Paper Title :Reward Program and Information Sharing Under Different Contracts
Author :Ruiliang Yan, Zhi Pei
Article Citation :Ruiliang Yan ,Zhi Pei ,
(2017 ) " Reward Program and Information Sharing Under Different Contracts " ,
International Journal of Management and Applied Science (IJMAS) ,
pp. 16-18,
Volume-3,Issue-8
Abstract : When a manufacturer opens an online channel to compete with its retailer, it’s an effective mechanism for the
manufacturer to provide monetary support to the retailer to implement a reward points program to alleviate the O2O (online
to offline) competition. However, the manufacturer and the retailer have asymmetric information about consumers’
redemption rate on earned reward points. In this research, we propose two contracts for the manufacturer to employ in order
to seek sharing the retailer’s private information. Our results show that when the manufacturer offers the retailer a two-part
tariff contract, the retailer would like to share its private information with the manufacturer only under certain condition;
however, when the manufacturer offers the retailer a RPM (retail price maintenance) contract, the retailer has a strong selfmotivation
to share its private information with the manufacturer since RPM contract creates a win-win situation for all
parties.
Keywords- Reward points; Asymmetric information; Retail contracts; O2O competition; Supply chain management
Type : Research paper
Published : Volume-3,Issue-8
DOIONLINE NO - IJMAS-IRAJ-DOIONLINE-8932
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Copyright: © Institute of Research and Journals
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Published on 2017-10-20 |
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