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Mobile channel and channel coordination under different supply chain contexts
Institution:1. Long Island University, Brooklyn, NY 11201, United States of America;2. Soules College of Business, The University of Texas at Tyler, Tyler, TX 75799, United States of America;3. College of Business, Texas A&M University, Commerce, TX 75429, United States of America
Abstract:The paper proposes different supply chain contexts where one manufacturer sells the same product to two retailers, one traditional and one online. The first context is when two retailers are distinct entities and the second context is when a dominant manufacturer owns and controls the traditional retailer. In each context, we study a no cooperation scenario versus various cooperation strategies (namely the minimum pricing strategy, the whole channel price, and the revenue sharing cooperation). Besides, we investigate the use of a dual channel by the online retailer via a mobile channel and a computer channel. The online retailer could use the same price online or a price differentiation (called also personalized pricing) depending on where the purchase is done. Our results show the crucial role of the product compatibility to the web and the mobile baseline incremental sales in influencing the performance of each channel member.
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