Research On O2O Supply Chain Coordination: Retailers' Offline Subsidies And Fairness Concerns

With the rapid development of mobile Internet technology,the emerging 020(Online to Offline)business mode is reshaping the consumers*channel utilization and shopping behaviors.Under the 020 mode,the price mechanism and subsidy level of all parties in the supply chain have been the key elements of decision-making.Based on the operational characteristics of the 020 mode,using the game theory and supply chain optimization and coordination theoiy,this paper has constructed a centralized,a decentralized and two coordination decision models for 020 supply chain with/without offline subsidy.In addition,this paper also introduces fairness concern into the study of 020 supply chain,which breaks the assumption that the decision makers are completely rational.Finally,in order to verify the model results,this paper uses Matlab R2014a for numerical analysis and sensitivity analysis and the management insights are put forward especially for the 020 retailer.The results have shown that:(1)Under certain conditions,the offline subsidy mechanism is superior to non-subsidy mechanism,and the profits of 020 supply chain are positively related to the subsidy.(2)Revenue sharing contract and two-part tariff contract can effectively coordinate the 020 supply chain,and the 020 retailer should select the appropriate coordination contract based on the products,characteristics.(3)As channel price substitution coefficient increases,the profits of020 supply chain will increase.(4)As the demand proportion of offline channels increases,the profits of 020 supply chain will increase,but the increase is small.(5)The 020 mode is superior to the pure online/offline channel mode.(6)When the retailer considers fairmess concern,the overall welfare level of the 020 supply chain increases.(7)Under the decentralized decision making and RSC model,as the fairness concern increases,the retailer's utility increases and the supplier's utility decreases.While under the TTC model,as the fairmess concern increases,the suppliers utility remains the same,and the retailer's utility presents a stable change of "first rising then falling".