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| Price and Service Decisions in a Dual-Channel Supply Chain with Online Reviews |
| ZHENG Benrong，LI Xinyi，HUANG Yanting |
| 1. Huazhong Agricultural University, Wuhan, China;2. Shenzhen University, Shenzhen, Guangdong, China |
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Abstract Based on the centralized and decentralized decision-making cases, this study constructs dual-channel supply chain game models without and with online reviews respectively. The pricing and service investing strategies of dual-channel supply chains in the presence of online reviews are investigated, and the impacts of online reviews on the optimal supply chain decisions and profits are further analyzed. The results show that online reviews can motivate the retailer to increase the service investing level. The manufacturer is better off when the level of online reviews validity is sufficiently favorable; meanwhile, when the positive effect of online reviews is strong and the accuracy of reviews is high enough, the retailer is also better off. Besides, compared with the centralized model, the increase in review accuracy would harm the supply chain under the decentralized model. In addition, when online reviews validity level is sufficiently favorable, retailer service investing can effectively eliminate the double marginalization effect in the supply chain.
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Received: 19 February 2021
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