Joonhyuk Yang, Navdeep S. Sahni, Harikesh S. Nair, Xi Xiong
This paper evaluates the role of advertising as information in designing platform search engines.
本文评估了广告作为信息在平台搜索引擎设计中的作用。
{"title":"Advertising as Information for Ranking E-Commerce Search Listings","authors":"Joonhyuk Yang, Navdeep S. Sahni, Harikesh S. Nair, Xi Xiong","doi":"10.2139/ssrn.3895782","DOIUrl":"https://doi.org/10.2139/ssrn.3895782","url":null,"abstract":"This paper evaluates the role of advertising as information in designing platform search engines.","PeriodicalId":370988,"journal":{"name":"eBusiness & eCommerce eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129372157","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper analyzes a two-stage auction inspired by price negotiations in Facebook Group Marketplace. In the proposed auctions, the buyer collects the first-round offers of the sellers, and confronts the set of sellers who asked for the second lowest,third lowest,fourth lowest amount etc... with the lowest price offer received. The buyer decides the set of sellers based on the quality of the product that can be seen using the distribution function of the common value and try to minimize the delivery cost and comparing with the lowest bid price in the first round as well.This is because the true valuation is not know to the buyer and the seller. These negotiating tactics is proposed to be optimal in some sense. The sellers respond to this negotiating tactic by inferring the buyer's valuation and somehow revise the offer less than the first round.In the end the buyer decide the best sellers comparing the first best bid and the set f revised bids.The paper derives a theoretical model, along with a piece of empirical evidence, of the determination of prices at which a seller sells objects in the "Facebook Group Marketplace" using an adaptive price mechanism and a sequential reverse auction model. This is an informal marketplace and has been developed by Facebook users. The paper considers the single object demand case. In the end, the paper explains the model empirically. The interesting part of this auction process is that both the buyer and the seller have the private information to exploit each other. Hence, no one is in an advantageous position. The paper gives a mechanism to sell the indivisible object in an asymmetry auction. Especially, tries to answer the question of the fact that, if buyers in an auction are uncertain about the value of the item being sold, how will the seller set a bid in the reverse auction mechanism?Buyers do not always know exactly how much they value a good. An adoptive price mechanism has been proposed here so that different bids can be set to heterogeneous buyers.
本文分析了Facebook Group Marketplace中受价格谈判启发的两阶段拍卖。在提议拍卖中，买方收集卖方的第一轮报价，并面对要求第二低、第三低、第四低等价格的卖方。以收到的最低价格报价。买方根据共同价值的分布函数所能看到的产品质量来决定卖方的集合，并尽量使交货成本最小化，并与第一轮的最低出价进行比较。这是因为买卖双方都不知道真正的估价。这些谈判策略在某种意义上是最优的。卖方对这种谈判策略的反应是推断买方的估值，并以某种方式修改报价，低于第一轮。最后由买方比较第一个最佳出价和修改后的一组出价，确定最佳卖家。本文导出了一个理论模型，并结合了一些经验证据，利用自适应价格机制和顺序反向拍卖模型，确定了卖家在“Facebook Group Marketplace”中出售物品的价格。这是一个由Facebook用户开发的非正式市场。本文考虑单对象需求情况。最后，对模型进行了实证解释。这个拍卖过程的有趣之处在于，买卖双方都有可以利用对方的私人信息。因此，没有人处于有利地位。本文给出了不对称拍卖中不可分割物品的出售机制。特别是，试图回答这样一个事实:如果拍卖中的买方不确定被出售物品的价值，卖方将如何在反向拍卖机制中设定出价?买家并不总是确切知道他们对一件商品的价值。本文提出了一种采用价格机制，以便为异质买家设定不同的出价。
{"title":"Adaptive Price Mechanism and a Sequential Reverse Auction Model in Social Commerce","authors":"Dipankar Das","doi":"10.2139/ssrn.3896318","DOIUrl":"https://doi.org/10.2139/ssrn.3896318","url":null,"abstract":"This paper analyzes a two-stage auction inspired by price negotiations in Facebook Group Marketplace. In the proposed auctions, the buyer collects the first-round offers of the sellers, and confronts the set of sellers who asked for the second lowest,third lowest,fourth lowest amount etc... with the lowest price offer received. The buyer decides the set of sellers based on the quality of the product that can be seen using the distribution function of the common value and try to minimize the delivery cost and comparing with the lowest bid price in the first round as well.This is because the true valuation is not know to the buyer and the seller. These negotiating tactics is proposed to be optimal in some sense. The sellers respond to this negotiating tactic by inferring the buyer's valuation and somehow revise the offer less than the first round.In the end the buyer decide the best sellers comparing the first best bid and the set f revised bids.The paper derives a theoretical model, along with a piece of empirical evidence, of the determination of prices at which a seller sells objects in the \"Facebook Group Marketplace\" using an adaptive price mechanism and a sequential reverse auction model. This is an informal marketplace and has been developed by Facebook users. The paper considers the single object demand case. In the end, the paper explains the model empirically. The interesting part of this auction process is that both the buyer and the seller have the private information to exploit each other. Hence, no one is in an advantageous position. The paper gives a mechanism to sell the indivisible object in an asymmetry auction. Especially, tries to answer the question of the fact that, if buyers in an auction are uncertain about the value of the item being sold, how will the seller set a bid in the reverse auction mechanism?Buyers do not always know exactly how much they value a good. An adoptive price mechanism has been proposed here so that different bids can be set to heterogeneous buyers.","PeriodicalId":370988,"journal":{"name":"eBusiness & eCommerce eJournal","volume":"12 