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Pricing Model for Dual Sales Channel with Promotion Effect Consideration
Author
Source
Mathematical Problems in Engineering
Issue
Vol. 2016, Issue 2016 (31 Dec. 2016), pp.1-20, 20 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2016-01-06
Country of Publication
Egypt
No. of Pages
20
Main Subjects
Abstract EN
We focus on the pricing strategy of a dual sales channel member when his/her online retailer faces an upcoming overloaded express delivery service due to the sales peak of online shopping, especially referring to the occurring affairs in China.
We characterize the pricing problem of the dual selling channel system as a two-period game.
When the price discount is only provided by the online seller, we find that the prices of the traditional channel and the online channel in the two periods are higher while the overloaded degree of express delivery is lower and the overloaded delivery services can decrease the profits of both channels.
When the price discounts are provided by both traditional and online sellers, we find that the derived Nash price equilibrium of both channels includes five possible combinations of prices.
Both traditional and online sellers will choose their price strategies, respectively, according to their cost advantages which are affected by the overloaded degree of express delivery.
American Psychological Association (APA)
Zhou, Chuiri. 2016. Pricing Model for Dual Sales Channel with Promotion Effect Consideration. Mathematical Problems in Engineering،Vol. 2016, no. 2016, pp.1-20.
https://search.emarefa.net/detail/BIM-1111796
Modern Language Association (MLA)
Zhou, Chuiri. Pricing Model for Dual Sales Channel with Promotion Effect Consideration. Mathematical Problems in Engineering No. 2016 (2016), pp.1-20.
https://search.emarefa.net/detail/BIM-1111796
American Medical Association (AMA)
Zhou, Chuiri. Pricing Model for Dual Sales Channel with Promotion Effect Consideration. Mathematical Problems in Engineering. 2016. Vol. 2016, no. 2016, pp.1-20.
https://search.emarefa.net/detail/BIM-1111796
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1111796