Dual Channel Retailer Pricing Study Considering Customer Delivered Value

With the rapid development of the Internet and the popularity of e-commerce, more and more traditional retailers began to change the past, sales model relying solely on the store sales, while retaining the traditional way of selling, they begin e-commerce sales. Such as Suning set up their own e-commerce store:Suning Tesco, the GOME also set up their own online sales channels:GOME Online.Retail giant Wal-Mart started by merging some online retailers (Wal-Mart acquired online supermarket shop No.1) layout themselves Dual channel sales model. Dual channels allow major retailers to better meet the diverse needs of customers, but they are facing a problem, how to price the same kind of products online and offline channels? Online and offline all the same price? Online price is higher than the price of the offline? Or online prices are lower than offline prices? Prices play an important role for consumer purchasing decisions, so the pricing decisions become a problem that major dual-channel retailers need to focus on and solve. In addition, we can see that the price is not the only factor affecting the purchase decision, consumers may meet situation like this offline channels providing better service and higher price.Consumers will ultimately care about customer delivered value, so how to determine a reasonable price and service levels to improve customer delivered value is a question that companies need to focus.In this study, we assume that a retailer has online and offline sales channels, retailers sell only one product, considering there are no rivals and competitors in both cases. This study first model to calculate the case considering without the competitors, price competition in retail, online channels offering services, customer delivered value considering three cases under decentralized decision and centralized decision-making and get their revenue. Then consider modeling to calculate the case of competitors, price competition in retail services, online channels offering services, considering customer delivered value in decentralized decision and centralized decision-making to get the optimal price, and get their revenue. By analyzing and drawing the assignment to explore the relationship between variables and the online channel revenue, offline channel revenue, retailer’s revenues, competitor’s revenue.On the basis of comprehensive predecessors, this paper achieved the following results: the establishment of a dual-channel retailers consider no competitors and competitors consider the provision of services in terms of price competition, the online channel offering services, consider the customer delivered value under several different circumstances the price decision model, and use software to calculate the results, a numerical example analysis, and related income and the correlation coefficient between the parties to do the analysis. Study found that the market share is an important factor affecting dual-channel retailers pricing, online and offline the same price is not the best choice; when the online channel to provide value-added services, the supply chain will have free-rider effect, offline channels and competitors can benefit from it; when not considering competitors, retailers centralized decision-making is always superior than decentralized decision-making to the total revenue.