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Chinese Journal of Management Science ›› 2015, Vol. 23 ›› Issue (8): 63-74.doi: 10.16381/j.cnki.issn1003-207x.2015.08.008

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Study of Retailers' Private Brand Supply Chain Quality Collaboration

CHEN Rui-yi1,3, JU Chun-hua2, SHENG Zhao-han3, JIANG Ye4   

  1. 1. School of Management in Nanjing University of Posts and Telecommunications, Nanjing 210023, China;
    2. School of Computer Science and Information Engineering in Zhejiang Gongshang University, Hangzhou 310018, China;
    3. Computational Experiment Center for Social Science in Nanjing University, Nanjing 210093, China;
    4. School of Business in Jiangsu Open University, Nanjing 210036, China
  • Received:2013-05-11 Revised:2014-03-31 Online:2015-08-20 Published:2015-08-19

Abstract: Based on the Nash negotiation model, the strategy of the retailers' private brand product quality vertical cooperation is studied under the increase of the retailers' negotiations power, three types of product quality vertical collaboration are investigated,which are the conservative type strategy that retailer does not bear product quality cost, the adventure type strategy that retailer bear product quality cost completely and the sophisticated type strategy that retailer bear parts of the product quality cost, the Nash negotiations equilibrium solution of the optimal product quality, the optimal supply chain total profit and the optimal participants profit are obtained. And on this basis, the comparison of strategies above, numerical analysis, and the modification of the sophisticated type strategy are provided. The study shows that: 1)the conservative type strategy may even cause the double marginalization effect of the private brand quality with the increase of retailer negotiation power; 2)retailers do not always have the suitable conditions of negotiation strength to adopt the sophisticated type strategy, although it can realize the best product quality which is equivalent to the vertical integration control and negotiation power independent; 3)the modification strategy of the sophisticated type base on good will of negotiation proposed not only can realize best product quality coordination, but also can be the dominant strategy of retailer and manufacture.

Key words: negotiation power, retailers' private brand, quality cooperation, product quality cost allocation

CLC Number: