Quality and distribution channel selection on a hybrid platform

Luo, Huajiang; Ling, Zhong; Nie, Jiajia

doi:10.1016/j.tre.2022.102750

Cited by 47 publications

(22 citation statements)

References 44 publications

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“…The rise of many e‐commerce platforms, such as Amazon, Taobao, and JD.COM, has triggered research into e‐commerce platform supply chains. Luo et al (2022) studied the choice of quality and distribution channels on a hybrid online platform and quantity competition model. Huang et al (2023) discussed the strategic introduction and sales format selection of private brands in an online retail platform environment.…”

Section: Literature Reviewmentioning

confidence: 99%

Manufacturer's channel strategy in live streaming E‐commerce supply chain

Ma,

Yang

2024

Manage Decis Econ

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This study investigates the manufacturer's live streaming sales strategy. Considering the vertical differences in products, we build a live streaming sales model for an e‐commerce supply chain. We examined different live streaming channel strategies for the manufacturer, with the base strategy being no live streaming sales and the manufacturer only reselling a high‐quality product on the e‐commerce platform. The manufacturer's strategies for choosing live streaming include selling a high‐ or low‐quality product on independent and e‐commerce platform channels. We solve the solutions under different scenarios, comparing the equilibrium solutions and discussing the impact of live streaming under different channel models. We find that live streaming channel encroachment by the manufacturer can achieve a win–win situation for both the manufacturer and e‐commerce platform, and the encroachment of a low‐quality product can achieve a larger win–win situation. In the independent live streaming channel, the manufacturer chooses to sell a high‐quality product under the quality and cost advantages. In the e‐commerce platform's live streaming channel, the presence of commissions further influences the manufacturer's strategy. In the extended model, we analyze the spillover effect of live streaming sales. A multi‐agent‐based simulation model is developed to validate the conclusions of the main model.

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Section: Literature Reviewmentioning

confidence: 99%

Manufacturer's channel strategy in live streaming E‐commerce supply chain

Ma,

Yang

2024

Manage Decis Econ

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“…Thus, there are three possible channel structures on the platform: agency channel (Structure A), reselling channel (Structure R) and dual channel (Structure D). In the agency channel, the manufacturer sells the product directly to consumers and pays the platform a commission rate, r, which is assumed to be exogenous, as it is usually set by category before the platform signs a contract with the manufacturer (Ha et al ., 2022a, b; Luo et al , 2022). In addition, based on the current level of commission rates [1] and reflecting the fact that the manufacturer retains most of her revenue, we assume that 0<r≤0.3.…”

Section: Model Setupmentioning

confidence: 99%

“…Ha et al (2022a) examine a manufacturer's encroachment decision through the agency channel in the presence of an existing reselling channel on the same platform. Luo et al (2022) explore how a manufacturer's channel choice is influenced by product quality when selling through a platform. Ha et al (2022b) investigate the channel selection of a manufacturer and an online retail platform when the latter engages in service efforts to increase demand and derive those conditions under which a dual-channel structure emerges in equilibrium.…”

Section: Literature Reviewmentioning

confidence: 99%

“…In this subsection, we examine the scheme in which the manufacturer advertises alone. We assume that under Structure D, the manufacturer's sales volume is determined after that of the platform because she can adjust her sales volume after receiving orders from the platform and thus gain greater revenue (Ha et al , 2022b; Luo et al , 2022).…”

Section: Equilibrium Channel Choice Under Different Advertising Schemesmentioning

confidence: 99%

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Advertising strategy and channel structure selection on an online retail platform

Daibing

Liu²

2023

IMDS

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PurposeThis paper considers a supply chain with a manufacturer (she) selling through an online retail platform (he) and studies the channel structure choices of two firms when investing in advertising.Design/methodology/approachThe authors assume that the platform provides the manufacturer with an agency and/or reselling channel; thus, there are three possible channel structures: agency channel, reselling channel and dual channel. By developing a game-theoretic model, the authors investigate the channel structure choices of two firms when advertising separately, simultaneously and cooperatively and analyze the optimal combination strategy of channel structure and advertising scheme for both firms.FindingsWhen the advertising efforts of the two firms are independent of each other, the equilibrium results show that different advertising schemes lead to different channel choices. For the manufacturer, it is optimal to choose the dual channel structure and adopt the advertising scheme that both subsidizes platform advertising and advertises on her own. For the platform, this combination is also optimal at a high commission rate; otherwise, the advertising scheme in which both firms advertise simultaneously is optimal and he is better off switching from the dual channel structure to the reselling channel structure as interchannel substitution intensity increases. The above results still hold for complementary advertising efforts and asymmetric marginal advertising costs, while in the case of substitutable advertising efforts, one firm may ride on another firm's advertising efforts, leading to different strategic combinations.Originality/valueThis paper not only provides useful guidance for manufacturers and platforms in channel selection and advertising strategy, but also theoretically enriches the literature on manufacturer encroachment.

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“…It is well-known that most leading online platforms operate with two selling modes, i.e. reselling and marketplace (Tian et al ., 2018; Shen et al ., 2019; Yenipazarli, 2021; Luo et al ., 2022; Ha et al ., 2022). In the former mode, the online platform act as the traditional reseller, i.e.…”

Section: Introductionmentioning

confidence: 99%

Marketplace or reseller: the channel strategy analysis for e-commerce platforms considering brand differentiation

Shi

et al. 2023

IMDS

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PurposeThe paper aims to clarify the effects of brand differentiation on the platform's formulation of channel strategy and help the online platform formulate the optimal channel strategy, which involves selecting a proper selling mode for each brand.Design/methodology/approachThe paper develops a multistage game model consisting of one online platform and two competing manufacturers with differentiated brands and examines the effects of brand differentiation on these three channel members' profits under each candidate channel strategy.FindingsThe results show that the platform prefers to offer the reselling mode for both brands when the brand differentiation is low, and this preference will be enhanced by the decrease in order fulfilment cost. By contrast, when the brand differentiation is high, it will offer the reselling mode for the premium brand but the marketplace service for the economy brand if the order fulfilment cost is not high; or the marketplace mode will be offered to both brands if this cost is high.Research limitations/implicationsThis study assumes that the order fulfilment costs of platform and manufacturer are fixed and symmetric. Therefore, researchers are encouraged to consider asymmetric costs of order fulfilment.Practical implicationsThe paper guides the online platform to formulate the optimal channel strategy for differentiated brands and provides managerial insights for differentiated brands entering online markets.Originality/valueThis paper explores platforms' optimal channel strategy by jointly considering the effects of brand differentiation and investigates the impacts of brand differentiation on the optimal decision making under four candidate options. Moreover, this paper has been extended to examine the case when the manufacturers' production costs cannot be neglected.

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Quality and distribution channel selection on a hybrid platform

Cited by 47 publications

References 44 publications

Manufacturer's channel strategy in live streaming E‐commerce supply chain

Manufacturer's channel strategy in live streaming E‐commerce supply chain

Advertising strategy and channel structure selection on an online retail platform

Marketplace or reseller: the channel strategy analysis for e-commerce platforms considering brand differentiation

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