Product Line and Channel Structure Design with Responsive Pricing

DOI

10.2991/isss-17.2017.5How to use a DOI?

Keywords

Product line, channel structure, pricing; quality, game theory.

Abstract

This paper studies a manufacturer's product line and channel structure decisions when downstream channel(s) using holdback pricing strategy. Products have two quality levels: high quality and low quality, and the manufacturer has five product-channel strategies: (1) Duopoly channel with high quality products (); (2) Duopoly channel with low quality products (); (3) Duopoly channel with mixed quality products (); (4) Monopoly channel with high quality products (); (5) Monopoly channel with low quality products (). The product-channel is designed by making technology adoption and resource allocation decisions for the products. We characterize equilibrium quantity-pricing decisions of two channels and the optimal resource allocation decisions. We find that profit gap of different technology adoption strategies increases as market size raises. Product-channel strategy is influenced by the distribution of potential market demand to a large extent.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Xiaolu Zuo
PY  - 2017/05
DA  - 2017/05
TI  - Product Line and Channel Structure Design with Responsive Pricing
BT  - Proceedings of 3rd International Symposium on Social Science (ISSS 2017)
PB  - Atlantis Press
SP  - 21
EP  - 27
SN  - 2352-5398
UR  - https://doi.org/10.2991/isss-17.2017.5
DO  - 10.2991/isss-17.2017.5
ID  - Zuo2017/05
ER  -