IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v43y2022i7p2982-2999.html
   My bibliography  Save this article

Secondhand product quality disclosure strategy of the retailer under different supply chain structures

Author

Listed:
  • Xiaole Dou
  • Zenglu Li
  • Chun Liu

Abstract

In a two‐stage supply chain comprising a manufacturer and a retailer selling secondhand products and new products, we incorporate the manufacturer's channel decisions to examine the retailer's quality disclosure strategy of secondhand products. The quality disclosure of secondhand products may or may not be implemented, but the direct channel is always introduced. Interestingly, the retailer withholds (discloses) information of secondhand products with sufficiently high quality when it is lower (higher) than consumers' acceptance of direct channel in dual‐channel structure. If the secondhand product quality is lower than consumers' direct channel acceptance, the quality is disclosed only when it is medium.

Suggested Citation

  • Xiaole Dou & Zenglu Li & Chun Liu, 2022. "Secondhand product quality disclosure strategy of the retailer under different supply chain structures," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(7), pages 2982-2999, October.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:7:p:2982-2999
    DOI: 10.1002/mde.3577
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.3577
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.3577?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Niu, Baozhuang & Mu, Zihao & Cao, Bin & Gao, Jie, 2021. "Should multinational firms implement blockchain to provide quality verification?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    2. Dmitri Kuksov & Yuanfang Lin, 2010. "Information Provision in a Vertically Differentiated Competitive Marketplace," Marketing Science, INFORMS, vol. 29(1), pages 122-138, 01-02.
    3. Zhang, Peng & He, Yong & Shi, Chunming (Victor), 2017. "Retailer's channel structure choice: Online channel, offline channel, or dual channels?," International Journal of Production Economics, Elsevier, vol. 191(C), pages 37-50.
    4. Hong, Xianpei & Zhou, Menghuan & Gong, Yeming, 2021. "Dilemma of quality information disclosure in technology licensing," European Journal of Operational Research, Elsevier, vol. 294(2), pages 543-557.
    5. Yubo Chen & Jinhong Xie, 2008. "Online Consumer Review: Word-of-Mouth as a New Element of Marketing Communication Mix," Management Science, INFORMS, vol. 54(3), pages 477-491, March.
    6. Song Huang & Xu Guan & Ying†Ju Chen, 2018. "Retailer Information Sharing with Supplier Encroachment," Production and Operations Management, Production and Operations Management Society, vol. 27(6), pages 1133-1147, June.
    7. Anil Arya & Ning Gong & Ram N.V. Ramanan, 2014. "Quality Testing and Product Rationing by Input Suppliers," Production and Operations Management, Production and Operations Management Society, vol. 23(11), pages 1835-1844, November.
    8. Xu Guan & Baoshan Liu & Ying‐ju Chen & Hongwei Wang, 2020. "Inducing Supply Chain Transparency through Supplier Encroachment," Production and Operations Management, Production and Operations Management Society, vol. 29(3), pages 725-749, March.
    9. Anil Arya & Brian Mittendorf & David E. M. Sappington, 2007. "The Bright Side of Supplier Encroachment," Marketing Science, INFORMS, vol. 26(5), pages 651-659, 09-10.
    10. Xiong, Yu & Yan, Wei & Fernandes, Kiran & Xiong, Zhong-Kai & Guo, Nian, 2012. "“Bricks vs. Clicks”: The impact of manufacturer encroachment with a dealer leasing and selling of durable goods," European Journal of Operational Research, Elsevier, vol. 217(1), pages 75-83.
    11. Boyan Jovanovic, 1982. "Truthful Disclosure of Information," Bell Journal of Economics, The RAND Corporation, vol. 13(1), pages 36-44, Spring.
    12. Toyin Clottey & W. C. Benton, 2020. "Sharing Quality‐Distribution Information for the Selective Assembly of Intermediary Components in the Automotive Industry," Production and Operations Management, Production and Operations Management Society, vol. 29(1), pages 174-191, January.
    13. Stefano DellaVigna & Matthew Gentzkow, 2019. "Uniform Pricing in U.S. Retail Chains," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(4), pages 2011-2084.
    14. Paul R. Milgrom, 1981. "Good News and Bad News: Representation Theorems and Applications," Bell Journal of Economics, The RAND Corporation, vol. 12(2), pages 380-391, Autumn.
    15. Xu Guan & Ying-Ju Chen, 2017. "The Interplay between Information Acquisition and Quality Disclosure," Production and Operations Management, Production and Operations Management Society, vol. 26(3), pages 389-408, March.
    16. Liang Guo & Ying Zhao, 2009. "Voluntary Quality Disclosure and Market Interaction," Marketing Science, INFORMS, vol. 28(3), pages 488-501, 05-06.
    17. Akshay Mutha & Saurabh Bansal & V. Daniel R. Guide, 2019. "Selling Assortments of Used Products to Third‐Party Remanufacturers," Production and Operations Management, Production and Operations Management Society, vol. 28(7), pages 1792-1817, July.
