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Research on Manufacturer’s Recommendation Strategy Considering Service Effort under the Showrooming Effect |
| WANG Yang，WANG Guoqing |
| Jinan University, Guangzhou, China |
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Abstract In the dual-channel structure considering the showroom effect and service effort, this study constructs a manufacturer recommendation model using game theory, and explores the role of the showroom effect on price decisions and service effort, and the impact of service type on recommendation strategies. The results show that the showroom effect can inhibit offline service effort, but manufacturers recommending offline channels can increase retailer profits by guiding consumer channel migration and promoting service effort investment. Investing in service effort increases online retail prices, but manufacturers recommending online channels in post-service effort may lower offline retail prices. The retailer’s investment in service effort may be exclusively recommended by the manufacturer, otherwise the manufacturer’s optimal strategy is to recommend both online and offline channels. Numerical example analysis shows that the manufacturer’s optimal recommendation strategy is robust in most cases.
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Received: 05 July 2021
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