A Research on Platform-Selling Mode Selection Considering Optimal Pricing and Quality Decision

doi:10.3969/j.issn.1007-7375.2021.03.002

Abstract

Abstract: In order to study e-commerce platform and the manufacturer's choice of product selling mode, four mathematical models, the reselling and the agency selling model with product quality endogenous and quality exogenous respectively, are set up. The optimal pricing and quality strategies are formulated through backward induction. And the validity of main results is verified through a numerical analysis. The results indicate that the platform marginal operating costs and market heterogeneity codetermine the market coverage. The platform and the manufacturer can choose the optimal selling strategy according to different sales environments. When the product quality is exogenous, the platform and the manufacturer make the same retailing price, and are in conflict with each other in the choice of product selling mode. With endogenous quality, when the marginal operating cost of the platform is low and the market consumer heterogeneity is large, both the platform and the manufacturer choose the agency selling mode, and both realize Pareto improvement.

Key words: e-commerce platform, product quality, pricing, selling mode

CLC Number:

F272

GUAN Zhenzhong, HUANG Qiujie, ZHANG Aifeng. A Research on Platform-Selling Mode Selection Considering Optimal Pricing and Quality Decision[J]. Industrial Engineering Journal, 2021, 24(3): 10-17.

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