Supply Chain Channel Selection And Pricing Strategy With Service

With the continuous development of network information technology and logistics distribution system,more and more people choose to shop online.Click-and-Mortar,a combination of online and offline sales,has become a new trend in corporate product sales.However,manufacturers of products have had unprecedented opportunities to no longer rely solely on downstream retailers to sell their products,and have direct contact with consumers through the establishment of direct online channels.Due to the different sales prices,service experience and other competitions of manufacturers and retailers,and the free-riding behavior of customers' offline experience and online shopping,channel conflicts are difficult to avoid.Therefore,studying the choice of channel structure and service strategy in the dual-channel supply chain and relieving the conflict between channels is of great significance for promoting the development of the dual-channel supply chain management theory,and it also has a strong guiding significance for management practice.This paper studies the dual-channel supply chain composed of manufacturers and retailers.Based on the previous literature,this paper studies the optimal pricing strategy of supply chain from the perspective of channel structure selection and service strategy.The main research and innovation are as follows:(1)How does a retailer improve their performance in the situation of a powerful manufacturer control the direct channels and wholesale prices? This paper construct an optimal pricing decision model on improving retailers' service and opening the network channel to address this issue.Based on centralized and Stackelberg decentralized supply chain,the impact of the service on the pricing strategy and individual interest in the condition of open or not open the network channel is explored in this paper.The results show that improving retailers' service is benefit to retailers and manufacturers as well as the overall supply chain performance;opening network channels will increase retail prices and increase profits for retailers and manufacturers as well as the entire supply chain.(2)In the dual-channel supply chain,manufacturers sell products through online channels and traditional retailers,and retailers provide customers with service experiences.The manufacturer's online channels are free to use the retailer's service and compensate by sharing the retailer's service costs.Under the two different decision-making scenarios of differential pricing and consistent pricing,it is studied how free-riding affect the pricing and service strategies of manufacturers and retailers.The study found that: Under the two pricing decisions,the cost-sharing contract can effectively incentivize retailers to improve service levels,thereby increasing dual-channel sales and increasing profits for both parties.Under the differential pricing decision,the service cost sharing contract can avoid the direct price competition of the two channels.For differential pricing decisions,consistent pricing decisions are more favorable to retailers,but the opposite is true for manufacturers.The retailer's decision on retail prices made the manufacturer's online channel low-cost advantage absent,and the retailer's offline channel's service advantages were reflected.