Research on Channel Encroachment Strategy and Contract Design of Manufacturers Based on Live Broadcast

Abstract

This article constructs supply chain models after the manufacturer's live streaming channel encroachment. Through demand function models and Stackelberg game theory, the optimal decisions of each member in the supply chain are solved using reverse induction method. The impact of various parameters on invasion strategies such as quality investment, channel pricing, and profits of all parties is analyzed. The results indicate that when consumers have a high level of preference for the sales channels opened by manufacturers, manufacturers can gain higher profits by inviting internet celebrities to live stream and promote sales through channel encroachment. When the potential demand scale of manufacturers is low and the proportion of anchor sharing is higher, manufacturers should reduce quality costs by lowering the level of quality investment. When the potential demand scale of manufacturers is high, they should reduce product returns by increasing the quality investment level and incentivize broadcasters by raising live broadcast prices.