The role of retailer’s ability to add app channel in a supply chain with quality decision and different power structures is investigated in this paper. Applying a game-theoretic approach, we find that, first, under certain conditions, retailer’s ability to add app channel can induce the manufacturer to adjust the wholesale price and product quality in the opposite direction with the manufacturer being the leader. Second, for the manufacturer and the retailer, retailer’s ability to add app channel can result in two distinct profit situations regardless of the power structure of supply chain: win–win and lose–win. Moreover, in a retailer-led supply chain, adding app channel will make the whole supply chain better off when the return cost is relatively low or high, while make the whole supply chain worse off when the return cost is moderate. Third, we identify a region of the return cost under which the manufacturer, the retailer, the supply chain and consumers can gain from adding app channel, leading to a Pareto improvement.
Keywords: App channel, power structure, supply chain, game theory
@article{RO_2021__55_S1_S885_0,
author = {Xue, Musen},
title = {The role of retailer{\textquoteright}s app channel in a supply chain with quality decision and different power structures},
journal = {RAIRO. Operations Research},
pages = {S885--S904},
year = {2021},
publisher = {EDP-Sciences},
volume = {55},
doi = {10.1051/ro/2020021},
mrnumber = {4223143},
language = {en},
url = {https://www.numdam.org/articles/10.1051/ro/2020021/}
}
TY - JOUR AU - Xue, Musen TI - The role of retailer’s app channel in a supply chain with quality decision and different power structures JO - RAIRO. Operations Research PY - 2021 SP - S885 EP - S904 VL - 55 PB - EDP-Sciences UR - https://www.numdam.org/articles/10.1051/ro/2020021/ DO - 10.1051/ro/2020021 LA - en ID - RO_2021__55_S1_S885_0 ER -
%0 Journal Article %A Xue, Musen %T The role of retailer’s app channel in a supply chain with quality decision and different power structures %J RAIRO. Operations Research %D 2021 %P S885-S904 %V 55 %I EDP-Sciences %U https://www.numdam.org/articles/10.1051/ro/2020021/ %R 10.1051/ro/2020021 %G en %F RO_2021__55_S1_S885_0
Xue, Musen. The role of retailer’s app channel in a supply chain with quality decision and different power structures. RAIRO. Operations Research, Tome 55 (2021), pp. S885-S904. doi: 10.1051/ro/2020021
, , and , Agency selling or reselling? Channel structures in electronic retailing. Manage. Sci. 62 (2015) 2259–2280. | DOI
and , Interactive home shopping: Consumer, retailer, and manufacturer incentives to participate in electronic marketplaces. J. Mark. 61 (1997) 38–53. | DOI
and , Input price discrimination when buyers operate in multiple markets. J. Ind. Econ. 58 (2010) 846–867. | DOI
, , , and , Adding bricks to clicks: predicting the patterns of cross-channel elasticities over time. J. Mark. 76 (2012) 96–111. | DOI
, , and , Browse-and-Switch: Retail-online competition under value uncertainty. Prod. Oper. Manage. 23 (2014) 1129–1145. | DOI
Celine Delacharlerie, Leading the way in online to offline: Leyou’s success story. https://www.innovationiseverywhere.com/leading-the-way-in-online-to-offline-leyous-success-story (2015).
, Design for the environment: a quality-based model for green product development. Manage. Sci. 47 (2001) 250–263. | DOI
, , and , The impact of power structure on the retail service supply chain with an O2O mixed channel. J. Oper. Res. Soc. 67 (2016) 294–301. | DOI
, , , and , Price and quality decisions in dual-channel supply chains. Eur. J. Oper. Res. 259 (2017) 935–948. | MR | DOI
, , , and , Personalized pricing and quality differentiation. Manage. Sci. 51 (2005) 1120–1130. | DOI
, , and , Cartelization or Cost-sharing? Comparison of cooperation modes in a green supply chain. J. Cleaner Prod. 156 (2017) 159–173. | DOI
, , Power measurement in the distribution channel. J. Mark. Res. 9 (1972) 47–52. | DOI
and , Introduction of a second channel: Implications for pricing and profits. Eur. J. Oper. Res. 194 (2009) 258–279. | Zbl | DOI
and , Store within a store. J. Mark. Res. 47 (2010) 748–763. | DOI
, , and , Product quality in a distribution channel with inventory risk. Mark. Sci. 36 (2017) 747–761. | DOI
, Behavior-based pricing, production efficiency, and quality differentiation. Manage. Sci. 63 (2016) 2049–2395.
