Study On The Competition Of Dual-channel Retailer And Traditional Retailer With Congestion Negative Effect Of Physical Channel

Consumer's shopping experience will be affected by store size,decoration style and other factors partly,especially in the holidays,crowded stores brings poor shopping experience to consumers,many consumers even give up shopping.With the development of Internet,More and more enterprises begin to sell products on Internet.For example,RAINBOW,RT-Mart,etc.On the one hand,E-Shop is easing the pressure of physical stores in a way.On the other hand,it is bringing challenges to the physical store.Therefore,This paper study the pricing strategy and price competition between the dual-channel retailer and physical retailer with the congestion negative effect of physical channel.Then,with the congestion negative effect of physical channel,explores the competition between dual-channel supply chain under differentiation pricing strategy and unified pricing strategy for products selling online and offline set by dual-channel retailer.Chapter Three is based on the linear Hotelling model,Assumes retailers target is “profit maximization”.It uses utility theory to construct the consumers' utility function and Nash game equilibrium method to analyze the pricing strategies and price competition between dual-channel retailer and physical retailer which in linear market.The results show that the negative effect of congestion weakens the market competition under the two pricing strategies,and the profit of retailers in the linear market is increasing,and for the dual-channel retailer,the unified pricing strategy is not a dominant strategy.Chapter Four using Salop model,which is based on utility theory and Nash game equilibrium to analyze the price competition and pricing strategies of one dual-channel retailer with N-1 physical retailers in circular market,put a numerical simulation to verify the result.It is found that in a circular market,the congestion weakens the market competition.The unified pricing of the two channels does not bring more profits to dual-channel retailer,and the newly entered physical retailer will compete for the online market share,but has no effect on physical channel.Chapter Five using the game theory to analyze the supply chain competition between two single-supplier and single-retailer in the linear market,one of the retailer is a dual-channel retailer,Studying the competition of dual-channel supply chain with tradition supply chain under congestion.Including the following situations,the two supply chains both decentralized supply chain,one of the chain is decentralized supply chains,the two supply chains both centralized supply chain.The result shows that two supply chains in the market are more profitable when the two chains both decentralized supply chains,but when two chains compete,centralized strategies is the dominant strategy.This paper not only enriches the existed achievements of horizontal product differentiation model & dual-channel retailer,but also provides references for managers to make product pricing and supply chain competition decisions.