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127631496","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We have witnessed an increasing number of mergers and acquisitions (M&A) between two-sided digital platforms, generally involving a unidirectional resource transfer policy from the acquired to the acquiring platform. This scenario may incur an asymmetric network effect that has not been explored in the extant literature. Using a unique dataset from Dianping and Meituan, two digital platforms similar to Yelp, we explore whether and how the unidirectional data integration policy causes a positive network effect, as reflected by the increments of user engagement on each side of the M&A. We measure user engagement in two dimensions, namely, quantity measures (e.g., number of total reviews) and quality measures (e.g., number of reviews with pictures and length of review). The results show that the policy enhances both measures of user engagement for the acquired and acquiring platforms but that its effects on user engagement on the acquiring platform are larger than those on the acquired platform. We propose three mechanisms: the network size effect, self-image management effect, and social learning effect to explain the possible impacts of platform integration on user engagement, and we conduct single-group interrupted time-series analyses to test the effects. We further conduct three sets of supplementary analyses. We find that, first, the policy not only expands its user base but also boosts the contribution enthusiasm of current users. Second, we clarify how the benefits of platform integration are shaped by merchant features such as per capita consumption and whether a merchant has chain stores. Third, we focus on the multi-homing phenomenon of merchants and find that multi-homing merchants benefit more from platform integration. The findings of this study deepen our understanding of the connections between unidirectional resource transfer and the asymmetric network effect in the context of the integration of two digital platforms.
{"title":"Asymmetric Network Effects in the Integration of Digital Platforms","authors":"Zhijun Yan, Hangzhou Yang, Lin Jia, Yong Tan","doi":"10.2139/ssrn.3871279","DOIUrl":"https://doi.org/10.2139/ssrn.3871279","url":null,"abstract":"We have witnessed an increasing number of mergers and acquisitions (M&A) between two-sided digital platforms, generally involving a unidirectional resource transfer policy from the acquired to the acquiring platform. This scenario may incur an asymmetric network effect that has not been explored in the extant literature. Using a unique dataset from Dianping and Meituan, two digital platforms similar to Yelp, we explore whether and how the unidirectional data integration policy causes a positive network effect, as reflected by the increments of user engagement on each side of the M&A. We measure user engagement in two dimensions, namely, quantity measures (e.g., number of total reviews) and quality measures (e.g., number of reviews with pictures and length of review). The results show that the policy enhances both measures of user engagement for the acquired and acquiring platforms but that its effects on user engagement on the acquiring platform are larger than those on the acquired platform. We propose three mechanisms: the network size effect, self-image management effect, and social learning effect to explain the possible impacts of platform integration on user engagement, and we conduct single-group interrupted time-series analyses to test the effects. We further conduct three sets of supplementary analyses. We find that, first, the policy not only expands its user base but also boosts the contribution enthusiasm of current users. Second, we clarify how the benefits of platform integration are shaped by merchant features such as per capita consumption and whether a merchant has chain stores. Third, we focus on the multi-homing phenomenon of merchants and find that multi-homing merchants benefit more from platform integration. The findings of this study deepen our understanding of the connections between unidirectional resource transfer and the asymmetric network effect in the context of the integration of two digital platforms.","PeriodicalId":370988,"journal":{"name":"eBusiness & eCommerce eJournal","volume":"47 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-06-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115114794","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In the COVID-19 pandemic period, online shopping has increased in Nepal due to access to internet at low cost. This is true that COVID-19 is somehow reshaping consumer buying behavior. The research shows that respondents are moderately positive towards online purchase too. However, the consumer feels that there are still many issues and problems associated with online purchase in Nepal i.e. credibility of goods, quality assurance, brand configuration etc. Although customers prefer to buy via online system, they are not happy on it because of poor service, lack of timelines etc. As the emerging business of online trading is increasing and ever increasing, the policy, legislation and other best practices should be issued and implemented. If problems and issues related to online purchase is not solved immediately then some drastic changes will not happen in E-commerce Industry. Once the pandemic is over and life of people is normal, people will be back to showroom visits. It would be better to promote online buy and sell with quality assurance and protection of consumer.
