Pricing Policies for a Dual-channel Supply Chain under Brand Competition
Considering one manufacturer sells a product through a dual-channel supply chain,while another manufacture sells a substitute product through the Internet channel,the pricing and coordination strategies of the dual-channel supply chain are studied.Based on the price and service-sensitive linear demand function,a pricing model which considers both brand competition and channel competition is built.The decentralized and centralized pricing policies based on Nash games are formulated,and the optimal prices and the expected profits are obtained.The numerical analysis shows that there is efficiency loss in decentralized system,and brand loyalty,cross-price elasticity have a positive impact on the optimal prices and the expected profits.Furthermore,for the dual-channel supply chain,channel competition is fiercer than brand competition,so a coordination contract based on service cooperation is designed.It is proved that the contract can not only achieve supply chain coordination and a win-win outcome,but also make the product sold by dual-channel supply chain more competitive.