Market Cover, Vertical Product Differentiation and Choice Substitution of Logistics Service Quality

Based on the existing literatures, the paper discusses separately four kinds of situations about whether the market covers or not, as well as whether choice cost of logistics service quality is zero or not. When the whole logistics market covers completely, and the choice cost does not equal to zero, the quality difference between two logistics service suppliers, increases along with constant c reducing. The profits of two logistics service providers obtaining are equal. However, along with the constant c increasing and the quality difference becoming smaller, the profit will reduce. Meanwhile the quality difference providing respectively by the logistics distribution service provider I and 2 increase along with the constant c reduction. And the whole logistics market is divided into the two logistics service suppliers.