Pricing Competition between a Customized and a Standard Products in a Supply Chain

• Main Authors: Ru-wei Chen, 陳儒瑋
• Other Authors: Cheng-han Wu
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/61445624548427195633

碩士 === 國立雲林科技大學 === 工業工程與管理研究所碩士班 === 100 === Consumers’ purchase behaviors are related to not only sales prices but also their preferences. The study investigates two firms’ pricing and customizing decision in a simultaneous game and in a sequential game: firms determine the prices and the degree of customization at the same time, or they determine the degree of customization before the price decisions. Moreover, we develop three production models: (1) both two firms only produce the standard products; (2) a firm produces customized products and the other firm produces standard products; (3) both two firms are produce customized products. In this study, we formulate a competitive supply chain consisting of two firms and derive their equilibrium pricing and customizing decisions. Then, we characterize firms’ profit by using the numerical analysis. Finally, we compare the profits at equilibrium between two game types under the three production model. Academic and practical managerial insights are provided for supply chain managers.