IDEAS home Printed from https://ideas.repec.org/a/hin/jnlmpe/1804031.html
   My bibliography  Save this article

Pricing Model for Dual Sales Channel with Promotion Effect Consideration

Author

Listed:
  • Chuiri Zhou

Abstract

We focus on the pricing strategy of a dual sales channel member when his/her online retailer faces an upcoming overloaded express delivery service due to the sales peak of online shopping, especially referring to the occurring affairs in China. We characterize the pricing problem of the dual selling channel system as a two-period game. When the price discount is only provided by the online seller, we find that the prices of the traditional channel and the online channel in the two periods are higher while the overloaded degree of express delivery is lower and the overloaded delivery services can decrease the profits of both channels. When the price discounts are provided by both traditional and online sellers, we find that the derived Nash price equilibrium of both channels includes five possible combinations of prices. Both traditional and online sellers will choose their price strategies, respectively, according to their cost advantages which are affected by the overloaded degree of express delivery.

Suggested Citation

  • Chuiri Zhou, 2016. "Pricing Model for Dual Sales Channel with Promotion Effect Consideration," Mathematical Problems in Engineering, Hindawi, vol. 2016, pages 1-20, January.
    • Handle: RePEc:hin:jnlmpe:1804031
    DOI: 10.1155/2016/1804031
    as

    Download full text from publisher

    File URL: http://downloads.hindawi.com/journals/MPE/2016/1804031.pdf
    Download Restriction: no
    File URL: http://downloads.hindawi.com/journals/MPE/2016/1804031.xml
    Download Restriction: no
    File URL: https://libkey.io/10.1155/2016/1804031?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Qian Lei & Juan He & Fuling Huang, 2019. "Impacts of Online and Offline Channel Structures on Two-Period Supply Chains with Strategic Consumers," Mathematics, MDPI, vol. 8(1), pages 1-19, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hin:jnlmpe:1804031. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mohamed Abdelhakeem (email available below). General contact details of provider: https://www.hindawi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.