Research On The Pricing Strategy Of Dual-Channel Manufacturer In E-commerce Environment

The Internet is the greatest revolution of the20th century. It not only has changed people’s lifestyles and habits, but also created new business models and economic behavior. What’s more,it provides an opportunity for the development of the enterprise. E-commerce develops rapidly due to the rise of the Internet. Buyers and sellers can make a deal through E-commerce platform without meeting face to face. This kind of new commercial operation mode is becoming more and more popular with enterprises and consumers. In the E-commerce platform,the enterprise can find the target consumers quickly,extend product influence and promote brand image. In addition to these,it also can save the cost and incresae the efficiency. Internet sale channel is the supplement of traditional retail channel. The single channel supply chain becomes into dual-channel supply chain after accepting Internet sale channel. Manufacturers and retailers are not only cooperative partners but also competitive partners on the background of E-commerce.There are a variety of dual-channel supply chain models. This paper analyzes the dual-channel manufacturer supply chain. The manufacturer introducing Internet sale channel will make a shock to traditional retailer. The retailer is susceptible to channel competition. That may cause the channel conflict. Whether the manufacturer should introduce the Internet sale channel,how to handle their channel competition and conflict,how to make pricing strategies in the duel-channel supply chain,how to coordinate the profits between manufacturer and retailer,etc. These have been the focus of this paper.This paper uses the method of theoretical model analysis. It points out the reasons which affect consumers’choice on channels. It establishes a consumer utility function based on the products’ price and the consumer acceptance of Internet channel. Using the utility function deduces the demand function. Then we can get the profit function of the manufacturer and retailer. They will act the Stackelberg game of complete infomation. Based on the optimization theory we can get the game solution. This paper makes a comparison between single channel game solution and dual-channel game solution. It concludes that is profitable for manufacturer and retailer in the dual-channel environment. Then it analyzes how the consumer acceptance of Internet channel influences the game result. Finally this paper has studied the advantage of technological innovation which is another competitive strategy. The manufacturer should weigh the advantage and disadvantage whether it adopts technological innovation or introduces Internet sale channel. The conclusion has practical significances to the study of dual-channel supply chain.