Pricing Strategy Of Considering Retailer’s Fairness Preference Based On Regionl Gap Backgroud

The pricing strategy of supply chain channel has long been a hot research area in the marketing management and operations management fields,reasonable pricing strategy can effectively reduce the negative impact of information asymmetry on supply chain channel participants.Available literature about supply chain channel pricing strategy often based on the precondition that the main participants are totally rational economic man,and the conclusion is contradicts with the research findings that participants have behavior preference.In addition,as a developing country,with a vast territory but big different economic development,so it is impossible for manufacturers to implement same pricing strategy.Based on the above background,the price strategy of two-stage supply chain which consists of one manufacturer and two retailers from two different regional markets for considering fairness preference was studied,and two different Stackelberg game models were constructed under two different situations in which the manufacturer uses differential pricing or uniform pricing for two different regional retailers.Based on the different models,the paper examined the supply chain partners’ strategies and analyzed the effect of retailer’s fairness preference on the strategies,profit and the operational efficiency of supply chains.Results show that retailer’s fairness preference has negative influence on the wholesale price and the profit of manufacturer and has positive influence on the profit of retailer,and has no effect on the retail price and the operational efficiency.