The Quick Response Value Of Supply Chain In The Presence Of Strategic Consumers With Risk Preference

Be faced with complicated market environment and powerful competitors,competing on time becomes the main method of enterprises’ capturing market quicklyand obtaining customers. However, quick response shortens production anddistribution times, strengthen competitiveness and is in favor of gaining more profitsfor enterprises. In fact, consumers’ risk preference impacts their purchase decisionimmediately, and then influences retailer’s pricing strategy and inventory strategy. Atpresent, there are few literatures which refer to the impact of consumers’ irrationalbehavior on responsive supply chain, so this dissertation is of a certain innovation.The main research and results are the following:Suppose that the population of consumers is divided into two distinct segments:strategic consumers and bargain-hunting consumers, the aim is to analyze theinfluence of consumers’ risk preference behavior on the value of quick response of theretailer. The research results show that: the quick response value of the retailerincreases as risk coefficient increases on condition of quick response cost less thanequilibrium value we get. Under the combined impact of quick response andconsumers’ risk preference, quick replenishment strategy does not always benefit theretailer.The impact of the consumers’ risk preference behavior on the value of quickresponse in supply chain is discussed under both linear wholesale price contract andtwo-part tariff contract. The research results show that:(1)If strategic consumersbelong to the risk-seeking, whether the two-part tariff is superior to the linearwholesale price depends on the retailer’s bargaining power. As for the retailer, thestronger the bargaining power is, the more advantageous the two-part tariff contract is,and that is to say, the greater the quick response value is.(2)For average profit ofsupply chain, the linear wholesale price contract is superior to the two-part tariffcontract, and the value of risk coefficient is greater, the quick response value ofsupply chain in coordination with linear wholesale price contract is greater than thatof two-part tariff contract.