Search results

1 – 10 of 667
Article
Publication date: 20 January 2023

Mengwan Li and Miyuan Shan

This paper aims to explore product pricing and green promotion effort policies and further analyzes the influences of financing interest rate, green promotion effort and…

Abstract

Purpose

This paper aims to explore product pricing and green promotion effort policies and further analyzes the influences of financing interest rate, green promotion effort and free-riding behavior on the optimal strategies.

Design/methodology/approach

Research will be conducted with the aid of Stackelberg game research method, considering that the manufacturer has financial constraints and financing from e-commerce platform, and consumers have dual preferences, based on the two models of no green promotion effort for physical store and green promotion effort for physical store to explore dual-channel green supply chain strategies.

Findings

This research puts forward the following findings, in the two models: the rise in financing interest rate leads to an increase in wholesale and selling prices of dual channels and a decrease in demand of dual channels. The green promotion effort has a positive impact on wholesale prices, selling prices and demand of dual channels. The rise of free-riding rate makes offline wholesale and selling prices fall, whereas online wholesale and selling prices rise.

Originality/value

This research results can provide reference for the decision-making in the context of supply chain financing and free-riding.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 11
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 15 July 2020

Ryuta Ishii

Many manufacturers implement a dual channel strategy, which can be defined as the simultaneous use of integrated and independent channels of distribution for the same product…

Abstract

Purpose

Many manufacturers implement a dual channel strategy, which can be defined as the simultaneous use of integrated and independent channels of distribution for the same product line. This study employs the resource-based theory and examines how manufacturers' and distributors' capabilities affect manufacturers' choices of dual channel strategy. The study also examines how fit between organisational capability and channel structure affects channel system performance.

Design/methodology/approach

Empirical testing was conducted using survey data collected from 262 Japanese business-to-business manufacturers. This study performed a multinomial logistic regression analysis to examine the antecedents of dual channel strategy and a t-test to examine its performance implications.

Findings

The results show that manufacturers' information capabilities and the availability of distributors' selling capabilities affect whether manufacturers choose a dual channel strategy, and that market turbulence moderates the effects of these two capability factors. The results also indicate that manufacturers can improve their channel system performance by choosing channel strategies that fit organisational capabilities.

Originality/value

Most previous studies employ transaction cost theory to identify the factors driving the choice of dual channel strategy. However, these studies neglect the heterogeneity of resources/capabilities. Little is known about whether capability factors affect the dual channel strategy, and how this choice can be linked to channel system performance. By addressing this knowledge gap, this study contributes to enhance our understanding of dual channels.

Details

Marketing Intelligence & Planning, vol. 39 no. 1
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 2 October 2017

Honglin Yang, Erbao Cao, Kevin Jiang Lu and Guoqing Zhang

The aim of this paper is to investigate the effect of information asymmetry on revenue sharing contracts and performance in a dual-channel supply chain. First, the authors model…

Abstract

Purpose

The aim of this paper is to investigate the effect of information asymmetry on revenue sharing contracts and performance in a dual-channel supply chain. First, the authors model the optimum revenue sharing contract in a dual-channel supply chain under both the full information case and the asymmetric information case. Second, they contrast the optimal decisions of a dual-channel supply chain between the full information case and the asymmetric information case. Third, they explore the impact of asymmetric cost information on the performance of a dual-channel supply chain and investigate the information value.

Design/methodology/approach

The authors present two main issues associated with revenue sharing contracts to alleviate manufacturer–retailer conflicts in a dual-channel supply chain. In the first issue, a revenue sharing contract is designed in a dual-channel supply chain under asymmetric cost information conditions, based on the principal-agent model. In the second issue, an optimal revenue sharing contract under full information conditions, based on the Stackelberg game is discussed. They explore the impact of asymmetric cost information on the performance of a dual-channel supply chain and investigate the information value based on comparative static analysis.

Findings

First, the direct sale price is unchanged and independent of the retailer’s cost construct, but the wholesale price increases and the retail sale price does not decrease under asymmetric cost information. The information asymmetry leads to higher direct sale demand and lower retail sale demand. Second, information asymmetry is beneficial for the retailer, but imposes inefficiency on the manufacturer and the whole supply chain. Third, the performance of the dual-channel supply chain is improved if the retailer’s cost information is shared and the dual-channel supply chain reaches coordination. The retailer is willing to share its cost information if the lump sum side payment that the manufacturer offers can make up the retailer’s reduced profit due to sharing this information.

