| dc.description.abstract | Recently, channels’ type has become more mature and various. Channel members coordinate or compete with each other in many ways such as product discount, price competition, and low-price strategy, therefore, when enterprises try to meet the demand, they also take price-negotiation seriously. Product discount is a normal strategy for enterprises to provide differently. In that way, they can let customers have more choices.
The main topic of this research is considering the relationship of pricing and order quantity between two retailers. Two retailers are under dual-channel with competition. The channel is divided two parts by a manufacturer with strategies of quantity discount and cash discount and two retailers. One of retailer decides its wholesale price by quantity discount and the other decides its wholesale price by cash discount. Quantity discount has two ways in discount. One is cumulative quantity discount, and another one is single quantity discount. Cash discount is distinguished by pay and get discount within period, pay during no discount period, and payment delay. Models of this research are “cumulative quantity discount v.s. pay and get discount within period” and “single quantity discount v.s. pay and get discount within period.” Using the intersection coefficient of elasticity, the channel’s total profit can be higher. We have found the relationship among profit, price and quantity under discount strategy in this research.
Our result shows that the more product discount, the lower price, the higher order quantity, and the different profit will be. We can conclude that when facing various discount rates, enterprises need to measure affordable discount plan before giving consumers to choose, and then they can maximize their profit in the end.
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