Pricing Decisions of Competing Tobacco Enterprises with Online Channel
Joint Authors
Zhang, Rong
Mi, Jackson Jinhong
Liu, Bin
Source
Discrete Dynamics in Nature and Society
Issue
Vol. 2015, Issue 2015 (31 Dec. 2015), pp.1-8, 8 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2015-11-29
Country of Publication
Egypt
No. of Pages
8
Main Subjects
Abstract EN
According to the new measurement of launching online distribution channels of tobacco enterprises in China, this paper investigates the tobacco firm’s pricing decisions on the supply chain which consists of two manufacturers and one retailer under three dual-channel structures.
Three dual-channel structures include no online channel, only one online channel by one manufacture, and two online channels by two manufacturers.
We apply the Stackelberg game to analyze the equilibrium pricing strategies under different structures and try to explore the necessity and advantages of launching online sales channels.
The results demonstrate that the substitutability of a product has significant impact on introducing online sales channels, and the online dual-channel structure could result in less profit for manufacturers compared to the traditional retail channel structure; and thus, a dual-channel structure with online sales is not the best strategy for traditional manufacturers.
Moreover, when the product is less substitutable, the effect of the tobacco control on the online sales channel is inferior to the traditional channels and vice versa.
American Psychological Association (APA)
Zhang, Rong& Mi, Jackson Jinhong& Liu, Bin. 2015. Pricing Decisions of Competing Tobacco Enterprises with Online Channel. Discrete Dynamics in Nature and Society،Vol. 2015, no. 2015, pp.1-8.
https://search.emarefa.net/detail/BIM-1060505
Modern Language Association (MLA)
Zhang, Rong…[et al.]. Pricing Decisions of Competing Tobacco Enterprises with Online Channel. Discrete Dynamics in Nature and Society No. 2015 (2015), pp.1-8.
https://search.emarefa.net/detail/BIM-1060505
American Medical Association (AMA)
Zhang, Rong& Mi, Jackson Jinhong& Liu, Bin. Pricing Decisions of Competing Tobacco Enterprises with Online Channel. Discrete Dynamics in Nature and Society. 2015. Vol. 2015, no. 2015, pp.1-8.
https://search.emarefa.net/detail/BIM-1060505
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1060505