Management Review ›› 2024, Vol. 36 ›› Issue (6): 219-228.

• Operations Management • Previous Articles    

Uniform Pricing vs Behavior Based Pricing—The Pricing Choices in the Presence of Store Brand Introduction under Agency Selling Mode

Wang Biao1, Luo Chunlin1, Yu Dongdong1,2, Xu Jie1   

  1. 1. School of Information Management, Jiangxi University of Finance and Economics, Nanchang 330013;
    2. School of Fan Li Business, Nanyang Institute of Technology, Nanyang 473000
  • Received:2022-10-14 Published:2024-07-05

Abstract: If a manufacturer sells its brand products through an e-commerce platform, and the platform introduces its store brand, then a new “co-opetition” relationship will appear between them. For such an online selling system, we investigate the multi-period pricing strategies of the platform and the manufacturer: uniform pricing (UP) vs behavior-based pricing (BBP). The research shows that when the commission rate is relatively high, the implementation of BBP strategy can make the platform and the manufacturer achieve a win-win result. When the commission rate is low and their cost advantages are almost equivalent, firms implementing BBP strategy will fall into a “prisoner’s dilemma”. The firm with cost disadvantage can always use BBP to achieve more profits. When the platform and the manufacturer implement the BBP strategy, both the platform and the manufacturer will grant discounts to repeat customers under certain conditions.

Key words: platform, store brand, behavior-based pricing, cost advantage