JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE) ›› 2023, Vol. 58 ›› Issue (7): 1-17.doi: 10.6040/j.issn.1671-9352.0.2021.617

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Channel entry and buyback strategies of heterogeneous products under mixed leasing and retail channels

Youguo JING*(),Junling REN,Xiaoyang LIU,Hailong WANG,Jian SONG   

  1. Faculty of Management and Economics, Kunming University of Science and Technology, Kunming 650093, Yunnan, China
  • Received:2021-09-09 Online:2023-07-20 Published:2023-07-05
  • Contact: Youguo JING E-mail:jingyouguo@126.com

Abstract:

A supply chain of mixed leasing and retail channels comprising of a manufacturer, a leaser and a retailer is considered. The manufacturer distributes two kinds of heterogeneous products through leasing and retail channels respectively, and buybacks part of the old rental products from the leasing channel in order to avoid the competition conflict between the retail channel and the leasing channel through which these old rental products may flow into the retail market. The following channel entry and buyback strategies of two heterogeneous products: high-quality and low-quality products entering the leasing (retail) and retail (leasing) channels respectively, which are referred to as strategies of H and L. Two two-cycle dynamic game models of channel entry and buyback strategies are compared and analyzed by using the dynamic game theory. The results show that, under the above two strategies, when the buyback price is high, a so-called buybacks situation will arise. In the case of buyback situation, the buyback price is always lower than the resale price, the manufacturer's profit margin through the retail channel is always higher than that of the leasing channel, and the manufacturer's profit margin of the strategy L is higher than that of the strategy H; the buyback price, buyback quantity and resale price of the strategy H are always higher than that of the strategy L. Finally, the numerical simulation analysis shows that when the product quality difference coefficient is small, the manufacturer should choose the strategy L; otherwise, the manufacturer should choose the strategy H.

Key words: mixed leasing and retail channels, heterogeneous products, channel entry, buyback

CLC Number: 

  • F272.3

Fig.1

Mixed channel structure for leasing and retail"

Table 1

Related symbols and their meanings"

符号 含义 符号 含义
δ 高质量产品的质量指数(δ>1) v 制造商向租赁商支付的旧出租产品回购价格
c 低质量产品的单位成本 ${\bar v}$ 制造商向零售商收取的旧出租产品转售价格
θ 产品耐用度, θ∈[0, 1] qij、${\bar q}$ij i周期j产品的市场租赁数量、市场销售数量, i∈{1, 2}, j∈{n, p, u}
n 新产品, 制造商在两周期中将新产品销售到租赁渠道和零售渠道 pij、${\bar p}$ij i周期j产品的市场租赁价格、市场销售价格
u 旧销售产品, 消费者购买新产品并使用1个周期后的旧产品, 可以出售或继续使用 ϕ 消费者对低质量新产品使用1个周期的估值或支付意愿
p 旧出租产品, 被出租1个周期后的旧产品, 可以返回给制造商或继续出租 zjs、${\bar z}$js s策略下租赁渠道、零售渠道的消费者对j产品的估值, s∈{H, L}
w、${\bar w}$ 租赁渠道、零售渠道新产品的批发价格 πiπiΠi 租赁商、零售商、制造商第i~2周期的总利润

Fig.2

Demand distribution range of leasing channel"

Fig.3

Demand distribution range for retail channel"

Fig.4

Effect of parameter δ on manufacturers' profits"

Table 2

Select the critical points δ2 for strategy H and strategy L"

c θ
0.05 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0.95
0.05 4.571 1 3.584 8 2.775 8 2.327 3 2.006 5 1.755 2 1.549 8 1.378 0 1.232 3 1.107 4 1.051 6
0.10 4.569 1 3.580 8 2.768 5 2.318 1 1.996 5 1.745 4 1.540 9 1.370 7 1.226 8 1.104 3 1.050 0
0.15 4.566 7 3.576 1 2.760 1 2.307 6 1.985 3 1.734 5 1.531 2 1.362 6 1.220 8 1.101 0 1.048 2
0.20 4.563 9 3.570 6 2.750 5 2.295 8 1.972 8 1.722 5 1.520 5 1.353 8 1.214 4 1.097 4 1.046 3
0.25 4.560 6 3.564 1 2.739 4 2.282 3 1.958 8 1.709 2 1.508 6 1.344 0 1.207 3 1.093 4 1.044 2
0.30 4.556 7 3.556 5 2.726 5 2.266 9 1.942 9 1.694 2 1.495 5 1.333 3 1.199 5 1.089 1 1.041 9

Fig.5

The impact of Parameter δ on the relevant decision under the case of buyback"

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