Decision And Coordination Model Of Supply Chain With Different Power Structures Considering Anticipated Regret Under Price Discount

With the intensification of market competition,companies determine the profitability coefficient based on the original price of the product,so "discount promotion" is the most frequent promotion method in the modern market.Stimulated by price discounts,consumers often need to anticipate the current original price products and future discounted products.When they realize that their current choices may regret in the future,the negative emotions shown are anticipated regret.If a supply chain company ignores anticipated regret in its decision-making,the profits will reduce revenue by nearly 20%.Consumers' will produce anticipated regret when they faced with price discounts.They will not only reduce their own buying experience,but will also “shock” the entire supply chain.Different market power structures will change the competitive relationship of enterprises in the supply chain,which will directly affect the pricing strategies of enterprises in the supply chain.Therefore,how the anticipated regret behavior under price discount affects supply chains with different power structures has become a new issue in theoretical research and practical management.This article introduces the theory of anticipated regret and price discount into the supply chain.By quoting the negative utility formula of consumer anticipated regret under price discount,it quantitatively describes the demand function of the original price product and the discount product.Based on the perspective of the supply chain,the concentration is constructed and solved game models of three power structures: manufacturer leadership,retailer leadership,non-leadership under decision-making and decentralized decision-making.Theoretical comparison and numerical simulation are used to analyze the regret sensitivity coefficient,consumer heterogeneity,and price discount coefficient on supply chain product prices,demand and member profits.Finally,through the revenue sharing contract mechanism,the profits under the three decentralized power structures are optimized.The conclusions of the study are as follows:(1)Affected by the anticipated regret under price discount,the price of the product increases first and then decreases with the regret sensitivity coefficient and consumer heterogeneity sensitivity increases.And the price under the leadership structure of the manufacturer is the highest;when regret sensitivity coefficient and consumer heterogeneity sensitivity are lower,the supply chain member companies adopt a "skimming pricing" strategy.When the threshold is exceeded,the supply chain member companies adopt a "penetration pricing" strategy.(2)Price discounts enhance consumers' perception of anticipated regret.Under the stimulation of price discounts,the price of products increases first and then decreases;Faced with high regrets consumers,manufacturers adopt a "commitment-based advertising" strategy,and retailers adopt "prestige pricing" strategy.Faced with high preference differential products,manufacturers adopt "differentiated customization" strategy,retailers adopt "differential pricing" strategy.(3)The use of revenue sharing contracts can make the optimal profit of manufacturers and retailers in the supply chain of the manufacturer's power structure greater than the optimal profit in decentralized decision-making,achieving a win-win situation for the supply chain manufacturers and retailers;The order effect,the revenue sharing contract could not achieve the coordination between the retailer and the non-leadership power structure,the introduction of profit sharing mechanism to achieve the Pareto improvement of the supply chain.