Research On Dual-Channel Integration With Demand Affected By Service Level And Lead Time

With the development of online payment methods and the improvement of modern logistic systems,e-commerce has entered in a stage of highly competence and market members fixed.Dual-channel retailers also have made much effort to explore new models to attract more consumers to their own dual-channel system for shopping.It is noteworthy that there is a attractive one in those models,that is dual-channel integration model.This model needs off-line retailers to provide high quality service and short shopping lead time to customers,initiatively recommend their on-line channel to increase consumer stickiness;On another hand,on-line retailers provide products exhibit and products pre-order and other services to customers.This model is worth to explore,for one part,research on this new model can help dual-channel retailers to make decisions.For another part,this model has theoretical significance to study.Dual-channel retailers are my research objects in this paper,centralized decision-making and decentralized decision-making under the dual-channel integration strategy are the most important parts.The influence of channel integration strategy on retailers decision-making has been analyzed,several decision-making models has been comprised,the conditions of which decision-making models are better for dual-channel retailers has also been comprised.Firstly,the study focuses on normal channel integration mode and off-line experience shop integration mode under centralized decision-making condition.The study shows that the on-line channel price will increase,the on-line channel demand of normal channel integration mode will also increase after channel integration.However,off-line experience shop integration mode is a little different.The study also shows that dual-channel integration strategy is not always better than traditional dual-channel mode.Dual-channel integration strategy is better than traditional dual-channel mode only when channel integration coefficient gets a high value.Finally,I find that channel integration strategy is more suitable for consumer products such as digital 3C and clothing.Then,three kinds of dual-channel integration strategies under decentralized decision-making condition are discussed: the on-line channel retailer dominant game(PD mode),the off-line channel retailer dominant game(PR mode)and the simultaneous decision of two channels(PS mode).The study reveals that integration strategy has a great influence on market expand of PS mode.PD and PR mode are better than PS mode,the comparison between PD and PR mode are more complicated.The study also reveals that PS mode is more suitable for products in the period of entry or growth,PD and PR mode are more suitable for products in the period of maturity or recession.Finally,some numerical examples has been made to verify the main conclusions,those examples combine theoretical explanation to practical application.