scholarly journals Channel Selection Decision in a Dual-Channel Supply Chain: A Consumer-Driven Perspective

IEEE Access ◽  
2020 ◽  
Vol 8 ◽  
pp. 145634-145648
Author(s):  
Yongshi Hu ◽  
Jing Lin ◽  
Xiao-Li Su
2019 ◽  
Vol 11 (12) ◽  
pp. 3482 ◽  
Author(s):  
Rong Zhang ◽  
Jiatong Li ◽  
Zongsheng Huang ◽  
Bin Liu

This paper investigates in a dual-channel supply chain which return strategy is better for the manufacturer that considers the consumers’ utility. We find that a manufacturer prefers offering a Money-Back Guarantee (MBG) as long as the net salvage value of the returned product is positive in a channel. However, the return strategy of the retailer is more affected by the return policy of another channel than the net salvage value. In order to reduce online returns, we propose the online product customization channel, and then, we examine the choice of return policy and the manufacturer’s channel selection. We show that the demand and profit of the manufacturer will increase to a certain extent when opening an online customization channel. However, compared to the case where both channels provide an MBG, the implementation of online customization may hurt the manufacturer’s profits with the increase in consumer satisfaction in indirect channels.


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