Originality/value

The authors proposed a contract menus design model in a dual-channel supply chain. They examine how information asymmetry affects optimal policies and performance. They compared the optimal policies under symmetric information and asymmetric information. Conditions under which the partners prefer sharing information are identified. They quantified the information value from the points of partners and the whole system.

Details

Journal of Business & Industrial Marketing, vol. 32 no. 8
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 25 September 2019

Abhishek Sharma and Deepika Jain

The purpose of this paper is to investigate the impact of fairness concerns of the retailer on the pricing policies of the supply chain partners, their individual profits, and the…

Abstract

Purpose

The purpose of this paper is to investigate the impact of fairness concerns of the retailer on the pricing policies of the supply chain partners, their individual profits, and the overall performance of a dual-channel supply chain composed of one manufacturer and one retailer. First, the authors model the dual-channel supply chain under retailer’s fairness concern. Second, the authors derive the optimal pricing policies of the channel members. Third, the authors analyze the effects of retailer’s fairness and bargaining power on the pricing strategies and profit functions of the dual-channel supply chain system.

Design/methodology/approach

The authors adopt the manufacturer-led Stackelberg game theoretic framework, where the dominant manufacturer’s pricing decisions are based on the retailer’s pricing decision. The paper considers Nash bargaining solution as the fairness reference point to formulate the utility function of the fair-retailer. The paper uses this approach because it endogenously accounts for the competitive power and cooperative contribution of the channel members when they interact.

Findings

The authors find that the retailer’s fairness concerns are not always beneficial for its better performance. If the retailer is moderately sensitive towards its fairness, it will positively influence its performance. However, if the fairness concern becomes too high then it will negatively impact the retailer’s performance because it results in customers’ migration towards direct online channel for buying the products. In addition, if the retailer’s fairness concerns are mild, the manufacturer’s prices will decrease in retailer’s bargaining power, which is opposite otherwise.

Originality/value

The authors use Nash bargaining solution model as the fairness reference in the context of dual-channel supply chain, which is comparatively a recent approach and has been used independently from dual-channel supply chain system.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 9 May 2016

Chengli Liu, C.K.M. Lee and K.L. Choy

The purpose of this paper is to determine the optimal sale effort deployment under dual-channel distribution which combines a traditional brick and mortar retail channel from the…

1059

Abstract

Purpose

The purpose of this paper is to determine the optimal sale effort deployment under dual-channel distribution which combines a traditional brick and mortar retail channel from the partner retailer and an online direct channel from the manufacturer.

Design/methodology/approach

A sales effort competition game is set up in the dual-channel distribution between the manufacturer and the retailer. Demand under sales efforts is determined based on the consumer valuation, consumer’s channel preference and sales efforts. Then, the optimal sales effort deployment is studied with a game theory approach which allow the retailer and the manufacturer to maximize their own profit.

Findings

Consumer’s channel preference is a key parameter of the demand assignment in the dual-channel distribution. Interestingly, the optimal sales effort and the profit of the manufacturer and the retailer can be limited by the other’s efficiency of sales effort. The finding suggests that the manufacturer and the retailer should collaborate to enhance the efficiency of the sales effort. It also shows that the manufacturer can utilize the direct channel as an important marketing channel even though no profit is obtained through the direct channel.

Research limitations/implications

This research provides a new method to model the sales effort in the dual-channel distribution. The optimal sales efforts based on the consumer behavior are determined. However, since this study assumes a consistent product price across channels, the results is not applicable for a retailer who can set their own price.

Practical implications

It is a win-win situation for adoption of the dual-channel distribution although the manufacturer can benefit more. Additionally, direct channel can be used as an effective marketing channel.

Originality/value

This research contributes to a better understanding of demands in dual-channel distribution under sales efforts. Additionally, the research results provide a useful framework of sales effort deployment under different consumers’ channel preferences in the dual-channel distribution.

