The Impact of Price Comparison Service on Pricing Strategy in a Dual-Channel Supply Chain

Qi Xu, Zheng Liu and Bin Shen

Mathematical Problems in Engineering, 2013, vol. 2013, 1-13

Abstract:

Recently, price comparison service (PCS) websites are more and more popular due to its features in facilitating transparent price and promoting rational purchase decision. Motivated by the industrial practices, in this study, we examine the pricing strategies of retailers and supplier in a dual-channel supply chain influenced by the signals of PCS. We categorize and discuss three situations according to the signal availability of PCS, under which the optimal pricing strategies are derived. Finally, we conduct a numerical study and find that in fact the retailers and supplier are all more willing to avoid the existence of PCS with the objective of profit maximization. When both of retailers are affected by the PCS, the supplier is more willing to reduce the availability of price information. Important managerial insights are discussed.

Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:hin:jnlmpe:613528

DOI: 10.1155/2013/613528

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