The Practical Analysis Of Dual-Channel Management With Service And Price Competition

This paper starts from consumers of the downstream of the supply chain and compares the sales profit of the manufacturer and retailer,which come from the upstream of the supply chain and the whole supply chain.Considering the pre-sales service level,we study the pricing strategy of dua]-channel supply chain and establish the dual-channel supply chain model.The whole supply chain includes one manufacturer,one retailer and several consumers,forming a two-channel product supply and marketing model.The manufacturer produces goods and sells them through two channels,which includes:1)the manufacturer sells the goods to the retailer at wholesale price,and the retailer distributes the goods to consumers.2)the manufacturer establishes an online sales platform(exclusive store/flagship store)to sell products to consumers through online channels.In this paper,two models are introduced in the research process,which are:1)manufacturer's Stackleberg model.2)consumer utility model.In the tradi tional supply chain pricing model,authors only consider the multi-platform price competition mechanism to determine the optimal pricing.In this article,the author will take the pre-sale service level and price factor into the consumer utility model calculation.And by quantifying the pre-sale service level and the acceptance of consumers for different platforms,in the process of consumers selecting the online or offline shopping,we calculate manufacturers,retailers,as wel l as the size of the whole supply chain profit.At the same time,the author analyzes two cases:1)the pricing strategies of manufacturers and retailers in the centralized decision-making mode.2)pricing strategies of different pl at forms under the decentralized decision-making mode,as well as the threshold sett ing of pre-sales service level.The author considers that is the leader of' the Stackleberg model and the monopoly manufacturer of the industry,the manufacturer will not adopt the online distribution mode when selling on the online platform but establisih their own independent websites or flagship stores.We give the manufacturer the right of preferential pricing,and the retailer makes a unified pricing according to the wholesale price.We evaluate the consumer utility according to the double consideration standard of pri cing and pre-sal es service,and then solve the pricing probl em.The research finds that:1)When consumers can choose traditional channel or online platform to buy goods,the optimal profit of online platform is 0.At this time,the purpose of the existence of online platforms is not to sell goods,but to indi rectly promote the sales volume of retail stores,and at the same time to improve the overall profit of the supply chain.At this time,retailers use the "free rider" effect to grab more sales volume from the online platform,which not only improves their own profits,but also makes up for the operating loss of the online platform.2)The existence of pre-sales service does not necessarily bring profit growth to the overall supply chain,and the increase of the latter only exists when the pre-sales service level is placed within a specific range.Beyond this range,the existence of pre-sales services not only fails to generate overall profit growth,but also leads to losses.The reason for this phenomenon is that when the pre-sales service level is high,although on the one hand it brings the increase of consumer utility,but at the same time the increase of service cost exceeds the extraprofit,bringing down the overall profit.Compared wi th the traditional supply chain model,normally,authors only consider the price factor and analyze the price competition between different plat forms and channels.The innovation of this paper lies in quantifying the psychological factor of pre-sales service level and introducing the consumer utility model to obtain the profit size of different platforms and the whole supply chain under the situation of centralized and decentralized pricing,and drawing a conclusion with practical significance,that is,how to maximize the profit of enterprises and the whole supply chain.