Dynamic pricing and service strategies for sustainable dual-channel service supply chains

Global market competition is intensifying, and the service economy is developing rapidly. Businesses face the challenge of transitioning from traditional single products or services to integrated product-service supply chains. This paper employs dynamic differential game theory to explore optimization strategies for dual-channel sustainable service supply chains. The study examines how manufacturers and retailers can flexibly adjust service levels and pricing strategies to foster long-term growth. Bilateral cost-sharing contracts are introduced to address free-riding behaviors and mitigate double marginalization effects. Numerical simulations based on Apple Inc. and JD.com cases validate the theoretical findings. The results show that the dual-channel model demonstrates superior economic sustainability, with manufacturer profits outperforming single-channel configurations when traditional channel competitiveness is moderate and product competition is intense. Bilateral cost-sharing contracts achieve Pareto improvements, with positive profit gains ΔΠ m m * and ΔΠ r m * for both manufacturers and retailers. Sensitivity analysis confirms that coordination contracts are more effective when consumer preferences are higher and service costs are lower. This research provides theoretical and managerial insights for manufacturing enterprises to maintain competitiveness through sustainable service strategies.