The Retailer’s Price Competition Strategy Under The E-Commerce Environment

Development of the Internet makes retail market have undergone tremendous changes.In the current market, the retailers market’s price system has also undergone a differentiation, in such a competitive environment, price competition among retailers also undergoing changes, showing more complex features. In the complex market environment, deepening the understanding of different price competition among retailers is important to the choice of strategy involved in price competition and for the current sound development of the retail market.This paper takes this as the research background,different retailers on price competition on the B2C E-commerce market research background of this paper, analyzes each retailer’s pricing strategy which factors affected.Established the price game model within two retailers,analyzes which pricing strategy the dual-channel retailer should be adopted.And analyze the different types of Price competition among online retailers and study the impact of the free-riding effect on the retailer’s price competition.Through collect the standardizing data to to verify the conclusions. In a way,through theoretical analysis and empirical research will be more scientific to give theoretical guidance to the retailer’s pricing strategy,enabling retailers to make the right pricing strategy according to changes in the internal and external environment and obtain a dominant position in the market competition.Results of the studies in the thesis were as follows:When a traditional Retailers to enter a new market,it can be taken the pricing strategy witch E-commerce channels and traditional channels are higher than E-commerce Retailers and traditional line Retailers in the same market.Analysis of price competition pure online retailers and MCR,we can conclude that price change between the two types of retailers have certain correlation.And with the continuous improvement of e-commerce market penetration,the two types of retailers will be dropping.Finally,study the impact of the free-riding effect on the retailer’s price competition and proposed several pricing strategy witch retailers should be taken to avoid the occurrence of free-riding.