The mode of different price in dual-channel supply Chain

Manufacturers and retailers today are increasingly adopting a dual channel to sell their products, i.e., the traditional retail channel and an online direct channel. Empirical studies have shown that product price influencing consumer acceptance of the direct channel as one of the major factors. We respectively discuss the consistency pricing Stackelberg game mode under which retailers decide the channel prices and the inconsistence pricing Stackelberg game mode under which manufacturers and retailers decide their own channel prices.We try to find the relationship between the customer acceptance and the price in different mode. The numerical analysis compares the customer acceptance and the price under different modes and centralized decision model. We analytically show that the customer acceptance influences the pricing.Our numerical studies reveal that the difference between the demand transfer ratios with respect to manufacturers' and retailers' price, customer acceptance of the direct channel have great effects on the pricing decisions. © 2014 SERSC.