Pricing with Dual Channel Competition in Different Return Policies

• Main Authors: Yu-Ling Chang, 張玉玲
• Other Authors: 陳振明
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/87489872473884573978

碩士 === 國立中央大學 === 工業管理研究所 === 104 === In recent years, many manufacturers will use return policies as a strategy of marketing. For example, COSTCO, the wholesale and retail chain, Acer, the industry of electronic information ... etc., which also show significant results. It is obvious for manufactures think outside the box of product after-sales service. Product after-sales service, has become more common in various industries. Manufacturers use the return policy to propaganda their products and brand image. Moreover, it can help distributors to set a price more efficient. However, the different return policies will lead to different impact for distributors. It is a top issue for them to choose the appropriate return policy. This study was mainly use Padmanabhan and Png (1997) as the basic model, and added two different sales channels as a variants to analysis whether dual-channel without return or full return policy will lead a different pricing and profit impact for manufacturers, retailers and online stores. Furthermore, this study pay attention on the best interest of the return policy for the manufacturers. When manufacturers take full return policy, the main purpose is trying to share the inventory risk with retailers. Thus, they enhance the amount of products ordering quantity. The results show that the implementation of full return policy will increase the amount of goods ordered, thereby increasing profits of manufacturers and retailers. The research has anticipate indicates full return policy effect for the manufacturers. However, retailers will reduced product order quantity when the price-sensitive factor and price competitiveness are low. Low price-sensitive factor and price competitiveness lead the whole channel profit decline. In this circumstance, implementing no return policy is the better decision for both manufacturers and retailers.