Dual-Channel Supply Chain Coordination Considering the Consumer’s Perception of Quality

This paper examines a dual-channel supply chain that sells the identical products in two channels.Consumers have a higher perception of product quality in the offline channel.Based on the solving and comparing of game models, the residual profit-sharing contract with decentralised supply chain cost payment (coordination contract 1) and the residual profit-sharing contract with decentralised supply chain profit allocation (coordination contract 2) are designed for the dual-channel supply chain coordination.The results show that the centralised supply chain can provide higher quality products and gain more profits.The high quality perception of consumers is beneficial to all supply chain members.Two coordination contracts can achieve coordination and allow the supply chain members to gain relatively fair profits.Under these two contracts, the consumer's perception of quality can positively affect the members' profits.The results will provide the dual-channel supply chain members with solutions for channel coordination and profit expansion.