The impact of power structure on the retail service supply chain with an O2O mixed channel

Xu Chen; Xiaojun Wang; Xinkuang Jiang

doi:10.1057/jors.2015.6

The impact of power structure on the retail service supply chain with an O2O mixed channel

Xu Chen, Xiaojun Wang, Xinkuang Jiang

Management

Research output: Contribution to journal › Article › peer-review

150 Citations (Scopus)

Abstract

While the Internet has provided a new means for retailers to reach consumers, it has fundamentally changed the dynamic of competition in the retail service supply chain. The mix of offline and online channels adds a new dimension of competition, and one central issue of this competition is the pricing strategy between the two channels. How to set prices for both online and offline channels? What is the impact of the supply chain power structure on pricing decisions and the performance? This research aims to address these questions by focusing on a retail service supply chain with an online-to-offline (O2O) mixed dual-channel. From the Supplier-Stackelberg, Retailer-Stackelberg, and Nash game theoretical perspectives, we obtain the optimal prices and maximum profits for both the retailer and supplier under different power structures. The analysis result provides important managerial implications, which will be beneficial to retailers to develop proper pricing strategies.

Original language	English
Pages (from-to)	294-301
Number of pages	8
Journal	Journal of the Operational Research Society
Volume	67
Issue number	2
DOIs	https://doi.org/10.1057/jors.2015.6
Publication status	Published - 1 Feb 2016

Bibliographical note

Funding Information:
Acknowledgements—The authors would like to thank the anonymous referees and the editor for their constructive comments on the earlier version of the paper. The first two authors are supported by the Royal Society International Exchanges cost share scheme (Ref. IE131228) with National Natural Science Foundation of China (No. 71411130137). The first author is also partially supported by National Natural Science Foundation of China (No. 71272128, 71432003), Program for New Century Excellent Talents in University (No. NCET-12-0087), Specialized Research Fund for the Doctoral Program of Higher Education (No. 20130185110006), and Youth Foundation for Humanities and Social Sciences of Ministry of Education of China (No. 11YJC630022).

Publisher Copyright:
© 2016 Operational Research Society Ltd. All rights reserved.

Keywords

dual-channel
pricing; game theory
retail service
supply chain management

ASJC Scopus subject areas

Management Information Systems
Strategy and Management
Management Science and Operations Research
Marketing

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10.1057/jors.2015.6

Cite this

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abstract = "While the Internet has provided a new means for retailers to reach consumers, it has fundamentally changed the dynamic of competition in the retail service supply chain. The mix of offline and online channels adds a new dimension of competition, and one central issue of this competition is the pricing strategy between the two channels. How to set prices for both online and offline channels? What is the impact of the supply chain power structure on pricing decisions and the performance? This research aims to address these questions by focusing on a retail service supply chain with an online-to-offline (O2O) mixed dual-channel. From the Supplier-Stackelberg, Retailer-Stackelberg, and Nash game theoretical perspectives, we obtain the optimal prices and maximum profits for both the retailer and supplier under different power structures. The analysis result provides important managerial implications, which will be beneficial to retailers to develop proper pricing strategies.",

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The impact of power structure on the retail service supply chain with an O2O mixed channel

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

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