Pricing Strategy of Logistics Service Supply Chain Considering Different Reciprocal Preference

Xiao-ling LU, Juan-juan QIN

Abstract


This paper studies the influence of reciprocity preference on decision-making behaviour and supply chain benefits under different reciprocity preferences—chain members have independent preference and the integrator has liner preference. The Stackelberg game is used to analyze the influence of preference coefficient on supply chain decision and the outcome. It is found that there is a reasonable area of preference. When members have different independent preference, the supplier's service asking price decreases with her own preference, but increases with the integrator’s preference, and the quality of service increases with integrator’s preference at the reasonable area. The integrator’s profits increases with preference of itself, utility increases with provider’s preference. And the provider’s utility increases with preference of integrator and provider. Besides, the influence of preference coefficient on supply chain decisions and results depends on the value of the reciprocal dependency coefficient.

Keywords


Reciprocity preference, Logistics service supply chain, Pricing strategy


DOI
10.12783/dtssehs/eiem2017/16087