Pricing Strategies of a Traditional Retailer and a Direct Distributor When Consumers Hold Channel Preferences

<div>The direct distributor’s profit function when <svg height="11.927pt" id="M123" style="vertical-align:-3.291101pt" version="1.1" viewbox="-0.0498162 -8.6359 11.179 11.927" width="11.179pt" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink"><g transform="matrix(.013,0,0,-0.013,0,0)"><path d="M600 480C600 590 528 650 384 650H143L137 622C222 614 225 607 210 531L130 127C113 41 106 36 23 28L17 0H294L300 28C204 36 195 42 212 127L243 284L314 263C327 263 339 263 352 264C465 271 600 337 600 480ZM508 481C508 351 402 304 329 304C289 304 265 311 250 317L295 559C302 594 310 606 323 611C335 616 350 619 367 619C455 619 508 573 508 481Z" id="g113-81"></path></g><g transform="matrix(.0091,0,0,-0.0091,6.656,3.132)"><path d="M397 380C406 395 404 411 396 425S369 451 350 451C302 451 239 372 192 294H189L199 338C214 407 207 451 180 451C152 451 83 405 30 345L48 318C87 354 117 372 125 372S135 362 127 324L55 -5L61 -12C87 -5 117 3 139 5C154 87 168 162 179 207C198 250 240 310 260 332C281 355 297 366 307 366C321 366 333 360 347 346C351 342 360 342 369 348C379 355 389 366 397 380Z" id="g50-115"></path></g></svg> is given.</div>

Mathematical Problems in Engineering

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Figure 5

Figure 5: Pricing Strategies of a Traditional Retailer and a Direct Distributor When Consumers Hold Channel Preferences 