TITLE:
Research on Retailer’s Dual Channel Multi-Product Bundle Sales Pricing
AUTHORS:
Rui Li, Huaili Chen
KEYWORDS:
Retailer’s Double Channel, Bundle Sales, Marginal Cost of Sales
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.9 No.6,
June
30,
2019
ABSTRACT:
From the perspective of consumers, a monopolistic retailer is considered to sell two differentiated products in different sales modes: physical channel and online channel. In the case of separate sales, considering consumers’ channel and product preference, the same price of the same product is set in different channels to reduce channel conflicts caused by price differences among consumers. In the case of bundling, product bundling should be considered in network channels, and two products should be sold separately in physical channels. The analysis shows that the bundling strategy is better than the separate selling strategy. It can be seen from the numerical analysis that with the increase of the substitution degree of the bundled products, the demand and profit of the bundled sales strategy will gradually increase with the increase of the substitution degree. In addition, it is also found that the marginal cost of sales in the channel has a great impact on the two sales modes. Since the marginal cost of sales in the physical channel is greater than the marginal cost of sales in the network channel, it is only in the network channel that bundling is adopted, and the separate sales in the physical channel will enable the retailer to obtain more profits.