Pricing Decisions and Game Analysis on Advanced Delivery and Cross-Channel Return in a Dual-Channel Supply Chain System

Advanced delivery and cross-channel return are new phenomena in Omni-channel marketing. This paper studies a dual-channel supply chain system composed of one online retailer, one physical store, and their ordinary manufacturer. It intends to explore the pricing decisions of retailers under four scen...

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Main Authors: Rong Zhang, Yuhao Lu, Bin Liu
Format: Article
Language:English
Published: MDPI AG 2023-03-01
Series:Systems
Subjects:
Online Access:https://www.mdpi.com/2079-8954/11/3/155
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author Rong Zhang
Yuhao Lu
Bin Liu
author_facet Rong Zhang
Yuhao Lu
Bin Liu
author_sort Rong Zhang
collection DOAJ
description Advanced delivery and cross-channel return are new phenomena in Omni-channel marketing. This paper studies a dual-channel supply chain system composed of one online retailer, one physical store, and their ordinary manufacturer. It intends to explore the pricing decisions of retailers under four scenarios concerning the question whether deliver goods in advance and use cross-channel return. We analyze the impact of the operation costs of physical stores and the transportation costs of the online retailer on the above strategies, and with numerical examples, analyze the impact of consumers’ perceived value on the profits of each scenario. The results show that the default rate of consumers’ unpaid balance and the cross-channel return rate directly influences the online retailer’s strategy choice. The pricing of the physical store is related to the proportion of unpaid balance and return rate of the online retailer. Customers’ perceived value brought by advanced delivery leads to profit changes in supply chain members and is influenced by the online retailer’s cross-channel return strategy.
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spelling doaj.art-fc67e21821f344b184b6c45ee18245e92023-11-17T14:11:29ZengMDPI AGSystems2079-89542023-03-0111315510.3390/systems11030155Pricing Decisions and Game Analysis on Advanced Delivery and Cross-Channel Return in a Dual-Channel Supply Chain SystemRong Zhang0Yuhao Lu1Bin Liu2Research Center of Logistics, Shanghai Maritime University, Shanghai 201306, ChinaResearch Center of Logistics, Shanghai Maritime University, Shanghai 201306, ChinaBusiness School, University of Shanghai for Science and Technology, Shanghai 200093, ChinaAdvanced delivery and cross-channel return are new phenomena in Omni-channel marketing. This paper studies a dual-channel supply chain system composed of one online retailer, one physical store, and their ordinary manufacturer. It intends to explore the pricing decisions of retailers under four scenarios concerning the question whether deliver goods in advance and use cross-channel return. We analyze the impact of the operation costs of physical stores and the transportation costs of the online retailer on the above strategies, and with numerical examples, analyze the impact of consumers’ perceived value on the profits of each scenario. The results show that the default rate of consumers’ unpaid balance and the cross-channel return rate directly influences the online retailer’s strategy choice. The pricing of the physical store is related to the proportion of unpaid balance and return rate of the online retailer. Customers’ perceived value brought by advanced delivery leads to profit changes in supply chain members and is influenced by the online retailer’s cross-channel return strategy.https://www.mdpi.com/2079-8954/11/3/155dual-channel supply chainadvanced deliverycross-channel returnpricing decisiongame analysis
spellingShingle Rong Zhang
Yuhao Lu
Bin Liu
Pricing Decisions and Game Analysis on Advanced Delivery and Cross-Channel Return in a Dual-Channel Supply Chain System
Systems
dual-channel supply chain
advanced delivery
cross-channel return
pricing decision
game analysis
title Pricing Decisions and Game Analysis on Advanced Delivery and Cross-Channel Return in a Dual-Channel Supply Chain System
title_full Pricing Decisions and Game Analysis on Advanced Delivery and Cross-Channel Return in a Dual-Channel Supply Chain System
title_fullStr Pricing Decisions and Game Analysis on Advanced Delivery and Cross-Channel Return in a Dual-Channel Supply Chain System
title_full_unstemmed Pricing Decisions and Game Analysis on Advanced Delivery and Cross-Channel Return in a Dual-Channel Supply Chain System
title_short Pricing Decisions and Game Analysis on Advanced Delivery and Cross-Channel Return in a Dual-Channel Supply Chain System
title_sort pricing decisions and game analysis on advanced delivery and cross channel return in a dual channel supply chain system
topic dual-channel supply chain
advanced delivery
cross-channel return
pricing decision
game analysis
url https://www.mdpi.com/2079-8954/11/3/155
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AT yuhaolu pricingdecisionsandgameanalysisonadvanceddeliveryandcrosschannelreturninadualchannelsupplychainsystem
AT binliu pricingdecisionsandgameanalysisonadvanceddeliveryandcrosschannelreturninadualchannelsupplychainsystem