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Growing Science » Tags cloud » Pricing strategy

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1.

Unilateral, bilateral, or tariff-free: How tariff structures affect competing manufacturers in a cross-border supply chain? Pages 1711-1728 PDF Download PDF

Authors: Tingru Zhang, Rong Zhang, Bin Liu

doi 10.5267/j.ijiec.2026.7.001

🔑 Keywords: Cross-border supply chain, Asymmetric tariffs, Trade policy, Pricing strategy, Game theory

Abstract:
To examine the impact of different tariff structures on cross-border supply chains and support multinational corporations in addressing trade frictions and policy formulation, this paper constructs a three-tier cross-border supply chain model comprising domestic suppliers, domestic manufacturers, and multinational manufacturers. It analyzes equilibrium decisions under tariff-free, unilateral tariff, and bilateral tariff scenarios. Using reverse induction, the optimal pricing and profits of supply chain members are determined, with a focus on analyzing the effects of key factors such as the tariff application stage, raw material costs, and market competition intensity. Findings reveal that tariffs influence upstream and downstream pricing through cost pass-through: when applied to final goods, suppliers gain bargaining power and raise wholesale prices; when applied to intermediate goods, suppliers are forced to lower prices to maintain sales volume. Manufacturers' selling prices and market demand are jointly regulated by cost and competition effects, exhibiting non-monotonic changes under bilateral tariffs that reflect the dynamic trade-off between cost-driven increases and demand contraction. Profit analysis indicates that when tariffs are applied to final goods, multinational manufacturers can pass on the tax burden by raising prices when raw material costs are low, potentially achieving higher profits than in a tariff-free scenario. When tariffs target intermediate goods, multinational manufacturers bear the brunt of the burden, exhibiting a “reverse pass-through” effect. Bilateral tariffs consistently represent a suboptimal choice for multinational manufacturers, demonstrating that retaliatory tariffs fail to improve their profitability. Under asymmetric tariff scenarios, the interaction between tariff intensity, costs, and competitive strength further influences corporate strategy choices.
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Journal: IJIEC | Year: 2026 | Volume: 17 | Issue: 4 | Views: 79

 
2.

Pricing and inventory coordination in cross-border e-commerce supply chains based on revenue sharing contracts Pages 337-360 PDF Download PDF

Authors: Xiaohui Hu, Yu Lu, Jingxian He, Fuchang Li, Tianhao Xu

doi 10.5267/j.ijiec.2025.9.001

🔑 Keywords: Cross-border e-commerce, Pricing strategy, Inventory mechanism, Export tax rebate, Import duty

Abstract:
Against the backdrop of the rapid development of cross-border e-commerce, pricing and inventory coordination are the core links in its supply chain management, which are of great significance for improving the efficiency of enterprise resource allocation, balancing the interests of the chain's internal entities, and enhancing the resilience of the supply chain. This study examines the impact of government policies on supply chain operations by analyzing cooperative and non-cooperative situations between overseas suppliers and domestic retailers. In the centralized decision-making model, overseas suppliers and in-country retailers fully cooperate in determining commodity prices, inventory levels and revenue distribution. In the decentralized decision-making model, both parties make decisions independently for their own benefit. By comparing the supply chain operation under the two models, it is found that the centralized decision-making model can maximize the overall profit of the supply chain. To further optimize supply chain coordination, this study introduces the revenue sharing contract model. In this model, the retailer shares part of the revenue to the supplier in order to incentivize the supplier to reduce the wholesale price, thus realizing the overall profit of the supply chain. At the same time, it is also agreed in the contract that the retailer's excess revenue is shared to the supplier at a certain percentage to balance the interests of both parties. Through comparative analysis, under the revenue sharing contract, the price of goods is more competitive, consumer demand is stimulated, and the profit of the whole supply chain is improved. It is further found that under the centralized decision-making model, there exists an optimal export tax rebate rate and import tariff rate that maximizes the supply chain profit. In addition, commodity pricing is negatively correlated with the export tax rebate rate and positively correlated with the import tariff; inventory is positively correlated with the export tax rebate rate and negatively correlated with the import tariff. This provides a theoretical basis for the government to formulate relevant policies. Finally, the theoretical conclusions of this study are verified through numerical examples. The results show that the revenue-sharing contract can effectively coordinate cross-border supply chains and improve overall profits. The government should fully consider the impact of export tax rebates and import tariffs when formulating relevant policies to promote the healthy development of cross-border supply chains.
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Journal: IJIEC | Year: 2026 | Volume: 17 | Issue: 1 | Views: 676

 
3.