{"title":"Is COVID-19 Reshaping Consumer Buying Behavior? Understanding the Problems and Issues of Online Purchase in Nepal","authors":"Jyoti Koirala, Suman Acharya, Nimananda Rijal","doi":"10.2139/ssrn.3857578","DOIUrl":"https://doi.org/10.2139/ssrn.3857578","url":null,"abstract":"In the COVID-19 pandemic period, online shopping has increased in Nepal due to access to internet at low cost. This is true that COVID-19 is somehow reshaping consumer buying behavior. The research shows that respondents are moderately positive towards online purchase too. However, the consumer feels that there are still many issues and problems associated with online purchase in Nepal i.e. credibility of goods, quality assurance, brand configuration etc. Although customers prefer to buy via online system, they are not happy on it because of poor service, lack of timelines etc. As the emerging business of online trading is increasing and ever increasing, the policy, legislation and other best practices should be issued and implemented. If problems and issues related to online purchase is not solved immediately then some drastic changes will not happen in E-commerce Industry. Once the pandemic is over and life of people is normal, people will be back to showroom visits. It would be better to promote online buy and sell with quality assurance and protection of consumer.","PeriodicalId":370988,"journal":{"name":"eBusiness & eCommerce eJournal","volume":"51 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127967042","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Matched product data is collected from the leading online grocers in the U.S. The same exact products are identified in scanner data. The paper documents pricing strategies within and across online (and offline) retailers. First, online retailers exhibit substantially less uniform pricing than offline retailers. Second, online price differentiation across competing chains in narrow geographies is higher than offline retailers. Third, variation in offline elasticities, shipping distance, pricing frequency, and local demographics are utilized to explain price differentiation. Surprisingly, pricing technology (across time) magnifies price differentiation (across locations). This evidence motivates a high-frequency study to unpack the patterns of algorithmic pricing. The data shows that algorithms: personalize prices at the delivery zipcode level, update prices very frequently and in tiny magnitudes, reduce price synchronization, exhibit lower menu costs, constantly explore the price grid, and often match competitors' prices.
{"title":"The Pricing Strategies of Online Grocery Retailers","authors":"Diego Aparicio, Zachary Metzman, R. Rigobón","doi":"10.2139/ssrn.3825579","DOIUrl":"https://doi.org/10.2139/ssrn.3825579","url":null,"abstract":"Matched product data is collected from the leading online grocers in the U.S. The same exact products are identified in scanner data. The paper documents pricing strategies within and across online (and offline) retailers. First, online retailers exhibit substantially less uniform pricing than offline retailers. Second, online price differentiation across competing chains in narrow geographies is higher than offline retailers. Third, variation in offline elasticities, shipping distance, pricing frequency, and local demographics are utilized to explain price differentiation. Surprisingly, pricing technology (across time) magnifies price differentiation (across locations). This evidence motivates a high-frequency study to unpack the patterns of algorithmic pricing. The data shows that algorithms: personalize prices at the delivery zipcode level, update prices very frequently and in tiny magnitudes, reduce price synchronization, exhibit lower menu costs, constantly explore the price grid, and often match competitors' prices.","PeriodicalId":370988,"journal":{"name":"eBusiness & eCommerce eJournal","volume":"331 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116235265","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The purpose of this study is to find out the changes that occur to Qlapa. Qlapa was founded on November 1, 2015, founded by Benny Fajarai (also noted as Founder of Kreavi) and Fransiskus Xaverius who is a graduate of Silicon Valley technology companies, such as Google. Qlapa is one of the e-commerce that focuses on Indonesian children's handicraft products ranging from ornaments, hangers, paintings, wooden furniture, jewelry, leather wallets, and other handicraft products directly from the maker. Since the beginning Qlapa itself was founded with the aim to help advance and empower the creativity of home craftsmen by introducing it through the internet. Qlapa itself uses SWOT method, strategic planning method to evaluate factors that are influential in trying to achieve the goal, namely strengths, weaknesses, opportunities,and threats,both short-term and long-term goals.
