Members Decisions In Dual-channel Supply Chains With Retailer Service Deviation Risk

In recent years, e-commerce has risen and occupied an important economic position.At the same time, the third-party logistics has been developing rapidly. Under thisbackground, large enterprises provide direct channel, using new sale-patterns that directchannel and traditional retail channel coexistent. However, channel conflicts also come upwith the emergence of dual-channel mode. In order to release channel conflict, and avoidhuge competition between manufacturers and retailers, manufacturers adopt productdifferentiation strategy. Meanwhile, the retailers have the advantage by providingconsumers with value-added services, attracting more customers. However, the level ofservice exists deviation risk among the sales process, which will affect product demand,resulting in a negligible impact on the benefits of the channel members.A two-stage game model is established in the paper about the dual-channel supplychain. By solving the model, some theoretical results are obtained. In addition, the papermakes the empirical research on the basis of Company A. It has verified the theoreticalresults. And some advices are proposed for Company A. Specific studies are as follows:Dual channel supply chain members’ strategies are studied when there is noretailers-service deviations risk. According to the results of the studies, the price strategy,production strategy and the best total supply chain profits are obtained. Dual channelsupply chain members’ strategies are studied when there exist retailer-service deviationrisks. Then the price strategy, production strategy and the best total supply chain profitsare obtained. And the empirical study is given about Company A. At last, the empiricalresearches are given based on Company A, analyzing the impact of retailer servicesdeviation risk on the strategies of the supply chain members At last, some advices areproposed for Company A.Through all the studies, the theory of the dual channel supply chain has been enriched.Enterprises are provided basis when making decisions and timely response to their owncircumstances.