Online Channel Mode By Considering Retailer’s Fairness Concerns

With the rapid development of e-commerce,online consumption has grown exponentially,online consumption accounts for a gradually increasing proportion of the market and accepted by the majority of consumers.The rapid development of online sales channels has accelerated the integration of offline retail channels and online direct sales channels,thus creating a dual-channel structure.Due to increased competition in the market,in order to maintain their respective interests and many enterprises have opened up a variety of different dual-channel structures,such as retailer online direct selling,manufacturer online direct selling and e-commerce platform online anency selling.As the dual-channel structure continues to evolve,on the one hand,the dual-channel structure has been widely applied in practice,bringing huge benefits to enterprises;on the other hand,key factors such as fairness concerns,channel service levels and distribution strategies also affect the efficiency of the dual-channel supply chain operation.How to choose a suitable online channel operation mode under the effect of many factors,so as to make full use of the channel advantages of online and offline channels and maintain the interests of enterprise has become an urgent issue.This thesis studies the problem of manufacturer’s online channel modes,service strategy and distribution strategy under retailer’s fairness concerns,and the specific research contents are as follows: firstly,a dynamic game model of dual-channel supply chain with three different online channel modes is constructed,and the impact of retailer’s vertical and horizontal fairness concern on dual-channel supply chain decisions is explored,and the optimal online channel model strategy is given.secondly,in the dual-channel supply chain with three different online channel modes,online and offline channel service are introduced,and the impact of retailer’s vertical and horizontal fairness concern on channel service levels and dual-channel supply chain decisions is analyzed,and proposes the optimal online channel model and service strategy.Finally,two manufacturer’s distribution strategies are combined with three different online channel modes in the dual-channel supply chain,six different dynamic game models of the dual-channel supply chain are constructed,the optimal conditions for combining different online channel modes and distribution strategy are analyzed,and an optimal online channel model and distribution strategy are proposed.By studying the problem of manufacturer’s online channel modes,service strategy and distribution strategy under the retailer’s fairness concern and subjecting the resulting optimal decisions to sensitivity and comparative analysis,and through numerical simulation,the following conclusions can be drawn:(1)The retailer’s vertical fairness concern is bad for the manufacturer,but the retailer’s horizontal fairness concern is good for the manufacturer,and the retailer’s fairness concerns don’t necessarily improve the retailer’s utility;when the commission fee and the fairness concern coefficient satisfy a certain range,the e-commerce platform online agency selling mode is the optimal online channel model strategy,and is consistent with the interests of the dual-channel supply chain members,when the manufacturer and the retailer are win-win.(2)When the commission fee is small,the manufacturer will make more profit by choosing the e-commerce platform online agency selling mode;when the commission fee is large,the manufacturer will make more profit by choosing the manufacturer online direct selling mode;and when the commission fee meets a certain range,the retailer will make more profit by choosing the retailer online direct selling mode.(3)In most cases,the manufacturer will choose the manufacturer online direct selling mode and LH distribution strategy,which is better for the supply chain system but will harm the retailer’s utility,while the LH distribution strategy is always the best choice for the manufacturer;the retailer’s fairness concerns don’t affect the pricing strategy and consumer demand in both online and offline channels,but will harm the manufacturer’s interest.(4)When a dual-channel supply chain offers a level of channel service,the benefits to both manufacturer and retailer will rise in unison,with both manufacturers and retailers preferring the same online channel model and increasing the level of channel service as appropriate to maintain their respective margins.The dual-channel supply chain benefits both manufacturers and retailers when they adopt different distribution strategies to sell non-homogeneous products.In addition,the retailer’s fairness concern don’t necessarily bring more benefits to themselves;both the manufacturer and the retailer prefer the e-commerce platform online agency selling mode under certain conditions when the e-commerce platform sets an appropriate commission fee,when the interests of the supply chain members are aligned.