{"title":"Effect of Management Change and Development on Qlapa","authors":"Astri Marliyana","doi":"10.2139/ssrn.3814117","DOIUrl":"https://doi.org/10.2139/ssrn.3814117","url":null,"abstract":"The purpose of this study is to find out the changes that occur to Qlapa. Qlapa was founded on November 1, 2015, founded by Benny Fajarai (also noted as Founder of Kreavi) and Fransiskus Xaverius who is a graduate of Silicon Valley technology companies, such as Google. Qlapa is one of the e-commerce that focuses on Indonesian children's handicraft products ranging from ornaments, hangers, paintings, wooden furniture, jewelry, leather wallets, and other handicraft products directly from the maker. Since the beginning Qlapa itself was founded with the aim to help advance and empower the creativity of home craftsmen by introducing it through the internet. <br>Qlapa itself uses SWOT method, strategic planning method to evaluate factors that are influential in trying to achieve the goal, namely strengths, weaknesses, opportunities,and threats,both short-term and long-term goals.","PeriodicalId":370988,"journal":{"name":"eBusiness & eCommerce eJournal","volume":"141 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116278408","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Privacy regulations in online markets have ramped up in recent years, as typified by government regulation, such as the California Consumer Privacy Act (CCPA) of 2020, which allowed internet users in California to “opt-out” of behavioral tracking; as well as firm-level initiatives such as the banning of third-party cookies by major internet browsers, including Apple’s Safari and (in 2022) Google’s Chrome. Using fine-grained data from Yahoo, we estimate a structural model of bidding among Demand-Side Plat- forms (DSPs) for different types of users. Using the estimates, we simulate the counterfactual effects of expanding privacy regulations, in particular banning third-party cookies by browsers. While, as expected, such a ban would reduce publisher revenue substantially, by around 30%, it also shifts business to larger DSPs. In addition, we also consider the scenario where, in the aforementioned ban, there exists an advantaged DSP which possesses proprietary first-party information on users.
{"title":"The Impact of Privacy Measures on Online Advertising Markets","authors":"Miguel Alcobendas, Shunto Kobayashi, M. Shum","doi":"10.2139/ssrn.3782889","DOIUrl":"https://doi.org/10.2139/ssrn.3782889","url":null,"abstract":"Privacy regulations in online markets have ramped up in recent years, as typified by government regulation, such as the California Consumer Privacy Act (CCPA) of 2020, which allowed internet users in California to “opt-out” of behavioral tracking; as well as firm-level initiatives such as the banning of third-party cookies by major internet browsers, including Apple’s Safari and (in 2022) Google’s Chrome. Using fine-grained data from Yahoo, we estimate a structural model of bidding among Demand-Side Plat- forms (DSPs) for different types of users. Using the estimates, we simulate the counterfactual effects of expanding privacy regulations, in particular banning third-party cookies by browsers. While, as expected, such a ban would reduce publisher revenue substantially, by around 30%, it also shifts business to larger DSPs. In addition, we also consider the scenario where, in the aforementioned ban, there exists an advantaged DSP which possesses proprietary first-party information on users.","PeriodicalId":370988,"journal":{"name":"eBusiness & eCommerce eJournal","volume":"88 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-02-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124769523","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
During the COVID-19 pandemic, there has been a surge in online shopping and e-commerce activities as governments imposed social isolation orders and consumers were advised to avoid large crowds and limit physical interactions. Building upon the notion of trust and digital safety in online activities, we develop a new construct to measure consumers’ health and safety concerns and examine its impact on online shopping and e-commerce activities. We collected primary data from a self-administered survey examining whether and how e-commerce and online shopping activities changed during the COVID-19 pandemic outbreak in Vietnam. We identify factors that are associated with increases in online shopping and e-commerce activities during the period and study firms’ reconfiguration of businesses and services to cope with consumers’ behavioral changes. We show that online “connectedness” and Technology Readiness are important factors that drive the increases in online shopping during the pandemic. More importantly, after controlling for these factors, health and safety concerns also have a positive influence, and the impact is stronger for elder consumers compared to the younger ones. Our empirical findings are validated by companies’ practices, showing that businesses and services could survive and even benefit from this difficult pandemic period by quickly reinventing themselves to better address customers’ health and safety concerns. Our results also suggest promising signs for the post-pandemic recovery and even expansion as firms should leverage the increasing trend of elder consumers, who are more vulnerable and concerned about health and safety but traditionally less “connected” and technology savvy.
