ABSTRACT
Forman et al. (2009) pointed out the benefits of electronic commerce to consumers, including lower prices, greater selection, and greater convenience by eliminating travel costs. It is precisely because more and more people realize this point, also more and more companies are opening direct channels for selling products to customers, in addition to their retailer channels. Research shows that more consumers are embracing multiple channels to satisfy their shopping needs. According to one survey reported in The New York Times, about 42% of top suppliers (e.g., IBM, Estee Lauder, and Nike) in a variety of industries have begun to sell directly to consumers over the Internet (see Chiang and Chhajed, 2003). As a result, the interest conflicts of manufacturers and retailers become more complex in dual-channel supply chain. On the other hand, businesses today are facing a generation of increasingly sophisticated customers, namely, they become more and more rational and mature. Therefore, dual channels have attracted many scholars and gradually become a mainstream.
