Stackelberg Game Perspective on Pricing Decision of a Dual-Channel Supply Chain with Live Broadcast Sales

Abstract

Focusing on the dual-channel supply chain with live broadcasts selling, this paper investigates the service overflow of live broadcasts with Stackelberg game perspective and the impact of retailers’ different market potentials on the pricing decisions of dual-channel members. Meanwhile, it also evaluates the pricing strategy of online retailers after introducing KOL (Key Opinion Leader) live broadcasts. The results show that when one of the dual-channel retailers adopts live broadcast sales, the live broadcast service overflow will have an adverse impact on it, but the degree of the impact depends on the market potential of supply chain members, and different power structures can be used to offset the adverse impact of live broadcast service overflow. Then, the live broadcast sales service overflow will have a certain beneficial impact on online retailers under certain circumstances. Furthermore, with the increase of live broadcast sales service overflow, the retail prices of both companies will decline, while the live broadcast sales service overflow is more beneficial for consumers.