Consumer's Preferences -Driving Profit Allotting Strategy of Manufacturer-Retailer Supply Chain
Meng Jiong
Abstract
Meng Jiong
Abstract
From corporate social responsibilities influence on the consumer's preferences, applying the basic idea of game theory,the essay studies on the tactics of pricing and profit allotting of the one-period game between manufacturer and retailer in manufacturer-retailer supply chain,then the repetitive game results of the two partners under different conditions are discussed.The results show that alliance pricing is the unique nash equilibrium of the one-period game between manufacturer and retailer,and the expect profit of both manufacturer and retailer will increase after cooperation in both g and b manufacturer-retailer supply chain.The conclusion is that it is excellent for the long term both manufacturer and retailer to insist on alliance pricing for their long-term benefits in both g and b manufacturer-retailer supply chain.
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From corporate social responsibilities influence on the consumer's preferences, applying the basic idea of game theory,the essay studies on the tactics of pricing and profit allotting of the one-period game between manufacturer and retailer in manufacturer-retailer supply chain,then the repetitive game results of the two partners under different conditions are discussed.The results show that alliance pricing is the unique nash equilibrium of the one-period game between manufacturer and retailer,and the expect profit of both manufacturer and retailer will increase after cooperation in both g and b manufacturer-retailer supply chain.The conclusion is that it is excellent for the long term both manufacturer and retailer to insist on alliance pricing for their long-term benefits in both g and b manufacturer-retailer supply chain.
Key concepts: Supply chain, Profit (economics), Business, Game theory, Alliance, Nash equilibrium, Pricing strategies, Marketing