Retailer’s Pricing and Channel Selection under E-Commerce Environment
In this paper, we investigated a monopoly manufacture use traditional retail channels and internet channels to sell products. Customers are heterogeneous in preference for sale channel use. Customers are divided into fashion customers and traditional customers. Using utility theory we established customer’s purchase decision models. Retailer’s profit maximization as the objective function, combined with the customer channel choice factors, the strategy of retail channels choice and product pricing were proposed.
KeywordsE-commerce customer preferences pricing distribution channels
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