Research on different pricing strategy in dual channel under the circumstance of electronic commerce

The rapid development of computer network technology and electronic commerce bring a series of convenience to the people but also brings a lot of problems. At the same time, these new computer technologies have forced many enterprises to reconstruct their distribution channels by adding the electronic channel. In the real life, the conflict between the network channel and traditional channel is an important problem. Supply chain has formed a network in real life and cyber work. In this paper, we consider the problem of optimal decision of supply chain and discuss the pricing strategy of manufacturers in the Stackelberg leader follower strategy and the Bertrand strategy respectively. Finally, we analyze the equilibrium price and profit of two strategies. The result shows that a fixed pricing strategy for retailers and manufacturers is not always advantageous with the changing of product price of manufacturer. The first part is the research status and related problems. The second part is the establishment of the model and the analysis of and pricing strategy. The last part is the experimental analysis and conclusion. © 2014 SERSC.