Research on the retail price competition strategy under B2C E-commerce

With the development of E-commerce, manufacture sells products through electronic market and traditional retail channel. The paper develops the aggregate demand function under dual channel based on consumer utility and also analyzes the equilibrium price and profit of traditional retailers and E-trailers under Bertrand and Stackelberg price competition as well as provides proof for it by practical data. The result of data indicates that traditional retailers would choose pre-active price competition strategy of Stackelberg when they face competition from E-trailers. Such activity will achieve more profit.