Abstract:

With the advent of experience economy and the competition of new product, it is important for manufacturers to build channel distribution and brand promotion based on the customer experience. In this paper, considering the customer experience factor and the retailer's investment in the experience, offline and online demand models are firstly developed in the new product supply chain, respectively. The manufacturer-led supply chain with the contracts of the wholesale price and the channel rebate are discussed. Furthermore, the characteristics of the equilibrium solution of each decision-maker in the supply chain are analyzed, and the comparisons of the optimality based on the above models are made. Finally, the effects of the manufacturer's rebate point, the retailer's experience investment level, the customer's experience factor, the travel cost and the willingness-to-pay on the optimal performance of supply chain are explored in the numerical examples.

Key words: customer experience, experience investment, utility theory, new product supply chain, dual channel