Research On Sales Channel Penetration In A Duopoly Based On Service Level And Pricing

With the upsurge of China's double creation and the development of e-commerce,more and more people accept shopping online,while online enterprises also appear in the field of vision.One characteristic of this kind of enter prise is the only online marketing channel.Under the premise of maximizing profits,the development of sales channels to offline must be considered.The purpose of this paper is to explore how the pricing,service level and marketing channel development decisions of online companies depend on product differentiation,consumer composition and other factors.According to the current research,most of the sales channel research is aimed at online to offline.The main reason is that most of the research is abroad and the European and American Express industry is underdeveloped,and people's shopping awareness is more recognized under the line.Therefore,as far as the current development of our country is concerned,online business as a new business form is worth studying.After reviewing the related literature and theories,this paper takes into account the pricing mechanism and service levels of online duopoly,and investigates their channel penetration decisions.A theoretical model is formulated based on the theories of utility and product differentiation.The equilibrium analysis is carried out by the backward induction method,where the equilibrium pricing and service level of the duopoly manufacturers in different marketing channels are obtained.The channel penetration decisions of the manufacturers are analyzed by numerical analysis and game theory.In order to make the results more comprehensive,this paper also conducts analysis on experiential marketing and the case of three oligarchs based on Salop model.The results are listed as follows.First,the joint expansion of sales channels will raise pricing,and the degree of differentiation will also affect the service level and profit.Second,when the manufacturer has opened the offline channel,the equilibrium price,the service level and the profit have a certain correlation with the product differentiation and the consumer composition.Third,the consumer composition and the unit cost of the offline sales have a great influence on the offline marketing channel expansion decision of the online manufacturer.Finally,in the case of experiential shops,offline sales channels are only the best way to disclose product information and not to sell goods.In addition,the cost of opening experiential shops is also a key factor for manufacturers to make decisions.In a word,this paper is to help the online enterprises find the opportunities to enter the offline marketing channel,to put forward relevant suggestions based on the related characteristics of the channels,and finally to help the enterprises obtain better profit.