The choice of manufacturer's online customization channel under different pricing models

To explore the market conditions of adding online customization channel under different pricing models, this paper constructs a two-stage supply chain model composed of one manufacturer and one retailer. We obtain some key findings. Firstly, the manufacturer has a stronger incentive to provide customized products in the decentralized scenario than in the centralized one; and discriminatory pricing is more favorable than uniform pricing for the manufacturer. Secondly, adding online customization channel raises wholesale price and retail price and leads to the existence of a Pareto improvement zone. Finally, under discriminatory pricing model, the manufacturer offers a higher customization level and higher wholesale price; and the profit of the manufacturer is higher while the retailer's is lower.