Zhi-jian Zhang, Chao-hao Li, Guang-quan Li, Ya-di Zhou, Mi-yu Wan
{"title":"Advance-selling strategies under platform competition","authors":"Zhi-jian Zhang, Chao-hao Li, Guang-quan Li, Ya-di Zhou, Mi-yu Wan","doi":"10.1177/03128962241265407","DOIUrl":null,"url":null,"abstract":"With the competition between e-commerce platforms intensifying, advance-selling has gradually become a mainstream marketing strategy. This article establishes a mathematical model of competition between two platforms and retailers, considering four scenarios: spot-sale only, advance-selling only, spot-sale with coupons, advance-selling with coupons. The study explores the impact mechanism of platform competition on advance-selling strategies. The results show that when the advantage of product evaluation is large, the unit transaction cost is small or the product cost is low, the retailers should actively adopt the advance-selling scheme with discount pricing. Compared with low-value products, high-value products are priced higher and have greater demand, which can bring higher revenue to the retailers and the platforms. The benefits of the advance-selling scheme are limited, but the issuance of coupons could increase the revenue of both platforms and retailers, and the value of platform coupons in the spot-sale market is higher.JEL Classification: L81, C79","PeriodicalId":47209,"journal":{"name":"Australian Journal of Management","volume":null,"pages":null},"PeriodicalIF":2.0000,"publicationDate":"2024-08-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Australian Journal of Management","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1177/03128962241265407","RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
With the competition between e-commerce platforms intensifying, advance-selling has gradually become a mainstream marketing strategy. This article establishes a mathematical model of competition between two platforms and retailers, considering four scenarios: spot-sale only, advance-selling only, spot-sale with coupons, advance-selling with coupons. The study explores the impact mechanism of platform competition on advance-selling strategies. The results show that when the advantage of product evaluation is large, the unit transaction cost is small or the product cost is low, the retailers should actively adopt the advance-selling scheme with discount pricing. Compared with low-value products, high-value products are priced higher and have greater demand, which can bring higher revenue to the retailers and the platforms. The benefits of the advance-selling scheme are limited, but the issuance of coupons could increase the revenue of both platforms and retailers, and the value of platform coupons in the spot-sale market is higher.JEL Classification: L81, C79
期刊介绍：
The objectives of the Australian Journal of Management are to encourage and publish research in the field of management. The terms management and research are both broadly defined. The former includes the management of firms, groups, industries, regulatory bodies, government, and other institutions. The latter encompasses both discipline- and problem-based research. Consistent with the policy, the Australian Journal of Management publishes research in accounting, applied economics, finance, industrial relations, political science, psychology, statistics, and other disciplines, provided the application is to management, as well as research in areas such as marketing, corporate strategy, operations management, organisation development, decision analysis, and other problem-focuses paradigms.
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