Sales effort free riding and coordination with price match and channel rebate
| Autor: | Tieming Liu, Dahai Xing |
|---|---|
| Rok vydání: | 2012 |
| Předmět: |
Information Systems and Management
Supply chain management General Computer Science Supply chain Price discount Management Science and Operations Research Industrial and Manufacturing Engineering Profit (economics) Free riding Microeconomics Supply chain efficiency Modeling and Simulation Business Communication channel |
| Zdroj: | European Journal of Operational Research. 219:264-271 |
| ISSN: | 0377-2217 |
| DOI: | 10.1016/j.ejor.2011.11.029 |
| Popis: | This paper studies sales effort coordination for a supply chain with one manufacturer and two retail channels, where an online retailer offers a lower price and free-rides a brick-and-mortar retailer’s sales effort. The free riding effect reduces brick-and-mortar retailer’s desired effort level, and thus hurts the manufacturer’s profit and the overall supply chain performance. To achieve sales effort coordination, we designed a contract with price match and selective compensation rebate. We also examined other contracts, including the target rebate contract and the wholesale price discount contract, both with price match. The numerical analysis shows that the selective rebate outperforms other contracts in coordinating the brick-and-mortar retailer’s sales effort and improving supply chain efficiency. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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