei,ZTE.The online business enterprise also opened experience stores,such as Tmall furniture stores,thus the structure of enterprise supply chain channel is diverse.At the same time,Consumers are no longer simply buying goods through a certain online or offline shopping channel,they choose the suitable channel they like.Thus,for retailers and manufacturers,they should have flexible online and offline channels with product line,which meet the demands of customer no matter when and where customers are,it is meaningful.Based on the current situation,this paper consider a product line design concluding product quality,price,and the price-quality ratio of the product,consumers have different perception of channels,this paper conclude game theory and optimization theory,consumer perception theory,channel structure theory and so on.The channel is divided into three kinds:the traditional direct channel,online direct channel,and the combination of traditional direct channel and online direct channel.Based on the product line theory and academic research,product line include two different price-quality ratio products,primary goods and damaged goods,the quality is not sure.there are two kinds of single-channel sell product line strategy models and two kinds of dual-channel sell product line strategy models.The method of mathematical model is used.Different channels product line strategy,the consumer’s purchase choice and the profit of the manufacturers,this is the object of research.The results show that,consumers’ decision of buying a product is affected by many factors,such as shopping channels,price,price-quality ratio,product quality,product differentiation,if the product quality is superior than other products.Consumer’s perception of channel is different,consumers don not always care price-quality ratio,some consumers prefer traditional stores more than online stores,they want to sacrifice price-quality ratio in exchange for product quality.Manufacturers can affect the purchase behavior of consumers by change the product line design.Through changing the differences between the product quality of the product line,manufacturers can affect the consumer’s deliberation on the product,so manufacturers can guide the decision of consumers.What’s more,manufacturers which have single-channel product line strategy,if they want to obtain greater profits, they need to choose traditional direct sales channels to sell products,product line needs to fit,damaged goods have high price-quality ratio,primary goods’ quality are high.Manufacturers which have a dual-channel product line strategy,if they want to obtain greater profits,product line needs to fit,product quality difference is compromise.