A STUDY OF PRICE COMPETITION BETWEEN MANUFACTURERS AND TRADITIONAL RETAIL DEALERS UNDER THE ENVIRONMENT OF E-COMMERCE
Luo Yu-xia
Abstract
Luo Yu-xia
Abstract
The introduction of the channel of E-commerce direct marketing has a tremendous impact on the traditional supply chain.This paper analyzes the returns of optimal pricing and stocking strategies for the supply chain members and the system in the following three pricing methods: a) pricing by two retailers independently;b) uniform pricing by the manufacturer;and c) system pricing through the principle of optimal channel coordination.The last is the best pricing method.
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The introduction of the channel of E-commerce direct marketing has a tremendous impact on the traditional supply chain.This paper analyzes the returns of optimal pricing and stocking strategies for the supply chain members and the system in the following three pricing methods: a) pricing by two retailers independently;b) uniform pricing by the manufacturer;and c) system pricing through the principle of optimal channel coordination.The last is the best pricing method.
Key concepts: Business, Competition (biology), Pricing strategies, Supply chain, Industrial organization, Variable pricing, Channel (broadcasting), Dynamic pricing