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author:

Cheng, Xianghui (Cheng, Xianghui.) [1] | Deng, Shiming (Deng, Shiming.) [2] | Jiang, Xuan (Jiang, Xuan.) [3] | Li, Yanhai (Li, Yanhai.) [4]

Indexed by:

EI Scopus SCIE

Abstract:

This paper considers three promotion scenarios, namely seller-leading promotion, platform-leading pro-motion, and no-leader promotion, and reveals the optimal strategy and decision patterns for these three scenarios using a stylised model and lab experiments. We focus on three research questions for the seller and platform as follows: (1) Which is the optimal choice between unilateral and bilateral promotion un-der different promotion scenarios? (2) How will the promotion scenarios affect their joint promotion? (3) To a seller/platform, is it always better to proactively initiate promotion event? Result shows that the optimal promotion strategy varies from Seller Promotion Only to joint promotion and then to Platform Promotion Only, along with an increasing commission rate. Joint promotion is optimal only when the commission rate is moderate and when the product's list price is relatively high. The promotion scenario affects the scope and intensity of joint promotion and the profit of the entities. The joint promotion leader has the first-mover advantage, which helps him/her offer fewer coupons but obtain higher profits. To a platform or seller, launching promotion events proactively is not always the best choice. Experi-ments show that the subjects behaved as predicted. Moreover, the subjects demonstrate distinct decision patterns under different promotion scenarios. Ultimately, our conclusions can provide valuable decision -making guidance to marketing managers in the online marketplace. They can also choose appropriate scenarios on the basis of certain promotion objectives with knowing decision patterns under each sce-nario. (c) 2022 Elsevier B.V. All rights reserved.

Keyword:

Behavioural experiment Coupon E-commerce Joint promotion Online marketplace

Community:

  • [ 1 ] [Cheng, Xianghui]Huazhong Univ Sci & Technol, Sch Management, Wuhan 430074, Peoples R China
  • [ 2 ] [Deng, Shiming]Huazhong Univ Sci & Technol, Sch Management, Wuhan 430074, Peoples R China
  • [ 3 ] [Jiang, Xuan]Zhongnan Univ Econ & Law, Sch Business Adm, Wuhan 430074, Peoples R China
  • [ 4 ] [Li, Yanhai]Fuzhou Univ, Sch Econ & Management, Fuzhou 350108, Peoples R China

Reprint 's Address:

  • [Jiang, Xuan]Zhongnan Univ Econ & Law, Sch Business Adm, Wuhan 430074, Peoples R China;;

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Source :

EUROPEAN JOURNAL OF OPERATIONAL RESEARCH

ISSN: 0377-2217

Year: 2023

Issue: 3

Volume: 306

Page: 1264-1278

6 . 0

JCR@2023

6 . 0 0 0

JCR@2023

ESI Discipline: ENGINEERING;

ESI HC Threshold:35

JCR Journal Grade:1

CAS Journal Grade:2

Cited Count:

WoS CC Cited Count: 0

SCOPUS Cited Count: 8

ESI Highly Cited Papers on the List: 0 Unfold All

WanFang Cited Count:

Chinese Cited Count:

30 Days PV: 0

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