Promoting end-of-season product through online channel in an uncertain market

Chen, Pingping; Zhao, Ruiqing; Yan, Yingchen; Zhou, Chi

doi:10.1016/j.ejor.2021.03.043

Cited by 35 publications

(6 citation statements)

References 56 publications

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“…Firstly, this research adds to the literature on online sales channels from the consumer's perspective. Prior research on online sales channels (including self‐run and third‐party channels) has been conducted primarily from the e‐tailers and manufacturers' perspectives, investigating how the choice of various sales channels may benefit them (P. Chen, Zhao, et al, 2021; Ha et al, 2022; Zhen & Xu, 2022; Zhong & Shen, 2022; Zhong et al, 2022). It is also critical for e‐tailers and third‐party sellers to understand the consumers' perceptions of and preferences for self‐run vs. third‐party channels.…”

Section: Discussionmentioning

confidence: 99%

“…Researchers have also considered various other aspects of sales mode selection. For example, the literature includes analyses of the effects of strategy (Ha et al, 2022; Zhen & Xu, 2022; Zhong et al, 2022; Zhong & Shen, 2022), new technology (Liu, Ma, Hu, & Zhang, 2021; Wu & Yu, 2022), costs (Shi et al, 2021; Zhong & Shen, 2022), information exchange (Ha et al, 2021; Tsunoda & Zennyo, 2021; Zhang & Zhang, 2020), platform fees and prices (Q. Chen, Liu, et al, 2021; Shi et al, 2021; Wei et al, 2021; Zhen & Xu, 2022), product promotion tactics (P. Chen, Zhao, et al, 2021), competition intensity at the retail level (Jerath & Zhang, 2010), types of online review information (Kwark et al, 2017), and information accuracy (Hagiu & Wright, 2015) on sales mode choice. Moreover, instead of adopting a pure reselling or agency selling strategy, many e‐tailers are rapidly transitioning to adopting both sales modes simultaneously (Fu et al, 2021; Yan et al, 2018).…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

“…However, the majority of earlier studies were carried out from the viewpoint of e‐commerce platforms or manufacturers to investigate how they might select between the two sales modes to obtain favorable outcomes (Belhadj et al, 2020; Wang et al, 2021). As an illustration, the operations literature has applied methods like game theory to examine how new technology (Liu, Ma, Hu, & Zhang, 2021; Wu & Yu, 2022), cost (Shi et al, 2021; Zhong & Shen, 2022), information exchange (Tsunoda & Zennyo, 2021; Zhang & Zhang, 2020), pricing and platform fees (Shi et al, 2021; Wei et al, 2021), and promotion strategy (P. Chen, Zhao, et al, 2021) affect e‐tailers' and/or the manufacturers' choices between different channels. In contrast, from a consumer perspective, we have very little knowledge of how consumers perceive and react to self‐run and third‐party channels.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Effectiveness of self‐run vs. third‐party sales channels on the consumers' purchase intention: A multi‐method exploration of the moderating role of review volume

Song

et al. 2023

J of Consumer Behaviour

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In practice, many prominent electronic retailers (e‐tailers) offer consumers both self‐run (i.e., reselling mode) and third‐party (i.e., agency selling mode) sales channels. However, previous research has not explained how consumers choose between these two channels and the potential moderating factors of that choice. To narrow this gap in the literature, we conducted a cognitive neuroscience‐based experiment and a scenario‐based experiment to investigate how the consumers' purchase intention is impacted by e‐commerce sales channels (self‐run vs. third‐party) and review volume (low vs. high). As per the results of the experiments, the participants were more likely to buy from the self‐run (vs. third‐party) channel when the review volume was low; however, they did not differ in their purchase intention between the self‐run and third‐party channels when the review volume was high (Studies 1 and 2). The neuroscience data yielded similar findings: When the review volume was low, the self‐run channel elicited more pronounced electroencephalography activity regarding the late positive potential (LPP) than the third‐party channel; when the review volume was high, there was no difference in the LPP induced by the two sales channels (Study 1). In addition, the interaction effect between sales channel and review volume on purchase intention was mediated by perceived product quality (Study 2). Based on these findings, we discussed the theoretical and practical implications of the research.

