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Dual-channel competition: the role of quality improvement and price-matching

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dc.contributor.authorAvgerinos, Emmanouil
dc.contributor.authorXu, Jinpeng
dc.contributor.authorHuang, Yufei
dc.contributor.authorFeng, Gengzhong
dc.contributor.authorChu, Feng
dc.contributor.rorhttps://ror.org/02jjdwm75
dc.date.accessioned2025-03-04T12:13:36Z
dc.date.available2025-03-04T12:13:36Z
dc.date.issued2021-05-06
dc.description.abstractQuality improvement and price-matching are two commonly used competing strategies by the retailers. However, it is still unclear how the retailers should deliberate over the two strategies when selling in both online and o ine markets. In this paper, we consider two dual-channel retailers selling a substitutable product to consumers in both online and o ine markets. Especially, the retailers compete in the online market, and their o ine markets are exclusive to themselves. We establish a game-theoretical model to investigate the trade-o between quality improvement and price-matching in competition, and the impact on retailers' pro ts and consumer surplus in the dual-channel market structure. The analysis shows that, rst, a retailer should choose to improve its quality to avoid price competition when the online market is small; second, when retailers engage in price competition, the retailer with larger o ine market is more willing to adopt price matching, while the retailer with a small share of o ine market can be hurt; third, quality improvement can always increase the consumer surplus, while price-matching always hurts consumer surplus due to price collusion.
dc.description.peerreviewedyes
dc.description.statusPublished
dc.formatapplication/pdf
dc.identifier.citationJinpeng Xu & Yufei Huang & Emmanouil Avgerinos & Gengzhong Feng & Feng Chu, 2022. "Dual-channel competition: the role of quality improvement and price-matching," International Journal of Production Research, Taylor & Francis Journals, vol. 60(12), pages 3705-3727, June. https://doi.org/10.1080/00207543.2021.1931725.
dc.identifier.doihttps://doi.org/10.1080/00207543.2021.1931725
dc.identifier.issn1366-588X
dc.identifier.urihttps://hdl.handle.net/20.500.14417/3615
dc.issue.number12
dc.journal.titleInternational Journal of Production Research
dc.language.isoen
dc.page.final3727
dc.page.initial3705
dc.page.total36
dc.publisherTaylor & Francis
dc.relation.departmentOperations & Business Analytics
dc.relation.entityIE University
dc.relation.schoolIE Business School
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.accessRightsinfo:eu-repo/semantics/openAccess
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/deed.en
dc.subject.keywordPrice-matching
dc.subject.keywordQuality improvement
dc.subject.keywordDual-channel retailing
dc.subject.keywordMarket structure
dc.subject.keywordGame theory
dc.titleDual-channel competition: the role of quality improvement and price-matching
dc.typeinfo:eu-repo/semantics/article
dc.version.typeinfo:eu-repo/semantics/acceptedVersion
dc.volume.number60
dspace.entity.typePublication
relation.isAuthorOfPublication7ae3c782-be2d-4764-bac2-6924d08b0055
relation.isAuthorOfPublication.latestForDiscovery7ae3c782-be2d-4764-bac2-6924d08b0055
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