Pricing Strategies in a Supply Chain with Multi-Manufacturer and a Common Retailer Under Online Reviews

Cai, Xueyuan; Li, Jianbin; Dai, Bin; Zhou, Tai

doi:10.1007/s11518-018-5380-x

Cited by 23 publications

(15 citation statements)

References 21 publications

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“…Cai et al. () extended the above model with three competitive manufacturers, and further verified the outcomes. Unfortunately, the above work has ignored the role of online reviews from manufacturers, interplaying between online reviews from consumers and the manufacturer, and its effects on CP demand.…”

Section: Literature Reviewmentioning

confidence: 83%

Product design crowdsourcing in a dual‐channel supply chain: joint reviews from manufacturer and consumers

Liu

2019

Int Trans Operational Res

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As an effective paradigm to aggregate a crowd's wisdom for new product development, crowdsourcing has attracted much attention in recent years. This paper investigates the issue of joint online reviews on crowdsourcing in a dual-channel supply chain with one manufacturer and one retailer. The manufacturer makes customized products of two types: crowdsourcing products (CPs) and noncrowdsourcing products (NCPs), designed by crowdsourcees and the interfirm employees, respectively. We formulate a utility model composed of a pool of consumers who make utility maximizing choices. Utilizing this model, a supply chain framework related to ex ante joint online reviews is developed under the decentralized and centralized setting, to find the joint online review conditions under which the crowdsourcing solutions are accepted prior to putting into production, then derive the CP's and NCP's optimal demand and price and review level. Furthermore, comparison study is conducted concerning the three scenarios: without any online reviews, with only online reviews from consumers, and with joint online reviews from manufacturer and consumers, to examine the impacts of crowdsourcing, online reviews, and both interactions on supply chain performance. The results show, although public opinion suggests that increase in crowdsourcing customized degree facilitates widespread adoption of crowdsourcing design, we find some conditions impede firms from implementing it. Meanwhile, among different combinations of online reviews and decision-making settings, only in joint online reviews and centralized setting, the objective of selecting crowdsourcing design is aligned to maximizing the total supply chain's profit. Additionally, when the customized degree ratio is at a medium level, even if the CP demand is less than NCP, the manufacturer and the retailer gain more payoffs from CPs than from NCPs.

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Section: Literature Reviewmentioning

confidence: 83%

Product design crowdsourcing in a dual‐channel supply chain: joint reviews from manufacturer and consumers

Liu

2019

Int Trans Operational Res

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“…Based on some researches such as the references (Cai et al, 2018; Xiao, et al, 2011), the manufacturer's online demand is a linear function of the online retail price and offline retail price, the perceived quality of online reviews, and the return service. The retailer's offline demand is a linear function of the online retail price, offline retail price and the return service.…”

Section: A Coordination Mechanism Considering Online Reviews and Retu...mentioning

confidence: 99%

Decision analysis and coordination of dual supply chain with retailer's offline return service and online reviews

2022

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“…Consumers may have different perceptions of either positive or negative reviews ( Pekgün et al, 2018 ). With the effect of online reviews on customers' utility, Kwark et al (2014) and Cai et al (2018) examine the pricing strategies of different players in a supply chain. Some studies show that online reviews can be a promotional device, and provide marketing strategy suggestions to sellers ( Chen and Xie, 2005 ; Dellarocas, 2006 ; Mayzlin, 2006 ; Kuksov and Xie, 2010 ).…”

Section: Literature Reviewmentioning

confidence: 99%

The impact of online reviews in the presence of customer returns

Sun

Chen

Tian

et al. 2021

International Journal of Production Economics

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We develop a duopoly model to examine how online reviews influence the decisions of two competing online sellers who sell products of differentiated quality under different returns policies. We derive the competing sellers' optimal decisions on price and returns policy with and without online reviews, and we find that online reviews have greater impact on the high-quality seller than on the low-quality seller. If the salvage value of the product is relatively low, the seller has less opportunity to benefit from online reviews when it offers an MBG, as compared to a no-refund policy. The impact of online reviews on the competition between the two sellers has a “symmetric effect area,” where reviews may either weaken or intensify the price competition between the two sellers when they both offer a no-refund policy, but always intensify the competition if they both offer an MBG. We have identified the conditions under which online reviews lead to a win-win, or benefit one seller, or present a prisoner's dilemma for the two online sellers. We also show that MBGs at both sellers help mitigate the prisoner's dilemma if the net salvage value at both sellers is sufficiently high.

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Pricing Strategies in a Supply Chain with Multi-Manufacturer and a Common Retailer Under Online Reviews

Cited by 23 publications

References 21 publications

Product design crowdsourcing in a dual‐channel supply chain: joint reviews from manufacturer and consumers

Product design crowdsourcing in a dual‐channel supply chain: joint reviews from manufacturer and consumers

Decision analysis and coordination of dual supply chain with retailer's offline return service and online reviews

The impact of online reviews in the presence of customer returns

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