, Showrooming and webrooming: information externalities between online and offline sellers. Mark. Sci. 37 (2018) 333–506. | DOI
and , Information provision in a vertically differentiated competitive marketplace. Mark. Sci. 29 (2010) 122–138. | DOI
and , Pricing strategies in dual-channel supply chain with retailer direct marketing. Adv. Mater. Res. 933 (2014) 902–906. | DOI
and , Pricing and capacity rationing with customer disappointment aversion. Prod. Oper. Manage. 22 (2013) 1269–1286. | DOI
, , and , Competitive strategies for brick-and-mortar stores to counter “Showrooming”. Manage. Sci. 64 (2018) 3076–3090. | DOI
, An inventory model for deteriorating items under trapezoidal type demand and controllable deterioration rate. Prod. Eng. Res. Dev. 9 (2015) 351–365. | DOI
, An inventory model for controllable probabilistic deterioration rate under shortages. Evolving Syst. 7 (2016) 287–307. | DOI
and , An inventory model for Weibull deteriorating items with salvage value. Int. J. Logist. Syst. Manage., 22 (2015) 67–76.
, , and , Pricing and inventory strategies for a two-stage dual-channel supply chain. Asia-Pac. J. Oper. Res. 29 (2012) 1240004–38. | MR | Zbl | DOI
, and , O2O results in traffic congestion reduction and sustainability improvement: analysis of “Online-to-Store” channel and uniform pricing strategy. Transp. Res. Part E 122 (2019) 481–505. | DOI
, and , Consumer heterogeneity, product quality, and distribution channels. Manage. Sci. 59 (2013) 1162–1176. | DOI
, and , Impact of power structure on supply chains with uncertain demand. Prod. Oper. Manage. 22 (2013) 1232–1249. | DOI
and , Add-on pricing by asymmetric firms. Manage. Sci. 59 (2013) 899–917. | DOI
, and , Managing consumer returns in a competitive environment. Manage. Sci. 57 (2011) 347–362. | Zbl | DOI
, and , On the impact of uncertain cost reduction when selling to strategic customers. Manage. Sci. 63 (2016) 843–860. | DOI
, and , A local sellers app channel strategy concerning delivery. Int. J. Prod. Res. 58 (2020) 220–255. | DOI
and , Modeling conflict and coordination in multichannel distribution systems: a review. In: Handbook of Quantitative Supply Chain Analysis. Springer (2004) 557–606. | Zbl | DOI
, and , Customer retailer loyalty in the context of multiple channel strategies. J. Retailing 80 (2004) 249–263. | DOI
, Optimal price and product quality decisions in a distribution channel. Manage. Sci. 55 (2009) 1347–1352. | Zbl | DOI
, and , Strategic supply chain structure design for a proprietary component manufacturer. Prod. Oper. Manage. 19 (2010) 371–389. | DOI
and , Impacts of heterogeneous environment awareness and power structure on green supply chain. RAIRO: OR 52 (2018) 143–157. | MR | Zbl | Numdam | DOI
and , Supply chain encroachment with quality decision and different power structures. RAIRO: OR 54 (2020) 693–718. | MR | Zbl | Numdam | DOI
, and , Supply chain performance and consumer surplus under alternative structures of channel dominance. Eur. J. Oper. Res. 239 (2014) 130–145. | MR | DOI
, and , Strategic waiting for consumer-generated quality information: dynamic pricing of new experience goods. Manage. Sci. 62 (2016) 410–435. | DOI
, China’s online retail sales near $1t mark in 2017. http://www.chinadaily.com.cn/business/2017-11/14/content34521308.htm (2017).
and , Managing clearance sales in the presence of strategic customers. Prod. Oper. Manage. 17 (2008) 416–431. | DOI
, and , Pricing decisions in a dual channels system with different power structures. Econ. Modell. 29 (2012) 523–533. | DOI
, and , Consumer environmental awareness and channel coordination with two substitutable products. Eur. J. Oper. Res. 241 (2015) 63–73. | MR | DOI
, , and , Welfare economics of review information: Implications for the online selling platform owner. Int. J. Prod. Econ. 184 (2017) 69–79. | DOI
, and , Retailers channel structure choice: online channel, offline channel, or dual channels? Int. J. Prod. Econ. 191 (2017) 37–50. | DOI
, , and , Should a manufacturer give up pricing power in a vertical information-sharing channel? Eur. J. Oper. Res. 276 (2019) 910–928. | MR | DOI
, and , Pricing decision of a manufacturer in a dual-channel supply chain with asymmetric information. Eur. J. Oper. Res. 278 (2019) 809–820. | MR | DOI
and , Two-period pricing strategies in a two-echelon supply chain with conspicuous consumption. RAIRO: OR 53 (2018) 667–685. | MR | Zbl | Numdam | DOI
Cité par Sources :
