Differentiated products pricing with consumer network acceptance in a dual-channel supply chain

Abstract

Abstract Pricing problems are the core content of product management and supply chain management, so that how to make rational price for different products under a dual-channel supply chain has been an urgent problem to be solved. With respect to the pricing problem of two differentiated products in a dual-channel supply chain consisting of a dominant manufacturer and a retailer, considering different consumer network acceptance for different products, we establish basic demand and profit functions by maximizing consumer utility. Then we exploit game theory to analyze the optimal decisions under single-channel and dual-channel of supply chains, respectively, and explore the impact of different consumer network acceptances on the optimal pricing, demand and profit of supply chains