This paper attempts to analyze the relationship between the complementarity degrees of imperfect complementary products and sales strategies and give appropriate sales strategies for a two-stage supply chain.
With respect to two-stage supply chain consisting of two manufacturers who produce imperfect complementary products and one retailer who sells the products, aiming at bundling sales strategy, the authors define complementarity elasticity of products and use it to measure the degree of complementary between two products. Based on Stackelberg game and cooperation, the authors analyze the relationship between the complementarity degrees of imperfect complementary products and appropriate sales strategies.
As the impact of complementarity degree on sales strategy decision-making is better, the authors can pinpoint out which sales decision-making is optimal and which bundling sales strategy is the best for a two-stage supply chain. Considering that the degree of complementarity has a significant impact on the product sales strategy, the authors can point out which sales decision-making is optimal, that is, which bundled sales strategy is the optimal in the secondary supply chain of selling complementary products.
An innovative bundling can expand the sales of existing products and new products. It helps a retailer transcend and defeat competitors by reducing marketing expenses while increasing profits. Proper use of bundling can improve consumers utility and create an overall positive effect for both the enterprises and consumer.
The research can help some retailers to make many appropriate bundling sales strategies.
This work is partially funded by the National Natural Science Foundation of China (71503103); the Humanities and Social Sciences of Education Ministry (17YJC640233); Natural Science Foundation of Jiangsu Province (BK20150157); Social Science Foundation of Jiangsu Province (14GLC008),Soft Science Foundation of Jiangsu Province (BR2018005); Jiangsu Province University Philosophy and Social Sciences for Key Research Program (2017ZDIXM034); and Fundamental Research Funds for the Central Universities (2019JDZD06). Even so, this work does not involve any conflict of interest.
Liu, Y., Wang, X. and Ren, W. (2020), "A bundling sales strategy for a two-stage supply chain based on the complementarity elasticity of imperfect complementary products", Journal of Business & Industrial Marketing, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JBIM-05-2019-0267Download as .RIS
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