Research On Pricing Strategy Of Dual-channel Supply Chain Considering Service Level Under Fairness Preference

With the sustainable development of social economy and the continuous improvement of people's living standards,the power structure of the supply chain has also changed a lot.While different supply chain power structures have different pricing strategies.Therefore,in the emerging field of dual-channel supply chain,it is significant to consider how to develop the optimal pricing strategy under different power structures.Currently,a lot of experiments based on behavioral economics and Game evidence have already shown that decision makers are not purely self-interest.But they usually have many other psychological preferences,such as fairness preferences.In a way,these fairness preferences will have a significant impact on the optimal decisions and considering retailers to provide services can also directly change the decision maker's pricing strategy.Hence,this paper investigates the optimal pricing stategy based on game theory method by considering both fairness preferences and service level under the three different power structures of dominated by manufacturer,power equivalence and dominated by retailer.This paper is divided into two main parts as follow:The first part,study the three different power structures introducing fairness preference,and find the optimal pricing strategy of the supply chain by constructing utility function.Then using the numerical simulation to analyze the effect of different fairness preference and service level to the dual-channel supply chain pricing strategy.This part mainly reflected in the chapters 3,4 and 5 of this paper.The results show that the direct price is not affected by the fairness preference of the supply chain members.Under the guidance of the manufacturer,the retail price is not affected by the fairness of the retailer,and is affected by the manufacturer's fairness preference.The wholesale price,profit and utility are affected by the fairness preference of the channel members.In the structure of power equivalence,the retail price,each of the variables are influenced by the fairness preference of the channel members.When market is donminated by the retailer,the retail price is unaffected while considering the manufacturer's fairness preference the retail price is affected.The wholesale price,profit and utility are affected by the fairness preference of the channel members.Different levels of service have different effect on the decision variables.Considering both the impact of the two factor will have a certain crossing effect.The second part,compares the similarities and differences between the optimalpricing stratedy of the supply chain members under three different power structures.Respectively,to discuss the comparative study based on retailers and manufacturers fairness preference.This part mainly reflected in the chapters 6 of this paper.The results show that the direct selling price is not affected by the fairness preference of the supply chain members.The supply chain has different decision-making under different power structures,and the optimal state of decision variables under three different power structures has also changed according to the fairness preference variation of supply chain members.This paper takes into account the level of retailer service and the fairness behavior of supply chain members on dual-channel supply chain research,and draws the optimal pricing strategy based on three different power structures.The results of the study can not only promote the development of dual-channel supply chain,but also can provide reference for some enterprises on decision-making.