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Research on the Pricing Decision of Manufacturer Dual-channel Supply Chain Considering Return Risk

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  • 1. School of Business, Guilin University of Electronic Technology, Guilin 541004, China;
    2. Guangxi Aviation Logistics Reserach Center, Guilin 541004, China;
    3. School of Shipping Economics and Managment, Dalian Maritime University, Dalian 116026, China

Received date: 2016-10-09

  Revised date: 2017-05-21

  Online published: 2018-05-24

Abstract

In the process of re-shopping, customers are hard to get an accurate evaluation due to their full understanding of product information infringement. The exante uncertainty of product value evaluation is likely to have the problem that products are not in line with the consumer preferences, which causes the occurrence of product returns. Compared to the traditional channels, because customers cannot have close physical contact with the products while they are shopping online, the mismatching between products and their preferences makes the returns more serious.First of all, in terms of the returns caused by exante uncertainty, it should consider the influence of return risks on market demands from the consumer behaviors (rational consumers will reduce their purchase desires, because they can anticipate the pricing differences and the utility loss brought by return risk in the shopping decision-making process), and the construction absorbs the demand function of return factors. Then, through the Stackelberg game model, double channel supply chain optimal decisions of the four conditions are studied in the different pricing models. At last, through the example analysis, the result of the models is verified and a series of valuable conclusions are drawn. The research shows that price in electronic channels is positively proportional to the market demand of electronic channels, the wholesale price is positively proportional to sales price and market demands of traditional channels, the relationship between the SA service level and market basic demands of traditional channels (linear) depend on certain conditions; the impact of return risks to supply chain decision is related to pricing mode and the influence of market demand; manufacturers prefer the pricing inequality model and retailers love the pricing equality model; the impact of return risks and pricing difference to supply chain member revenue is associated with pricing model, the impact of the overall supply chain revenue is related to the pricing model and return rate.The demand function of absorbing pricing difference and return risk double factors is constructed to distinguish the previous researches, makes up the shortcomings of previous studies. The paper can enrich and perfect the relevant theories of double channel supply chain, and provide series of useful guidance for the decision of manufacturers and retailers.

Cite this article

ZHANG Xue-long, WU Dou-dou, WANG Jun-jin, LIU Jia-guo, ZHANG Yi-chun . Research on the Pricing Decision of Manufacturer Dual-channel Supply Chain Considering Return Risk[J]. Chinese Journal of Management Science, 2018 , 26(3) : 59 -70 . DOI: 10.16381/j.cnki.issn1003-207x.2018.03.007

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