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

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  • Qi Xu
  • Zheng Liu
  • Bin Shen

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.

Suggested Citation

  • Qi Xu & Zheng Liu & Bin Shen, 2013. "The Impact of Price Comparison Service on Pricing Strategy in a Dual-Channel Supply Chain," Mathematical Problems in Engineering, Hindawi, vol. 2013, pages 1-13, October.
    • Handle: RePEc:hin:jnlmpe:613528
    DOI: 10.1155/2013/613528
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    Cited by:

    1. Lahav, Yael & Herbon, Avi & Spiegel, Uriel, 2023. "The cost-benefit approach to an optimal charging scheme for an embryo storage service," Operations Research Perspectives, Elsevier, vol. 10(C).
    2. Suying Gao & Xiangshan Jin & Ye Zhang, 2021. "User Participation Behavior in Crowdsourcing Platforms: Impact of Information Signaling Theory," Sustainability, MDPI, vol. 13(11), pages 1-19, June.

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