Dual-Channel Supply Chain Pricing Decisions under Discounted Advertising Value

Retailers advertise on different sales channels. When consumers buy online, the effectiveness of advertising is discounted because they cannot feel product. Observing this phenomenon, paper studies strategy a dual-channel retailer. In paper, we build stylized game models for retailer’s price and levels online offline channels, respectively. Our contribution to provide prescriptions how retailers make decisions determine which channel more profitable retailers. We find that discounts are not always harming profits. The level causes increase selling when engage in shopping. Also, derive can choose channels based consumers’ preference consumers. Interestingly, an will contribute growth profit. Finally, by numerical analysis, demonstrate robustness results.