{"title":"Impacts of Health and Safety Concerns on E-Commerce and Service Reconfiguration during COVID-19 Pandemic: Insights from an Emerging Economy","authors":"Jason Nguyen, Q. Le, J. Ha","doi":"10.2139/ssrn.3735848","DOIUrl":"https://doi.org/10.2139/ssrn.3735848","url":null,"abstract":"During the COVID-19 pandemic, there has been a surge in online shopping and e-commerce activities as governments imposed social isolation orders and consumers were advised to avoid large crowds and limit physical interactions. Building upon the notion of trust and digital safety in online activities, we develop a new construct to measure consumers’ health and safety concerns and examine its impact on online shopping and e-commerce activities. We collected primary data from a self-administered survey examining whether and how e-commerce and online shopping activities changed during the COVID-19 pandemic outbreak in Vietnam. We identify factors that are associated with increases in online shopping and e-commerce activities during the period and study firms’ reconfiguration of businesses and services to cope with consumers’ behavioral changes. We show that online “connectedness” and Technology Readiness are important factors that drive the increases in online shopping during the pandemic. More importantly, after controlling for these factors, health and safety concerns also have a positive influence, and the impact is stronger for elder consumers compared to the younger ones. Our empirical findings are validated by companies’ practices, showing that businesses and services could survive and even benefit from this difficult pandemic period by quickly reinventing themselves to better address customers’ health and safety concerns. Our results also suggest promising signs for the post-pandemic recovery and even expansion as firms should leverage the increasing trend of elder consumers, who are more vulnerable and concerned about health and safety but traditionally less “connected” and technology savvy.","PeriodicalId":370988,"journal":{"name":"eBusiness & eCommerce eJournal","volume":"140 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-11-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123295297","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
With the rapid growth of e-commerce, agency selling is currently gaining popularity among online retailers (e-tailers). Prior research implicitly abstracts away cross-brand pass-through under traditional wholesale selling (i.e., how the retail price of another brand adjusts to changes in a given brand’s wholesale price) and suggests that a shift to agency selling benefits e-tailers but harms suppliers. As an important counterweight to this result, we discover that an e-tailer’s choice regarding selling format is critically moderated by retail pass-through behavior. On the one hand, agency selling can improve channel efficiency compared with wholesale selling. On the other hand, the relative intensity of supplier competition between these two selling formats is ambiguous. We show that the existing result applies only for a nonnegative cross-brand pass-through rate (e.g., under linear demands); otherwise (e.g., under multiplicative or exponential demands), the opposite may hold. Interestingly, we find that the conflict over the preference of selling format may not arise, and that all channel members could be better off with wholesale selling. Compared with the case of Bertrand competition, the e-tailer is even more likely to adopt wholesale selling under Cournot competition. Finally, under agency selling with an endogenous commission fee, we advise caution regarding the seemingly innocuous normalization of suppliers’ marginal costs. Surprisingly, suppliers may benefit from higher marginal costs. Overall, our findings not only shed light on the theory of agency selling but also provide a plausible explanation for the observation that wholesale selling continues to prevail in online markets. This paper was accepted by Eric Anderson, marketing.
