Study of Manufacturers and Retailers Pricing under Dual Channel Mode-Based on Stackelberg Gamble

DOI

10.2991/etmhs-16.2016.100How to use a DOI?

Keywords

Dual Channel Mode; Consumer Utility; Stackelberg Gamble; Equilibrium Pricing

Abstract

Manufacturers dual channel mode is accompanied by the birth of the Internet and the emergence of new sales environment, the retailers adhered to the traditional channels under this mode are often required to lower prices in order to cope with shocks. This article assumes market that only has one manufacturer and one retailer, establish consumer utility function including consumer loyalty factor. Firstly, deduce the traditional channels of only a single retailer balanced pricing, use Stackelberg gamble to deduce balanced pricing of manufacturers and retailers under dual channel mode. By comparing the two modes retailer balanced pricing, this paper finds retailers can take advantage of consumer loyalty of the brand to effectively resist the impact of the network channels instead of blindly cutting prices.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - SiYuan Deng
PY  - 2016/01
DA  - 2016/01
TI  - Study of Manufacturers and Retailers Pricing under Dual Channel Mode-Based on Stackelberg Gamble
BT  - Proceedings of the 2016 2nd International Conference on Education Technology, Management and Humanities Science
PB  - Atlantis Press
SP  - 452
EP  - 458
SN  - 2352-5398
UR  - https://doi.org/10.2991/etmhs-16.2016.100
DO  - 10.2991/etmhs-16.2016.100
ID  - Deng2016/01
ER  -