Proceedings of the 2018 International Conference on Advances in Social Sciences and Sustainable Development (ASSSD 2018)

Pricing/service strategies for a dual-channel supply chain with bi-direction free-riding and revenue-sharing contract

Authors
Kun Wang
Corresponding Author
Kun Wang
Available Online May 2018.
DOI
https://doi.org/10.2991/asssd-18.2018.66How to use a DOI?
Keywords
dual-channel, free-riding, revenue-sharing.
Abstract

This paper considers a two-level and a dual-channel supply chain, where a manufacturer sells products through both her own online channel and a traditional retail channel. Both them provide customers with some pre-sales services by brick store and online consulting, which have positive impact on the market demand and lead to bi-direction free-riding.in order to improving supply chain performance, we investigate the coordination of the retailer channel and online channel by revenue-sharing contract. Our study presents the following findings. (i) Under the non-differential pricing scenario, retailer do not exist the optimal free-riding level, however the manufacturer have always the optimal free-riding level. The results are just reversed our intuition. (ii) Under each of the two pricing scenarios, the revenue-sharing contract can effectively stimulate the retailer to improve his service level while free riding occurred. (iii) Even if under the revenue-sharing contract, free riding has always a negative effect on the retailer's profit.

Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2018 International Conference on Advances in Social Sciences and Sustainable Development (ASSSD 2018)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
May 2018
ISBN
978-94-6252-500-9
ISSN
2352-5398
DOI
https://doi.org/10.2991/asssd-18.2018.66How to use a DOI?
Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Kun Wang
PY  - 2018/05
DA  - 2018/05
TI  - Pricing/service strategies for a dual-channel supply chain with bi-direction free-riding and revenue-sharing contract
BT  - Proceedings of the 2018 International Conference on Advances in Social Sciences and Sustainable Development (ASSSD 2018)
PB  - Atlantis Press
SP  - 313
EP  - 317
SN  - 2352-5398
UR  - https://doi.org/10.2991/asssd-18.2018.66
DO  - https://doi.org/10.2991/asssd-18.2018.66
ID  - Wang2018/05
ER  -