Price optimization for manufacturers in a competitive retail market: imported products and online crowdfunding option

IF 1.1 Q3 BUSINESS, FINANCE Journal of Revenue and Pricing Management Pub Date : 2024-02-03 DOI:10.1057/s41272-023-00471-5
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Abstract

This study explores how manufacturers in the competitive supply chain can set prices and secure funding effectively. We use game theory to look at how competition between domestic and foreign manufacturers affects pricing decisions. Our research investigates how a domestic manufacturer can improve its market share by addressing financial challenges through modern financing methods. In this scenario, a domestic manufacturer competes with a foreign one to attract a retailer’s market share and profits. The retailer decides what products to buy and how to price them based on bid prices and demand. We also consider that the domestic manufacturer will use online crowdfunding platforms to tackle its financial problem. Hence, our study sets up a supply chain where competition revolves around both operational and financial decisions. Mathematical models are developed to analyze how costs, finances, market potential, and price sensitivity impact various parts of the supply chain. The results reveal that decisions made on the crowdfunding platform significantly influence other supply chain decisions. Manufacturers and retailers need to pay attention to the financial decisions made on this platform to maximize profits. Also, domestic and foreign manufacturers should consider customer preferences for their products when setting prices. Finally, the results demonstrate that a domestic manufacturer can gain a competitive edge in the retail market by carefully considering both product pricing and financial decisions, including those made on the lending platform.

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竞争激烈的零售市场中制造商的价格优化:进口产品和在线众筹选择
摘要 本研究探讨了在竞争激烈的供应链中,制造商如何有效地制定价格和获得资金。我们运用博弈论来研究国内外制造商之间的竞争如何影响定价决策。我们的研究探讨了国内制造商如何通过现代融资方法应对财务挑战,从而提高市场份额。在这种情况下,国内制造商与国外制造商竞争,以吸引零售商的市场份额和利润。零售商根据投标价格和需求决定购买什么产品以及如何定价。我们还考虑到,国内制造商将利用在线众筹平台来解决资金问题。因此,我们的研究设定了一个供应链,其中的竞争围绕着运营和财务决策展开。我们建立了数学模型来分析成本、财务、市场潜力和价格敏感性如何影响供应链的各个环节。研究结果表明,众筹平台上的决策会极大地影响其他供应链决策。制造商和零售商需要关注在该平台上做出的财务决策,以实现利润最大化。此外,国内外制造商在制定价格时应考虑客户对产品的偏好。最后,研究结果表明,国内制造商可以通过仔细考虑产品定价和财务决策,包括在借贷平台上做出的决策,在零售市场上获得竞争优势。
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来源期刊
CiteScore
3.30
自引率
18.80%
发文量
26
期刊介绍: The?Journal of Revenue and Pricing Management?serves the community of researchers and practitioners dedicated to improving understanding through insight and real life situations. Each article emphasizes meaningful answers to problems whether cutting edge science or real solutions. The journal places an emphasis disseminating the best articles from the best minds and benchmarked businesses within the field of Revenue Management and Pricing.Revenue management (RM) also known as Yield Management (YM) is a management activity that marries the diverse disciplines of operations research/management science analytics economics human resource management software development marketing economics e-commerce consumer behaviour and consulting to manage demand for a firm's products or services with the goal of profit maximisation. From a practitioner standpoint RM encompasses a range of activities related to demand management including pricing segmentation capacity and inventory allocation demand modelling and business process management.Journal of Revenue and Pricing Management?aims to:formulate and disseminate a body of knowledge called 'RM and pricing' to practitioners educators researchers and students;provide an international forum for a wide range of practical theoretical and applied research in the fields of RM and pricing;represent a multi-disciplinary set of views on key and emerging issues in RM and pricing;include a cross-section of methodologies and viewpoints on research including quantitative and qualitative approaches case studies and empirical and theoretical studies;encourage greater understanding and linkage between the fields of study related to revenue management and pricing;to publish new and original ideas on research policy and managementencourage and engage with professional communities to adopt the Journal as the place of knowledge excellence i.e. INFORMS Revenue Management & Pricing section AGIFORS and Revenue Management Society and Revenue Management and Pricing International Ltd.Published six times a year?Journal of Revenue and Pricing Management?publishes a wide range of peer-reviewed practice papers research articles and professional briefings written by industry experts - including:Practice papers - addressing the issues facing practitioners in industry and consultancyApplied research papers - from leading institutions on all areas of research of interest to practitioners and the implications for practiceCase studies - focusing on the real-life challenges and problems faced by major corporations how they were approached and what was learnedModels and theories - practical models and theories which are being used in revenue managementThoughts - assessment of the key issues new trends and future ideas by leading experts and practitionersApprentice - the publication of tomorrows ideas by students of todayBook/conference reviews - reviewing leading conferences and major new books on RM and pricingThe Journal is essential reading for senior professionals in private and public sector organisations and academic observers in universities and business schools - including:Pricing AnalystsRevenue ManagersHeads of Revenue ManagementHeads of Yield ManagementDirectors of PricingHeads of MarketingChief Operating OfficersCommercial DirectorsDirectors of SalesDirectors of OperationsHeads of ResearchPricing ConsultantsProfessorsLecturers
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