Strategic Conditions for Opening an Internet Store and Pricing Policies in a Retailer-Dominant Supply Chain
Joint Authors
Cheng, Yonghong
Xiong, Zhongkai
Source
Mathematical Problems in Engineering
Issue
Vol. 2015, Issue 2015 (31 Dec. 2015), pp.1-15, 15 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2015-02-23
Country of Publication
Egypt
No. of Pages
15
Main Subjects
Abstract EN
To examine when the manufacturer and dominant retailer open their own Internet stores and how setting prices to ensure opening Internet stores are profitable.
We consider a two-echelon supply chain with one manufacturer and one dominant retailer.
The retailer has a physical store in a monopolist market.
Depending on whether the Internet stores are opened successfully by them, we firstly obtain equilibrium prices and profits under four possible supply chain structures.
Secondly, we identify several strategic conditions when it is optimal to open an Internet store for the manufacturer and dominant retailer and discuss its implications.
It is interesting to note that multichannel retailing is not necessarily the best strategy for the dominant retailer.
In addition, we investigate the impacts of problem parameters (the dominant retailer’s bargaining power and consumers’ disutility of purchasing a product from Internet store) on the manufacturer and dominant retailer’s pricing policies.
We find that the manufacturer’s optimal price at her Internet store is not always being lower than the dominant retailer’s.
Finally, we conduct numerical examples to illustrate the theoretical results.
American Psychological Association (APA)
Cheng, Yonghong& Xiong, Zhongkai. 2015. Strategic Conditions for Opening an Internet Store and Pricing Policies in a Retailer-Dominant Supply Chain. Mathematical Problems in Engineering،Vol. 2015, no. 2015, pp.1-15.
https://search.emarefa.net/detail/BIM-1074365
Modern Language Association (MLA)
Cheng, Yonghong& Xiong, Zhongkai. Strategic Conditions for Opening an Internet Store and Pricing Policies in a Retailer-Dominant Supply Chain. Mathematical Problems in Engineering No. 2015 (2015), pp.1-15.
https://search.emarefa.net/detail/BIM-1074365
American Medical Association (AMA)
Cheng, Yonghong& Xiong, Zhongkai. Strategic Conditions for Opening an Internet Store and Pricing Policies in a Retailer-Dominant Supply Chain. Mathematical Problems in Engineering. 2015. Vol. 2015, no. 2015, pp.1-15.
https://search.emarefa.net/detail/BIM-1074365
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1074365