Product Line and Channel Structure Design with Responsive Pricing
Available Online May 2017.
- https://doi.org/10.2991/isss-17.2017.5How to use a DOI?
- Product line, channel structure, pricing; quality, game theory.
- 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.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Xiaolu Zuo PY - 2017/05 DA - 2017/05 TI - Product Line and Channel Structure Design with Responsive Pricing BT - 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 - https://doi.org/10.2991/isss-17.2017.5 ID - Zuo2017/05 ER -