A two-stage reverse supply chain model for pricing remanufactured products under collection policy and promotional incentives: A game theory approach Pages 227-246 PDF Download PDF

Authors: Navid Adibpour, Amin Keramati

doi 10.5267/j.uscm.2025.3.003

🔑 Keywords: Remanufacturing, Reverse supply chain, Stackelberg game, Vehicle routing problem, Pricing strategy, Sustainability advertising

Abstract:
The efficient management of reverse supply chains, particularly the collection and remanufacturing of defective products, plays a critical role in reducing production costs and determining the final pricing of remanufactured products. While existing research extensively explores warranty policies and maintenance services to enhance customer satisfaction and profitability, the integration of vehicle routing for product collection and sustainability advertising strategies remains underexplored. Addressing this gap, this study introduces a comprehensive two-stage reverse supply chain model that captures the interactions between manufacturers (MFRs) and remanufacturers (RMFRs) through a Stackelberg game framework. Methods: The proposed model incorporates interactive production constraints, vehicle routing problem (VRP) for optimizing collection logistics, and sustainability advertising to influence consumer behavior towards remanufactured products. Utilizing mixed nonlinear programming (MINLP) and nonlinear programming (NLP) techniques, the model simultaneously optimizes pricing strategies, collection efforts, and advertising investments for both MFRs and RMFRs. Numerical analyses are conducted to solve the optimization problems, accompanied by sensitivity analyses to evaluate the impact of key parameters such as production costs, defect rates, and routing constraints. The numerical results demonstrate that increases in production costs for MFRs lead to higher selling prices, thereby reducing their profit margins and negatively impacting RMFR profitability due to decreased demand for remanufactured products. Sensitivity analysis reveals that higher defect rates (α ≥ 0.8) significantly diminish overall supply chain profitability by lowering customer acceptance of RMPs. Additionally, expanding the allowable vehicle routing distance L effectively reduces collection costs, enhancing RMFR profits and enabling greater investment in sustainability advertising. The study shows that the integration of VRP and advertising strategies proves crucial in balancing cost efficiencies and market competitiveness, ultimately fostering a more sustainable and profitable reverse supply chain.
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Journal: USCM | Year: 2026 | Volume: 14 | Issue: 3 | Views: 778

 
4.

Pricing strategy and marketing distribution channels on customer satisfaction and purchasing decision for green products Pages 1467-1476 PDF Download PDF

Authors: Rosida Panuki Adam, Suardi Suardi, Mahmud Lahay

doi 10.5267/j.uscm.2023.7.022

🔑 Keywords: Pricing Strategy, SMEs, Distribution Channel, Customer Satisfaction, Purchasing Decision

Abstract:
This paper aims to investigate the impact of pricing strategy and distribution channels on the decision-making process of customers when purchasing green products. The focus is on the satisfaction of customers who purchase these products. The study is conducted on the population of all customers who purchase green products from small and medium-sized enterprises (SMEs). The sample size is determined using a formula that considers the number of variables or indicators. The study uses Partial Least Squares Structural Equation Modelling (PLS-SEM), which is a method used to test variants-based structural equation models with the support of SmartPLS software. The results show that all seven hypotheses are supported, indicating that pricing strategy and distribution channels play a critical role in customer satisfaction and decision-making processes when purchasing green products. The results have implications for SMEs that sell green products as they need to focus on their pricing strategies and distribution channels to increase customer satisfaction and decision-making. This study provides essential insights into the impact of pricing strategy and distribution channels on customer satisfaction and decision-making when purchasing green products. The findings can guide SMEs in developing effective marketing strategies to persuade more customers to purchase green products and contribute to environmental sustainability.
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Journal: USCM | Year: 2023 | Volume: 11 | Issue: 4 | Views: 2985

 
5.

Mobile services sector in Saudi Arabia: A systematic literature review of the effective strategies for enhancing customer satisfaction Pages 585-596 PDF Download PDF

Authors: Abbas N. Albarq

doi 10.5267/j.ijdns.2023.8.026

🔑 Keywords: Mobile Services, Technology, Network Coverage, Customer Satisfaction, Pricing Strategy, Value-added Services, Saudi Arabia

Abstract:
The mobile services sector in Saudi Arabia has experienced significant growth in recent years, largely driven by the increasing demand for mobile communication and internet services. This systematic review aims to identify and evaluate the effective strategies for enhancing customer satisfaction in Saudi Arabia's mobile services sector. A systematic review was conducted across five databases from 1st January 2010 and 31st March 2023. The entire process was followed as recommended by the PRISMA guidelines. The findings suggest that the most effective strategies for enhancing customer satisfaction in the Saudi Arabian mobile services sector are improving network coverage, enhancing customer service, offering competitive pricing, introducing new technology and features, and providing value-added services. By adopting these strategies, mobile service providers in Saudi Arabia can enhance their customers' satisfaction, build stronger relationships with their customers, and ultimately increase customer loyalty. Moreover, the study revealed that a combination of these strategies would lead to higher levels of customer satisfaction. The study's findings indicate that mobile service providers in Saudi Arabia can enhance customer satisfaction by focusing on various strategies, such as improving network coverage, customer service, pricing, technology, and features, and providing value added services. Customer satisfaction is one of the main aspects of service delivery. Immediate measures in this regard will assist the mobile sector in Saudi Arabia to plan effective approaches to improve customer satisfaction; this, in turn, can give them a competitive edge in the market and sustain growth in the mobile services sector.
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Journal: IJDS | Year: 2024 | Volume: 8 | Issue: 1 | Views: 2271

 

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