Effects of retailers' free shipping promotions on manufacturers' product sales and product review ratings in multichannel retailing

Li, Di; Hu, Wang

doi:10.1002/mde.3499

Cited by 4 publications

(4 citation statements)

References 86 publications

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“…This variable is calculated as the average number of other products sold by the retailers in the market within the category (Li & Wang, 2021).…”

Section: Methodsmentioning

confidence: 99%

“…On the other hand, prior research revealed that trust leads to preference (Chinomona et al, 2013) and consumers would buy more units from their preferred retailers (Bucklin et al, 1998). Furthermore, trust in the retailer can lower potential consumers' risk perceptions and induce them to switch from other substitutes (Li & Wang, 2021).…”

Section: Conceptual Framework and Hypotheses Developmentmentioning

confidence: 99%

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Online retailers' price structure decisions in competitive markets: A structure–conduct–performance framework

Wang

Jiang

2022

Manage Decis Econ

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It is theoretical and managerial significant to explore the determinants of retailers' decisions between a combined price structure and a partitioned price structure and the effect of their decisions on a manufacturer's product sales in competitive markets. Based on the structure–conduct–performance framework, we reveal that market structure‐related characteristics, such as the number of retailers, the degree of retailer differentiation, whether a dominant retailer in the market, and the number of product substitutes, significantly affect retailers' price structure decisions. Furthermore, more retailers adopting a combined price structure decrease the product sales, although the size of retailers mitigates this effect.

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“…This variable is calculated as the average number of other products sold by the retailers in the market within the category (Li & Wang, 2021).…”

Section: Methodsmentioning

confidence: 99%

Section: Conceptual Framework and Hypotheses Developmentmentioning

confidence: 99%

Online retailers' price structure decisions in competitive markets: A structure–conduct–performance framework

Wang

Jiang

2022

Manage Decis Econ

Self Cite

View full text Add to dashboard Cite

show abstract

“…Wu et al ( 2021 ) focused on the relative effects of coupons vs. free shipping on review ratings for an e-commerce website. Li and Wang ( 2021 ), using reviews from Amazon, found that more retailers using free shipping increased product review ratings.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Impact of delivery performance on online review ratings: the role of temporal distance of ratings

Ravula

2022

J Market Anal

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Customers are increasingly using online reviews in their purchase decision-making processes. As sellers benefit from displaying several reviews with favorable ratings, many sellers solicit reviews from customers. When a customer places an order on an e-commerce platform, the seller gets a notification to fulfill the order, and the customer is notified of the estimated delivery date. Some customers receive their products on time, while others receive their orders either earlier or later than the notified delivery date. After customers receive their products, the sellers often solicit reviews. This research focuses on the impact of delivery performance on review ratings. Specifically, this study addresses two questions: (1) Do customers reward sellers for early delivery in the same way they penalize them for late deliveries? (2) What is the role of the temporal distance of rating in online ratings in the context of delivery performance? The study estimates ordinal logit models in the Bayesian framework. Findings of the study indicate that customers give much lower (a little higher) ratings to orders delivered late (early) than to orders delivered on time. Further, the findings indicate that temporal distance is positively associated with ratings for late deliveries . The study discusses the theoretical and managerial implications of these results.

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“…The profit rates of Tmall.com reach 5-15 % increases per year by adopting different selling modes 2 . Similarly, at Amazon.com, another leading online retail platform, over 60% of the firms have adopted the bundling mode, which contributed to 55% of the revenue generated in 2021 [20]. As the demand for this selling model continues to escalate, platforms have built their own strategies to optimize profitability when bundling is feasible, requiring the development of corresponding pricing strategies [10,34].…”

mentioning

confidence: 99%

The selection of bundling or independent selling mode for new retailing platform with demand disruptions

Wang,

Xu,

Chen

et al. 2024

JIMO

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This study models a manufacturer that sells products and services through a platform with demand disruptions. To examine the selection of the platform operational selling mode, we consider pricing strategies in two selling modes: (1) In bundling selling mode, the manufacturer and platform are the same party, so their optimal decisions match, and they provide the product and service in a bundle, such that consumers can only buy the service together with the product. (2) In independent selling mode, the manufacturer and platform have independent optimal decisions, and they sell the product and service separately with different prices, allowing consumers to self-select whether to buy both or only the product. We show that the total profits of the supply chain in the independent mode will be larger than in the bundling mode when there is a negative demand disruption in either products or services because of the double marginalization effect. When there are demand disruptions, the profit contributed by services may exceed that from products. The numerical studies indicate that the platform would adopt bundling selling mode to maximize the whole profit when experiencing demand disruptions in product where the product demand disruptions are larger than ∆a or the service demand disruptions are larger than kcp − a.

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Effects of retailers' free shipping promotions on manufacturers' product sales and product review ratings in multichannel retailing

Cited by 4 publications

References 86 publications

Online retailers' price structure decisions in competitive markets: A structure–conduct–performance framework

Online retailers' price structure decisions in competitive markets: A structure–conduct–performance framework

Impact of delivery performance on online review ratings: the role of temporal distance of ratings

The selection of bundling or independent selling mode for new retailing platform with demand disruptions

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