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

Xu Chen, Xiaojun Wang, Xinkuang Jiang

Research output: Contribution to journalArticle (Academic Journal)peer-review

108 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 languageEnglish
Pages (from-to)294-301
Number of pages8
JournalJournal of the Operational Research Society
Volume67
Issue number2
Early online date4 Mar 2015
DOIs
Publication statusPublished - Feb 2016

Keywords

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

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