Abstract: In order to study the choice of the manufacturer in the traditional operation mode and the dual-channel operation mode after adding electronic channel, the service level influence and comparing the profit of each member of the supply chain in the traditional operation mode, the product co-marketing mode and the revenue sharing mode are considered by using the Stackelberg game method. The results show that it is always beneficial for the manufacturer to improve service level. And then, under certain conditions, the profit of the manufacturer after increasing the electronic channel is larger than that under the traditional operation mode. At the same time, when the proportion of revenue sharing is less than half, it is more advantageous for the manufacturer to choose the revenue sharing mode, and therefore, if the proportion of revenue sharing is greater than half, it is more advantageous for the manufacturer to choose the product co-marketing mode.

Key words: electronic commerce, dual-channel, product co-marketing, revenue sharing