Research Article

Preferred Service Investment in the Dual-Channel Supply Chain: Leader-Follower Relationships and Product Characteristics

Table 1

Notations.

NotationMeaning

The supplier
The retailer
The traditional distribution channel
The electronic direct channel
Leader-follower relationship led by the supplier
Leader-follower relationship led by the retailer
Nash equilibrium game relationship
A self-interested supplier and a self-interested retailer
An altruistic supplier and a self-interested retailer
A self-interested supplier and an altruistic retailer
An altruistic supplier and an altruistic retailer
Potential total market products demand
Market share of product in the distribution channel
Service-demand transfer coefficient
Price-demand transfer coefficient
Wholesale prices in the distribution channel
Sales price in the distribution channel
Sales price in the electronic direct channel
Sales volume in the distribution channel
Sales volume in the electronic direct channel
Supplier’s altruistic preference intensity
Retailer’s altruistic preference intensity
Retailer’s service investment level in the distribution channel
Supplier’s service investment level in the direct channel
The supplier’s profit
The retailer’s profit
The supplier’s utility
The retailer’s utility