Product variety, pricing and differentiation in a supply chain

Rajagopalan, Sampath; Xia, Nan

doi:10.1016/j.ejor.2011.08.016

Cited by 42 publications

(15 citation statements)

References 33 publications

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“…The importance of category management for retailers is widely acknowledged, both as a marketing tool for category performance (Fader and Lodish, 1990;Basuroy et al, 2001;Dhar et al, 2001) and as an operational tool for planning and logistics (Rajagopalan and Xia, 2012). Successful category management requires retailers to understand cross-category effects of prices, promotions and sales.…”

Section: Cross-category Managementmentioning

confidence: 99%

Identifying Demand Effects in a Large Network of Product Categories

Gelper

Wilms

Croux

2016

Journal of Retailing

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Abstract. Planning marketing mix strategies requires retailers to understand within-as well as cross-category demand effects. Most retailers carry products in a large variety of categories, leading to a high number of such demand effects to be estimated. At the same time, we do not expect cross-category effects between all categories. This paper outlines a methodology to estimate a parsimonious product category network without prior constraints on its structure. To do so, sparse estimation of the Vector AutoRegressive Market Response Model is presented. We find that cross-category effects go beyond substitutes and complements, and that categories have asymmetric roles in the product category network.Destination categories are most influential for other product categories, while convenience and occasional categories are most responsive. Routine categories are moderately influential and moderately responsive.

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Section: Cross-category Managementmentioning

confidence: 99%

Identifying Demand Effects in a Large Network of Product Categories

Gelper

Wilms

Croux

2016

Journal of Retailing

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“…For the horizontal one, some researchers show the optimal variety level through making the trade-off between market demand and production cost [14][15][16]. The others consider the product line decisions in the supply chain setting to show the relationship between variety and double marginalization effect [17][18][19]. The vertical differentiation model is pioneered by Mussa and Rosen [20] and extended by Moorthy [21].…”

Section: Literature Reviewmentioning

confidence: 99%

Strategic Wholesale Pricing and Commonality Strategy in a Supply Chain with Quality Segmentation

Xiao

Tian

2015

Mathematical Problems in Engineering

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We develop two game models of a one-supplier and one-manufacturer supply chain to investigate the supplier’s strategic wholesale pricing decision and the manufacturer’s commonality strategy. The manufacturer has three commonality strategies for the high-end and low-end products: common high-quality component, common low-quality component, and dedicated components. We consider both wholesale price first scenario and commonality strategy first scenario. Under the wholesale price first scenario, we identify the range of each commonality strategy and find that (i) the common low-quality component strategy is harmful to the supplier; (ii) if the quality of low-quality component and the unit production cost of high-quality component are sufficiently low, the supplier induces the common high-quality component strategy by strategically decreasing the unit wholesale price of high-quality component, while if they are sufficiently high, the supplier induces the dedicated components strategy by increasing the unit wholesale price of high-quality component and decreasing that of low-quality one. Under the commonality strategy first scenario, the common low-quality component strategy may exist. By comparing the two scenarios, we find that (i) if the unit production cost of low-quality component is medium, the equilibrium outcomes under both scenarios are identical; (ii) there exists a first-mover advantage for the two players.

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“…One of the major issues faced by the firms involved in remanufacturing is taking back used products before the expiration of their expedient life so that some income could be engendered by either reprocessing or remanufacturing (Aras et al, 2011). Different activities of remanufacturing include inspection, cleaning, disassembling, component reprocessing, reassembly and testing (Rajagopalan and Xia, 2012). In this paper, we consider a firm leasing one type of a new product, and selling remanufactured versions of this product.…”

Section: Concepts and Literature Reviewmentioning

confidence: 99%

Impact of end of lease contracts’ option on joint pricing and inventory decisions of remanufacturable leased products

Rabbani¹,

Keyhanian²,

Hasannia³

et al. 2016

10.5267/j.ijiec

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Leasing currently plays an important role for the global economy. The equipment leasing earning acquired through leasing rather than cash or credit, has reached a dominant level. With this regards, this paper represents a basic mixed-integer non-linear programming model. The study deliberates a firm that leases new products and remanufactured leased merchandises. The proposed study considers the end of lease contract, which contains several options: Return the leased product, return the used product and purchase other remanufactured product and buying the leased product. The primary objective is to maximize the discrepancy between the revenue and the costs of a firm, which leases new products as well as selling remanufactured ones. The product deteriorates with time and the difference between a new and used good is obvious. The product must undergo a remanufacturing procedure before being sold as a remanufactured product.

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Product variety, pricing and differentiation in a supply chain

Cited by 42 publications

References 33 publications

Identifying Demand Effects in a Large Network of Product Categories

Identifying Demand Effects in a Large Network of Product Categories

Strategic Wholesale Pricing and Commonality Strategy in a Supply Chain with Quality Segmentation

Impact of end of lease contracts’ option on joint pricing and inventory decisions of remanufacturable leased products

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