Management Review

›› 2017, Vol. 29 ›› Issue (5): 183-191.

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Price and Service Decisions of Dual-channel Supply Chain in Cooperation

Yang Haoxiong1,2, Sun Lijun1, Sun Hongxia1,2, Liu Shuqin3   

  1. 1. School of Business, Beijing Technology and Business University, Beijing 100048;
    2. Capital Circulation Industry Research Base, Beijing 100048;
    3. School of Management, Minzu University of China, Beijing 100081
  • Received:2015-04-21 Online:2017-05-28 Published:2017-05-26

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Abstract:

Manufacturers today are increasingly adopting the direct online channel to sell products. But the addition of a direct online channel will likely cause channel conflict. To ease channel conflict, manufacturer and retailer could take appropriate cooperation mechanism, and both sides may take cooperative strategies to share the costs of service. By using service sensitivity of consumer as a measurement index of sharing the costs of service, this paper establishes a cooperation model of dual-channel supply chain to explore the optimal pricing and service strategy in two situations:centralized control and decentralized control. The findings show that when service sensitivity of consumer is at a low level, manufacturers should pay attention to improving the quality of service at the early state of establishing network marketing channels and to other directions after the channels enter the mature stage. Retailers should make full use of offline advantages to narrow the scope of business, increase targeted goods and provide personalized services to consumers. When service sensitivity of consumer is at a high level, manufacturers should seek solutions from the innovation of big data and other Internet technologies, the construction of logistics distribution system.

Key words: dual-channel supply chain, conflict, cooperation, game theory, price, service