Details

Industrial Management & Data Systems, vol. 116 no. 4
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 16 November 2015

Feng Yang, Pei Hu, Fuguo Zhao and Cuihua Hu

The purposes of this paper is to propose a customer returns model in a dual-channel supply chain where a customer can return the purchased product to the retailer or the…

Abstract

Purpose

The purposes of this paper is to propose a customer returns model in a dual-channel supply chain where a customer can return the purchased product to the retailer or the manufacturer and obtain an equilibrium of selling prices and refund prices and the optimal profit when considering customer returns in the centralized and decentralized dual-channel supply chain.

Design/methodology/approach

This paper mainly uses the game theory technique to analyze the problem. The manufacturer and the retailer are vertically integrated in the traditional channel, and the results of the centralized dual-channel supply chain are obtained. Then, the Stackelberg game was adopted to analyze the decentralized dual-channel supply chain. Finally, the detailed numerical simulation is proposed to obtain straight-forward insights for the industrial managers.

Findings

The mathematic analysis used shows that the main findings of this paper are: in the centralized scenario, the retailer and the manufacturer will charge higher selling prices when they offer return policy, and the demand for each channel increases, which results in higher profit; and the price and refund price of the direct channel in the centralized and decentralized dual-channel are the same, respectively.

Originality/value

Most previous literatures highlight that return policy plays an important role in supply chain which considering one channel. But there is no study on the customer return policy in dual-channel supply chain. This paper is a further step to model the effects of customer returns policy on the pricing policy and optimize the profits in a dual-channel supply chain. This paper analyzes the pricing and refund strategies and gets an equilibrium in the centralized and decentralized dual-channel supply chain scenarios.

Details

Journal of Modelling in Management, vol. 10 no. 3
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 11 September 2017

Lingcheng Kong, Zhiyang Liu, Yafei Pan, Jiaping Xie and Guang Yang

The online direct selling mode has been widely accepted by enterprises in the O2O era. However, the dual-channel (online/offline, forward/backward) operations of the closed-loop…

1489

Abstract

Purpose

The online direct selling mode has been widely accepted by enterprises in the O2O era. However, the dual-channel (online/offline, forward/backward) operations of the closed-loop supply chain (CLSC) changed the relationship between manufacturers and retailers, thus resulting in channel conflict. The purpose of this paper is to take a dual-channel operations of CLSC as the research target, where a manufacturer sells a single product through a direct e-channel as well as a conventional retail channel; the retailer are responsible for collecting used products in the reverse supply chain and the manufacturer are responsible for remanufacturing.

Design/methodology/approach

The authors build a benchmark model of dual-channel price and service competition and take the return rate, which is considered to be related to the service level of the retailer, as the function of the service level to extend the model in the reverse SC. The authors then analyze the optimal pricing and service decision under centralization and decentralization, respectively. Finally, with the revenue-sharing factor, wholesale price and recycling price transfer payment coefficient as contract parameters, the paper also designs a revenue-sharing contract led by the manufacturer and explores in what situation the contract could realize the Pareto optimization of all players.

Findings

In the baseline model, the results show that optimal price and service level correlate positively in centralization; however, the relation relies on consumers’ price sensitivity in decentralization. In the extension model, the relationship between price and service level also relies on the relative value of increased service cost and remanufacturing saved cost. When the return rate correlates with the service level, a recycling transfer payment can elevate the service level and thus raise the return rate. Through analyzing the parameters in revenue-sharing contract, a point can be reached where lowering the wholesale price and raising the transfer payment coefficient will promote retailers to share revenue.

Practical implications

Many enterprises establish the dual-channel distribution system both online and offline, which need to understand how to resolve their channel conflict. The conflict is especially strong in CLSC with remanufacturing. The result helps the node enterprises realize the coordination of the dual-channel CLSC.

Originality/value

It takes into account the fact that there are two complementary relationships, such as online selling and offline delivery; used product recycling and remanufacturing. The authors optimize the strategy of product pricing and service level in order to solve channel conflict and double marginalization in the closed-loop dual-channel distribution network.

Details

Industrial Management & Data Systems, vol. 117 no. 8
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 22 November 2023

Chen-hao Wang, Yong Liu and Zi-yi Pan

The paper attempts to discuss the impact of reference price effect on pricing decisions.

