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Chinese Journal of Management Science ›› 2014, Vol. 22 ›› Issue (7): 107-115.

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Research on Product Service Capacity Competition Mechanism Considering Channel Power Structure

YAO Shu-jun1,2, CHEN Ju-hong1   

  1. 1. School of Economic and Management, Xi'an University of Technology, Xi'an 710054, China;
    2. School of Management, Xi'an University of Finance & Economics, Xi'an 710100, China
  • Received:2012-10-09 Revised:2013-05-06 Online:2014-07-20 Published:2014-07-24

Abstract: For product service supply chain consisting of two manufacturers and one retailer, the competition of product service capacity is studied from perspective of service provided by manufacturers in this paper. The equilibrium strategies of supply chain members are solved from three different situations: Manufacturers Stackelberg, Retailers Stackelberg and Vertical Nash, used by Stackelberg dynamic game. Meanwhile, product service capacity competition strategies are put forward to meet different customer demand characteristics, by combing with the relationship between service cost and equilibrium results under different channel power structure. The results shows that affordable customer demand can be meet by RS price dominant strategy, while all price and service capability level are lower. Economical customers demand can be meet by VN service dominant strategy, while service capability level is higher. Professional customer demand can be meet by MS product dominant strategy, while price is higher.Quality customer demand can be meet by product service fusion strategy, while all price and service capability level are higher. Finally, the effectiveness of product service capacity competition strategies are anglicized by combing with varying relationships between wholesale price, service ability, retail price and service cost respectively.

Key words: power structure, bargaining power, service capacity, supply chain management, product service fusion

CLC Number: