Impact of quality decisions on information sharing with supplier encroachment

This study examines a retailer's decision to share market demand information in a supply chain wherein a supplier sells a product with a certain level of quality to a retailer, who then resells it to the end consumer. It also considers whether a supplier should establish a direct selling channel by incurring a fixed entry cost to compete with the retail channel. Although conventional wisdom indicates that a retailer may voluntarily disclose information under ex-ante supplier encroachment, our results show how and why a retailer may share information with the supplier who encroaches on the retail market with a decision on quality. Specifically, our findings reveal that information sharing is beneficial to the retailer when the quality cost coefficient is low and entry cost is relatively low, even under encroachment by the supplier. Moreover, the retailer may prefer to disclose demand information to the supplier if the quality cost coefficient is low, even when the entry cost is high, under non-encroachment. Interestingly, we found that the supplier prefers to encroach if the retailer shares demand information when the entry cost is moderate. Further, we found that the retailer has a higher incentive to share information under supplier encroachment compared with non-encroachment. These results are in sharp contrast with the extant literature.

Retail Channel Services and Customer Retention in Physical Chain Stores in Nigeria

Extant literature indicates that despite the growing importance of retailing to the development of nations, it is imperative to ask; to what extent does retail channel service relates to customer retention in chain stores in Nigeria. The main objective of the study is to examine the significant relationship between retail channel service and customer retention in chain stores in Nigeria. The study adopted a quantitative research design using a survey method. The study population comprised 65 retail chain stores registered with the Enugu Branch of Pillars Association of Nigeria as of July 2020. The questionnaires were pretested for comprehension, relevance and validity through ten operators of retail superstores and three scholars in the field of distribution channel management. The reliability of the instrument was tested using Cronbach’s alpha coefficient analysis in order to ensure the internal consistency and reliability of measures. The reliability coefficient obtained was 0.85. The findings of the study show that bulk breaking, spatial convenience, waiting time and product variety are positively related to customer retention. We conclude that retail channel service has a positive and significant influence on customer retention of retail chain stores in Nigeria. The retail chain stores, if effectively coordinated, and their marketing channel service properly managed, is capable of enhancing the tendencies of these retail stores in retaining their existing customers.

Research on retail channel decisions considering consumer’s fairness concern

Online retailing provides alternative shopping channels, where the retail platform can either let manufacturers directly sell to consumers or open a self-operated channel, or even both. Regardless of sales channels, consumers often pay attention to the income gap between themselves and enterprises (named consumer's fairness concern). In this work, we explore how consumers’ fairness concerns affect the optimal decisions of both manufacturer and retail platform under different retail channel modes (single-channel mode and mixed-channel mode). The results show that consumer’s fairness concern has a negative impact on the retail price under low production cost in single-channel mode, while the retail prices in mix-channel mode are jointly determined by consumer’s fairness concern and revenue sharing ratio. Besides, if the market channel mode has not yet formed, the retail platform can choose either a self-operated channel or manufacturer consignment channel, depending on the consumer’s fairness concern level and revenue sharing ratio. By contrast, if the market channel mode has already been formed, the retail platform should make effort to reduce consumer’s fairness concern if only the self-operated channel exists, while maintain consumer’s fairness concern and revenue sharing ratio at a moderate level if there exist mixed channels.

The Effects of the COVID-19 Pandemic on the Mass Market Retailing of Wine in Italy

The purpose of this study was to provide a detailed framework of wine purchases in supermarkets during the COVID-19 pandemic. The unexpected diffusion of the virus and the restrictions imposed in Italy to prevent its spread have significantly affected the food purchasing habits of consumers. By analyzing the scanner data of the wine sales in the Italian mass market retail channel, this study was intended to show whether and how the dynamics triggered by the pandemic have modified the overall value and type of wine purchases, focusing on prices, formats, and promotional sales. In particular, this study explores sales in two separate periods, namely March–April (the “lockdown”, with general compulsory closing and severe restrictions) and June–July 2020 (the “post-lockdown”, in which some limitations were no longer effective). The analysis of wine sales during lockdown and post-lockdown and the study of the variations compared to the sales of the previous years showed some significant changes in purchase behavior. The results could provide managers, researchers, and policy makers with extensive insights into the purchasing patterns of consumers during this unprecedented time and reveal trends that may characterize the structure of the future wine demand.

