Research Article

Distribution Service Competition with the Consideration of Different Consumer Behaviors

Table 1

Notations for the model.

SymbolDescriptions

αConsumers’ price sensitivity
βConsumers’ service sensitivity
θThe customers’ acceptance of TPL
ΝConsumer valuation
WCost price shall be paid to the TPL supplier
ΗFirm’s demand sensitivities to its cross price
A price set of firms (decision variable)
Logistics service level
Firm’s profits
Consumer utility
Demand of consumers
Basic market demand