The Research On Pricing Strategy Of Different Supply Chain Channel Structures Based On Risk Averse Behavior

According to the data of China E-commerce research, the size of China E-commerce market has reached to 10.2 trillion by the end of 2013 and the year on year growth is 29.9 percent. The B2 B E-commerce market transactions amounted to8.2 trillion and the year on year growth is 31.2 percent. The size of the online retail market has reached to1.885 trillion and the year on year growth is 42.8 percent.Therefore,the electronic commerce is playing a more and more important role in today's social and economic development. It is not only changing the consumer consumption concept and behavior,but also has a profound influence on the economic and social main participants, including the product sales channels construction and product pricing strategy of the manufacturer and the retailer. Manufacturers and retailers set up Internet direct marketing channel in e-commerce environment, which makes the supply chain more diversified. Based on the domestic E-commerce development status and the profit maximization, this research studies the pricing and channel strategy choice of manufacturers and retailers from four supply chain modes,by adopting theories and methods of Game Theory, Operations Research and so on.Firstly, we develop four mathematical models of supply chain including the following cases: the single traditional retail channels;the single manufacturer direct sales channels; the dual channel mode with manufacturers' direct sales channel and traditional retail channels;the channel mode with manufacturers choose two retailers for selling. The Stackelberg game is used in the model, and the expressions of the manufacturer's and the retailer's price, sales volume and profit are finally get. Also we get the analysis of the impact of the degree of retailers' risk averse on pricing strategy.Then, using the result of the mathematical model, we analyze the manufacturer's and the retailer's price, sales volume and profit from different independent perspectives of manufacturer and retailer, and we also analyze the impact of the degree of retailers' risk averse on all variables and get the supply chain mode choosing strategy and pricing strategy under four kinds of situations.At last, we use a mathematical example to solve the problems. With the example,this paper researches the impact of the retailers' risk averse degree to the channel selection and pricing strategies of both the manufacturer and the retailer in thespecific environment. Thus this research shows the game analysis and the decision selecting process more visualized.This research has some guiding significance for the E-commerce development of the manufacturers and retailers. Meanwhile, the new mathematical model built in this research perfects the theory of supply chain management.