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| Symbol | Symbol description and interpretation |
|
| s | Product purchase loyalty coefficient of offline retail channel customers |
| 1−s | Product purchase loyalty coefficient of online direct sales channel customers |
| a | Potential market demand |
| Pr | Retailer’s sales prices in the offline retail channels |
| Pd | Manufacturer’s sales prices in the online direct marketing channels |
| The change rate of product interaction between two channels |
| The change rate of dual-channel market demand with product return price |
| Dr | Demand for products from offline retail channels |
| Dd | Customer demand for products of online direct marketing channels |
| πr | Retailer’s profit |
| πd | Manufacturer’s profit |
| Wholesale price of products from the manufacturer to the retailer |
| Superscript z | Price discount contract model |
| c | The manufacturer’s unit cost of production |
| tr | Return prices for offline retail channels |
| td | Return prices for direct online sales channels |
| Rr | Total return volume of offline retail channels |
| Rd | Total return volume of online direct sales channel |
| b | Basic return quantity of two channels |
| Ψ | The rate of change in product return volume due to changes in return prices in online channels |
| The unit salvage value of the returned product |
| Superscript | Optimal case |
| Superscript j | Centralized decision model |
| Superscript f | Decentralized decision model |
| πT | Total profit of the supply chain |
| SuperscriptB | Compensation strategy model |
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