Pricing and coordination in a dual-channel supply chain considering internet celebrity’s sales effort and personal influence

Abstract

The main purpose of this paper is to study the coordination, price and sales effort decisions of a dual channel supply chain under live streaming commerce mode. In nowadays’ e-commerce age, more and more people have interest in live streaming especially after the outbreak of COVID-19, but the research on live streaming supply chain is lacking. To fill this gap, a supply chain composed of a manufacturer and an internet celebrity is established, in which the demand is affected by the internet celebrity’s sales effort and personal influence. Considering different power structures of the supply chain, price and sales effort decisions are studied in four models: Nash, manufacturer dominant (MD), internet celebrity dominant (KD) and cooperative game models. Subsequently, the feasible region of bargaining game is discussed in terms to share the extra profits and coordinate the supply chain. The manufacturer and the internet celebrity can be coordinated through bargaining problem in the cooperation model, and the extra profits sharing ratio is depend on each other’s bargaining power. Numerical analysis is further provided to test the propositions and show the impacts of market share rate, internet celebrity’s commission rate and personal influence on supply chain’s performance.