Pricing Strategies of Complementary Products in Distribution Channels: A Dynamic Approach

Ngendakuriyo, Fabien; Taboubi, Sihem

doi:10.1007/s13235-016-0181-7

Cited by 5 publications

(6 citation statements)

References 21 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Lately, the rapid development of electronic commerce has attracted the concern of scholars to distribution channels for complementary products. Ngendakuriyo and Taboubi [20] investigated the dynamic pricing of complementary products in a vertical channel structure by controlling transfer and retail prices. Wang et al [21] focused on the pricing and service decisions of complementary products, and elaborated on the effectiveness of different supply chain structures and pricing forms.…”

Section: The Pricing For Complementary Productsmentioning

confidence: 99%

Bundling or Unbundling? Pricing Strategy for Complementary Products in a Green Supply Chain

2020

View full text Add to dashboard Cite

Retailers usually sell complementary products jointly with a discounted price to attract more consumers. However, the difference of complementary degree between products leads to the diversity of pricing. In parallel, with the development of green supply chains, the extra cost of manufacturers to conduct ecological product design makes the pricing of complementary products further complicated. Thus, it is important to clarify the pricing strategy for complementary products in a green supply chain. Based on the Stackelberg games between two manufacturers and a retailer, this paper constructs three pricing models to simultaneously analyze the changes in the optimal profits of supply chain members and the optimal green manufacturing degree of complementary products. The results demonstrate that: (i) In most cases, two manufacturers prefer the pure bundling pricing strategy, but the strategy preference of the retailer is complex. (ii) The green manufacturing is mutually beneficial for complementary manufacturers and worth advocating. (iii) The increasing sensitivity of consumers to the green manufacturing level of one product will also be detrimental to the improvement of the optimal green manufacturing level of its complementary products.

show abstract

Section: The Pricing For Complementary Productsmentioning

confidence: 99%

Bundling or Unbundling? Pricing Strategy for Complementary Products in a Green Supply Chain

2020

View full text Add to dashboard Cite

show abstract

“…The Nash equilibrium will be reached when the best rewards are obtained after the game occurs (Neslin and Greenhalgh, 1983;Torres et al, 2018). The saddle point property is a game theory concept that concerns the choices of game players that lead to the same result (Von Neumann and Morgenstern, 1944;Ngendakuriyo and Taboubi, 2017). A payoff matrix (Dahlstrom et al, 2014) visually represents the decision-making process involved in a game in a grid structure.…”

Section: Game Theorymentioning

confidence: 99%

A game theory approach to selecting marketing-mix strategies

Abedian

Amindoust

Maddahi

et al. 2021

JAMR

View full text Add to dashboard Cite

PurposeAdopting efficient marketing strategies is a challenging task in a competitive market place involving complex marketing planning, techniques and mechanisms to identify the best course of action under these circumstances and finding optimal solutions or stable outcomes. Decisions and strategies of competitors in the market influence the selection of the appropriate marketing strategy. The main purpose of this paper is to develop a mathematical methodology based on the game theory approach for planning optimal marketing-mix strategies in dynamic competitive markets, taking into account strategic foresight and interaction effects.Design/methodology/approachThe game theory approach, as a decision-making tool in conflict situations, is suggested for planning and adopting optimal marketing strategy. The main intellectual attraction of the game theory is essentially a question of how to act in gaming situations against highly rational opponents A kind of static, finite and non-cooperative game analytics approach has been developed for this issue, and the proposed model has been implemented to design optimal marketing strategies for two top brands of the automotive parts market in Iran.FindingsThe findings of this study show that the optimal marketing-mix strategy for brand A is pricing and for brand B is the product strategy.Practical implicationsGame theory and the Nash equilibrium model can provide a practical approach to find and adopt the right strategy, know competitors' movements and strategies and get more profit.Originality/valueThe integration of the game theory approach into the marketing mix framework has been adopted as a generalized model for marketing strategy planning and analysis as well as to resolve some shortcomings of the marketing mix framework. The Nash equilibrium model has been used to analyze the results. The incorporation of game theory into marketing models has the potential to enrich the scope of marketing modeling.

show abstract

“…The saddle point property is a game theory concept that concerns the choices of game players that lead to the same result (Von Neumann and Morgenstern, 1944; Ngendakuriyo and Taboubi, 2017). A payoff matrix (Dahlstrom et al , 2014) visually represents the decision-making process involved in a game in a grid structure.…”

Section: Literature Reviewmentioning

confidence: 99%

Game theory modelling of retail marketing discount strategies

Taylor

Kwasnica

Reilly

et al. 2019

MIP

View full text Add to dashboard Cite

Purpose The purpose of this paper is to use the game theory combined with Monte Carlo simulation modelling to support the analysis of different retail marketing strategies, in particular, using payoff matrices for modelling the likely outcomes from different retail marketing strategies. Design/methodology/approach Theoretical research was utilised to develop a practical approach for applying game theory to retail marketing strategies via payoff matrices combined with Monte Carlo simulation modelling. Findings Game theory combined with Monte Carlo simulation modelling can provide a formal approach to understanding consumer decision making in a retail environment, which can support the development of retail marketing strategies. Research limitations/implications Game theory combined with Monte Carlo simulation modelling can support the modelling of the interaction between retail marketing actions and consumer responses in a practical formal probabilistic manner, which can inform marketing strategies used by retail companies in a practical manner. Practical implications Game theory combined with Monte Carlo simulation modelling can provide a formalised mechanism for examining how consumers may respond to different retail marketing strategies. Originality/value The originality of this research is the practical application of game theory to retail marketing, in particular the use of payoff matrices combined with Monte Carlo simulation modelling to examine likely consumer behaviour in response to different retail marketing approaches.

show abstract

Pricing Strategies of Complementary Products in Distribution Channels: A Dynamic Approach

Cited by 5 publications

References 21 publications

Bundling or Unbundling? Pricing Strategy for Complementary Products in a Green Supply Chain

Bundling or Unbundling? Pricing Strategy for Complementary Products in a Green Supply Chain

A game theory approach to selecting marketing-mix strategies

Game theory modelling of retail marketing discount strategies

Contact Info

Product

Resources

About