Abstract

Purpose

The paper attempts to discuss the impact of reference price effect on pricing decisions.

Design/methodology/approach

With the growth of the Internet and e-commerce, more and more customers purchase products in through online channels and choose products by comparing different prices and services, and the reference price effect has an impact on pricing decisions. To investigate the impact of consumers' reference price effect on the dual-channel supply chain, the authors establish a basic model consisting of a single dominant manufacturer and a single downstream retailer, and analyze the optional decisions under different situations and discuss the influence of reference price effect. Finally, a number case verifies the validity and rationality of the proposed model.

Findings

The results show that (1) the reference price effect has varying effects on the price, channel demand and income of manufacturers and retailers in the channel depending on the role of customers' channel preferences. (2) The manufacturer's online channel demand and profits always increase with the reference pricing effect, whereas the retailer's offline demand and profits always decline. (3) When the proportion of consumers preferring offline is higher, the manufacturer's network price and wholesale price increase with the reference price effect, while the retailer's retail price decreases with the reference price effect; when the proportion of consumers preferring offline is lower, the opposite is true, and the centralized decision results are consistent with the decentralized decision results.

Practical implications

This paper can clarify the impact of consumer reference price effects on the operation of dual-channel supply chains, and help inform pricing decisions of manufacturers and retailers in dual-channel supply chains.

Originality/value

The proposed approach can well analyze the impact of consumer reference price effect and give channel their optional decisions.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 4 February 2014

Sheri Kurgin, Jean M. Dasch, Daniel L. Simon, Gary C. Barber and Qian Zou

The purpose of this paper is to compare the performance of single- and dual-channel minimum quantity lubrication (MQL) for reaming spool bores in an automotive transmission valve…

Abstract

Purpose

The purpose of this paper is to compare the performance of single- and dual-channel minimum quantity lubrication (MQL) for reaming spool bores in an automotive transmission valve body.

Design/methodology/approach

Machining experiments are conducted under various parameters for both single- and dual-channel MQL. Comparison metrics include part surface temperature, spindle power consumption and hole quality. Experimental data from traditional through-tool flood coolant are provided as a baseline for spindle power consumption and part quality.

Findings

The results show that with proper tooling and machining parameters, dual-channel MQL can perform equivalently or better than flood coolant. Single-channel MQL was not deemed suitable for this machining application.

Practical implications

The results of the study show that MQL can be successfully applied for precision reaming of aluminum and can provide guidance in developing an MQL system.

Originality/value

Few studies have been performed for reaming holes in general, and very few studies have been performed for reaming with MQL. Reaming is a critical operation used to create holes with precise quality. No study was found in the literature review that directly compared the performance of single- and dual-channel MQL delivery systems.

Details

Industrial Lubrication and Tribology, vol. 66 no. 1
Type: Research Article
ISSN: 0036-8792

Keywords

Article
Publication date: 10 August 2021

Zonghuo Li, Wensheng Yang and Yinyuan Si

This paper investigates a dual-channel supply chain in which a manufacturer offers coupons in the online channel and the retailer in the offline channel. The optimal pricing and…

Abstract

Purpose

This paper investigates a dual-channel supply chain in which a manufacturer offers coupons in the online channel and the retailer in the offline channel. The optimal pricing and coupon promotion policies are explored, and the brand image under different promotion scenarios is studied.

Design/methodology/approach

Three differential game models, namely no coupon is offered, coupons offered by the manufacturer and coupons offered by the retailer, are constructed.

Findings

The results show that the manufacturer and retailer intend to conduct coupon promotions under a large coupon redemption rate. Coupon promotion derives a higher price and profit for the issuers, and the manufacturer can free-ride on the retailer's coupon promotion. The retailer's profit in the retailer-promotion scenario may be lower than that in the manufacturer-promotion scenario in some special conditions. Besides, price, coupon face value, brand image and profit increase over time. After multiple cycles game, the operational strategy evolves to an optimal equilibrium status.

Originality/value

This paper provides guidance and advice for dual-channel supply enterprises to implement joint pricing and coupon promotion strategies under multiple sales seasons.

Details

Kybernetes, vol. 51 no. 11
Type: Research Article
ISSN: 0368-492X

Keywords

1 – 10 of 667