Proceedings of the 6th International Conference on Electronic, Mechanical, Information and Management Society

Bundling and Cooperation of Complementary Product

Authors
Lingzhi Shao
Corresponding Author
Lingzhi Shao
Available Online April 2016.
DOI
https://doi.org/10.2991/emim-16.2016.100How to use a DOI?
Keywords
Complementary products; Bundling Strategy; Bundling effect; Cooperation
Abstract
We investigate product bundling strategy in a distribution channel with a common retailer and two complementary products suppliers. We get the thresholds of bundling effect for bundling strategy in different channel structures, and show that the cooperation of suppliers and retailer will improve the profitability of bundling strategy in some cases. The complementary suppliers cooperate to form an alliance only when the bundling effect are high enough, and the grand alliance could be stable when the allocation of bargaining power between channel members is appropriate. The bundle area will be expanded by the cooperation of retailer and by the cooperation of two suppliers when the degree of product complementarity is high enough.
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Proceedings
6th International Conference on Electronic, Mechanical, Information and Management Society
Part of series
Advances in Computer Science Research
Publication Date
April 2016
ISBN
978-94-6252-176-6
ISSN
2352-538X
DOI
https://doi.org/10.2991/emim-16.2016.100How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Lingzhi Shao
PY  - 2016/04
DA  - 2016/04
TI  - Bundling and Cooperation of Complementary Product
BT  - 6th International Conference on Electronic, Mechanical, Information and Management Society
PB  - Atlantis Press
SP  - 470
EP  - 474
SN  - 2352-538X
UR  - https://doi.org/10.2991/emim-16.2016.100
DO  - https://doi.org/10.2991/emim-16.2016.100
ID  - Shao2016/04
ER  -