Pricing decision research for TPL considering different logistics service level influencing the market demand
Abstract: With the rapid
development of economy and the support of government policy, the development of
the logistics industry has become a new economic growth engine. As we all know,
the reasonable price of logistics service is the most critical factor for
logistics enterprises to win market share and make profit. At the same time,
the service level is one of the most important factors which will influence the
size of the market share. Therefore, this paper constructs a pricing model
considering a situation that the logistics service level affects the market
demand. This model helps the enterprises to make scientific decisions.
Methodology: To achieve this objective, this paper constructs the TPL
service and the pricing decision models based on the game theory.
Findings: The conclusion shows that under the situation of independent
decision-making, the enterprise which has strong ability of logistics service
does not necessarily have a competitive advantage, while pricing equilibrium
under the situation of joint decision-making, not only make both sides get more
income, but also be conducive to improve the level of service.
Research limitations: In this research, there are some assumptions that
might affect the accuracy the model such as there are only two TPL enterprises
to participate in, and considerations are taken under the condition of complete
information environment. These assumptions can be relaxed in the future work.
Originality: In this research, logistics service level is taken account
into the areas of logistics service pricing, which makes the models more
practical and more perfect. And this paper constructs game models based on game
theory to make up the limitations of traditional pricing theories in logistics
service pricing.
Author: Wei Li, Xuehui He, Kai
Nie
Journal Code: jptindustrigg130055