A Three-Echelon Dual-Channel Supply Chain Model with Learning Effect Under the Return Policy

In today's competitive and technologically developed era, many retailers have adopted an e-channel to increase sales, in addition to the existing traditional retail channel. Although many researchers studied this issue, there is hardly any research that comprehensively considers the learning-effect and return-policy. Therefore, this research aimed to develop an imperfect production dual-channel supply chain model consisting of a supplier, a manufacturer, and a retailer. The manufacturer also has a refurbishment unit adjacent to its production hub, where it reworks all the defectives. The main objective is to maximize the supply chain profit by considering factors, such as inspection error, return policy, and learning-effect of the employees. Finally, this model is analyzed with the Leader-follower relationship strategy and an integrated approach. The research found that the integrated approach is profitable for the entire supply chain, while commodity prices can be minimized. Sensitivity analysis is also presented in this study.

Channel Strategies for the Two-Period Closed-Loop Supply Chain with E-Commerce

The aim of this paper is to choose the effective selling channel and reverse channel for a closed-loop supply chain (CLSC) with the e-commerce. The authors formulated six single-selling and dual-selling channel two-period CLSC models in which the manufacturer manufactures new products in the first period and then collects used products by itself, outsourcing to or cooperating with the retailer in the second period. Some interesting and new insights obtained from comparison analysis and numerical experiments are as follows: (1) The leading manufacturer ought to add e-commerce channel, and customers’ e-commerce preference can increase the market demand, collecting rate, and manufacturer’s profit. (2) With the e-commerce channel and the retail channel, dual-collecting channel is the best for the manufacturer and system while the manufacturer collecting channel becomes the best when the collecting competition is relatively large. When the collecting competition exists, retailer collecting channel is the best for the retailer. (3) The market demand, collecting rate, the profits of all members and system will rise by increasing the remanufacturing level and discount coefficient.

Strategic Analysis of Dual-Channel Green Supply Chain with an Unreliable and Competitive Supplier

With the increasing public awareness of environmental issues, green production has become an important issue for supply chain management. This study proposes an analytical model to investigate the dual-channel green supply chain decisions of a retailer and a competitive supplier; the latter suffers from unreliable production yield. The retailer’s environmental responsibility is considered as a two-echelon supply chain in which the retailer promotes the green product in their marketplace through green marketing. This problem is analyzed and modeled under three available channel strategies, considered in the order in which channel selections are made: a single online channel strategy, a single retail channel strategy, and a dual-channel strategy. The results show that the wholesale price of the manufacturer and the green-marketing effect of the retailer increase with the improvement in the level of the green production technology. Interestingly, the result reveals that a retailer’s expected profit is unimodal in the production technology level under the dual-channel strategy, which suggests that the retailer may not be incentivized to encourage the manufacturer to improve its production technology once a threshold has been reached. Further, we develop the channel selection: the retailer is strictly better off in the single retail channel scenario than that in the dual-channel scenario; however, while the unreliable supplier is better off in the single online channel scenario than that in the single retail channel scenario, its best option is still the dual-channel strategy. Additionally, numerical results illustrate that the expected profits of supply chain parties decrease with the improvement in customer acceptance of the online channel.

Product Quality Control Strategy of Dual Distribution Channel Structure in Three-Echelon Supply Chain

Based on the three-stage Stackelberg dynamic game model, this paper considers how to make product quality control strategy in the three-echelon supply chain consisting of the manufacturer, retailer and customer in the case of retailer dual channel structure (traditional retail channel, internet channel) and manufacturer dual channel structure (traditional retail channel, a third-party platform internet channel). When there are two types of decision model (decentralized decision, centralized decision), we analyze the demand price elasticity, market share ratio, revenue sharing ratio and quality cost coefficient how to influence the product demand, product quality level, retail price and direct price in different channels, expected revenue functions of manufacturer and retailer, consumer surplus and product quality control strategy. We find that: First of all, the retail price and direct price are positively related to product quality level, and the product quality level is negatively related with the demand price elasticity in traditional retail channel and the demand price elasticity in internet channel. What's more, the retailers’ retail price in traditional retail channel will be higher than direct price in internet channel. Thirdly, in the case of centralized decision, the manufacturers' product quality level, retail price, joint expected revenue and consumer surplus will all rise, but the direct price will fall. Fourthly, when the manufacturer establishes the dual channel structure, i.e., entrusting the third-party platform to build the internet channel, the manufacturer's product quality level, retail price, direct price, expected revenue, and consumer surplus will all decline. Finally, we conduct the numerical example by Matlab 2018, which verifies the validity and credibility of our conclusions, and points out the direction for the specific application of the model in practice.