We investigate the bundling and product strategy in a two-stage supply chain with the channel competition, and analyze the effect of the bundling strategy on the behavior of supply chain members. In this paper, we consider two situations of channel competitions that are from the external or internal of the supply chain, two types of selling strategies (bundling or unbundling), and two types of product strategies (low or high quality). We propose the game models for different competition situations with the bundling strategy and product-quality strategy to obtain the optimal decisions for supply chain members. We find that the bundling is the retailer's preferred strategy in two channel competitions; the bundling strategy encourages the competitor (i.e., the new supplier of complementary component) outside the supply chain to provide the low-quality components, while the product strategy of the channel competitor (i.e., the existing supplier of complementary component) in the supply chain is not affected by the bundling strategy. 249 Now, the retailer enjoys her monopoly in the market of common component, meanwhile, she has no choice but to face the channel competition in the market of complementary component because another new supplier of complementary component outside the supply chain or the existing complementary component supplier in the supply chain sells the differentiated complementary component in the direct channel. In these two competition situations, we will explore the retailer's bundling action to answer her competitor's product strategy (low or high quality), and analyze the effect of the product bundling strategy on competitive behavior and supply chain performance.Many studies have analyzed the price and product bundling strategy, and investigated the effect and advantages of bundling. Drumwright (1992) investigated the premise that bundling prompts consumers to purchase more than they ordinarily would. Johnson et al. (1999) examined whether, and to what degree, the bundling of price-related information influences consumer evaluations. Chakravarti et al. (2002) examined the effects of the price presentations of multicomponent product bundle on evaluations and choices as well as the underlying processing effects, and found that different splits of the bundle price influence evaluations and choices depending on how the focal product price is related to that of a comparison option. Gilbride et al. (2008) utilized discrete choice data to investigate whether price framing affects choice in mixed-price bundles, and found that the joint and integrated frame results in the highest proportion of respondents choosing the bundle and the fewest choosing "none." Dominique-Ferreira et al. (2016) investigated the importance that insurance customers give to premiums, insurers, intermediary recommendations, and bundling strategies, and studied the relationship between attributes and consumer price sensitivity.The bundling strategy has been investigated widely in the research of marketing. One stream considers ...
The environmental awareness of consumers and enterprises has gradually increased, and green production and green consumption have become the main theme of social economy. On the other hand, the complementary product market has become an important source of competitive advantage for enterprises. Considering a complementary product supply chain, and taking account of the consumers’ environmental awareness and the green subsidies provided by the government, this paper examines members’ decisions in relation to four contract models based on game theory. By solving the model, it is shown that the government’s green subsidy plan improves the green degree of subsidized products and complementary products. Furthermore, compared to wholesale price contracts, revenue-sharing and cost-sharing contracts motivate manufacturers to improve the greenness of subsidized products, and they achieve a Pareto improvement for the whole supply chain and its members, when the contract parameters are appropriate. Numerical experiments also reveal that both the greenness of the complementary products and the profit for members increase with the green innovation spillover effect as a result of the complementary products and the scale of green consumers with environmental awareness in the market. This study provides good guidance for decision-making concerning the complementary product supply chain, and further contributes to environmental protection.
Many dual-channel suppliers need to make appropriate strategies for their upgraded products in the presence of strategic consumers. This paper develops a two-period dynamic game framework to explore the optimal pricing and upgrade the channel choice when the supplier introduces new upgraded products to a market populated by strategic consumers. The results show that, under any upgrade channel choice, the strategic consumers’ behavior has impacts on supplier and retailer’s pricing decisions and reduces their profit. The supplier could choose appropriate upgrade channel to improve his performance according to the consumers’ patience and innovation level of upgrade products. The supplier should choose pure offline channel to upgrade products when the innovation level of upgraded product B is relatively small. With the sufficiently high innovation level, the supplier should adopt pure offline channel to upgrade products when consumers’ patience is low and uses dual-channel upgrade strategy when the patience is high enough.
The supply chain in the new retail context demands higher requirements on the price, service, and logistics level. It is very important to seek the coordination among the optimal price, service level, and logistics level. In this paper, we propose the coordination of pricing, the service level, and delivery time of a new retail supply chain composed of one product supplier, one platform service provider, and one logistics provider. Firstly, the profit function mode of product pricing, platform service level, and logistics distribution level that influence the consumers’ demand is constructed in two modes, namely, the centralized and decentralized decision mode. Then, we calculate and compare the optimal product price, the optimal platform service level, the optimal delivery time, and the profit of each member of the supply chain from both decision modes. We discovered that cooperation improves the service level, logistics level, and the income of each member of the new retail supply chain. Therefore, we propose a novel mode called the coordination mode as a strategy for the supply chain based on the combination contract. We performed a numerical analysis to demonstrate the feasibility and effectiveness of the coordination contract.
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