TITLE:
Sales Effort and Coordination in an O2O Supply Chain with Two-Period of Marketing
AUTHORS:
Jing Shi
KEYWORDS:
O2O, Supply Chain, Sales Effort, Coordination, Contract, Two-Period Marketing
JOURNAL NAME:
Open Journal of Business and Management,
Vol.8 No.3,
April
10,
2020
ABSTRACT: O2O
supply chain has been a hot issue worldwide in recent years. This paper studies
a two-period marketing problem in an O2O supply chain consisting of a
manufacturer and an offline retailer. Besides the offline channel, the
manufacturer owns an online channel which markets
to the online customers and directs potential customers to the offline
retailer. The retailer provides service for both the offline customers and the
directed customers from online channel. The centralized and decentralized
settings are both analyzed. The sales effort level of the retailer is higher
than that of the manufacturer under centralized setting. The service levels of
both retailer and manufacturer and supply chain profit under the decentralized
setting are lower than that of the centralized setting. This paper finds that a
two-way subsidy contract can fully coordinate the supply chain.