Effects Of Dual Channel Model Of Manufacturers To Retailers In The Traditional Channel Model

The rapid development of Internet technology has brought innovative changes to our society, the first industry, the secondary industry and the third industry under the impetus of the Internet technology is in an innovative way to create the new growth point and it also brings the enterprises new profit growth ways, at the same time the Internet technology brings consumers the different experience. In addition, the development of the Internet enables consumers to buy commodities in diversified ways. The participants of the supply chain including manufacturers, retailers and consumers are experiencing unprecedented innovation, China will pay more attention to the contribution of Internet technology to economic growth in the future. Therefore, the research on the Internet technology to change the business model of retail sales in the new situation is very important.The paper chooses manufacturers and retailers of the supply chain for the study, consumers are an important consideration for the manufacturers and retailers pricing strategy. The paper explores a comprehensive influence that manufacturers bring to retailers, the influence is that manufacturers begin to establish a new network sales channels comparing to the case that does not establish a network sales channels. Paper mainly discusses under the dual-channel sales model(traditional retail channels and network marketing channels coexist) the manufacturers pricing strategy, retailers pricing strategy and the coordination study between manufacturers and retailers as well as the selection of consumers to dual channel’s influence.The specific contents are as follows: Chapter one is literature review. The second chapter sets consumers to purchase goods strategy following the Hotelling model, discussing the case that if the manufacturers not establish network sales channels, retailers and manufacturers’ optimal pricing with the best profit target. The third chapter based on the second chapter, further analysis the manufacturers take advantage of Internet technology to establish network sales channels, which brings the influence of the wholesale price to the retailers. By using Stackelberg game method, respectively, the retail price as a benchmark and network-direct prices as a benchmark, retailers and manufacturers negotiate to determine the best price for both parties, and gain their biggest profits. Manufacturers establish direct channels will occur channel conflict with retailers, in order to resolve channel conflict, the fourth chapter discusses coordination between the two channels, including channels for products coordination and channels for services of cooperation. In addition, consumers have highly sensibility to purchase commodity for channels, the constitute products in channels also affect consumer’s choice. On the whole, compared with the traditional product model, the cooperation model of manufacturers and retailers can increase the incomes of both sides, namely: The strategy that retailers sales common products and sell its complementary goods is feasible. Finally, paper from the perspective of consumer psychology, to explore how the strategic options and non-strategic choice of consumers to influence the traditional retail channels and network marketing channels. The paper comes to conclusion that the number of selling products from retailers is in proportion to the market structure of non-policy consumers, but the number of selling products from retailers is inversely proportional with the discount factor of commodity; the number of selling products from manufacturers is inversely proportional with the market structure of non-policy consumers, but the number of selling products from manufacturers is in proportion to the discount factor of commodity. In addition, the article thinks that the focus of research can be made in the future to expand the manufacturer of dual-channel sales model to a wider field, not just in the logistics developed cities. We need to take advantage of the Internet technology, then apply the channel advantages to small and medium cities, and even use to the rapidly urbanization in rural areas.