As the final link of the distribution channel, the retailer directly connects consumers. Therefore, its pricing and service levels directly affect consumers' purchasing decisions and further affect their own profits. Aiming at the phenomenon of e-commerce platform digital empowerment of small retailers, this paper establishes a corresponding mathematical model, conducts research on retailer service level and pricing decision-making under this model. The results found that: (1) The retailer's service decision is quite sensitive to the unit service cost, and the excessively high service cost will make the retailer give up providing high-quality services to reduce costs. (2) With the improvement of consumer service awareness, price strategy is still the most important factor affecting retailers' profits. (3) Contrary to the "free rider" behavior, with the increase in consumer service awareness, even if the higher platform's digital capabilities can ensure service quality to a certain extent, the retailer will still improve its service level accordingly.

Qiman Wu. Research on Retailer's Service Level and Pricing Decision under Digital Empowerment. Academic Journal of Business & Management (2022) Vol. 4, Issue 8: 60-68. https://doi.org/10.25236/AJBM.2022.040810.

[1] JD Daojia Research Institute. 2020 JD Daojia Mobile Instant Consumption White Paper [EB/OL]. http://www.yunzhan365.com/14935596.htmlqueryName=%E6%96%B0%E9%9B%B6%E5%94%AE, 2016-12-28/2020-08-10.

[2] Jian Liang, Wang Hen. Price and retailer's service level decision in a supply chain under consumer returns[J]. Journal of Southeast University, 2019, 35(2).

[3] Dumrongsiri A, Fan M, Jain A, et al. A supply chain model with direct and retail channels [J]. European Journal of Operational Research, 2008, 187(3): 691-718.

[4] Dan B, Xu G, Liu C. Pricing policies in a dual-channel supply chain with retail services [J]. International Journal of Production Economics, 2012, 139(1): 312-320.

[5] Giri B C, Maiti T. Service competition in a supply chain with two retailers under service level sensitive retail price and demand [J]. International Journal of Management Science and Engineering Management, 2014, 9(2): 133-146.

[6] Dan Bin, Lou Yun, Han Xiaopeng, Zhang Xumei. Product Service Supply Chain Pricing and Coordination Strategy with Product Sales Affecting Service Demand [J]. Journal of System Management, 2017, 26(02): 381-389.

[7] Wang Dafei, Zhang Xumei, Zhou Maosen, Gao Huali, Dan Bin. Dynamic Pricing and Coordination of Product Service Supply Chain Considering Consumers' Strategic Behavior [J]. System Engineering Theory and Practice, 2017, 37(12): 3052-3065.

[8] Li Hua. Research on Pricing Decision of Retailer's Power Structure Considering Anticipated Regret under Price Discount[J]. International Core Journal of Engineering, 2020, 6(5):34-40.

[9] Pun H, Chen J, Li W. Channel strategy for manufacturers in the presence of service freeriders [J]. European Journal of Operational Research, 2020, 287(2): 460-479.

[10] Chaudhuri A, Datta P P, Fernandes K J, Xiong Y. Optimal pricing strategies for Manufacturing-as-a Service platforms to ensure business sustainability [J]. International Journal of Production Economics, 2021: 108065.

[11] Yu X, Jia-ping X, Weijun Z, et al. Pricing strategy in the product and service market [J]. Journal of Management Science and Engineering, 2021.

[12] Liu Hao, Tian Jun, Kou Xiaofei, Liu Haibin, Fan Yuqing. Research on the operation mode of dual-channel supply chain considering contract types and services [J/OL]. China Management Science: 1-11 [2021-11-19]. https://doi.org/10.16381/j.cnki.issn1003-207x.2020.1146.

[13] Yang X, Cai G, Ingene C A, et al. Manufacturer strategy on service provision in competitive channels[J]. Production and Operations Management, 2020, 29(1): 72-89.

[14] Guo Jinsen, Zhou Yongwu, Li Changwen, Ren Mingming. Manufacturers' dual-channel and store-in-store sales model selection strategy [J]. Journal of System Management, 2018, 27(03): 484-492.

[15] Li X, Li Y, Cai X, et al. Service channel choice for supply chain: who is better off by undertaking the service?[J]. Production and Operations Management, 2016, 25(3): 516-534.

[16] Bian J, Lai K K, Hua Z. Service outsourcing under different supply chain power structures [J]. Annals of Operations Research, 2017, 248(1-2): 123-142.

[17] Tian Wei, Ge Bing. Differential game analysis of competition and cooperation in dual-channel supply chain under the service efforts of manufacturers [J]. Industrial Engineering and Management, 2019, 24(01): 136-143.