E‐commerce retail and reverse factoring: A newsvendor approach

Park, Daehyeon; Ryu, Doojin

doi:10.1002/mde.3690

Cited by 4 publications

(2 citation statements)

References 28 publications

(35 reference statements)

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“…The ease of doing business is promoted and strongly related to digital business (Gupta 2022;Saidu et al 2022), especially for the Fintech industry, for which the literature shows that using such instruments can ease e-commerce suppliers' capital (Park and Ryu 2023). The hypothesis related to this indicator is:…”

Section: Millennials Generation Z and Market Growthmentioning

confidence: 99%

Buy Now Pay Later—A Fad or a Reality? A Perspective on Electronic Commerce

Lupșa-Tătaru,

Nichifor,

Dovleac

et al. 2023

Economies

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The Millennials and Generation Z use online shopping for a holistic experience and buy more expensive or better-quality products with buy now pay later payment methods for their highly demanding needs. The authors aimed to deepen understanding of this phenomenon by finding related knowledge fields and discovering the type of economy that will represent an increasing market share for the method of domestic e-commerce payments. The methodology used combined computer-assisted review, descriptive statistics, and linear regression to explain the market share of 23 economies worldwide. Student credit card use, myopic consumer law, buying tendencies. and dark financial triangles were identified as related topics. Logistics performance, ease of doing business, and postal development were found to be significant factors. Finally, economies with medium ranks are inclined to adopt this kind of payment easily. Hence, major implications, both managerial and academic, must be addressed. High responsibility should be borne by industry associations, which should run information campaigns by collaborating with public institutions. From the point of view of theoretical implications, studying the buy now and pay later concept and its outcomes might deepen understanding of consumer behaviour, decision-making processes, risk perception mitigation, debt behaviours, and credit adoption.

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Section: Millennials Generation Z and Market Growthmentioning

confidence: 99%

Buy Now Pay Later—A Fad or a Reality? A Perspective on Electronic Commerce

Lupșa-Tătaru,

Nichifor,

Dovleac

et al. 2023

Economies

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“…For instance, in the aviation industry, it was used to determine air cargo prices, as demonstrated by Shaban et al (2019). Similarly, Park & Ryu (2023) employed the model in e-commerce retailing to estimate the optimal quantity; however, they found that different decision-makers have different risk behaviours or preferences, which has been included in the traditional NV model. Schweitzer and Cachon (2000) showed this effect through an empirical study, highlighting that managers' decisions differ from the optimal solution resulting from the risk-neutral NV model.…”

Section: Traditional Newsvendor Modelmentioning

confidence: 99%

Risk-averse pricing decisions based on prospect theory

Shaban

2023

Decis. Mak. Appl. Manag. Eng.

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This study examines the risk behaviour of a decision-maker regarding pricing decisions with the aid of the newsvendor model. In this regard, prospect theory and reference point concept are adopted to formulate the value function of the decision-maker. Unlike the traditional reference points (quantity-based), a reference point is deemed a function of the price. It is proved that a convex combination of the maximum-expected profits and expected losses represents the reference point. Closed-form solutions for the optimum price and quantity orders are obtained under uniformly and exponentially distributed demand. Moreover, the risk when the ordering quantity does not match the actual demand is discussed. The results-based numerical experiments reveal that the risk-averse decision-maker manages to increase the price to evade different expected costs, such as shortages and overstocking. Finally, for the same risk aversion level, the maximum reduction percentage of the optimal quantity concerning the price reaches approximately 8% in the exponential distribution, whereas it decreases by approximately 30% under the uniform distribution.

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