Service strategy under online B2C dual-channel competition

This paper studies the online B2C dual-channel's service strategy under two service-delivery models: e-tail channel and direct channel separately provide the service. We combine service, channel preference and pricing into the model and get the supply chain members' optimal profits. It is found the manufacturer and the whole supply chain prefer e-tail channel to be the service provider. However, the e-tailer is not always willing to provide service. Therefore, the manufacturer may have to compensate for e-tailer or provide service itself.