Journal
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
Volume 307, Issue 3, Pages 1117-1134Publisher
ELSEVIER
DOI: 10.1016/j.ejor.2022.09.021
Keywords
Supply chain management; Live streaming selling; Consumer returns; Resale; Agency sale
Ask authors/readers for more resources
The rise of live streaming selling has revolutionized the retail industry, causing platform-based retailers to face choices in sales formats and marketing decisions. This study establishes live streaming selling models with two sales formats (resale and agency sale) and three pricing strategies (same high, same low, and differential strategies). The impacts of consumer returns in live streaming selling are explored, and it is found that the resale format may be a better choice for both the platform and the supplier when considering consumer returns.
The rise of live streaming selling has brought a revolution to the retail industry. The supply chain with platform-based retailing is faced with choice of sales formats and marketing decisions. We establish live streaming selling models with two sales formats of resale and agency sale, and three pricing strategies of same high, same low and differential strategies (HH, LL and D). We further explore the impacts of con-sumer returns, as they are typically higher in live streaming selling. Conventional wisdom believes that agency sale format can reduce double marginalization and benefit both the platform and the supplier, which cannot be achieved in resale format. Interestingly, our study shows that resale format may be-come a better choice for both the platform and the supplier when considering the impacts of consumer returns. This result holds in pricing strategies HH and D, where the key driver of sales format choice in strategy HH is commission rate while it is consumer's low valuation in strategy D. In strategy LL, resale is the supplier's preferred format and agency sale is better for the platform. Furthermore, we find with agency sale format, equilibrium pricing strategies HH and LL always exist; while with the resale format, equilibrium strategy HH exists only when considering consumer returns. Finally, we discuss the hybrid sales formats with and without price competition, and extend our models to encompass more scenarios.(c) 2022 Elsevier B.V. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available