Management Review ›› 2021, Vol. 33 ›› Issue (12): 316-323.

• Logistics and Supply Chain Management • Previous Articles     Next Articles

Pricing and Channel Strategies in Supply Chain Considering Social Responsibility of Manufacturers

Li Shiyang1, Zhou Nan2,3, Jian Jie1   

  1. 1. College of Economics and Management, Chongqing University of Posts and Telecommunications, Chongqing 400065;
    2. School of Finance and Economics, Yangtze Normal University, Chongqing 408100;
    3. Research Center for Economy of Upper Reaches of the Yangtze River, Chongqing Technology and Business University, Chongqing 400067
  • Received:2018-09-25 Online:2021-12-28 Published:2022-01-25

Abstract: By constructing a theoretical pricing decision model of a supply chain that consists of a manufacturer who assumes social responsibility and a retailer who aims to maximize profit, this paper examines the pricing decision under different channel strategies, then analyzes the impact of social responsibility of the manufacturer on equilibrium and proposes the optimal channel strategies from the perspective of supply chain and social welfare. The results show that under single channel strategy, higher social responsibility of the manufacturer will lead to lower prices, higher supply chain profit and better social welfare. When the manufacturer opens online channels, products will be sold at lower prices but in a larger quantity. When its social responsibility lowers to a level below certain threshold, proper transfer of supply chain profit can solve the channel conflict caused by manufacturer encroachment, and finally result in a "win-win" result among the manufacturer, the retailer and consumers. When its social responsibility rises to a level above certain threshold, the manufacturer would no longer have the motivation to open online channel.

Key words: social responsibility, supply chain, pricing, channel strategies