Research On Product Pricing And Service Strategy Of S Retailer Under Free-riding Behavior

With the rapid development of Internet industry,China’s electricity technology and the network Application of substantial increase,more and more manufacturers begin to set up direct sales network channels of commodity,and some only have offline store retailers are also added online sales channel,through the way of online fusion constitute multi-channel marketing.However,multi-channel model can integrate the advantages of supply chain resources,but also brings some new problems,online channels since the exhibition services are provided the price is low,offline channels,provide experience and human services to the price on the high side,it will cause the price competition between the channels,at the same time also gave rise to the free-rider behavior of consumers,It has an impact on pricing and service decisions of upstream and downstream enterprises in the supply chain.In the market competition,some supply chain models dominated by retailers gradually emerge,and this change of dominant power also affects the pricing decisions of all members of the supply chain.Therefore,in the multi-channel supply chain system,it is of great significance to study how to make decisions to maximize the interests of all parties in the supply chain.First of all,on the basis of considering the existence of free-riding behavior of consumers,Stackelberg game model is constructed for the multi-channel supply chain composed of S retailer with dual channel and a manufacturer with online direct channel under the retailer-dominated situation to determine whether retailers’ online and offline dual-channel pricing is consistent.The research shows that under the two modes,consumers’ free-riding behavior leads to the decrease of retailers’ service level,and the optimal offline service level of retailers is affected by the proportion of free-riding consumers in market share and promotion cost.Free-riding behavior increases manufacturer’s profit while discounting strategy is more beneficial to retailer’s profit.Secondly,based on the conclusion of the example study,S retailer products are divided into two categories,mainly online and offline sales,according to different market shares.Numerical analysis is conducted based on the formulas of some complex factors to compare the variation trend of optimal profit,pricing and service with parameters under the two price decisions.Studies have found that the degree of market share and best-selling products in the supply chain overall profit under different price strategy and offline service levels are higher than same price strategy,at the same time as the rider rising proportion,manufacturers need to take more promotion costs more to incentive retailers to maintain a higher level of offline store service.Finally,combined with the actual business situation of S retailer and relevant theoretical research results of this paper,specific management enlightenment under multi-channel operation is obtained,and on this basis,suggestions are put forward for future research direction of free-rider problem in multi-channel supply chain.