Pricing and green promotion decisions in a retailer-owned dual-channel supply chain with multiple manufacturers
This paper studies the pricing and green promotion effort decisions in a retailer-owned dual-channel supply chain consisting of multiple manufacturers and one retailer. Specifically, we consider the general version of the problem where multiple inter-correlated products are sold through both the onl...
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| Format: | Article |
| Language: | English |
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Elsevier
2023-03-01
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| Series: | Cleaner Logistics and Supply Chain |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S277239092300001X |
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| _version_ | 1850233310987419648 |
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| author | Yaping Zhao Wenjie Huang Endong Xu Xiaoyun Xu |
| author_facet | Yaping Zhao Wenjie Huang Endong Xu Xiaoyun Xu |
| author_sort | Yaping Zhao |
| collection | DOAJ |
| description | This paper studies the pricing and green promotion effort decisions in a retailer-owned dual-channel supply chain consisting of multiple manufacturers and one retailer. Specifically, we consider the general version of the problem where multiple inter-correlated products are sold through both the online and the offline retail channels, and customer demands are jointly affected by product retail prices and green promotion efforts. With the objective of maximizing the members’ profits, game theoretic models are built to obtain the optimal decisions on wholesale prices, retail price markups and green promotion efforts under different power structures including manufacturer-Stackelberg, retailer-Stackelberg, Nash and integrated power structures. For several important special cases, explicit analytical relationships among optimal decisions and corresponding profits are established. For the more general settings, extensive numerical experiments are conducted to compare the system performance across different power structures. Our results indicate that the individual and overall profits are primarily driven by demand sensitivity to retail price. An increase in demand sensitivity will result in higher profits for all members at equilibrium. Our research also indicates that, regardless of power structures, the overall profit can also be driven up by increased product variety. For greening promotion efforts, the research reveals that the increase in the costs will have greater impactson the profit of the retailer than the manufacturers. Finally, our results demonstrate that being a Stackelberg leader is always advantageous if the objective is to optimize one’s individual profit,. But the significance of such an advantage is affected by the product independence. This paper extends the scope of existing studies by considering multiple correlated products in retailer-owned dual-channel supply chains, and rationalizes members’ pricing and green promotion effort decisions under competition. |
| format | Article |
| id | doaj-art-d1a53b0812f641d3bdf4df435143047e |
| institution | OA Journals |
| issn | 2772-3909 |
| language | English |
| publishDate | 2023-03-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Cleaner Logistics and Supply Chain |
| spelling | doaj-art-d1a53b0812f641d3bdf4df435143047e2025-08-20T02:02:57ZengElsevierCleaner Logistics and Supply Chain2772-39092023-03-01610009210.1016/j.clscn.2023.100092Pricing and green promotion decisions in a retailer-owned dual-channel supply chain with multiple manufacturersYaping Zhao0Wenjie Huang1Endong Xu2Xiaoyun Xu3Department of Transportation Economics and Logistics Management, College of Economics, Shenzhen University, Shenzhen 518060, PR ChinaMusketeers Foundation Institute of Data Science, The University of Hong Kong, Hong Kong SARDepartment of Transportation Economics and Logistics Management, College of Economics, Shenzhen University, Shenzhen 518060, PR ChinaDepartment of Operations and Information Technology, Graduate School of Business, Ateneo de Manila University, Metro Manila, Philippines; Corresponding author.This paper studies the pricing and green promotion effort decisions in a retailer-owned dual-channel supply chain consisting of multiple manufacturers and one retailer. Specifically, we consider the general version of the problem where multiple inter-correlated products are sold through both the online and the offline retail channels, and customer demands are jointly affected by product retail prices and green promotion efforts. With the objective of maximizing the members’ profits, game theoretic models are built to obtain the optimal decisions on wholesale prices, retail price markups and green promotion efforts under different power structures including manufacturer-Stackelberg, retailer-Stackelberg, Nash and integrated power structures. For several important special cases, explicit analytical relationships among optimal decisions and corresponding profits are established. For the more general settings, extensive numerical experiments are conducted to compare the system performance across different power structures. Our results indicate that the individual and overall profits are primarily driven by demand sensitivity to retail price. An increase in demand sensitivity will result in higher profits for all members at equilibrium. Our research also indicates that, regardless of power structures, the overall profit can also be driven up by increased product variety. For greening promotion efforts, the research reveals that the increase in the costs will have greater impactson the profit of the retailer than the manufacturers. Finally, our results demonstrate that being a Stackelberg leader is always advantageous if the objective is to optimize one’s individual profit,. But the significance of such an advantage is affected by the product independence. This paper extends the scope of existing studies by considering multiple correlated products in retailer-owned dual-channel supply chains, and rationalizes members’ pricing and green promotion effort decisions under competition.http://www.sciencedirect.com/science/article/pii/S277239092300001XRetailer-owned dual-channelMultiple manufacturersGreen promotionPricingGame theory |
| spellingShingle | Yaping Zhao Wenjie Huang Endong Xu Xiaoyun Xu Pricing and green promotion decisions in a retailer-owned dual-channel supply chain with multiple manufacturers Cleaner Logistics and Supply Chain Retailer-owned dual-channel Multiple manufacturers Green promotion Pricing Game theory |
| title | Pricing and green promotion decisions in a retailer-owned dual-channel supply chain with multiple manufacturers |
| title_full | Pricing and green promotion decisions in a retailer-owned dual-channel supply chain with multiple manufacturers |
| title_fullStr | Pricing and green promotion decisions in a retailer-owned dual-channel supply chain with multiple manufacturers |
| title_full_unstemmed | Pricing and green promotion decisions in a retailer-owned dual-channel supply chain with multiple manufacturers |
| title_short | Pricing and green promotion decisions in a retailer-owned dual-channel supply chain with multiple manufacturers |
| title_sort | pricing and green promotion decisions in a retailer owned dual channel supply chain with multiple manufacturers |
| topic | Retailer-owned dual-channel Multiple manufacturers Green promotion Pricing Game theory |
| url | http://www.sciencedirect.com/science/article/pii/S277239092300001X |
| work_keys_str_mv | AT yapingzhao pricingandgreenpromotiondecisionsinaretailerowneddualchannelsupplychainwithmultiplemanufacturers AT wenjiehuang pricingandgreenpromotiondecisionsinaretailerowneddualchannelsupplychainwithmultiplemanufacturers AT endongxu pricingandgreenpromotiondecisionsinaretailerowneddualchannelsupplychainwithmultiplemanufacturers AT xiaoyunxu pricingandgreenpromotiondecisionsinaretailerowneddualchannelsupplychainwithmultiplemanufacturers |