Dual-Channel Supply Chain Pricing Coordination and Channel Selection with Reference Quality Effect Under Blockchain Traceability

This paper uses symmetry to develop a dual-channel supply chain network model, both with and without blockchain technology, ensuring that the solutions for pricing and channel selection are symmetric in both modes. And, in the model that does not employ blockchain technology, mechanisms are used to make the benefits of centralized and decentralized decision-making symmetrical. Consumers often have varied psychological expectations when choosing products. This paper considers the reference quality effect, where consumers establish a reference quality before making a purchase decision. However, the lack of transparency in product sales across supply chain channels can lead to a disparity between actual and expected product quality, impacting market demand and brand reputation. Therefore, manufacturers must balance increasing profits with meeting consumer demand for product traceability. This paper focuses on a dual-channel supply chain model involving manufacturers, retailers, and consumers. Firstly, the pricing issues and channel selections under centralized decision-making and a Stackelberg game with decentralized decision-making are comparatively analyzed in the mode of without adopting blockchain technology and adopt two-part pricing contract to coordinate. Secondly, the impact of blockchain technology on pricing is examined when it is adopted. Thirdly, pricing issues and channel selection strategies based on actual product quality in the dual-channel supply chain are compared under both models. Finally, numerical simulations validate the findings. The study found that: (1) the reference quality effect has a cross-positive influence on the equilibrium price and profit of a dual-channel supply chain; (2) the two-part pricing contract can mitigate the double-marginal effect and enhance profits; and (3) the adoption of the blockchain technology leads to increased equilibrium prices and total profits in the dual-channel supply chain compared to not using it. This paper offers a theoretical foundation for manufacturers and retailers to develop effective pricing and channel selection strategies in dual-channel operations to achieve higher returns.