Abstract

Strategies such as price, CSR, and service have an important impact on enterprises and supply chains. This paper proposes a two-echelon dual-channel supply chain composed of a manufacturer and a retailer. Considering the product pricing, CSR level, and service level in the supply chain, this paper employs the Stackelberg game to depict supply chain participants’ optimal decisions and analyze the influence of explanatory variables on the optimal decision with retailer’s payment methods. The results state that market share, service level, CSR, and financing interest rate significantly impact the pricing decision of all participants in the supply chain. In addition, strategies of CSR level and service level are also affected by the discount rate of advance payment, financing interest rate, return on investment, and opportunity cost rate. This paper incorporates CSR and service level into the objective function, considers a variety of retailers’ payment methods, enriches the supply chain’s pricing model, and is of great value to scientific decision-making of enterprises and sustainable development of supply chains.

Highlights

  • With the rapid development of Internet technology, the mature e-commerce mode has quietly changed people’s consumption habits and strengthened people’s consumption desire, in 2019, the total retail sales of China’s social consumer goods reached 41.1649 trillion yuan, accounting for 41.5% of GDP in that year

  • Suppose that the retailer will improve the service level in order to compete for market share, and the service level is set as g, this will bring them additional market share, and at the same time, it will seize part of the customers in the manufacturer’s online channel, which is expressed as tg, t(0 ≤ t ≤ 1) is the service sensitivity coefficient, and the service cost is expressed as sg2, s is the service cost coefficient

  • The improvement of service level will bring additional market share to the retailer, in order to compete for market share and maintain its own profit, the manufacturer will correspondingly reduce the online sales price and increase the wholesale price

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Summary

Introduction

It is meaningful for us to study the CSR level for enterprises to formulate its long-term development strategies and improve its comprehensive competitiveness. It is of great significance to study the service level for enterprises to formulate reasonable service strategies and attract more customers. In this era of big data with a high-speed flow of all kinds of information, the marketing environment is changing rapidly. In a dual-channel supply chain, various payment methods of retailers will affect the retailer service level, the CSR level, and the objective function of enterprise decision-making.

Distribution channel
Enterprise’s service level and supply chain pricing
The choice of financing methods
Different payment methods for the retailer
Description and notations
Model analysis
Model analysis of retailer’s punctual payment
Model analysis of retailer’s prepayment
Model analysis of retailer with capital constraints
The retailer chooses to borrow from banks
The retailer chooses to borrow from the manufacturer
Numerical analysis
The retailer chooses to pay on time
The conclusion
The interest rate has an impact on optimal pricing decisions
The demand elasticity of CSR has an impact on the CSR level
Findings
The future extension
Full Text
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