The Effects Of Price Subsidy And Fairness Concern On Pricing Of Take-away Supply Chain

In China,the rapid development of the Internet has gradually changed people’s consumption patterns.The integration of e-commerce and the catering industry has created a huge take-away market.However,the take-away market faces fiercely competitive,and the price subsidy strategy has become one of the important operating methods for take-away platform companies.On the one hand,the price subsidy strategies can indeed bring more users to takeaway platforms;on the other hand,the outside world has doubts about the profitability of the platform under the condition of price subsidies.With the continuous development and maturity of the take-away market,does the price subsidy strategy need to continue? This is still an issue worth exploring.For the take-away platform,constructing a price subsidy model will help take-away platform companies understand the factors that affect the price subsidy,so as to adjust the actual operation in a targeted manner;for the restaurant,construct a pricing model which provides a reference for its practical pricing,and it is related to the ultimate profit of the restaurant.In general,studying the pricing issues in the take-away industry can provide a certain degree of management inspiration for the overall development of the take-away industry.By constructing the game models of single-channel and dual-channel supply chains in the catering industry,we consider the impact of price subsidies and consumer fair concerns on the pricing strategies and benefits of the platform and the restaurant.In the single-channel supply chain,a Stackelberg game model between the take-away platform and the restaurant is constructed.By comparing and analyzing the product pricing and revenue in the "no price subsidy" and "price subsidy" scenarios,an optimal pricing strategy for both parties is given.Further,in the dual-channel supply chain,we study the changes in supply chain members’ decisions and benefits under the joint action of consumers’ fair concerns and price subsidies.Finally,numerical examples are used to analyze the impact of changes in main parameters on pricing and revenue.The research results show that:(1)Under the single channel price subsidy model,when the price subsidy threshold is not too high,the optimal pricing of the restaurant is always higher than the optimal pricing without the subsidy,that is,the restaurant will always make a price increase.The price increased is directly proportional to the subsidy intensity,and we find that the appropriate price increase by the restaurant can always bring more benefits to both parties;(2)Under the dual-channel model,when online products are more cost-effective,due to the shift in demand between channels,the optimal price of online product and the optimal price of offline product are change in opposite directions,that’s means consumers’ fair concern will help curb excessive price increases by the restaurant to a certain extent;(3)No matter what mode the market is in,the optimal subsidy intensity of the take-away platform will decrease with the expansion of the scale of the online business market,and increase with the increase of consumer sensitivity and the cost of products.The optimal pricing of the restaurant increases with the increase of market size and unit cost of products,and decreases with the increase of consumer sensitivity.Under the conditions that the online market is smaller,consumers are more price sensitive,or the unit cost of commodities is higher,the platform promotes higher price subsidies can obtain better effects.