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This article aims at studying the strategic behaviours of competing firms with sticky retail pricing for the product. We base our study in the context of a supply chain network comprising multiple manufacturers and retailers. The manufacturers are involved in the production of a homogeneous product while the retailers purchase the product and sell...
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Sales strategies have a great impact on changes in supply and demand and a suitable sales strategy can reduce marketing costs and increase consumer purchasing preferences. Concerning the sales problems of imperfect complementary products in the two-stage supply chain consisting of two manufacturers and one retailer, by introducing the concept of co...
Citations
... Compared with the modified projection algorithm, each iteration of the Euler algorithm is more straightforward. The main steps of the algorithm are as follows [37,38]. ...
This paper studies the multi-level supply chain network equilibrium optimization problem of multi-energy-efficiency products under different government subsidies and demand scales. In the equilibrium optimization problem, manufacturers determine the production volume of the energy-saving products; retailers decide the transaction volume with manufacturers, distribution volume for markets, and marketing efforts of energy-saving products; markets determine the transaction price. Firstly, the optimal decision-making behaviors of manufacturers, retailers, and markets are described. Simultaneously, the global optimization problem is transformed into a finite-dimensional variational inequality formulation. Then, the equilibrium conditions of the whole supply chain network are derived by the Euler method. Finally, a case study verifies the effectiveness of the proposed method. Interestingly, we found that energy-saving subsidies and demand scales were negatively correlated with the marketing efforts of the subsidized retailers for high energy-efficient products and positively correlated with the marketing efforts of non-subsidized retailers for high energy-efficient products in the same market; the development of retailers in the same market tended to be consistent, and the differentiation of the demand scale eliminated the retailers without a competitive advantage.
... Taken together, these findings support the view that the retailer chooses the duration of reference prices to keep markups within relatively narrow bounds (Eichenbaum et al., 2011). Although it is a clear example of execution of market power, forcing other participants of a value chain to damper the exogenous demand shocks, if the raw material markets show permanent negative change vectors, the retailers are being forced to transfer part of the cost savings to consumers (Chen et al., 2017;Lu et al., 2018). It should be noted, that the bigger market power is being enjoyed by the retailer, the longer is the gap between World prices and local retail price adjustments. ...
The article is aimed at revealing the factors, which influence the retail food prices the most. Not only the main 10 factors influencing retail food prices have been distinguished, but also governments’ capacities to influence food prices have been researched. It has been found that although government can directly influence three (retailer’s concentration level, purchasing power of consumers, state support for growing particular food products) and can partially influence two (production costs and tax burden) of the ten most important factors, influencing retail food prices, its influence on retail prices is quite considerable, as the free market principles are still prevailing in food prices. Therefore, governments’ intentions to make food more affordable to its citizens have only limited potential for success.
Keywords: food, government, retail prices, the Baltics.
