Author ORCID Identifier
http://orcid.org/0000-0003-0821-8787 : Guoqing Zhang
Document Type
Article
Publication Date
5-2018
Publication Title
Computers and Industrial Engineering
Volume
119
First Page
63
Keywords
Dual channel, Resalable returns, Reverse supply chains, Pricing, Stackelberg game, Nash game
Last Page
75
Abstract
Many retailers are adopting a dual-channel retailing strategy (DCRS) in which products are offered through two channels: physical stores and online stores. Due to regulations or competitive measures, such a strategy allows customers who find a purchase unsatisfactory to obtain a full refund through a same-channel return or a cross-channel return. No papers have collectively studied the aforementioned types of customer returns in a dual-channel context. This paper studies optimal pricing policies for a centralized and decentralized dual-channel retailer (DCR) with same- and cross-channel returns. How dual-channel pricing behavior is impacted by customer preference and rates of customer returns is discussed. It is found, through sensitivity analysis, that when a channel with significant customer preference faces a high rate of returns, decentralized channels generate a greater system profit for retailers than coordinated channels that have a unified pricing strategy. A DCR with a Stackelberg scheme has the proclivity to be more profitable when under the leadership of a channel with a high rate of returns and significant customer preference.
DOI
10.1016/j.cie.2018.03.020
Funding Reference Number
RGPIN-2014-03594
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Recommended Citation
Radhi, Mohannad Hassan and Zhang, Guoqing. (2018). Pricing Policies for a Dual-Channel Retailer with Cross-Channel Returns. Computers and Industrial Engineering, 119, 63-75.
https://scholar.uwindsor.ca/mechanicalengpub/16
Included in
Business Administration, Management, and Operations Commons, Business Intelligence Commons, E-Commerce Commons, Industrial Engineering Commons, Operational Research Commons
Comments
Recommend citation:
Radhi, M., & Zhang, G. (2018). Pricing policies for a dual-channel retailer with cross-channel returns. Computers & Industrial Engineering, 119, 63-75.