Pricing strategy and product quality design with platform-investment.

Autor: Dang, Xiujing, Xu, Yang, Bi, Gongbing, Qin, Lei
Předmět:
Zdroj: Journal of Industrial & Management Optimization; Feb2023, Vol. 19 Issue 2, p1166-1186, 21p
Abstrakt: With the development of business, more consumers are quality sensitive and improving the product quality becomes particularly important. We mainly discuss two investment strategies: retailer-investment and platform-investment. Compared with non-investment case, only if consumer sensitivity is not too high, it is profitable for the retailer to select retailer-investment. When both retailer-investment and platform-investment are viable, the choice of investment mechanism depends on the profit-sharing ratio. Particularly, if the ratio is within a certain range, the optimal investment strategy is platform-investment, achieving a triple-win outcome. Besides, to effectively alleviate the contradiction between the retailer's moral hazard problem and the sustainable value-added effect of platform-investment, we further research the contract term. These results give us some meaningful management inspirations in investment mechanism. [ABSTRACT FROM AUTHOR]
Databáze: Complementary Index