Optimal Joint Pricing And Ordering Decisions For A Retailer Issuing Gift Cards

This paper focused on the hot issues of supply chain retailers issuing gift cards during the process of operation activities and built two corresponding models from the perspectives of retailers and consumers respectively,namely the optimal joint pricing and ordering decision model and the gift cards purchasing intention model.Additionally,the article made a comparative analysis of practice by means of telephone interview and case study,together with the basis of theoretical and empirical analysis,provided some rationalization proposals in related to gift cards issuing decisions.Firstly,to start from the perspective of retailers,the author looked back the literature about the ordering and pricing joint decision on gift card and relative studies about commercial credit.Under stochastic demand,the author established the decision-making model for retailers who issuing gift cards and conducted four propositions;a further analysis of the effect of different parameters on the decision-making process has been made via the numerical example simulation.Secondly,to start from the perspective of consumers,this paper constructed gift cards purchasing intention model and proposed hypothesis based on the rational behavior model and past literature;with the reference of maturity scale in foreign researches,a questionnaire has been designed that aimed at the willingness of consumers to buy the gift cards.The final questionnaire was formed through literature review,group interviews and pre-test.After giving out questionnaires and collecting data,the author used Structural Equation Model(SEM)to analyze and prove the hypothesis.Finally,from the perspective of practice,this paper summarized gift cards information and purchase discounts circumstances of six hypermarkets and four single category merchant.By comparing the purchase method,the use of valid,expired situation,rechargeable case,payment of the deposit,registered cases,loss cases,the nominal value,gift cards types and discount efforts,this paper summarized universal rules in the gift cards market.Combined with the questionnaire,the author made reasonable suggestions for retailers on issuing gift cards.