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.
Open Access
This is an open access article distributed under the CC BY-NC license.

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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  - 2018 International Conference on Advances in Social Sciences and Sustainable Development (ASSSD 2018)
PB  - Atlantis Press
UR  - https://doi.org/10.2991/asssd-18.2018.66
DO  - https://doi.org/10.2991/asssd-18.2018.66
ID  - Wang2018/05
ER  -