Study of Manufacturers and Retailers Pricing under Dual Channel Mode-Based on Stackelberg Gamble

Manufacturers dual channel mode is accompanied by the birth of the Internet and the emergence of new sales environment, the retailers adhered to the traditional channels under this mode are often required to lower prices in order to cope with shocks. This article assumes market that only has one manufacturer and one retailer, establish consumer utility function including consumer loyalty factor. Firstly, deduce the traditional channels of only a single retailer balanced pricing, use Stackelberg gamble to deduce balanced pricing of manufacturers and retailers under dual channel mode. By comparing the two modes retailer balanced pricing, this paper finds retailers can take advantage of consumer loyalty of the brand to effectively resist the impact of the network channels instead of blindly cutting prices.