Referral service and customer incentive in online retail supply Chain

Chen, Yuangao; Zhang, W.Y.; Yang, Shuiqing; Wang, Z.J.; Chen, S.F.

doi:10.1016/s1665-6423(14)72342-9

Cited by 14 publications

(9 citation statements)

References 24 publications

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“…In the first stream of research on the internet referral services problem, researchers have recently investigated the effects of the infomediary's service effort on demand referral (Weber and Zheng, 2007;Chen et al, 2014). Chen et al (2002) focus on the internet referral services problem, analyze the impact of referral infomediaries on online retail markets and provide the necessary conditions for the existence of the infomediary.…”

Section: Literature Reviewmentioning

confidence: 99%

Incentive contract design for internet referral services: cost per click vs cost per sale

Zhou

Liu

2019

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Purpose Internet referral services are a common form of online marketing operating activities. To incentivize infomediaries and improve referral performance, brand retailers typically apply the cost-per-click (CPC) or the cost-per-sale (CPS) payments. The purpose of this paper is to investigate the effect of referral services on the optimal contract with CPC or CPS payments. Design/methodology/approach This paper studies a mechanism design problem for internet referral services. To maximize the expected utility of the brand retailer, an uncertain contract model is established in which the brand retailer's assessment of the infomediary's referral service capability is characterized as an uncertain variable. Then equivalent models under CPC and CPS payments are presented to obtain the optimal solutions. Findings The results demonstrate that under CPC payments, as the referral service capability increases, the optimal sales volume is increasing, and the optimal transfer payment first shows a declining and then a rising trend. The brand retailer is less likely to raise the optimal transfer payment for the infomediary given a higher CPC revenue-sharing fee percentage, which is counterintuitive. Under CPS payments, the optimal sales volume and transfer payment are also increasing in the referral service capability. In addition, an increase in the click-through rate leads to the infomediary's incremental marginal utility. Originality/value The value of this research is its application of incentive contracts to the internet referral services considering CPC or CPS payments. The results of this research can serve as a guide for retailers and infomediaries in their decision-making around online retailing.

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Section: Literature Reviewmentioning

confidence: 99%

Incentive contract design for internet referral services: cost per click vs cost per sale

Zhou

Liu

2019

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“…From the first order optimal condition of the equation (1) and (2), the optimal order quantity of retailer 1 q and centralized supply chain * q , satisfy with the equation ( ) ( )…”

Section: Exogenousmentioning

confidence: 99%

“…Even the oligopolies no fear sacrificing profits to increase sales quantities in order to grab the market shares, such as www.JD.com.So the maximum sales quantity or the sales oriented is one of marketing strategies in the business. Y.G.Chen et al [1] show infomediary on the website provides demand referral service to retailer and incentive rebates to customer, discuss rebates sensitivity and market share on these optimal policies to reach supply chain coordination. It is widely recognized the importance to grab the market share.…”

Section: Introductionmentioning

confidence: 99%

Consider a buyback contract model with marketing strategy types of game leader

Fang²

2015

2015 International Conference on Logistics, Informatics and Service Sciences (LISS)

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The enterprises no fear sacrificing profits to keep or enhance the market shares, such as www.JD.com. It means the downstream need order more and sell more. The previous buyback contract literature research is the problem solving solution, all assume the supplier and retailer both are profit oriented and achieve supply chain coordination and Pareto optimality. In this article, we research the supplier is a leader and sales oriented, the retailer is the follower and the profit oriented. And the retailer is required order more than his optimal quantity Analyze the two ways, the enhancing the buyback price or reducing the wholesale price. In the analysis results, the buyback contract parameters are limited by the retained earnings of the sales oriented supplier and the market demand distribution. Numerical examples are given to illustrate contract parameters how to affect the supply chain coordination, the order quantity of the retailer and the profit of the supply chain. Keywords-the buyback contract, marketing strategy, supply chain coordinationI.

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“…Changing consumers and lifestyles involves increasing consumers in the virtual environment (Saydan, 2008). The growth and development of the e-retail market have been due to the increase in the socio-economic levels of individuals, the increase in the interest in online shopping, and the acceleration of the use of social networks (Chen et al, 2014). With the widespread use of the Internet, e-commerce constantly evolves day by day.…”

Section: Introductionmentioning

confidence: 99%

Salgin Hastalik Süreci̇nde Tüketi̇ci̇leri̇n Çevri̇m İçi̇ Satin Alma Ni̇yetleri̇ Üzeri̇ne Bi̇r Araştirma

Balli¹

2021

PPAD

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With the pandemic period, there have been differences in online purchasing intention and behavior due to changes in consumers' social lives and consumption habits. The main purpose of this study is to understand the changes in the online shopping attitudes of consumers during the pandemic period and to obtain a model that will provide the intention to purchase online. The data obtained in the study were carried out with a digital questionnaire applied to 329 consumers from different age groups living in Ankara, and the findings obtained were analyzed and interpreted with the SPSS 25.0 package program. In this period, it was determined that consumers' online purchase intentions changed significantly, and product range, ease of use, satisfaction, experience, and innovation positively affected consumers' online purchasing intentions. In this context, suggestions were made to digital entrepreneurs to work more effectively in the digital market after the pandemic period.

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Referral service and customer incentive in online retail supply Chain

Cited by 14 publications

References 24 publications

Incentive contract design for internet referral services: cost per click vs cost per sale

Incentive contract design for internet referral services: cost per click vs cost per sale

Consider a buyback contract model with marketing strategy types of game leader

Salgin Hastalik Süreci̇nde Tüketi̇ci̇leri̇n Çevri̇m İçi̇ Satin Alma Ni̇yetleri̇ Üzeri̇ne Bi̇r Araştirma

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