Is group‐buying price mechanism a good choice in the business‐to‐business system?

Guan, Lei; Gu, Wenxi; Niu, Wenju; Zhang, Lianmin

doi:10.1111/itor.13193

Cited by 4 publications

(2 citation statements)

References 33 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Guan et al (2022a) study the group-buying pricing mechanism in the context of buyers actively sharing product information with their friends. Immediately afterwards, Guan et al (2024) also extend the study of the group-buying price mechanism to the business-tobusiness environment, providing some advice for suppliers' pricing mechanism. Xu et al (2024) examine the optimal pricing decisions of manufacturers under cap-and-trade regulation by using coupons to offer discounts.…”

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Newsvendor model with voucher sales: a distributionally robust approach

Zhong

Jiang

Zhang

et al. 2023

Int Trans Operational Res

View full text Add to dashboard Cite

Vouchers as a popular short‐term marketing tool are widely used by many firms, through which retailers can lock in customers and obtain working capital in advance. Consumers can use the voucher to reduce the product purchase price to an equal face value or purchase the product at a discount. We apply the classical newsvendor model to study the merits of vouchers for the retailer's ordering decision in the face of uncertainties in both the market demand and voucher redemption rate. We propose a distributionally robust approach to solve this newsvendor problem. The approach only requires the first and second moments of the demand and redemption rate distributions and yields a lower bound on the expected profit. Specifically, we derive the optimal ordering decision in closed form and obtain the optimal expected profit based on the limited distribution information. We find that a higher redemption rate does not necessarily increase the retailer's profit and the voucher quantity, but always increases the retailer's order quantity. Interestingly, we show that when the buyback price of the voucher is relatively high, increasing the voucher redemption rate is more profitable for the retailer. In addition, the retailer's profit, and the quantities of the product and the voucher decrease with the buyback price of the voucher.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

“…Immediately afterwards, Guan et al. (2024) also extend the study of the group‐buying price mechanism to the business‐to‐business environment, providing some advice for suppliers' pricing mechanism. Xu et al.…”

Section: Literature Reviewmentioning

confidence: 99%

Newsvendor model with voucher sales: a distributionally robust approach

Zhong

Jiang

Zhang

et al. 2023

Int Trans Operational Res

View full text Add to dashboard Cite

show abstract

Does the quantity discount mechanism offer a loophole for retailer collusion? Impacts and responses

Du,

Sun,

et al. 2024

European Journal of Operational Research

View full text Add to dashboard Cite

Pricing strategy and its impact on the effort of community leader and platform: Uniform or differentiated pricing?

Liu,

Li,

et al. 2024

RAIRO-Oper. Res.

View full text Add to dashboard Cite

This paper is motivated by the rapid development of community group buying (CGB), where the CGB platform dramatically relies on the community leader to provide last-mile services and fulfill consumers’ orders. Considering two types of community leaders, the friend role and seller role, this work adopts a game-theoretical model and investigates how the pricing strategy, uniform pricing strategy (N) or differentiated pricing strategy (Y), affects players’ performance and decisions on effort level. This study shows that the commission rate is an essential factor in stimulating the role transformation of community leaders. A significantly large commission rate results in the friend role community leader with lower trust value changing into the seller role. Generally, the community leader works harder under the uniform pricing scenario except in situations with a significant commission rate and moderate sensitivity coefficient of trust value. However, the effort level of the platform is jointly influenced by the pricing strategy, commission rate, and the role of a community leader. Moreover, regardless of the commission rate, when the community leader is a friend role and the trust value is high, both the platform and community leader can gain higher profits under the uniform pricing scenario than the differentiated pricing case. It indicates that a win-win situation can be achieved.

show abstract

Is group‐buying price mechanism a good choice in the business‐to‐business system?

Cited by 4 publications

References 33 publications

Newsvendor model with voucher sales: a distributionally robust approach

Newsvendor model with voucher sales: a distributionally robust approach

Does the quantity discount mechanism offer a loophole for retailer collusion? Impacts and responses

Pricing strategy and its impact on the effort of community leader and platform: Uniform or differentiated pricing?

Contact Info

Product

Resources

About