Next Article in Journal
Resilience Thinking as a System Approach to Promote China’s Sustainability Transitions
Next Article in Special Issue
Competitive Priorities, Employee Management and Development and Sustainable Manufacturing Performance in Asian Organizations
Previous Article in Journal
The Impact of Historic Building Preservation in Urban Economics: Focusing on Accommodation Prices in Jeonju Hanok Village, South Korea
Article

Pricing Decisions on Online Channel Entry for Complementary Products in a Dominant Retailer Supply Chain

1
School of Economics and Management, Shanghai Maritime University, Shanghai 201306, China
2
College of International Trade, Shanghai University of International Business and Economics, Shanghai 201620, China
*
Author to whom correspondence should be addressed.
Sustainability 2020, 12(12), 5007; https://doi.org/10.3390/su12125007
Received: 22 April 2020 / Revised: 15 June 2020 / Accepted: 15 June 2020 / Published: 18 June 2020
(This article belongs to the Special Issue Logistics and Sustainable Supply Chain Management)
This study considered the supply chain that two manufacturers sell green complementary products to a dominant offline retailer. We investigated whether a manufacturer (the integrated manufacturer) should add an online channel and examined how it affects channel members’ decisions and profits. We formulated the power structure as the retailer-Stackelberg model and analyzed the pricing decisions for the supply chain. The results demonstrate that the integrated manufacturer prefers not to add the online channel when online and offline market bases are comparable and the level of complementarity is moderate. The integrated manufacturer gains more power at the expense of the offline retailer and the other manufacturer (the traditional manufacturer) when the complementarity between the offline and online channel is the same as offline channels with the addition of a new online channel; furthermore, the retailer earns less, while the traditional manufacturer’s profit hinges on the complementarity between the online and offline channels. It is beneficial for the offline retailer to balance the online and offline market bases of product 1 by improving the sales environment of the physical store. The integrated manufacturer can benefit from varying their marketing actions to decrease the degree of complementarity between the retail and online channels for the two products, while the traditional manufacturer can be better off from the online channel introduction by taking steps to increase the complementarity of the two products between the offline channels. View Full-Text
Keywords: green complementary products; online channel; pricing; supply chain; Stackelberg game green complementary products; online channel; pricing; supply chain; Stackelberg game
Show Figures

Figure 1

MDPI and ACS Style

Gu, Q.; Yang, X.; Liu, B. Pricing Decisions on Online Channel Entry for Complementary Products in a Dominant Retailer Supply Chain. Sustainability 2020, 12, 5007. https://doi.org/10.3390/su12125007

AMA Style

Gu Q, Yang X, Liu B. Pricing Decisions on Online Channel Entry for Complementary Products in a Dominant Retailer Supply Chain. Sustainability. 2020; 12(12):5007. https://doi.org/10.3390/su12125007

Chicago/Turabian Style

Gu, Qiongqiong, Xiaodong Yang, and Bin Liu. 2020. "Pricing Decisions on Online Channel Entry for Complementary Products in a Dominant Retailer Supply Chain" Sustainability 12, no. 12: 5007. https://doi.org/10.3390/su12125007

Find Other Styles
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Back to TopTop