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Money-Back Guarantee, Dual Money-Back Guarantee, and O2O Strategy in a Manufacturer’s Dual-Channel Supply Chain
Joint Authors
Ren, Minglun
Liu, Jiqiong
Yang, Aifeng
Feng, Shuai
Source
Mathematical Problems in Engineering
Issue
Vol. 2020, Issue 2020 (31 Dec. 2020), pp.1-21, 21 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2020-02-27
Country of Publication
Egypt
No. of Pages
21
Main Subjects
Abstract EN
Return services are increasingly valued by manufacturers, retailers, and customers.
In many countries, an offer of money-back guarantee (MBG) is legally binding.
In this paper, we discuss how a retailer and manufacturer with a direct channel should choose single or dual MBG and pricing strategies.
We identify the conditions under which a retailer or manufacturer should choose a return strategy and show that the handling return loss and the customer return cost in each channel are critical factors that should be considered by the retailer and manufacturer when choosing a return strategy.
In addition, the retailer should cooperate with the manufacturer to establish an offline-to-online (O2O) omnichannel to fully benefit from the convenience and advantages of the retail channel.
We find that the adoption of the O2O strategy by the retailer in its retail channel always generates profits, while the manufacturer may implement the O2O strategy in its direct channel when the profit from the Internet service is higher than a threshold.
Additionally, the impact of various strategies on pricing, market share, and profits is discussed.
American Psychological Association (APA)
Liu, Jiqiong& Ren, Minglun& Yang, Aifeng& Feng, Shuai. 2020. Money-Back Guarantee, Dual Money-Back Guarantee, and O2O Strategy in a Manufacturer’s Dual-Channel Supply Chain. Mathematical Problems in Engineering،Vol. 2020, no. 2020, pp.1-21.
https://search.emarefa.net/detail/BIM-1193425
Modern Language Association (MLA)
Liu, Jiqiong…[et al.]. Money-Back Guarantee, Dual Money-Back Guarantee, and O2O Strategy in a Manufacturer’s Dual-Channel Supply Chain. Mathematical Problems in Engineering No. 2020 (2020), pp.1-21.
https://search.emarefa.net/detail/BIM-1193425
American Medical Association (AMA)
Liu, Jiqiong& Ren, Minglun& Yang, Aifeng& Feng, Shuai. Money-Back Guarantee, Dual Money-Back Guarantee, and O2O Strategy in a Manufacturer’s Dual-Channel Supply Chain. Mathematical Problems in Engineering. 2020. Vol. 2020, no. 2020, pp.1-21.
https://search.emarefa.net/detail/BIM-1193425
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1193425