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Section: Discussionmentioning

confidence: 99%

Section: Literature Review and Hypothesesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Effectiveness of self‐run vs. third‐party sales channels on the consumers' purchase intention: A multi‐method exploration of the moderating role of review volume

Song

et al. 2023

J of Consumer Behaviour

View full text Add to dashboard Cite

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“…Zhang, Dai, et al (2020) discussed the promotion strategies of product discounts in shopping carts using a large randomized trial on the Alibaba platform. Chen, Zhou, and Li (2021) investigated how the timing of dual-channel promotion pricing affects firm decisions between agency sales and resale forms in uncertain markets.…”

Section: Price Promotionmentioning

confidence: 99%

Who is better for single and double coupon promotion? Comparison from dual‐channel and two‐period

Tian

Yang

Wen³

et al. 2023

Manage Decis Econ

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This paper examines the e-commerce platform decides whether to distribute electronic coupons during the promotional period: Single coupon (SC) and double coupon (DC) are available. We analyze the difference in promotional strengths and profit levels between the two coupon scenarios. With the retailer in the SC scenario promoting more when the platform commission rate is increased. In the DC scenario, the larger the gains of the manufacturer and the platform during the promotional period, and the profit trends of the dual-channel in the original price period remain the same. The platform can only enjoy significant benefits when the platform fee is higher.

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“…Zhang and Zhang (2020) examined how the e-tailer's demand information sharing strategy interacts with the online channel modes applied between the platform and the supplier who plan to introduce an offline store. Chen et al (2021a) disclosed how to sell end-of-season product through online channel in an uncertain market. Chen et al (2021b) studied an e-seller's strategy of offering return-freight insurance in the reselling and agency selling formats.…”

Section: Online Channel Mode Selectionmentioning

confidence: 99%

Online channel mode selection in a platform supply chain in the presence of consumer returns

Yang

2023

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PurposeMotivated by the real-world practice that the boom of the online selling induces a higher product return as well, selecting which online channel mode indicates who takes ownership over the product and thus bears the loss of the product return. This paper aims to seek the optimal online channel modes for the two members in a platform supply chain in the presence of product returns.Design/methodology/approachThis study aims to develop a platform supply chain that consists of one platform company and one supplier. Along with an offline distribution channel, the supplier can choose two alternative online selling modes (i.e. the reselling and agency modes) to sell its product through the online marketplace. This paper applies Stackelberg game to derive the equilibrium with different business scenarios and selects the optimal online channel modes for two parties, respectively. Moreover, this paper extends to a different supply chain with a reverse channel leadership and a different product return policy for testing the robustness.FindingsSeveral interesting and important results are derived in this paper. Firstly, it is found that the relative pricing are largely relied on the costs of two channels. Secondly, the platform supply chain may benefit from a pure channel rather than the dual-channel when this channel enjoys a relatively low cost and/or a sufficiently high consumer preference. Then, the platform and the supplier act contradictorily when selecting their optimal online channel modes. To be specific, the platform motivates to choose the online reselling mode when both the commission rate and the slotting fee are relatively low, whereas the supplier is likely to select the online agency mode under this circumstance. Finally, a win-win situation in regards to the optimal online channel mode for two parties is achievable with numerical experiments.Practical implicationsBased on the analytical studies, the results derived in the authors’ work can provide managerial insights to assist the supplier and the platform company in determining the operational decision and selecting the optimal online channel mode to deal with consumer returns. In addition, appropriate commission rate along with slotting fee will make both parties achieve a win-win situation in determining their optimal online channel mode.Originality/valueTo the authors’ best knowledge, this paper makes the first move to determine the optimal online channel mode in the content of consumer returns and study how it is affected by different product return policies.

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Promoting end-of-season product through online channel in an uncertain market

Cited by 35 publications

References 56 publications

Effectiveness of self‐run vs. third‐party sales channels on the consumers' purchase intention: A multi‐method exploration of the moderating role of review volume

Effectiveness of self‐run vs. third‐party sales channels on the consumers' purchase intention: A multi‐method exploration of the moderating role of review volume

Who is better for single and double coupon promotion? Comparison from dual‐channel and two‐period

Online channel mode selection in a platform supply chain in the presence of consumer returns

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