A Study On The Impact Of Service Level On Dual-channel Supply Chain Under The Free Riding Behaviour

With the in-depth application of e-commerce,the dual channel model which combines the traditional marketing channel and the network direct channel has become a trend.Enterprises need to transform from traditional product mode to"product + service”mode to meet customers' differentiated demand,expand market share,improve the popularity of product and increase profits under dual channel environment.Correspondingly,the convenience of access to services and the rapid development of economy have greatly reduce the cost of consumer getting commodity information.As a result,consumers' behavior of free-riding across channels has become increasingly common.The free riding behavior of the consumer will reduce the enthusiasm of retailers to provide services,cause price competition between traditional channels and network channels,aggravate the fierce competition in the market,and trigger inter-channel conflicts.Therefore,it is one of the important issues for scholars to study how to regulate the channel conflict caused by the consumers' free-riding behavior under the dual channel environment.First of all,this thesis based on the consumer utility theory,builds the Stackelberg game model under decentralized decision-making and centralized decision-making,analyzes the influence of service level and online channel acceptance on the channel pricing,demand and profits of dual-channel supply chain,the study finds that channel pricing of products will increase with service levels,system profits are optimized under the high service level of direct channel and the manufacturers and retailers adopts centralized decision making.Secondly,this thesis considers the impact of free riding factors and service levels on the dual-channel supply chain under the condition of consumers' free riding behavior.The study found that the increase of free riding factor is beneficial to improve the overall profit of the system.Through comparative analysis,it is found that consumers' free riding behavior is conducive to improving the overall profit of the supply chain.Manufacturers and retailers should take concentrated decisions to achieve a win-win situation for both sides.Finally,taking M company's channel management as the background,we discuss the channel management strategy of M company under dual channel environment.Combined with the related theoretical research results,we get some suggestions for alleviating channel conflict under dual channel supply chain environment.