Publication Date: 2025
Journal of Modelling in Management (17465672)20(3)pp. 974-1002
Purpose: This study aims to investigate the pricing dynamics within a triple-channel supply chain. The publisher can sell printed books (p-books) through bookstores or online direct sales, and electronic books (e-books) are sold directly through the internet. The primary objectives include determining optimal wholesale and final prices for p-books, assessing the profitability of introducing e-books, comparing profits across channels and supply chain modes and identifying optimal demand volumes. Design/methodology/approach: The research uses first-order derivatives and the Stackelberg game to analyze the pricing strategies. Two supply chain modes, centralized and decentralized, are considered, and various parameters are examined to understand their impact on prices, demand volumes and final sales profit. Findings: The results indicate that the e-book is either not published or is introduced simultaneously with the printed version in both modes. In the decentralized mode, the wholesale price of a p-book is equivalent to the final price in the bookstore channel in the centralized mode. One channel among the three selling channels is used to maximize the total profit in the centralized supply chain, whereas all demand should be fulfilled through either online direct sales or e-book channels in the decentralized mode. Originality/value: This paper introduces a comprehensive triple-channel book supply chain model, considering cross-price sensitivities and lag times for e-books. The study provides insights into the dynamics of the book industry and compares them with existing literature, contributing to a broader understanding of the pricing strategies in a triple-channel context. © 2024, Emerald Publishing Limited.
