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Title

Coordination of traditional and online group-buying channels considering website promotion effort

Author(s)

  Wu y. | Li d. | Li t.

Pages

  2069-2092

Abstract

 The development of modern technology and e-commerce has given rise to the emergence of many new selling channels, among which Group buying has managed to attract numerous new customers rapidly because of such features as good discounts and great convenience. Although a good discount scheme creates sales growth for sellers, it also causes loss in their pro t margins. Meanwhile, the business model of group-buying websites is not thoroughly explored in literature. Based on a Stackelberg game framework, this paper studies the equilibrium between a group-buying website and a seller. The optimal pricing and channel decisions of the seller and the optimal group-buying pricing and promotion e ort decisions for the website were investigated to offer guidance for their businesses. It was found that the total profit of the whole system could be hurt when the agreement price or revenue-sharing contracts were adopted by the firms. A revenue-cost sharing contract was proposed that could coordinate the total profit. Finally, this study shows how the scale of the seller and the website and the unit cost can affect optimal decisions in equilibrium.

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    APA: Copy

    WU, Y., LI, D., & LI, T.. (2020). Coordination of traditional and online group-buying channels considering website promotion effort. SCIENTIA IRANICA, 27(4 (Transactions E: Industrial Engineering)), 2069-2092. SID. https://sid.ir/paper/977819/en

    Vancouver: Copy

    WU Y., LI D., LI T.. Coordination of traditional and online group-buying channels considering website promotion effort. SCIENTIA IRANICA[Internet]. 2020;27(4 (Transactions E: Industrial Engineering)):2069-2092. Available from: https://sid.ir/paper/977819/en

    IEEE: Copy

    Y. WU, D. LI, and T. LI, “Coordination of traditional and online group-buying channels considering website promotion effort,” SCIENTIA IRANICA, vol. 27, no. 4 (Transactions E: Industrial Engineering), pp. 2069–2092, 2020, [Online]. Available: https://sid.ir/paper/977819/en

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