Abstract
Based on the three-stage Stackelberg dynamic game model, we study how to make product quality control strategy in the three-echelon supply chain consisting of the manufacturer, retailer and customer under retailer dual-channel structure and manufacturer dual-channel structure. In two decision models (decentralized decision, centralized decision), we analyze the demand price elasticity, market share ratio, revenue sharing ratio and quality cost coefficient how to influence the product demand, product quality level, retail price and direct price in different channels, expected revenue functions of manufacturer and retailer, consumer surplus and product quality control strategy. We find that firstly, the retail price and direct price are positively related to product quality level, and the product quality level is negatively related to the demand price elasticity in traditional retail channel and the demand price elasticity in internet channel. What's more, the retailer’s retail price in traditional retail channel will be higher than direct price in internet channel. Thirdly, in the case of centralized decision, the manufacturer's product quality level, retail price, joint expected revenue and consumer surplus will all rise, but the direct price will fall. Fourthly, when the manufacturer entrusts the third-party platform to build the internet channel, the manufacturer's product quality level, retail price, direct price, expected revenue, and consumer surplus will all decrease. Finally, we conduct the simulation analysis by MATLAB 2018, which verifies the validity and credibility of our conclusions and points the direction for the specific application of the model in practice.
Highlights
In recent years, with the rise of internet economy and e-commerce, more and more customers or consumers choose to buy products in internet channel
Based on the three-stage Stackelberg dynamic game, this paper constructs the product quality control strategy model in the three-echelon supply chain consisting of the manufacturer, retailer and customer and analyzes the influence of retailer dual channel structure and manufacturer dual channel structure on product quality decision
Proposition 1 When the retailer establishes the dual channel structure, in the case of decentralized decision, the retail price in traditional retail channel and the direct price in internet channel are positively related to product quality level
Summary
With the rise of internet economy and e-commerce, more and more customers or consumers choose to buy products in internet channel. We can see that in addition to traditional retail channel, internet channel has gradually become an important way for product sales in the supply chain. How to construct different distribution channels and their influence on product quality decision in the three-echelon supply chain; What's more, influence on making product quality control strategy when the retailer establishes the dual channel structure or the manufacturer establishes the dual channel structure; Thirdly, when the manufacturer entrusts the third-party platform to build the internet channel or the retailer establishes the dual channel structure, how to influence the product quality, retail price and direct price; the influence of price demand elasticity in different distribution channels on product quality decision, price decision, expected revenue functions, and consumer surplus of the customer. We construct the three-stage Stackelberg dynamic game model and consider how to make product quality control strategy in the three-echelon supply chain when the retailer establishes the dual channel structure or the manufacturer establishes the dual channel structure.
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