Comparisons of Pre-Sale Strategies for a Fresh Agri-Product Supply Chain with Service Effort

Preselling strategies have been a common marketing tool, but research on this selection is limited. Thus, we examine three pre-sale strategies of a manufacturer who produces and sells a seasonal product to a retailer: (1) supplier pre-sale strategy—the supplier carries out preselling by opening a di...

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Main Authors: Huanyong Zhang, Huiyuan Xu, Xujin Pu
Format: Article
Language:English
Published: MDPI AG 2020-08-01
Series:Agriculture
Subjects:
Online Access:https://www.mdpi.com/2077-0472/10/8/324
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author Huanyong Zhang
Huiyuan Xu
Xujin Pu
author_facet Huanyong Zhang
Huiyuan Xu
Xujin Pu
author_sort Huanyong Zhang
collection DOAJ
description Preselling strategies have been a common marketing tool, but research on this selection is limited. Thus, we examine three pre-sale strategies of a manufacturer who produces and sells a seasonal product to a retailer: (1) supplier pre-sale strategy—the supplier carries out preselling by opening a direct channel; (2) retailer pre-sale strategy—the retailer purchases pre-sale products from the supplier and sells them in online and offline channels; and (3) joint pre-sale strategy—the retailer acts as a pre-sale platform, providing order information and pre-sale services. For each preselling mode, we construct the Stackelberg game model aiming to maximize profits and obtain optimal service levels and pricing decisions. We find that the two latter scenarios, that is, to cooperate with the retailer (retailer pre-sale and joint pre-sale strategies), could highly gain more profit for the supplier compared with the former. For the supplier, the joint pre-sale strategy will likely be the dominant strategy because of its wide-range applicability. On the contrary, the retailer is swaying between retailer pre-sale and joint pre-sale strategies under different conditions. For the supplier, leadership always guarantees a high profit, but if the joint pre-sale strategy is adopted, then the existence of a profit-sharing ratio will narrow the profit gap between the two players.
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spelling doaj.art-de889b5a5bf74ceab960b832ee74fbfe2023-11-20T08:50:59ZengMDPI AGAgriculture2077-04722020-08-0110832410.3390/agriculture10080324Comparisons of Pre-Sale Strategies for a Fresh Agri-Product Supply Chain with Service EffortHuanyong Zhang0Huiyuan Xu1Xujin Pu2Business School, Jiangnan University, Wuxi 214122, ChinaBusiness School, Jiangnan University, Wuxi 214122, ChinaBusiness School, Jiangnan University, Wuxi 214122, ChinaPreselling strategies have been a common marketing tool, but research on this selection is limited. Thus, we examine three pre-sale strategies of a manufacturer who produces and sells a seasonal product to a retailer: (1) supplier pre-sale strategy—the supplier carries out preselling by opening a direct channel; (2) retailer pre-sale strategy—the retailer purchases pre-sale products from the supplier and sells them in online and offline channels; and (3) joint pre-sale strategy—the retailer acts as a pre-sale platform, providing order information and pre-sale services. For each preselling mode, we construct the Stackelberg game model aiming to maximize profits and obtain optimal service levels and pricing decisions. We find that the two latter scenarios, that is, to cooperate with the retailer (retailer pre-sale and joint pre-sale strategies), could highly gain more profit for the supplier compared with the former. For the supplier, the joint pre-sale strategy will likely be the dominant strategy because of its wide-range applicability. On the contrary, the retailer is swaying between retailer pre-sale and joint pre-sale strategies under different conditions. For the supplier, leadership always guarantees a high profit, but if the joint pre-sale strategy is adopted, then the existence of a profit-sharing ratio will narrow the profit gap between the two players.https://www.mdpi.com/2077-0472/10/8/324pre-sale strategyservice levelsupply chain managementgame theory
spellingShingle Huanyong Zhang
Huiyuan Xu
Xujin Pu
Comparisons of Pre-Sale Strategies for a Fresh Agri-Product Supply Chain with Service Effort
Agriculture
pre-sale strategy
service level
supply chain management
game theory
title Comparisons of Pre-Sale Strategies for a Fresh Agri-Product Supply Chain with Service Effort
title_full Comparisons of Pre-Sale Strategies for a Fresh Agri-Product Supply Chain with Service Effort
title_fullStr Comparisons of Pre-Sale Strategies for a Fresh Agri-Product Supply Chain with Service Effort
title_full_unstemmed Comparisons of Pre-Sale Strategies for a Fresh Agri-Product Supply Chain with Service Effort
title_short Comparisons of Pre-Sale Strategies for a Fresh Agri-Product Supply Chain with Service Effort
title_sort comparisons of pre sale strategies for a fresh agri product supply chain with service effort
topic pre-sale strategy
service level
supply chain management
game theory
url https://www.mdpi.com/2077-0472/10/8/324
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AT xujinpu comparisonsofpresalestrategiesforafreshagriproductsupplychainwithserviceeffort