Research on Dual-Channel Supply Chain Promotion Strategy

Qi Duan and Chengcheng Li
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Qi Duan: China National Institute of Standardization, China
Chengcheng Li: CNPC Beijing Richfit Information Technology Co., Ltd., China

International Journal of Information Systems and Supply Chain Management (IJISSCM), 2021, vol. 14, issue 3, 79-106

Abstract: The establishment of online direct sales channels influences the selection of pricing strategies and promotion information disclosure strategies of manufacturers and retailers. Considering the consideration of consumer preference, this paper studies the influence of different promotion information disclosure modes on the promotion effect and the income of supply chain members in the dual-channel supply chain with direct online channels. Based on hoteling model, the authors establish a model on market demand of the two channels and analyze the pricing and disclosure strategies of manufacturers and retailers under different concerns of consumers. It is found that there is a unique equilibrium threshold between the two disclosure modes. Only when the selling price after promotion is lower than the threshold are manufacturers or retailers willing to make information disclosure. It is also found that the disclosure intention and strategy of manufacturer or retailer will change with different customers' concerns and the relationship between the difference of two channels promotion and the threshold value.

Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:igg:jisscm:v:14:y:2021:i:3:p:79-106

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