Uniform vs. retailer-specific pricing: How a supplier responds to the dominant retailers’ markup pricing strategy

Wang, Yao‐Yu; Tan, Yi; Wang, Jiancai; Lai, Fujun

doi:10.1080/01605682.2023.2173678

Cited by 3 publications

(1 citation statement)

References 60 publications

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“…For e-commerce businesses, the e-commerce clothes industry, the online food fresh category, and many other industries, wholesale price contracts are still commonly employed [24]. Given the complexity of the supply chain, the wholesale price contract is the most popular form of contract [25,26]. Early scholars Bernstein et al, studied supply chain performance through a simple wholesale price contract where suppliers were able to coordinate the supply chain under a specific discount setting [27].…”

Section: Supply Chain Contracts and Coordinationmentioning

confidence: 99%

Pricing Decisions and Coordination in E-Commerce Supply Chain with Wholesale Price Contract Considering Focus Preferences

Zhu

Yao

Lin

et al. 2023

JTAER

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Decision makers’ behavioral preferences have always been important in coordinating the supply chain. Decision makers need to choose a partner wisely to increase the profitability of the entire supply chain, especially in the competitive e-commerce environment. In this paper, we examine a two-echelon e-commerce supply chain with one retailer and one supplier using the most popular wholesale price contract to facilitate collaboration. Traditional research has shown that the classical expectation model cannot coordinate the supply chain. We apply the focus theory of choice to describe the retailer’s behavior as a follower, and we examine the impact of the retailer’s pricing decisions on the supplier under different focus preferences and the coordination for the entire supply chain. The lower the parameter φ, which represents the degree of positivity, and the higher the parameter κ, which represents the level of confidence, the closer the profit of the whole supply chain is to the coordination result—both are visualized through numerical experiments and images. In the case of φ determination, the lower the κ, the better the supply chain coordination. The finding implies that the retailer may be able to coordinate the supply chain and produce better results than the expectation model when he or she makes choices using a positive evaluation system that includes both higher levels of optimism and lower levels of confidence. The findings of the FTC model can simultaneously offer a theoretical foundation for expanding collaboration among supply chain participants and management insights for decision makers to choose cooperation partners.

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Section: Supply Chain Contracts and Coordinationmentioning

confidence: 99%

Pricing Decisions and Coordination in E-Commerce Supply Chain with Wholesale Price Contract Considering Focus Preferences

Zhu

Yao

Lin

et al. 2023

JTAER

View full text Add to dashboard Cite

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Supermarket Replenishment and Pricing Decisions Based on a Single-Objective Planning Model

Jiang,

Yu,

Liu

2023

2023 3rd International Signal Processing, Communications and Engineering Management Conference (ISPCEM)

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Optimal Markup Pricing Strategies in a Green Supply Chain under Different Power Structures

Li,

Sun

2024

Mathematics

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Fixed-dollar and flexible markups are two markup pricing strategies commonly adopted in the retail industry, but their impacts on green behaviors of enterprises remain unknown. This paper investigates how the two markup pricing strategies influence firms’ managerial behaviors in a green supply chain, considering three power structures: Manufacturer Stackelberg, Retailer Stackelberg, and Vertical Nash. We find that the retailer’s pricing strategy choice is jointly affected by power structures and consumer sensitivity to product green levels. Particularly under Manufacturer Stackelberg, the fixed-markup strategy makes the retailer earn a higher profit. However, under Vertical Nash, the retailer’s pricing strategy depends on consumer sensitivity to green levels. When consumers are less sensitive to green levels, a flexible-dollar markup strategy is more profitable for the retailer; otherwise, the fixed-markup strategy is better. Additionally, for the manufacturer, the green levels of the product and the firm profit are always higher when the retailer adopts a fixed-dollar markup strategy under Manufacturer Stackelberg and Vertical Nash. Interestingly, if the retailer adopts a flexible-dollar markup strategy, the manufacturer has the “late-mover advantage” only when consumer sensitivity to the green level is high. Furthermore, the supply chain achieves the highest profit when the manufacturer acts as the leader under the fixed markup strategy.

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Uniform vs. retailer-specific pricing: How a supplier responds to the dominant retailers’ markup pricing strategy

Cited by 3 publications

References 60 publications

Pricing Decisions and Coordination in E-Commerce Supply Chain with Wholesale Price Contract Considering Focus Preferences

Pricing Decisions and Coordination in E-Commerce Supply Chain with Wholesale Price Contract Considering Focus Preferences

Supermarket Replenishment and Pricing Decisions Based on a Single-Objective Planning Model

Optimal Markup Pricing Strategies in a Green Supply Chain under Different Power Structures

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