Optimal rebate strategy for an online retailer with a cashback platform: commission-driven or marketing-based?

Mu, Lifeng; Tang, Xin; Sugumaran, Vijayan; Xu, Wanyue; Sun, Xiangyang

doi:10.1007/s10660-021-09485-w

Cited by 9 publications

(4 citation statements)

References 41 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The study proves that cashback is an effective mechanism to attract more consumers and, hence, increase profit. This result supports the theory of Taleizadeh et al (2023) and Mu et al (2023), in which cashback promotions increase retailer profits by motivating customers to repurchase. Cashback collected in the customer's e-wallet will be used for further purchases.…”

Section: Inventory Model Of E-marketplacesupporting

confidence: 85%

“…According to Christino et al (2019), the cashback program has emerged as a key marketing tool in online shopping. Recently, Taleizadeh et al (2023) and Mu et al (2023) studied the relationship between online retailers and cashback websites in generating more online sales. Taleizadeh et al (2023) focused on customer motivation, whereas Mu et al (2023) considered the sales commission and marketing expenses of the retailer.…”

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

An inventory model of e-marketplace with a promotional program

Hasan,

Daryanto,

Triki

et al. 2023

JM2

View full text Add to dashboard Cite

Purpose The rapidly growing e-commerce industry with its special characteristics brings new challenges to the optimization of the supply chain and inventory management. This study aims to investigate the inventory-related optimization of an e-marketplace official store that works on a business-to-customer system when cashback promotion is used to attract more customers. Also, it proposes a new inventory model to maximize the e-commerce profit by optimizing the cashback amount and delivery period. Design/methodology/approach The proposed model assumes that customer demand is a function of price and delivery time and that price is affected by the cashback amount. The e-commerce operator has a profit-sharing contract with an e-payment company that facilitates the payment. E-commerce also builds collaboration under a cost-sharing contract with a supplier to ensure product delivery. A mathematical model is developed and the related theories are investigated. A numerical example illustrates the validity of the model and a sensitivity analysis is carried out to give useful insights. Findings A new inventory model for an e-market system has been introduced which shows the impact of a cashback promotion on the e-commerce business. This study shows that managers can optimize the cashback amount and its delivery time to get the maximum profit. In certain cases, the manager may set a high cashback amount (e.g. 100%) to attract customers to place more orders. Originality/value This study presents a new inventory model for today’s fast-growing e-commerce business; therefore, the results contribute to the understanding of promotion program practices and inventory management and provide insights to develop efficient e-commerce managerial decisions. Graphical abstract

show abstract

Section: Inventory Model Of E-marketplacesupporting

confidence: 85%

Section: Literature Reviewmentioning

confidence: 99%

An inventory model of e-marketplace with a promotional program

Hasan,

Daryanto,

Triki

et al. 2023

JM2

View full text Add to dashboard Cite

show abstract

“…Liang et al [22] divided product sales into an original price stage and a discount price stage and proposed a product pricing algorithm based on consumer strategic behavior to improve retailer profit by constructing a discount pricing model for a two-stage e-commerce platform. Mu et al [23] analyzed the optimal rebate decisions of retailers and e-commerce platforms under the commission-driven rebate model and the marketing rebate model, indicating that both models contribute to mitigating strategic consumer behavior, helping retailers expand their market and increasing profit. Nie et al [24] explored the optimal rebate pricing strategies of retailers under monopoly and competition by establishing four rebate models: upfront rebate, later rebate, always rebate, and never rebate; they showed that retailers would always choose the upfront rebate strategy under monopoly, while all four equilibrium rebate strategies may be effective in the competition situation.…”

Section: Literature Reviewmentioning

confidence: 99%

How do e-commerce platforms and retailers implement discount pricing policies under consumers are strategic?

Li,

Chen

2024

PLoS ONE

View full text Add to dashboard Cite

In the era of the rapid development of e-commerce, many retailers choose to launch promotional activities to become consumers’ first choice for shopping. Since price discounts can greatly attract consumers, the e-commerce platforms have also begun to implement discount pricing. It is urgent for e-commerce platforms and retailers to formulate reasonable discount strategies to achieve sustainable business. In this paper, we construct a dynamic game model for implementing discount pricing on an e-commerce platform and two retailers, we study the market equilibrium between the two retailers and the e-commerce platform under various scenarios that considering consumers’ strategic waiting behavior and competition between the two retailers, we further discuss the effectiveness of retailer discount pricing and the double discount pricing of the platform and retailers. We show that the optimal pricing decreases as the difference in product quality narrows under both pricing strategies. Low-quality retailers implementing a double discount pricing strategy are in relatively higher demand only when the difference in product quality is small. High-quality retailers implementing the retailer discount pricing strategy are in relatively higher demand only when the product quality difference is large. Double discount pricing is desirable for both e-commerce platforms and retailers and can be used to effectively achieve Pareto improvement in the market by increasing their expected profit. Our results emphasize the role of product quality and the value of the double discount pricing strategy. The double discount pricing strategy weakens the profit advantage that retailers and platforms gain from it as the rebate intensity and rebate redemption rates increase.

show abstract

“…Apart from increasingly fierce competition, less effective marketing strategies can also be a factor in not achieving maximum expedition service revenues. This marketing strategy can include product/service policies, promotions, pricing and service (Mu et al, 2023;Shafiee, 2023). Currently the company has implemented various promotional methods to increase service sales such as making employee uniforms, especially pick-up and delivery sections so that the company's services can be more widely known by the public.…”

Section: Introductionmentioning

confidence: 99%

Marketing Strategy Analysis in Increasing the Volume of Package Delivery Services PT. Xyz

Purnomo

2023

logistica

View full text Add to dashboard Cite

Logistics is one of the main needs and various efforts are being made to fulfill it. These efforts include trading and exchanging goods and conducting social relations, namely by sending goods by individuals, companies and social groups. PT. XYZ is present as an expedition service startup company that offers various types of services with digital technology-based selling points that can be accessed via smartphones to make it easier for consumers. However, the very tight competition makes the company must determine an effective and efficient marketing strategy in increasing the volume of package delivery. This is what makes the author want to know how the right marketing strategy in increasing package delivery, the obstacles encountered and the solutions made by PT. XYZ. In this research method is descriptive qualitative approach, with data collection techniques through interviews, observation and documentation. Based on the results of marketing strategy research conducted by PT. XYZ is doing quite well in increasing the volume of package delivery, by collaborating with the marketing mix in the form of product, price, promotion and place to the fullest. Which at the same time can be used to overcome obstacles and present the solutions needed for companies.

show abstract

Optimal rebate strategy for an online retailer with a cashback platform: commission-driven or marketing-based?

Cited by 9 publications

References 41 publications

An inventory model of e-marketplace with a promotional program

An inventory model of e-marketplace with a promotional program

How do e-commerce platforms and retailers implement discount pricing policies under consumers are strategic?

Marketing Strategy Analysis in Increasing the Volume of Package Delivery Services PT. Xyz

Contact Info

Product

Resources

About