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Research On Pricing Decisions Of Different Online Channel Strategies In O2O Supply Chain

Posted on:2021-03-10Degree:MasterType:Thesis
Country:ChinaCandidate:Z H WangFull Text:PDF
GTID:2439330629451313Subject:Management Science and Engineering
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Since the reform and opening up,China's economy has undergone tremendous changes.The product sales model has changed from the original traditional offline model to pure e-commerce model and gradually evolved into the O2 O dual-channel model with deep integration of online and offline.When enterprises open online channel,they will face a choice between the direct selling model of self-built mall and the agency selling model on e-commerce platform.In addition to creating profits,enterprises will also pay attention to the fairness of profit distribution with other enterprises in the supply chain.At the same time,they will fulfill corporate social responsibility to improve their company's reputation.Moreover,consumers compare the price of product with the reference price in their mind to decide whether to make a purchase.We firstly construct a single offline channel supply chain model,two O2 O dual-channel supply chain models that manufacturer opening direct channel and agency selling channel on e-commerce platform respectively.Then,fairness concern and corporate social responsibility(CSR)activities of manufacturer and store,and reference price effect of consumer are considered respectively in two O2 O dual-channel supply chains.By comparing and analyzing the equilibrium solution and performing arithmetic simulation of models,we study pricing decisions when manufacturer develop different online channel strategies,and effects of fairness concern behavior,CSR activities and reference price effect on pricing decisions and firms' profit,respectively.We find the following results.(i)After manufacturer opens online channel,wholesale price and manufacturers' profit increase,and retail price of offline channels and profit of store also increase under certain conditions;wholesale price,retail price of offline and online channels and the profits of manufacturer and store are higher in agency selling model.(ii)Wholesale price,profits(or utilities)of manufacturer and store reduce,and the retail price of online and offline channels and the profit of e-commerce platform not be affected when store has fairness concern.Wholesale price,retail price of offline channel,manufacturer's utility and profit of e-commerce platform increase,but profit of store decreases,and retail price of online channel not be affected when manufacturer has fairness concern.(iii)Wholesale price,retail prices of online and offline channels and CSR level are higher in agency selling model under certain conditions,whether manufacturer or store fulfills their social responsibility.Compared with store,CSR activities of manufacturer lead to higher wholesale price,retail prices and CSR level.When online channel is agency selling channel or manufacturer fulfills CSR,profits of manufacturer,store and e-commerce platform are higher.(iv)Under reference price effect,wholesale price,retail prices of online and offline channels,as well as profits of manufacturer and store are all higher in agency selling model,and all of them improve with increase of reference price.The influence of reference price effect on pricing,profit of manufacturer and store is related to size of reference price.Profit of e-commerce platform rises with increase of reference price and reference price effect.To sum up,whether or not there is fairness concern,CSR activities and reference price effect in two online channel models,profit of manufacturer and store,wholesale price and retail price of product are higher in agency selling model.Therefore,manufacturing enterprises can choose agency selling model on e-commerce platform when opening online channels,and set higher wholesale price and online retail price.At this time,stores can also set higher offline retail price.Disadvantaged firms in supply chain need to follow the principle of proportionality when they are concerned about fairness of profit distribution.The leading enterprises in game should take the initiative to fulfill their social responsibility.When consumers have reference price effect,the pricing decision of enterprises should be based on size of reference price.
Keywords/Search Tags:direct selling model, agency selling model on e-commerce platform, fairness concern, corporation society responsibility, reference price
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