{"title":"Platform's premium store brand introduction and sales mode selection strategies with the cost-advantageous manufacturer","authors":"Xiankun Peng , Zehua Xiang , Ting Ji","doi":"10.1016/j.jretconser.2024.104190","DOIUrl":null,"url":null,"abstract":"<div><div>The rapid growth of the platform economy has prompted e-commerce giants to introduce store brands (SBs), which can significantly affect supply chain participants. This study examines a market where a dominant platform must decide whether to introduce its SB and which sales mode to offer to the upstream national brand (NB) manufacturer. We analyze the interplay between these two strategic decisions, taking into account the platform's production inefficiency. First, the platform is inclined to introduce an SB if it is cost-efficient, and is more likely to do so when the NB is sold through the agency mode. Counterintuitively, the SB does not necessarily undermine the NB manufacturer in the reselling mode, particularly when the product substitutability degree is low and the production cost is moderate. Second, the platform consistently favors the reselling mode when no SB is present; however, in the presence of an SB, it prefers the agency mode if the commission fee is moderate. Third, we characterize the overall equilibrium strategy combinations and analyze how they change with key market parameters. Finally, we investigate two model extensions to assess the robustness of our primary results.</div></div>","PeriodicalId":48399,"journal":{"name":"Journal of Retailing and Consumer Services","volume":"84 ","pages":"Article 104190"},"PeriodicalIF":11.0000,"publicationDate":"2024-12-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Retailing and Consumer Services","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0969698924004867","RegionNum":1,"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
The rapid growth of the platform economy has prompted e-commerce giants to introduce store brands (SBs), which can significantly affect supply chain participants. This study examines a market where a dominant platform must decide whether to introduce its SB and which sales mode to offer to the upstream national brand (NB) manufacturer. We analyze the interplay between these two strategic decisions, taking into account the platform's production inefficiency. First, the platform is inclined to introduce an SB if it is cost-efficient, and is more likely to do so when the NB is sold through the agency mode. Counterintuitively, the SB does not necessarily undermine the NB manufacturer in the reselling mode, particularly when the product substitutability degree is low and the production cost is moderate. Second, the platform consistently favors the reselling mode when no SB is present; however, in the presence of an SB, it prefers the agency mode if the commission fee is moderate. Third, we characterize the overall equilibrium strategy combinations and analyze how they change with key market parameters. Finally, we investigate two model extensions to assess the robustness of our primary results.
期刊介绍:
The Journal of Retailing and Consumer Services is a prominent publication that serves as a platform for international and interdisciplinary research and discussions in the constantly evolving fields of retailing and services studies. With a specific emphasis on consumer behavior and policy and managerial decisions, the journal aims to foster contributions from academics encompassing diverse disciplines. The primary areas covered by the journal are:
Retailing and the sale of goods
The provision of consumer services, including transportation, tourism, and leisure.