A study on pricing and delivery strategy for e-retailing systems

Yeu Shiang Huang; Si Hen Chen; Jyh Wen Ho

doi:10.1016/j.tre.2013.09.002

A study on pricing and delivery strategy for e-retailing systems

Yeu Shiang Huang, Si Hen Chen, Jyh Wen Ho

Department of Industrial and Information Management

Research output: Contribution to journal › Article › peer-review

10 Citations (Scopus)

Abstract

This study investigates the dynamics between price and lead time for an e-retailing system in which one of its commodities is offered by two duopolistic suppliers. A Stackelberg game is formulated by considering the two suppliers as the leaders and the e-retailer as the follower. The proposed model assists the channel members in getting an equilibrium relationship in a competitive environment. The results suggest that when a supplier chooses a shorter lead time as the competitive strategy, the other supplier should choose a lower price for counteraction, and channel members should understand the characteristics of demand before promoting their commodities.

Original language	English
Pages (from-to)	71-84
Number of pages	14
Journal	Transportation Research Part E: Logistics and Transportation Review
Volume	59
DOIs	https://doi.org/10.1016/j.tre.2013.09.002
Publication status	Published - 2013 Nov

All Science Journal Classification (ASJC) codes

Business and International Management
Civil and Structural Engineering
Transportation

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10.1016/j.tre.2013.09.002

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AB - This study investigates the dynamics between price and lead time for an e-retailing system in which one of its commodities is offered by two duopolistic suppliers. A Stackelberg game is formulated by considering the two suppliers as the leaders and the e-retailer as the follower. The proposed model assists the channel members in getting an equilibrium relationship in a competitive environment. The results suggest that when a supplier chooses a shorter lead time as the competitive strategy, the other supplier should choose a lower price for counteraction, and channel members should understand the characteristics of demand before promoting their commodities.

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A study on pricing and delivery strategy for e-retailing systems

Abstract

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