Pricing and Service Research in Online Dual-channel Supply Chain Based on Differentiated Products

This paper studies that the manufacturer adopts online direct channel mode and wholesales the inventories to the online retailers as the background. The manufacturer and retailers decide how to set the price and service levels when the online dual-channel sells differentiated products. The article analyzes the manufacturer and the online retailer make decisions on the price and service of new products and inventories respectively in the pursuit of maximum profits through Stackelberg game model. By numerical experiments analysis, it concludes that the degree of product differentiation has effect on the price but not on the service level. This study will not only enrich the theory of dual-channel, but also can provide a reference for the companies that have taken online dual-channel mode.