The Impact of Revenue Models on Anti-Counterfeiting Measures for Online Intermediaries

Zhang, Xiong; Zhang, Xin; Luo, Xuechen; Yue, Wei Thoo

doi:10.1007/s10796-021-10189-7

Cited by 5 publications

(3 citation statements)

References 54 publications

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“…It is found that the manufacturer becomes worse off if strategic consumers purchase immediately, and the counterfeiter is worse off when customers wait to purchase in the second period. In e-commerce sites, Zhang et al (2021) examined the efforts to combat counterfeit goods using various revenue models the intermediaries. They used two types of revenue models: advertising and brokerage.…”

Section: Literature Reviewmentioning

confidence: 99%

Combating deceptive counterfeiting in digital supply chain

Dash

Sarmah

Tiwari

et al. 2023

JBIM

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Purpose Product counterfeiting has been ubiquitously observed in various segments of the supply chain. The intrinsic values of brands create more opportunities for counterfeiting. The damaging reputation of such brands leaves them to deal with the fallouts of counterfeits. Hence, such companies address them mainly through legal action, price and quality strategy. However, consumer characteristics and the random distribution of counterfeit products to the consumer types affect the effectiveness of a counter strategy. This paper aims to generate insights on how to leverage digital technology to curb counterfeit entities with consideration of consumer characteristics and the random distribution of counterfeits to them. Design/methodology/approach The authors used game theory and vertical differentiation model to understand and encounter deceptive counterfeiting of brand products. The study understands the economic relationship between a brand product manufacturer and consumer types based on their awareness. Further, the authors have considered different cases in the model to gain useful insights. Findings The results reveal that when the consumers are proactive, informed and value-conscious brand product manufacturers take digital technology counterstrategy to earn the maximum revenue. Hence, this analysis highlights that the effectiveness of a counterstrategy critically depends on the consumer characteristics, whether they are proactive, informed or unaware. Practical implications The study outlines that brand product manufacturers must emphasize on the digital supply chain, product redesign and product tracking facility to empower informed and value-conscious and proactive consumers. Moreover, the government should take steps to create awareness among uninformed consumers via information campaigns. Originality/value This paper incorporates the role of consumers and brand product manufacturers to understand and address the deceptive counterfeiting issue.

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Section: Literature Reviewmentioning

confidence: 99%

Combating deceptive counterfeiting in digital supply chain

Dash

Sarmah

Tiwari

et al. 2023

JBIM

View full text Add to dashboard Cite

show abstract

“…Evidently, CLV and SLV are highly dependent on the platform’s revenue model(s) which are often more varied than in the traditional pipeline world. Revenues can be generated, for example, in the form of—or often also a combination of—transaction fees, subscription fees for consumers, access fees for suppliers, transaction fees and commissions, advertising by external parties, on-platform advertising by suppliers, or cross-sales of own products or services (Liu et al, 2022; Zhang et al, 2021).…”

Section: Consumer and Supplier Lifetime Valuementioning

confidence: 99%

Conceptualizing Value Creation in the Platform Era

Wichmann

Reinartz

Venkatesan

2022

Journal of Creating Value

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Platforms have entered many industries and increasingly dominate markets. As such, they increasingly displace the traditional linear pipeline model of value creation with a web of value-creating interactions among three key players: the platform provider, platform consumers and platform suppliers. Existing conceptualizations of consumer value, however, are still based in the linear pipeline world which raises the need to update these frameworks to the platform era. In this article, we make first important strides towards an overarching platform-based valuation framework which can be applied to any type of platform. We build upon Kumar et al. (2010) by applying and extending the concept of customer engagement value to the platform context. In doing so, we delineate a variety of value components that (a) originate from a platform’s consumers as well as suppliers, (b) generate monetary and non-monetary value for the platform provider, and (c) generate direct and indirect value for the platform provider. Together, these value components holistically capture platform participants’ value creation and assist managers in evaluating the health and sustainability of their platforms.

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“…Many scholars have focused on the impact of fakes on supply chains and how companies design anti-counterfeiting strategies, especially in terms of pricing [6,7], quality [8,9], anti-counterfeiting investment [10,11], channel structure [12,13], blockchain applications [14][15][16], etc. However, few scholars have discussed which companies, retailers or manufacturers are better suited to invest in anti-counterfeiting efforts based on the framework of game theory.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Online Anti-Counterfeiting on Channel Structure and Pricing Decisions

2023

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Counterfeiting is an important challenge in maintaining the security and sustainability of supply chains. This paper examines a supply chain consisting of a luxury goods manufacturer (and a retailer) in the presence of counterfeit goods. Inspired by the reality that both manufacturers and retailers have incentives to implement anti-counterfeiting, this paper combines the psychological impact of anti-counterfeiting efforts on consumers and discusses the impact of anti-counterfeiting efforts on pricing and profits. We find that: (1) anti-counterfeiting has a positive impact on the selling price of brand products and the firms’ profits. However, the impact on wholesale prices varies depending on who implements the anti-counterfeiting strategy. (2) Only when the quality of brand products is higher than the threshold, is the firm willing to input anti-counterfeiting efforts. Manufacturers in a reselling structure are more motivated to fight counterfeits. (3) Implementing anti-counterfeiting in a direct selling structure is the most effective strategy for manufacturers. Under a reselling structure, it is more beneficial for manufacturers to have the retailer input anti-counterfeiting efforts. Our study provides insights into the reasons why some manufacturers establish internal anti-counterfeiting teams under the direct selling structure, while others incentivize retailers to invest in anti-counterfeiting.

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The Impact of Revenue Models on Anti-Counterfeiting Measures for Online Intermediaries

Cited by 5 publications

References 54 publications

Combating deceptive counterfeiting in digital supply chain

Combating deceptive counterfeiting in digital supply chain

Conceptualizing Value Creation in the Platform Era

The Impact of Online Anti-Counterfeiting on Channel Structure and Pricing Decisions

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