%A BAI Shi-zhen, JIANG Man %T The Pricing Strategy in Different Online Selling Schemes %0 Journal Article %D 2019 %J Chinese Journal of Management Science %R 10.16381/j.cnki.issn1003-207x.2019.10.016 %P 159-169 %V 27 %N 10 %U {http://www.zgglkx.com/CN/abstract/article_16442.shtml} %8 2019-10-20 %X With the development of e-commerce, online sales have vastly contributed to the growth of retail sales in China. There are two main selling schemes for online sellers. One is regular selling, the other is discount advance selling. The consumers' valuations are distinct between different selling schemes, which is called consumption value difference. We focus on analyzing three interesting questions. First, how does the online seller design the more beneficial selling schemes? Second, since both the consumers' valuations and delivery lead time setting by online seller are different in the two main schemes, how do the seller's equilibrium decisions be affected by consumption value difference and the time-sensitivity? Third, how do dominant structures influence the equilibrium strategy? These questions are important to online sellers because they are closely related to operational decisions.
Considering the consumption value difference, the consumer shopping behaviors under regular selling mode, discount advance selling mode and dual selling mode are first characterized. The structural properties of the equilibrium strategies are provided in three sales schemes using the optimization technique under Stackelberg Game and Nash Equilibrium. Then, according to the threshold of consumption value difference, the conditions are identified under which selling mode choose for online seller. The impacts of selling modes and the dominant structures of the supply chain on the equilibrium strategies are analyzed. Finally, the influences of consumption value difference and the delivery lead time on optimal expected profit are analyzed in an numerical example.
The research reveals that a medium threshold of consumption value difference exists in dual selling mode where both the online seller and manufacturer outperform their counterparts in two main selling schemes. Selling mode has no effect on the price of pre-order product while influences the price of regular product. Optimal product price and wholesale price derived from manufacturer-dominated supply chain are high but the sales volume is the opposite. With the increasing consumer time-sensitivity,the firms' performance will decrease under discount advance selling mode only. It is necessary to shorten the lead time in order to prevent sales decrease under discount advance selling mode. It is also found that the profit is relatively prominent in the manufacturer-dominated supply chain under the dual selling mode. These results will contribute to online sellers in choosing an appropriate and efficient sales strategy.