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Designing a multi-echelon closed-loop supply chain with disruption in the distribution centers under uncertainty
doi: 10.3934/jimo.2022096
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## Research on optimal pricing decisions of the service supply chain oriented to strategic consumers

 School of Management, Shanghai University, Shanghai, China

*Corresponding author: Liying Yu

Received  July 2021 Revised  March 2022 Early access June 2022

Fund Project: The second author is supported by the National Natural Science Foundation of China (NSFC) under Grants 12071280

With service elements in the supply chain becoming more and more important, relevant companies and their partners have gradually introduced the service supply chain. At the same time, the continuous improvement of consumption level has significantly improved consumers' consumption awareness, thus becoming the primary choice for consumers to consume strategically based on past purchase experience. To contribute to the service supply chain studies, this paper uses game theory to establish dynamic pricing decision models of a service supply chain by taking consumers' strategic consumption awareness into account. This paper solves the equilibrium pricing strategies of the manufacturer and the service integrator under the centralized and decentralization scenarios, and reveals the effect of consumers' capability trust strength, service cost, product value, product cost on the consumer's strategic behavior, and the equilibrium strategies of the manufacturer and service integrator. This paper finds that improving consumer's capability trust coefficient and product value can restrain consumer's strategic behavior either under the centralized scenario or decentralized scenario. However, the impact degree under the decentralized scenario is less than that under the centralized scenario. Second, increasing the product value cannot positively affect consumer's strategic behavior when the product value is higher than a particular value whether under the centralized scenario or decentralized scenario. With the increase of consumer's capability trust strength, the intensity of consumer's strategic behavior will decrease, which will cause more consumers to purchase products in the first stage, and will finally cause a significant impact on the pricing strategies of the manufacturer and the service integrator.

Citation: Ziyuan Zhang, Liying Yu. Research on optimal pricing decisions of the service supply chain oriented to strategic consumers. Journal of Industrial and Management Optimization, doi: 10.3934/jimo.2022096
##### References:

show all references

##### References:
Schematic diagram of the relationship between relevant entities in the service supply chain
The effect of $c_s$ on $B$
The effect of $c_m$ on $B$
The effect of $\epsilon$ on $B$
The effect of $V_1$ on $B$
The effect of $\epsilon$ on $Q$ under centralized scenario
The effect of $\epsilon$ on $Q$ under decentralized scenario
The effect of $\epsilon$ on $Q$
The effect of $\epsilon$ on $Q$
The effect of $V_1$ on $Q$
The effect of $\epsilon$ on $P$ under centralized scenario
The effect of $\epsilon$ on $P$
The effect of $\epsilon$ on $P$ under decentralized scenario
The effect of $\epsilon$ on $w$ under decentralized scenario
The effect of $V_1$ on $P$
The effect of $V_1$ on $w$
The effect of $\epsilon$ on $\pi_{SC}^{C}$ under centralized scenario
The effect of $\epsilon$ on $\pi^{D}$ under decentralized scenario
The effect of $\epsilon$ on $\pi_{SC}$
Some literature most relevant to this paper
 Author Service supply chain Strategic consumer Capability trust Liu et al.[20] $\surd$ Ma et al.[25] $\surd$ Zhang et al.[42] $\surd$ Cohen et al.[5] $\surd$ Su et al.[33] $\surd$ This paper $\surd$ $\surd$ $\surd$
 Author Service supply chain Strategic consumer Capability trust Liu et al.[20] $\surd$ Ma et al.[25] $\surd$ Zhang et al.[42] $\surd$ Cohen et al.[5] $\surd$ Su et al.[33] $\surd$ This paper $\surd$ $\surd$ $\surd$
Major parameters and variables
 Parameters Meaning description $w$ Product wholesale price $P$ Product service system price $p(p_s)$ Product(Service)price $c_s(c_m)$ Unit service(product)cost $V$ Consumer valuation of the product and service $V_0$ Threshold of waiting behavior for the strategic consumer $V_1$ The highest value of product service system $\epsilon$ Capability trust coefficient $N$ Total number of potential consumers $B$ Intensity of consumer strategic behavior $Q$ Sales volume $Q_t$ Total sales volume of the two stages $\pi_{M}(\pi_{I})(\pi_{SC})$ Profit of the manufacture(the service integrator)(the supply chain)
 Parameters Meaning description $w$ Product wholesale price $P$ Product service system price $p(p_s)$ Product(Service)price $c_s(c_m)$ Unit service(product)cost $V$ Consumer valuation of the product and service $V_0$ Threshold of waiting behavior for the strategic consumer $V_1$ The highest value of product service system $\epsilon$ Capability trust coefficient $N$ Total number of potential consumers $B$ Intensity of consumer strategic behavior $Q$ Sales volume $Q_t$ Total sales volume of the two stages $\pi_{M}(\pi_{I})(\pi_{SC})$ Profit of the manufacture(the service integrator)(the supply chain)
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