Study On Price Stratgy Of Retailer In Marketing Channel Basing On Market Share

In this paper we add a new endogenous variable which means market share in an ordinary demand model. Then we get the best price strategy of retailer which has dominant force in marketing channel considering market share. First we discuss the best price strategy in a simple channel made up of one manufacturer and one retailer. Then we make further efforts discussing another type of channel made up of one manufacturer and many retailers which have one master. In each channel we do comparative static analysis with different results on different conditions:symmetrical information and asymmetric information by modeling Perfect Competitive model, Stackelberg model and Alliance model. After that we get the retailer’s best price strategy in different information conditions and different models. At last we find the retail price is positive correlation with market share. The market share of following retailer in symmetrical information is less than its market share in asymmetric information. The channel profit of leading retailer is larger than the following retailer’s channel profit. And the difference is made by entering barricade. At last we make the empirical analysis with the competition between Chinese native retail corporation and Walmart.