Pricing Decisions and Coordination in E-Commerce Supply Chain with Wholesale Price Contract Considering Focus Preferences
Decision makers’ behavioral preferences have always been important in coordinating the supply chain. Decision makers need to choose a partner wisely to increase the profitability of the entire supply chain, especially in the competitive e-commerce environment. In this paper, we examine a two-echelon...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-06-01
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| Series: | Journal of Theoretical and Applied Electronic Commerce Research |
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| Online Access: | https://www.mdpi.com/0718-1876/18/2/53 |
| _version_ | 1827736853613117440 |
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| author | Xide Zhu Yao Song Guihua Lin Weina Xu |
| author_facet | Xide Zhu Yao Song Guihua Lin Weina Xu |
| author_sort | Xide Zhu |
| collection | DOAJ |
| description | Decision makers’ behavioral preferences have always been important in coordinating the supply chain. Decision makers need to choose a partner wisely to increase the profitability of the entire supply chain, especially in the competitive e-commerce environment. In this paper, we examine a two-echelon e-commerce supply chain with one retailer and one supplier using the most popular wholesale price contract to facilitate collaboration. Traditional research has shown that the classical expectation model cannot coordinate the supply chain. We apply the focus theory of choice to describe the retailer’s behavior as a follower, and we examine the impact of the retailer’s pricing decisions on the supplier under different focus preferences and the coordination for the entire supply chain. The lower the parameter φ, which represents the degree of positivity, and the higher the parameter κ, which represents the level of confidence, the closer the profit of the whole supply chain is to the coordination result—both are visualized through numerical experiments and images. In the case of φ determination, the lower the κ, the better the supply chain coordination. The finding implies that the retailer may be able to coordinate the supply chain and produce better results than the expectation model when he or she makes choices using a positive evaluation system that includes both higher levels of optimism and lower levels of confidence. The findings of the FTC model can simultaneously offer a theoretical foundation for expanding collaboration among supply chain participants and management insights for decision makers to choose cooperation partners. |
| first_indexed | 2024-03-11T02:15:56Z |
| format | Article |
| id | doaj.art-f1c499b0749d4240a0ee7f4e9ef0ce4c |
| institution | Directory Open Access Journal |
| issn | 0718-1876 |
| language | English |
| last_indexed | 2024-03-11T02:15:56Z |
| publishDate | 2023-06-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Journal of Theoretical and Applied Electronic Commerce Research |
| spelling | doaj.art-f1c499b0749d4240a0ee7f4e9ef0ce4c2023-11-18T11:12:22ZengMDPI AGJournal of Theoretical and Applied Electronic Commerce Research0718-18762023-06-011821041106810.3390/jtaer18020053Pricing Decisions and Coordination in E-Commerce Supply Chain with Wholesale Price Contract Considering Focus PreferencesXide Zhu0Yao Song1Guihua Lin2Weina Xu3School of Management, Shanghai University, Shanghai 200444, ChinaSchool of Management, Shanghai University, Shanghai 200444, ChinaSchool of Management, Shanghai University, Shanghai 200444, ChinaSchool of Economics and Management, Shanghai University of Political Science and Law, Shanghai 201701, ChinaDecision makers’ behavioral preferences have always been important in coordinating the supply chain. Decision makers need to choose a partner wisely to increase the profitability of the entire supply chain, especially in the competitive e-commerce environment. In this paper, we examine a two-echelon e-commerce supply chain with one retailer and one supplier using the most popular wholesale price contract to facilitate collaboration. Traditional research has shown that the classical expectation model cannot coordinate the supply chain. We apply the focus theory of choice to describe the retailer’s behavior as a follower, and we examine the impact of the retailer’s pricing decisions on the supplier under different focus preferences and the coordination for the entire supply chain. The lower the parameter φ, which represents the degree of positivity, and the higher the parameter κ, which represents the level of confidence, the closer the profit of the whole supply chain is to the coordination result—both are visualized through numerical experiments and images. In the case of φ determination, the lower the κ, the better the supply chain coordination. The finding implies that the retailer may be able to coordinate the supply chain and produce better results than the expectation model when he or she makes choices using a positive evaluation system that includes both higher levels of optimism and lower levels of confidence. The findings of the FTC model can simultaneously offer a theoretical foundation for expanding collaboration among supply chain participants and management insights for decision makers to choose cooperation partners.https://www.mdpi.com/0718-1876/18/2/53supply chain coordinationbehavioral preferencefocus theory of choicee-commerce supply chainsupplier-led supply chain |
| spellingShingle | Xide Zhu Yao Song Guihua Lin Weina Xu Pricing Decisions and Coordination in E-Commerce Supply Chain with Wholesale Price Contract Considering Focus Preferences Journal of Theoretical and Applied Electronic Commerce Research supply chain coordination behavioral preference focus theory of choice e-commerce supply chain supplier-led supply chain |
| title | Pricing Decisions and Coordination in E-Commerce Supply Chain with Wholesale Price Contract Considering Focus Preferences |
| title_full | Pricing Decisions and Coordination in E-Commerce Supply Chain with Wholesale Price Contract Considering Focus Preferences |
| title_fullStr | Pricing Decisions and Coordination in E-Commerce Supply Chain with Wholesale Price Contract Considering Focus Preferences |
| title_full_unstemmed | Pricing Decisions and Coordination in E-Commerce Supply Chain with Wholesale Price Contract Considering Focus Preferences |
| title_short | Pricing Decisions and Coordination in E-Commerce Supply Chain with Wholesale Price Contract Considering Focus Preferences |
| title_sort | pricing decisions and coordination in e commerce supply chain with wholesale price contract considering focus preferences |
| topic | supply chain coordination behavioral preference focus theory of choice e-commerce supply chain supplier-led supply chain |
| url | https://www.mdpi.com/0718-1876/18/2/53 |
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