{"title":"Incentive strategies of an e-tailer considering online reviews: Rebates or services","authors":"Qing Zhang , Tiaojun Xiao","doi":"10.1016/j.elerap.2024.101453","DOIUrl":null,"url":null,"abstract":"<div><div>This paper mainly considers an e-tailer-Stackelberg supply chain and characterizes the formative processes and distinct impacts of positive reviews and negative reviews on consumer purchases. The e-tailer can adopt either a pre-sales strategy (i.e., service strategy) or an after-sales strategy (i.e., rebate strategy) to encourage consumer purchases and stimulate positive reviews. By studying the above two strategies, we show that: (1) positive reviews and negative ones will exert a synergistic adverse effect on price decisions. (2) Given the exogenous rebate and service levels, the service (rebate) strategy becomes optimal for the e-tailer if consumers are more (less) willing to leave positive reviews. Notably, the e-tailer should refrain from adopting any incentive strategy when consumers exhibit a moderate willingness to provide positive reviews. (3) When the e-tailer can determine rebate and service levels, it should adopt the service (rebate) strategy if the threshold for positive reviews is intermediate (very low or high).</div></div>","PeriodicalId":50541,"journal":{"name":"Electronic Commerce Research and Applications","volume":"68 ","pages":"Article 101453"},"PeriodicalIF":5.9000,"publicationDate":"2024-09-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Electronic Commerce Research and Applications","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S156742232400098X","RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
This paper mainly considers an e-tailer-Stackelberg supply chain and characterizes the formative processes and distinct impacts of positive reviews and negative reviews on consumer purchases. The e-tailer can adopt either a pre-sales strategy (i.e., service strategy) or an after-sales strategy (i.e., rebate strategy) to encourage consumer purchases and stimulate positive reviews. By studying the above two strategies, we show that: (1) positive reviews and negative ones will exert a synergistic adverse effect on price decisions. (2) Given the exogenous rebate and service levels, the service (rebate) strategy becomes optimal for the e-tailer if consumers are more (less) willing to leave positive reviews. Notably, the e-tailer should refrain from adopting any incentive strategy when consumers exhibit a moderate willingness to provide positive reviews. (3) When the e-tailer can determine rebate and service levels, it should adopt the service (rebate) strategy if the threshold for positive reviews is intermediate (very low or high).
期刊介绍:
Electronic Commerce Research and Applications aims to create and disseminate enduring knowledge for the fast-changing e-commerce environment. A major dilemma in e-commerce research is how to achieve a balance between the currency and the life span of knowledge.
Electronic Commerce Research and Applications will contribute to the establishment of a research community to create the knowledge, technology, theory, and applications for the development of electronic commerce. This is targeted at the intersection of technological potential and business aims.