The impacts of e-tailer's private label on the sales mode selection: From the perspectives of economic and environmental sustainability

Zhang, Xiuyi; Hou, Wenhua

doi:10.1016/j.ejor.2021.04.009

Cited by 90 publications

(37 citation statements)

References 35 publications

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“…Generally speaking, when the referral fee of the e-commerce platform is low, the platform prefers to adopt the reselling mode rather than the agency mode, which has been shown in much literature [1,35,39]. However, our results suggest that when the referral fee is low and the showrooming effect is moderate, the platform may adopt the agency mode instead of the reselling mode.…”

Section: Discussionsupporting

confidence: 43%

“…This paper also relates to the studies of sales mode selection, which have drawn widespread attention in the literature [1,[29][30][31][32][33][34][35][36][37][38][39]. Several studies consider the case where the manufacturer chooses sales mode on the platform.…”

Section: Literature Reviewmentioning

confidence: 99%

“…For example, Ref. [39] discusses the sales mode selection of the manufacturer when the platform introduces a private brand, and finds that the private brand has an important influence on the manufacturer's choice of sales mode. Other studies consider that the sales platform chooses the sales mode.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Thus, normalizing the sales cost of the online channel to zero, we assume that the sales cost of the offline channel is c, which also denotes the difference between the sales cost of the offline channel and the sales cost of the online channel. Without loss of generality and for analytical convenience, we follow [18,33,39] to normalize the production cost to zero, which could preserve the fundamental qualitative results in the problem.…”

Section: Model Frameworkmentioning

confidence: 99%

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The Impact of Offline Service Effort Strategy on Sales Mode Selection in an E-Commerce Supply Chain with Showrooming Effect

Wang

Chaolu

2022

JTAER

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In practice, several e-commerce platforms offering online channels not only act as resellers but also serve as the marketplace. However, the existing literature rarely explores the impact of the offline service effort strategy with the showrooming effect on the platform’s optimal sales mode. Considering a supply chain consisting of a manufacturer and a platform, we examine the interplay between the manufacturer’s offline service effort strategy and the platform’s online sales modes. We derive conditions under which each of the four scenarios (adopting the service effort strategy under the agency or reselling modes, not adopting the service effort strategy under the agency or reselling modes) emerges in equilibrium. Our results show that the service effort strategy with the showrooming effect can induce the platform’s sales mode selection. Specifically, when the referral fee is low and the showrooming effect is moderate, the platform may choose the agency mode instead of the reselling mode, while when the referral fee is sufficiently high and the showrooming effect is moderate, the platform may adopt the reselling mode instead of the agency mode. Furthermore, when the competition intensity and showrooming effect are sufficiently small, the service effort strategy will be beneficial to the manufacturer and the platform, creating a win-win situation. When the competition intensity or showrooming effect is sufficiently large, the service effort strategy may cause a prisoner’s dilemma for the manufacturer and the platform. In addition, the supply chain consisting of a manufacturer, an offline store and an online platform is also studied in the extension section, and we find that our main results are valid.

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Section: Discussionsupporting

confidence: 43%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Model Frameworkmentioning

confidence: 99%

See 2 more Smart Citations

The Impact of Offline Service Effort Strategy on Sales Mode Selection in an E-Commerce Supply Chain with Showrooming Effect

Wang

Chaolu

2022

JTAER

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“…These studies show that the introduction of SB is beneficial to retailers on the whole, but the impact on NBM depends on the situation. Other scholars focus on the impact of retailers' introduction of store brands on the choice of cooperation modes between the two sides, for example, Zheng et al(2021) [39] discussed the impact of store brand introduction on the contracts of two upstream national brand manufacturers, Zhang et al(2021) [38] studied the impact of e-retailers' introduction of store brands on sales patterns in terms of economic and environmental sustainability. Some studies have been conducted from other perspectives, such as Liao et al (2020) [25]explore the sourcing options along with store brand quality positioning.…”

Section: 1mentioning

confidence: 99%

Analysis on the influence of retailer's introduction of store brand under manufacturer's product line strategy

Jiao

2023

JIMO

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<p style='text-indent:20px;'>As the introduction of store brand (SB) by retailers becomes more common, national brand manufacturers (NBM) in the market often respond with a product line strategy. Then how should retailers decide their product lines under the situation that NBM adopt product line strategy? Under the manufacturer's product line strategy, this paper compares and analyzes three competitive strategies for retailers to introduce high-end SB, low-end SB and SB product line. The results show that: First, no matter what kind of competition strategy the retailer adopts, (1) the introduction of SB occupies the market share of NB; (2) the retailer gains the highest unit income from the high-end products of NB manufacturers. Second, the relationship between production cost and encroachment effects directly affects the retailer's choice of optimal competitive strategy and the manufacturer's preference for its competitive strategy choice. Finally, from the perspective of profit maximization, the optimal choice for retailers is the product line competition strategy, but this strategy is not obvious compared with the high-end competition strategy. Therefore, when retailers introduce product lines, if they are effectively threatened by national brand manufacturers (for example, NBM refuses to provide national brands to retailers), retailers may choose the suboptimal strategy, that is, to introduce store brand high-end products. When the high-end products of store brands are better than the low-end products of national brands and the production cost of products is relatively high, this strategy just meets the expectations of national brand manufacturers for retailers to introduce strategies.</p>

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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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The impacts of e-tailer's private label on the sales mode selection: From the perspectives of economic and environmental sustainability

Cited by 90 publications

References 35 publications

The Impact of Offline Service Effort Strategy on Sales Mode Selection in an E-Commerce Supply Chain with Showrooming Effect

The Impact of Offline Service Effort Strategy on Sales Mode Selection in an E-Commerce Supply Chain with Showrooming Effect

Analysis on the influence of retailer's introduction of store brand under manufacturer's product line strategy

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

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