Price Decision Of Innovative Products In ODM Supply Chain Based On Consumer Preference

In the home appliances and electronic products manufacturing industry,ODM(Original Design Manufacturing)companies occupy an important position with their design and R&D(research and development),supply chain integration and manufacturing capabilities.In this background,companies not only require choosing whether to cooperate with ODM companies,but also face the challenge from the consumer market,the changing consumer demand and the optimization and upgrading of the final consumer goods market,and the shortening of the product life cycle.Now,new requirements have been put forward.In order to adapt to the consumer market and achieve high profits,companies have begun to invest in research on innovative products.In view of consumers' preference behavior,this paper considers the two-dimensional characteristics of heterogeneous consumers whose reservation utility and willingness to pay for innovation.These characteristics submit to different distributions.This study also examines the market demand of alternative products with different brands,prices and innovation levels.From this point,this study analyses the product decision-making of a two-echelon supply chain consisting of an ODM company and a brand company.It mainly includes the following two parts:In the first part,the innovation level of the products is known,and the brand products are produced by ODM companies.This paper aims at maximizing the profits of both companies and establishing the companies decision-making model based on the Nash game.This study obtains the optimal price and profit of the products.Through the theoretical analysis and numerical experiments of the model,product innovation level,brand and wholesale price make influence on product pricing and companies' profit.In the second part,this paper studies that when the consumer's brand recognition is the same,the brand products are produced by the ODM company.Under patent licensing,the two companies cooperate in the research and development of the innovative products.The brand company determines the innovation level of the patent and the ODM company pay licensing fee.The study aims at maximize the profits of both companies,build a company decisionmaking model,and obtain the optimal level of patent innovation,product optimal price and companies profit.Finally,numerical experiments are conducted to analyze the influence of nonpatent innovation level,patent licensing fee and wholesale price on companies decision-making.On the one hand,this paper provides new ideas and methods for studying the market demand under the influence of heterogeneous consumers.On the other hand,it provides a theoretical basis for the innovation and price decision of companies' products in ODM supply chain under the influence of consumer preference behavior.Relevant research in the field of ODM supply chain has theoretical value and practical significance.