Research On Channel Decision-Making Of SEMs Based On Consumer Preference Under Different Power Structures

With the promotion of new retail model and the deep integration of online and offline channels,enterprises are actively expanding sales channels and seeking new profit points.However,blind channel expansion may bring channel conflict and reduce corporate profits.At the same time,the differentiation and individuation of consumer preference are the important factors that affect product market demand.Therefore,considering the heterogeneous preferences of consumers,it is of great value to study the channel decision of competitive firms.Based on the consideration of consumer channel preference and brand preference,this paper adopts mathematical modeling and numerical simulation methods to study the optimal pricing decision and channel expansion strategy of enterprises under the three power structures in a system composed of two enterprises with online and online sales channels respectively.The influence of consumer preference and power structure on optimal channel decision,pricing decision and profit is discussed.The results show that:(1)under different power structures,there are three kinds of balanced decision-making channels.The entry behavior of offline enterprises’ e-commerce platforms will erode the profits of online enterprises;As long as offline enterprises do not enter the platform,online enterprises will not develop offline sales channels.(2)Channel decision is influenced by consumer preference,offline cost structure and other factors.When consumers prefer online products,neither company will expand sales channels.When consumers prefer offline products and online channels,offline enterprises may enter the platform but online enterprises will not open offline sales channels.When consumers prefer offline products and offline channels,both companies are likely to expand their sales channels.This changes when an online company has a significant cost advantage.The above research further clarifies the channel decision of enterprises and provides a reference for enterprises to make more reasonable channel decision in the real situation.