Research on Pricing and Service Strategies Considering Fairness Concerns under BOPS Mode

Abstract

Taking into account the fairness concerns of manufacturers and retailers, this paper examines the omni-channel price and service strategy in BOPS mode, analyzes the effects of fairness concerns on price and service decisions and supply chain sales, and determines the results through simulations Analysis verified. The results show that fairness concerns from both manufacturers and retailers have a significant impact on pricing, service levels, and service remuneration. If the manufacturer's concerns about fairness increase, the manufacturer will lower the retail price and the retailer will reduce the level of service and the service compensation. If the retailer's concerns about fairness increase, the manufacturer will increase the retail price and the retailer will improve the level of service and service compensation. In addition, the manufacturer's profit increases as the proportion of online consumers increases, if the manufacturer's concerns about fairness are certain.