Pricing and Distribution Strategies in a Dual-Channel Supply Chain

Guangye Xu and Hanguang Qiu
Additional contact information
Guangye Xu: Nanjing University of Posts and Telecommunications, Nanjing, China
Hanguang Qiu: Chongqing Technology and Business University, Chongqing, China

International Journal of Information Systems and Supply Chain Management (IJISSCM), 2020, vol. 13, issue 3, 23-37

Abstract: Internet has revolutionized distribution channels. Online orders are forwarded to the brick-and-mortar store to make the fulfillment, which is a new distribution strategy in a dual-channel supply chain. However, there is little research on the value of using such distribution strategy in dual-channel setting. To fill this gap, this article considers a manufacturer marketing a product through a dual-channel supply chain, comprised of an online channel and an offline retail channel. We develop a game theory model to investigate the pricing decisions and the distribution strategies, as well as to examine the impacts of the new distribution strategy on price competition and the dual-channel supply chain member's profits. By comparing the results of the traditional distribution strategy and the new distribution strategy, we find that the new distribution strategy can soften price competition when the proportion of the revenue generated by the direct channel is high enough, while if the proportion is low enough, it may intensify price competition. We also find that the supply chain members can achieve a win-win situation when the wholesale price is higher, and the proportion is greater under the new distribution strategy.

Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://services.igi-global.com/resolvedoi/resolve. ... 8/IJISSCM.2020070102 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:igg:jisscm:v:13:y:2020:i:3:p:23-37

Access Statistics for this article

International Journal of Information Systems and Supply Chain Management (IJISSCM) is currently edited by John Wang

More articles in International Journal of Information Systems and Supply Chain Management (IJISSCM) from IGI Global
Bibliographic data for series maintained by Journal Editor ().