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Mathematical Problems in Engineering
Volume 2013, Article ID 613528, 13 pages
http://dx.doi.org/10.1155/2013/613528
Research Article

The Impact of Price Comparison Service on Pricing Strategy in a Dual-Channel Supply Chain

School of Glorious Sun of Business and Management, Donghua University, 200051 Shanghai, China

Received 25 July 2013; Revised 12 September 2013; Accepted 23 September 2013

Academic Editor: Pui-Sze Chow

Copyright © 2013 Qi Xu et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Recently, price comparison service (PCS) websites are more and more popular due to its features in facilitating transparent price and promoting rational purchase decision. Motivated by the industrial practices, in this study, we examine the pricing strategies of retailers and supplier in a dual-channel supply chain influenced by the signals of PCS. We categorize and discuss three situations according to the signal availability of PCS, under which the optimal pricing strategies are derived. Finally, we conduct a numerical study and find that in fact the retailers and supplier are all more willing to avoid the existence of PCS with the objective of profit maximization. When both of retailers are affected by the PCS, the supplier is more willing to reduce the availability of price information. Important managerial insights are discussed.