Price Decidions Of Double Hybrid Distribution Channels With Different Pricing Scheme

The Internet began to develop rapidly around the world since the90s of the20th century, which had brought great changes to the traditional method of distribution. In fact, the channels of businessman increased continuously is inevitable trend in order to compete for market. Some businessmen also provide many special services in order to attract consumers with channels increased. A lot of double channel just research double and hybrid distribution channels or value-added service,but few scholars consider both. So,the study on the decidions of pricing of double hybrid distribution channels with different pricing scheme has the value of deeply systematic analysis.In practice there exists the fact that investing value-added service in a double and hybrid distribution channels. Theories of this research is insufficient, In order to guide practice,we compare manufacturers profits, retailers profit and supply chain profits in the base of centralized decision-making and distributed decision-making.This paper discusses how to price and what factors should pay attention to when we consider the service cost into pricing factors.We study whether manufacturers and retailers start price wars and service war or not in the case of both of them invest value-added service in a double and hybrid distribution channels in order to compete for market.First of all, we discuss which control is better in base of dividing prices mode into consistent and non-uniform.In consistent price mode we not only solving the channel price of decentralized and centralized control,but also discussing the impact of manufacturers differences coefficient and service sensitive coefficient to the manufacturers profits, retailers profits and gross profit based on manufacturers and retailers investing value-added service. The results not only show that when channel price consistent the profit is very different between three coefficient,but also draw the conclusion of centralized decision-making is always superior distributed decision when four channel price consistent.In the non-uniform price mode we not only solving the channel price of decentralized and centralized control,but also discussing the impact of transfer coefficient between channels, manufacturers differences coefficient and service sensitive coefficient to the manufacturers profits、retailers profits and gross profit based on manufacturers and retailers investing value-added service in the traditional channel.Then, this paper discusses which pricing strategy is better in the different price model based on the same control. We compared the gross profit of consistent price mode and non-uniform price mode,and drawing a conclution that which price mode is better.At last, we analysis the effect of factors to price and profits,and give suggests what factors should we focus on when making price.