Pricing and rebate strategies for an e-shop with a cashback website

Zhou, Yong‐Wu; Cao, Bin; Tang, Qinshen; Zhou, Wenhui

doi:10.1016/j.ejor.2017.03.037

Cited by 44 publications

(14 citation statements)

References 24 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…From a theoretical standpoint, our main goal is to bridge the gap between the growing use of cashback shopping and the understanding of the phenomenon. Our research adds empirical evidence to studies that are predominantly analytical in nature (Chen et al 2008; Ho, Ho, and Tan 2017; Zhou et al 2017). To our knowledge, the only other empirical study on the subject focuses on the relationship between the size and composition of a user’s network and the extent and pattern of navigation at the cashback company’s website (Ballestar, Grau-Carles, and Sainz 2016).…”

mentioning

confidence: 86%

Cashback Is Cash Forward: Delaying a Discount to Entice Future Spending

Vana¹,

Lambrecht²,

Bertini³

2018

Journal of Marketing Research

View full text Add to dashboard Cite

The authors examine purchase behavior in the context of cashback shopping-a novel form of price promotion online where consumers initiate transactions at the website of a cashback company and, after a significant delay, receive the savings promised to them.Specifically, they analyze panel data from a large cashback company and show that, independent of the predictable effect of cashback offers on initial demand, cashback payments (1) increase the probability that consumers make an additional purchase via the website of the cashback company, and (2) increase the size of that purchase. These effects pass several robustness checks. They are also meaningful: at the average values in the data an additional $1.00 in cashback payment increases the likelihood of a future transaction by 0.02% and spending by $0.32-figures that represent 10.03% of the overall impact of a given promotion. Moreover, we find that consumers are more likely to spend the money returned to them at generalists such as department stores than at other retailers. The authors consider three explanations for these findings, and the leading hypothesis is that consumers fail to treat money as a fungible resource.They also discuss implications for cashback companies and retailers.

show abstract

mentioning

confidence: 86%

Cashback Is Cash Forward: Delaying a Discount to Entice Future Spending

Vana¹,

Lambrecht²,

Bertini³

2018

Journal of Marketing Research

View full text Add to dashboard Cite

show abstract

“…Generally, the retailer will show its presale products online and describe their functions to increase consumers' understanding of the products so as to increase the presale volume. We can regard this behavior of the retailer as its sales effort for online presale, but similar to Zhou, et al [72], we consider the sales effort or the costs paid by the retailer to be fixed (regarded as fixed advertising investment) and thus not to affect the results of the model. Therefore, for simplicity, we normalize the retailer's online sales effort to zero.…”

Section: Problem Description and Notationmentioning

confidence: 99%

Presale Strategy for a Dual-Channel Retailer Considering Sales Effort

Feng

Liu

2021

IEEE Access

View full text Add to dashboard Cite

We study the presale strategy and decision-making problems for a retailer selling products. Based on the penetration and skimming pricing strategies, we consider the characteristics of consumer market segmentation and valuation heterogeneity, focus on the implementation conditions and optimal decision results of different pricing strategies before and after the introduction of an online presale channel, and conduct a multidimensional comparative study on the impact of the introduction of the online presale channel. We find that the introduction of an online presale channel can always improve the retailer's profitability, but its pricing strategy and sales effort should be adjusted to align with the consumer market segmentation. When the proportion of online consumers is high or their preference for the spot channel is high, the retailer should always adopt a penetration pricing strategy. If online consumers also show a high consumption preference for the presale channel, the retailer should reduce its sales effort to save costs after introducing the presale channel; otherwise, the retailer should increase its sales effort to increase demand in the offline spot channel. When the proportion of online consumers is low and their preference for the spot channel is low, the retailer should always adopt a skimming pricing strategy and keep sales effort unchanged. When the proportion of online consumers and their consumption preference for the spot channel are moderate, the retailer should adjust its pricing strategy from penetration to skimming after introducing the online presale channel and appropriately reduce the level of sales effort.

show abstract

“…The study of this paper from a dynamic and static perspective is more in line with the actual situation. Thirdly, the consumers' preference for products [2,15,16,[30][31][32][33], e-channel [11,12,14,34], the behavior of corporate promotion under the e-channel [19,20,[35][36][37][38], CLSCN [9,23,[44][45][46][47][48], are explored and then the above questions are combined to be studied, which has not yet been explored. Finally, inspired by the research of Seuring et al [40] and Shashi et al [41,42], the sustainable thinking is included in this paper, that is, considering the e-channel can effectively reduce the impact of the middlemen's behavior on the environment, and study the problem the E-CLSCN equilibrium.…”

Section: Supply Chain Considering Consumers' Preferencementioning

confidence: 99%

Multi-Period E-Closed-Loop Supply Chain Network Considering Consumers’ Preference for Products and AI-Push

2019

View full text Add to dashboard Cite

The remanufacturing industry plays a significant role to improve the utilization of resources and contribute to environmental protection and sustainable development. E-commerce channel (e-channel) has become an important retail channel. The multi-period closed-loop supply chain network of electronic channels (E-CLSCN) is studied. Moreover, this study considers the influence of consumers’ preference for products and artificial intelligence push (AI-push) on network balance under the conditions of dynamic and static. The network consists of manufacturers, remanufacturers, and demand markets. Remanufacturers are responsible for collecting and remanufacturing. The multi-period E-CLSCN model is established through variational inequalities. The study finds that whether dynamic or static, consumers’ preference for new products (NP) has positively correlated with the profits of manufacturers and the whole E-CLSCN. Consumers’ preference for remanufacturer products (RP) has only positively correlated with the profits of remanufactures. In the aspect of AI-push, the manufacturers’ AI-push has positively correlated with the profits of the entire players of E-CLSCN, while the remanufacturers’ AI-push has only positively correlated with the profits of the remanufacturers. Also, considering the multi-period, the sensitivity of the demand markets for the investment of manufacturers’ and remanufacturers’ AI-push gradually reduces, and the marginal benefit of AI-push gradually decreases. Finally, this paper addresses interesting managerial insights from the perspective of government and enterprises. Under the dual objectives of environmental protection and economic interests of enterprises, this study provides a reference for governments and enterprises to develop relevant dynamic policies. Namely, the government formulates dynamic environmental protection measures, and enterprises formulate dynamic strategic plans and implement government policies. While promoting the management level of E-CLSCN, it effectively boosts the development of the remanufacturing industry and recycling sustainable economy.

show abstract

Pricing and rebate strategies for an e-shop with a cashback website

Cited by 44 publications

References 24 publications

Cashback Is Cash Forward: Delaying a Discount to Entice Future Spending

Cashback Is Cash Forward: Delaying a Discount to Entice Future Spending

Presale Strategy for a Dual-Channel Retailer Considering Sales Effort

Multi-Period E-Closed-Loop Supply Chain Network Considering Consumers’ Preference for Products and AI-Push

Contact Info

Product

Resources

About