Research On Dual Channel Supply Chain Decision-making Based On Service Effort Under Risk Aversion

With the intensification of competition,service has turn into a significant factor affecting consumers’ shopping experience and enterprises’ strategic decisions.For traditional channels,direct touch experience and face-to-face communication enable consumers to obtain better prior experience services and reduce prior uncertainty;For network channels,good service level is reflected in timely pre-sales and after-sales consultation,fast logistics service,etc.Except the competition of service level,the dual channel supply chain also faces the conflict between pricing and profit distribution,which makes the enterprises face more serious risks in decision-making.Under such a market environment,many enterprises have risk aversion behavior and adjust strategies to avoid risks.Based on this,under the background of dual channel supply chain in which the manufacturer is the leader,considering the manufacturer’s service effort level,this paper studies supply chain members’ optimal decisions under risk neutral and risk averse by using Stackelberg game,mean variance method and reverse induction.And further explores the impact of risk aversion on pricing and service decisions.Firstly,assuming that both manufacturers and retailers are risk neutral,this paper constructs the benchmark models of single channel and supplier dual channel decision-making respectively,and analyzes the impact of manufacturer’s service effort level and manufacturer’s online direct sales channel market demand on the optimal decision-making of supply chain.With that,considering the three situations of risk aversion of supply chain members: retailer risk aversion,manufacturer risk aversion,retailer and manufacturer both risk aversion,this paper constructs a dual channel supply chain utility model considering the manufacturer’s service effort level,and solves the optimal pricing and service decision of manufacturer and retailer under different conditions,it also analyzes the impact of different risk aversion behaviors on the optimal decisions.Finally,through numerical and simulation analysis,verify the relevant conclusions and inferences.The main findings of the study are as follows: 1.When the retailer is risk averse,the wholesale price,service effort level and direct selling price will increase because of the retailer’s risk aversion,while the retailer’s sales price is also affected by the consumer service preference.When the consumer service preference is less than a threshold,the retailer’s risk aversion behavior will lead to the increase of the retailer’s sales price,otherwise,the sales price of retailers decreases;2.When the manufacturer is risk averse,its risk aversion behavior will reduce the decision-making value of its own service effort level,wholesale price,direct selling price and retailer sales price;3.In the three cases where the decision makers of the dual channel supply chain have risk aversion behavior,the manufacturer’s service effort level,wholesale price,the direct selling price and retailer’s sales price are the largest when the retailer risk averse unilaterally,the smallest when the manufacturer risk averse unilaterally,and the middle when both the retailer and the manufacturer are risk averse.