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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MDPI AG
2020-08-01
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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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format | Article |
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issn | 2077-0472 |
language | English |
last_indexed | 2024-03-10T18:01:38Z |
publishDate | 2020-08-01 |
publisher | MDPI AG |
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series | Agriculture |
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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