Abstract
From the perspective of consumers, a monopolistic retailer is considered to sell two differentiated products in different sales modes: physical channel and online channel. In the case of separate sales, considering consumers’ channel and product preference, the same price of the same product is set in different channels to reduce channel conflicts caused by price differences among consumers. In the case of bundling, product bundling should be considered in network channels, and two products should be sold separately in physical channels. The analysis shows that the bundling strategy is better than the separate selling strategy. It can be seen from the numerical analysis that with the increase of the substitution degree of the bundled products, the demand and profit of the bundled sales strategy will gradually increase with the increase of the substitution degree. In addition, it is also found that the marginal cost of sales in the channel has a great impact on the two sales modes. Since the marginal cost of sales in the physical channel is greater than the marginal cost of sales in the network channel, it is only in the network channel that bundling is adopted, and the separate sales in the physical channel will enable the retailer to obtain more profits.
Highlights
The rapid development of the Internet has caused great changes in the form of sales of enterprises
1) The impact of marginal cost of sales on profits, as shown below: It can be seen from Figure 3 that marginal cost has a greater impact on profit, especially when adopting a bundled sales strategy, when the marginal sales cost of the network channel is higher than the marginal cost of sales of the physical channel, the bundled sales cannot bring the profit to the retailer
From the consumer's point of view, the consumer utility function is obtained, and the demand function is established according to the utility maximization, and the profit function is established, and the goal is to maximize the profit of the retailer
Summary
The rapid development of the Internet has caused great changes in the form of sales of enterprises. Manufacturers have opened up direct sales channels and the emergence of online retailers, which are all products of the Internet. Due to the change in sales form, it is a huge impact on the traditional retail industry. Manufacturers open up direct sales channels and compete with traditional retailers. The form attracts customers and further divides the market share of traditional retailers. In a situation of fierce competition, traditional retailers have to open up network channels to avoid more profit damage. Channel preferences and product preferences, based on utility maximization to establish a profit function, and get the best retail price; the fourth chapter mainly considers the marginal cost of sales and the degree of substitution on demand and profit; the fifth chapter is the summary of this article and outlook
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