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Software competition and service cooperation performance considering channel encroachment and pre-sales service quality affecting software sales
- REN Tinghai, LIU Kaixuan, WANG Dafei, ZENG Nengmin
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JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE). 2025, 60(6):
114-127.
doi:10.6040/j.issn.1671-9352.0.2023.372
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Abstract
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At present, many software developers not only sell software to users through downstream service providers, but also directly sell software and services to users. In this study, we build the models of "Authorization" and "Authorization+Direct Sales" respectively, and study the authorization sales and channel encroachment strategies of the developer, as well as the service quality investment and software sales strategies of the provider. Moreover, we analyze the impact of developers channel encroachment on the profits of supply chain members and the total supply chain profit. The conclusions show that:(1)in the "Authorization" mode, the decision of the developer will not affect the software sales pricing decision of the provider, but only affect the pre-sales service quality decision of the provider; in the "Authorization+Direct Sales" mode, the decision of the developer will affect the software sales pricing decision and pre-sales service quality decision of the provider; in addition, the channel encroachment of the developer can dampen the enthusiasm of the service provider and stimulate its enthusiasm.(2)Channel encroachment will cause the developers own software sales/authorized profit to decline, but it can increase the sales of software and extended warranty services(EWS)and improve the software developers EWS sales profit.(3)If the market size occupied by the developer is small, channel encroachment can improve the profit of the provider; however, if the developer occupies a large market and both parties conduct low-intensity software competition, channel encroachment will reduce the profit of the provider; in addition, when the developer occupies a large market, both parties carry out high-intensity software competition, and the developer has(loses)low-cost advantages, channel encroachment can reduce(improve)the profit of the provider.(4)If the market size occupied by the developer is small, channel encroachment can improve the total supply chain profit and also reduce the total supply chain profit; however, if the developer occupies a large market, channel encroachment will always reduce the total supply chain profit.