Abstract By selling products through direct sales channels the manufacturer goes through the price competition with the retailers. From the perspective of the manufacturer and the retailers sharing brand equity, this paper studies the pricing strategies of the dual-channel supply chain under the simultaneous effect of price and brand equity in the dual-channel supply chain structure of the manufacturer, and analyzes the influence of brand equity on the price and profit of the two channels under centralized decision and decentralized decision respectively. The study finds that under centralized decision-making, the price and profit of the two channels are positively related to brand equity; under the decentralized decision, when the brand equity exceeds a certain threshold, its impact on the prices of direct sales channels of manufacturers and the total profits of manufacturers greater than retailers. In view of the important influence of brand equity on supply chain pricing decisions, this paper establishes a cost-sharing mechanism of brand equity between the manufacturer and the retailers, and through numerical simulation analysis we find that when implementing a cost-sharing mechanism for brand equity, the sales price and profit of manufacturers and retailers are optimal. Therefore, retailers should strengthen their interaction with the manufacturer and jointly create high brand equity while sharing high brand equity.
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