Customization of incentive mechanisms based on product life-cycle phases for an efficient product-service supply chain coordination

•Applying a novel short-term coordination approach based on long product life-cycle phases (PLC).•Considering a price and sales effort dependent demand function during the various phases.•Assuming the pricing and sales effort decisions in a time-varying mode regarding the individual features of each phase.•Developing a novel fortified sales rebate contract to conduct a phase-based coordination.•Presenting a systematic comparison of the coordination schemes among four different PLC phases. “Product life-cycle management” and “supply chain coordination” are integral concepts in today's competitive business environment, each of which alone is of particular importance in the literature. However, the coordination process of channels with short and long life-cycles may require distinct approaches in practice. This study surveys the coordination strategies in product-service supply chains that benefit from a long product life-cycle. One of the distinguishing features of such channels is that at the start of each life-cycle phase, there is sufficient time to adapt strategies, decisions, and coordination processes to various characteristics of that stage. Coordination of members of product-service supply chain in which the market demand, pricing, and sales effort patterns are dynamically specified following the features of each phase is the general discussion of current research. Three distinct incentive schemes are developed under the Stackelberg game to realize the coordination goals with the use of decentralized and centralized decision-making structures. The analytical results indicate that at the beginning of each stage, the adopted coordination plan should be customized according to the properties of the respective phase because all decisions are varying by passing through the different phases.