To read this content please select one of the options below:

Pricing policies for printed and electronic books in a triple-channel supply chain

Kamran Kianfar (Department of Industrial Engineering, Faculty of Engineering, University of Isfahan, Isfahan, Iran)
Mitra Pashootanizadeh (Department of Knowledge and Information Science, Faculty of Educational Sciences and Psychology, University of Isfahan, Isfahan, Iran)

Journal of Modelling in Management

ISSN: 1746-5664

Article publication date: 25 October 2024

8

Abstract

Purpose

This study aims to investigate the pricing dynamics within a triple-channel supply chain. The publisher can sell printed books (p-books) through bookstores or online direct sales, and electronic books (e-books) are sold directly through the internet. The primary objectives include determining optimal wholesale and final prices for p-books, assessing the profitability of introducing e-books, comparing profits across channels and supply chain modes and identifying optimal demand volumes.

Design/methodology/approach

The research uses first-order derivatives and the Stackelberg game to analyze the pricing strategies. Two supply chain modes, centralized and decentralized, are considered, and various parameters are examined to understand their impact on prices, demand volumes and final sales profit.

Findings

The results indicate that the e-book is either not published or is introduced simultaneously with the printed version in both modes. In the decentralized mode, the wholesale price of a p-book is equivalent to the final price in the bookstore channel in the centralized mode. One channel among the three selling channels is used to maximize the total profit in the centralized supply chain, whereas all demand should be fulfilled through either online direct sales or e-book channels in the decentralized mode.

Originality/value

This paper introduces a comprehensive triple-channel book supply chain model, considering cross-price sensitivities and lag times for e-books. The study provides insights into the dynamics of the book industry and compares them with existing literature, contributing to a broader understanding of the pricing strategies in a triple-channel context.

Keywords

Acknowledgements

Funding: This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors.

Conflict of Interest: The authors declare that they have no conflict of interest.

Citation

Kianfar, K. and Pashootanizadeh, M. (2024), "Pricing policies for printed and electronic books in a triple-channel supply chain", Journal of Modelling in Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JM2-11-2023-0266

Publisher

:

Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

Related articles