Research On Pricing And Service Strategies In Omnichannel Supply Chain Considering Government Subsidy

The continuous upgrading and development of the Internet and digital technology has driven consumer demand preferences toward diversification and personalization,making it difficult for a single sales channel to meet the growing needs of consumers for a better life.At the same time,the ravages of the COVID-19 pandemic have made traditional offline retail channels,e-commerce single channels and traditional dual-channel sales models face great instability,making it difficult to ensure a robust market supply.As a result,more and more traditional retailers have started to build omni-channel retailing models to get rid of the retail dilemma they face by implementing their own iterative upgrades.In this context,in the face of a wide range of omni-channel strategies,it has become a challenge for supply chain companies to choose an omni-channel strategy that meets their own characteristics.On the one hand,the establishment of omni-channel retail model broadens the contact opportunities and touch points between enterprises and consumers;on the other hand,it makes supply chain enterprises face the complex dilemma of multi-channel management.In such a business environment,how will the implementation of omni-channel strategy affect the decision making of each member of the supply chain?In addition,under the current situation of widespread impact of the pandemic,the government has taken various forms of intervention in social retail development to promote short-term consumption and boost offline economic development in order to mitigate the negative impact of the pandemic.What impact will government intervention have on the implementation of the omni-channel strategy?What will happen to social welfare at this time?Therefore,based on consumer utility and game theory,this thesis constructs a secondary supply chain consisting of a manufacturer who sells products directly through an e-commerce platform and an offline retailer who can adopt an omni-channel strategy,and investigates the effects of dual-channel supply chain,BOPS(Buy online and pick-up in store)omni-channel supply chain,and SFS(Ship From Store)omni-channel supply chain on different decisions.The pricing and service decisions of dual-channel supply chain,BOPS omni-channel supply chain and SFS omni-channel supply chain under different decision making models(centralized and decentralized decision making)are investigated.By comparing the equilibrium results under different decision models,the optimal decision structure of the supply chain is obtained.At the same time,the impact of government subsidies on firms,consumers and overall social welfare under the epidemic is extended and considered.Finally,the equilibrium results of the three structured supply chains are compared vertically,and the market boundary conditions for the implementation of the BOPS and SFS omni-channel strategies and the management insights related to the government’s adoption of the subsidy policy are obtained.The conclusions of the above study are as follows:(1)With or without government subsidies,the centralized decision outperforms the decentralized decision,and the supply chain profit under the centralized decision is higher than the decentralized decision,and the product retail price is also higher than the decentralized decision.To a certain extent,the centralized decision overcomes the "double marginal effect" of the supply chain,thus improving the overall profit of the supply chain.(2)The retail price of products increases with the increase of product matching rate and different channel preferences of consumers,while the level of offline value-added services decreases with the increase of different channel preferences of consumers.When government subsidies exist,both product prices and offline value-added service levels rise with the rise in government unit subsidies.(3)Both onmi-channel strategies are appropriate when the product matching rate is low and consumer omni-channel preferences are high.The difference is that the implementation of BOPS omni-channel strategy has higher requirements for consumers’offline shopping hassle costs,and it is suitable to adopt BOPS omni-channel strategy when offline hassle costs are low.Therefore,when retailers implement BOPS channel strategy,they should do a good job of sinking the store market,enriching the product categories of physical stores,and increasing the promotion of BOPS channel.On the contrary,SFS channel strategy is suitable for adopting SFS omni-channel strategy when consumers’offline shopping cost is high or they cannot go offline.(4)The government’s adoption of a subsidy policy raises the prices of products in the supply chain,boosting the profits of manufacturers,retailers and the supply chain as a whole,but to some extent eroding consumer surplus.In the BOPS omni-channel supply chain,government subsidies facilitate the expansion of market demand in the BOPS channel,while in the SFS omni-channel supply chain,the opposite is true:government subsidies inhibit the expansion of market demand in the SFS channel.However,regardless of the supply chain channel structure,government subsidies can enhance overall social welfare and stimulate the development of the real economy.