The reference effect of consumers’ product quality and service quality is an important behavioral factor that affects consumers’ purchase decisions. In this paper, considering the inherent dynamics of the operation mode, the two were combined into a product-service supply chain composed of a manufacturer and two competitive retailers, and the service reference effect was further divided into horizontal and vertical service reference effects. Differential game models between the manufacturer and the retailers were constructed. Using the continuous dynamic programming theory, the manufacturer’s quality level strategy, retailer’s service level strategy and supply chain system performance under the modes of no cost sharing decision, cost sharing decision and centralized decision were analyzed and compared. Main findings: The optimal strategy of product quality under centralized decision is greater than the corresponding value under cost sharing contract decision. Compared with decentralized decision making of no cost sharing, cost sharing contract cannot promote the manufacturer to improve product quality. Different from previous studies, the service quality under centralized decision making is not higher than other decisions. When the horizontal reference effect of service quality meets a certain condition, the supply chain profit under centralized decision making is lower than the corresponding value under decentralized decision making.

Due to the sudden surge of orders, it is difficult for suppliers with a limited capacity to ensure that all orders are delivered in time and all the products are qualified. Suppliers are likely to put more limited capacity into completing orders, thus ignoring the quality of products. This will easily lead to the occurrence of product quality events, and then affect the goodwill of enterprise products. The innovations of this paper are as follows: first, based on the above facts, a negative and dynamic correlation between the delivery level and the quality level is established, which has been involved in previous studies. Second, the joint decision model of timely delivery, product quality, and marketing is constructed. Thirdly, centralized decision-making is the best way of supply chain cooperation, and cost sharing contracts can coordinate the supply chain. This paper provides guidance for enterprise managers when making decisions on quality, marketing and delivery. It also provides the basis for enterprise managers to formulate effective cooperation models. We can draw some research implications: when consumers are less sensitive to timely delivery, enterprises should give some coupons and small gifts to consumers in exchange for the extension of delivery time and put their limited capacity into improving the product quality. When consumers are highly sensitive to timely delivery, they can outsource some orders to cost-effective and professional third-party enterprises, which not only improves the delivery rate but also improves the product quality.