Pricing and service effort strategy in a dual-channel supply chain with showrooming effect

Guo Li; Lin Li; Jiasen Sun

doi:10.1016/j.tre.2019.03.019

Pricing and service effort strategy in a dual-channel supply chain with showrooming effect

Guo Li, Lin Li, Jiasen Sun^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

264 Citations (Scopus)

Abstract

This study investigates the influence of the showrooming effect on firms’ pricing and service effort in a dual-channel supply chain. The no-service, ex-ante and ex-post service effort strategies are considered. The equilibrium results show that the showrooming effect enables the firms to benefit the most from the ex-post service efforts. Moreover, the showrooming effect makes the manufacturer set high/low wholesale prices for retailers in the ex-ante/ex-post strategy. This study further extends the three strategies by considering no showrooming effect. Results show that the greater the showrooming effect, the higher profits firms will obtain using the ex-post service effort strategy.

Original language	English
Pages (from-to)	32-48
Number of pages	17
Journal	Transportation Research Part E: Logistics and Transportation Review
Volume	126
DOIs	https://doi.org/10.1016/j.tre.2019.03.019
Publication status	Published - Jun 2019

Keywords

Dual-channel supply chain
Pricing
Service effort
Showrooming effect

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10.1016/j.tre.2019.03.019

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title = "Pricing and service effort strategy in a dual-channel supply chain with showrooming effect",

abstract = "This study investigates the influence of the showrooming effect on firms{\textquoteright} pricing and service effort in a dual-channel supply chain. The no-service, ex-ante and ex-post service effort strategies are considered. The equilibrium results show that the showrooming effect enables the firms to benefit the most from the ex-post service efforts. Moreover, the showrooming effect makes the manufacturer set high/low wholesale prices for retailers in the ex-ante/ex-post strategy. This study further extends the three strategies by considering no showrooming effect. Results show that the greater the showrooming effect, the higher profits firms will obtain using the ex-post service effort strategy.",

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AU - Li, Guo

AU - Li, Lin

AU - Sun, Jiasen

PY - 2019/6

Y1 - 2019/6

N2 - This study investigates the influence of the showrooming effect on firms’ pricing and service effort in a dual-channel supply chain. The no-service, ex-ante and ex-post service effort strategies are considered. The equilibrium results show that the showrooming effect enables the firms to benefit the most from the ex-post service efforts. Moreover, the showrooming effect makes the manufacturer set high/low wholesale prices for retailers in the ex-ante/ex-post strategy. This study further extends the three strategies by considering no showrooming effect. Results show that the greater the showrooming effect, the higher profits firms will obtain using the ex-post service effort strategy.

AB - This study investigates the influence of the showrooming effect on firms’ pricing and service effort in a dual-channel supply chain. The no-service, ex-ante and ex-post service effort strategies are considered. The equilibrium results show that the showrooming effect enables the firms to benefit the most from the ex-post service efforts. Moreover, the showrooming effect makes the manufacturer set high/low wholesale prices for retailers in the ex-ante/ex-post strategy. This study further extends the three strategies by considering no showrooming effect. Results show that the greater the showrooming effect, the higher profits firms will obtain using the ex-post service effort strategy.

KW - Dual-channel supply chain

KW - Pricing

KW - Service effort

KW - Showrooming effect

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JO - Transportation Research Part E: Logistics and Transportation Review

JF - Transportation Research Part E: Logistics and Transportation Review

ER -

Pricing and service effort strategy in a dual-channel supply chain with showrooming effect

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Keywords

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