{"title":"Agency or Wholesale? The Role of Retail Pass-Through","authors":"Honggang Hu, Quan Zheng, X. Pan","doi":"10.2139/ssrn.3724934","DOIUrl":"https://doi.org/10.2139/ssrn.3724934","url":null,"abstract":"With the rapid growth of e-commerce, agency selling is currently gaining popularity among online retailers (e-tailers). Prior research implicitly abstracts away cross-brand pass-through under traditional wholesale selling (i.e., how the retail price of another brand adjusts to changes in a given brand’s wholesale price) and suggests that a shift to agency selling benefits e-tailers but harms suppliers. As an important counterweight to this result, we discover that an e-tailer’s choice regarding selling format is critically moderated by retail pass-through behavior. On the one hand, agency selling can improve channel efficiency compared with wholesale selling. On the other hand, the relative intensity of supplier competition between these two selling formats is ambiguous. We show that the existing result applies only for a nonnegative cross-brand pass-through rate (e.g., under linear demands); otherwise (e.g., under multiplicative or exponential demands), the opposite may hold. Interestingly, we find that the conflict over the preference of selling format may not arise, and that all channel members could be better off with wholesale selling. Compared with the case of Bertrand competition, the e-tailer is even more likely to adopt wholesale selling under Cournot competition. Finally, under agency selling with an endogenous commission fee, we advise caution regarding the seemingly innocuous normalization of suppliers’ marginal costs. Surprisingly, suppliers may benefit from higher marginal costs. Overall, our findings not only shed light on the theory of agency selling but also provide a plausible explanation for the observation that wholesale selling continues to prevail in online markets. This paper was accepted by Eric Anderson, marketing.","PeriodicalId":370988,"journal":{"name":"eBusiness & eCommerce eJournal","volume":"15 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-11-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126337874","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
With the development and growth of internet, its applications of e-banking, e-commerce, and e-business became irreplaceable channels regarding its fast access, rich content, and smooth interactivity. High investments are paid toward improving the quality of service offered by the banks. This paper is dedicated to empirically investigating the drivers of e-Business value creation in the Jordanian banking sector. This work summarizes the main differences among employees of Jordanian and foreign bank regarding their perspectives. Many of the competing foreign banks to the Jordanian banks are enforced with huge financial capital, having long periods of banking practices and are employing cutting-edge technologies and tools. To minimize the technological gap, Jordanian banks are working hard to develop their e-Business services. This in one hand has to enhance their trust, satisfaction, and commitment toward existing customers and entice new comers on other hand. Based on business model of Amit and Zott, i.e. the four constructs of eValue framework (efficiency, complementarities, lock-in, and novelty), four hypotheses have been formulated to test the differences in the drivers of e-Business value creation between Jordanian and foreign banks. A survey questionnaire in a form of paper-and-pencil was delivered personally to 200 employees from four main Jordanian banks and 200 employees from four foreign banks working in Jordan. The questionnaire was formed and constructed to test the proposed hypotheses. the findings in this study based on the SEM and T-test analyses, revealed important implications that will help banks’ managers to make well-informed decisions and policies regarding investments and resources allocation for implementing eBusiness strategies and ventures. The paper concludes with discussing the importance of these findings for practitioners and for future research on value accrued from e-Business services.
{"title":"Drivers of E-Business Value Creation in Banking Sector in Jordan: A Structural Equation Modeling Application","authors":"A. Alawneh","doi":"10.2139/ssrn.3717367","DOIUrl":"https://doi.org/10.2139/ssrn.3717367","url":null,"abstract":"With the development and growth of internet, its applications of e-banking, e-commerce, and e-business became irreplaceable channels regarding its fast access, rich content, and smooth interactivity. High investments are paid toward improving the quality of service offered by the banks. This paper is dedicated to empirically investigating the drivers of e-Business value creation in the Jordanian banking sector. This work summarizes the main differences among employees of Jordanian and foreign bank regarding their perspectives. Many of the competing foreign banks to the Jordanian banks are enforced with huge financial capital, having long periods of banking practices and are employing cutting-edge technologies and tools. To minimize the technological gap, Jordanian banks are working hard to develop their e-Business services. This in one hand has to enhance their trust, satisfaction, and commitment toward existing customers and entice new comers on other hand. Based on business model of Amit and Zott, i.e. the four constructs of eValue framework (efficiency, complementarities, lock-in, and novelty), four hypotheses have been formulated to test the differences in the drivers of e-Business value creation between Jordanian and foreign banks. A survey questionnaire in a form of paper-and-pencil was delivered personally to 200 employees from four main Jordanian banks and 200 employees from four foreign banks working in Jordan. The questionnaire was formed and constructed to test the proposed hypotheses. the findings in this study based on the SEM and T-test analyses, revealed important implications that will help banks’ managers to make well-informed decisions and policies regarding investments and resources allocation for implementing eBusiness strategies and ventures. The paper concludes with discussing the importance of these findings for practitioners and for future research on value accrued from e-Business services.","PeriodicalId":370988,"journal":{"name":"eBusiness & eCommerce eJournal","volume":"38 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-10-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128585996","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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