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| Cooperation Strategy for Supply Chain with Add-on Service in O2O Model |
| ZHANG Xumei，ZHENG Yanwen，LI Mengli |
| Chongqing University, Chongqing, China |
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Abstract This study considers an O2O supply chain consisting of an offline service provider and an online platform, where the service provider sells a basic service through the platform while sells an add-on service directly through its physical store. The game model is proposed in this study, and the optimal decisions of supply chain members under wholesale and agency mode are analyzed respectively. Further, the optimal cooperation strategy of the online platform is analyzed. The results show that, under different modes, add-on service has different influences on the online platform’s optimal profits. On the online platform, a higher commission rate doesn’t always lead to a higher profit under the agency mode. When the proportion of consumers who purchase the add-on service is very high, the cost to provide the add-on service is low, the online platform will still choose the wholesale mode even though the commission rate is very high.
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Received: 08 March 2019
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