    18. Wei-yu Kevin Chiang & Dilip Chhajed & James D. Hess, 2003. "Direct Marketing, Indirect Profits: A Strategic Analysis of Dual-Channel Supply-Chain Design," Management Science, INFORMS, vol. 49(1), pages 1-20, January.
    19. Shen, Bin & Xu, Xiaoyan & Yuan, Quan, 2020. "Selling secondhand products through an online platform with blockchain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    20. Song Huang & Shuting Chen & Lei Xiao, 2020. "Manufacturer product quality information disclosure with channel encroachment in the E‐commerce age," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(5), pages 744-761, July.
    21. Zhuoxin Li & Stephen M. Gilbert & Guoming Lai, 2014. "Supplier Encroachment Under Asymmetric Information," Management Science, INFORMS, vol. 60(2), pages 449-462, February.
    22. Zhao, Ju & Qiu, Ju & Zhou, Yong-Wu & Hu, Xiao-Jian & Yang, Ai-Feng, 2020. "Quality disclosure in the presence of strategic consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    23. Liu, Huihui & Lei, Ming & Huang, Tao & Leong, G. Keong, 2018. "Refurbishing authorization strategy in the secondary market for electrical and electronic products," International Journal of Production Economics, Elsevier, vol. 195(C), pages 198-209.
    24. Baozhuang Niu & Liming Liu & Jun Wang, 2016. "Sell through a local retailer or operate your own store? Channel structure and risk analysis," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 67(2), pages 325-338, February.
    25. Wen, Xin & Siqin, Tana, 2020. "How do product quality uncertainties affect the sharing economy platforms with risk considerations? A mean-variance analysis," International Journal of Production Economics, Elsevier, vol. 224(C).
    26. Terrence Hendershott & Jie Zhang, 2006. "A Model of Direct and Intermediated Sales," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 15(2), pages 279-316, June.
    27. Gökçe Esenduran & James A. Hill & In Joon Noh, 2020. "Understanding the Choice of Online Resale Channel for Used Electronics," Production and Operations Management, Production and Operations Management Society, vol. 29(5), pages 1188-1211, May.
    28. Grossman, S J & Hart, O D, 1980. "Disclosure Laws and Takeover Bids," Journal of Finance, American Finance Association, vol. 35(2), pages 323-334, May.
    29. Jeffrey Shulman & Anne Coughlan, 2007. "Used goods, not used bads: Profitable secondary market sales for a durable goods channel," Quantitative Marketing and Economics (QME), Springer, vol. 5(2), pages 191-210, June.
    30. Huihui Liu & Shuguang Sun & Ming Lei & Honghui Deng & G. Keong Leong, 2017. "The impact of retailers’ alliance on manufacturer’s profit in a dual-channel structure," International Journal of Production Research, Taylor & Francis Journals, vol. 55(22), pages 6592-6607, November.
    31. Liang Guo, 2009. "Quality Disclosure Formats in a Distribution Channel," Management Science, INFORMS, vol. 55(9), pages 1513-1526, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hong, Xianpei & Zhou, Menghuan & Gong, Yeming, 2021. "Dilemma of quality information disclosure in technology licensing," European Journal of Operational Research, Elsevier, vol. 294(2), pages 543-557.
    2. Yuan, Mao & Pun, Hubert & Guan, Xu, 2022. "Information disclosure in a supply chain with copycat threat," European Journal of Operational Research, Elsevier, vol. 302(3), pages 1018-1030.
    3. Xu Guan & Baoshan Liu & Ying‐ju Chen & Hongwei Wang, 2020. "Inducing Supply Chain Transparency through Supplier Encroachment," Production and Operations Management, Production and Operations Management Society, vol. 29(3), pages 725-749, March.
    4. Song Huang & Shuting Chen & Lei Xiao, 2020. "Manufacturer product quality information disclosure with channel encroachment in the E‐commerce age," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(5), pages 744-761, July.
    5. Xu Guan & Yulan Wang & Zelong Yi & Ying‐Ju Chen, 2020. "Inducing Consumer Online Reviews Via Disclosure," Production and Operations Management, Production and Operations Management Society, vol. 29(8), pages 1956-1971, August.
    6. Liang Guo, 2020. "Upstream Exploitation and Strategic Disclosure," Marketing Science, INFORMS, vol. 39(5), pages 923-938, September.
    7. Guan, Xu & Huang, Song & Chen, Ying-Ju, 2022. "Acquisition transparency and induced supplier encroachment," Omega, Elsevier, vol. 108(C).
    8. Zhang, Guangxia & Gong, Yeming & Hong, Xianpei, 2022. "Free rider effect of quality information disclosure in remanufacturing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 166(C).
    9. Wang, Fa & Chen, Jing & Yang, Hui & Yu, Bo, 2022. "Supplier selection with information disclosure in the presence of uninformed consumers," International Journal of Production Economics, Elsevier, vol. 243(C).
    10. Guan, Xu & Mantrala, Murali & Bian, Yiwen, 2019. "Strategic information management in a distribution channel," Journal of Retailing, Elsevier, vol. 95(1), pages 42-56.
    11. Monic Sun & Rajeev K. Tyagi, 2020. "Product Fit Uncertainty and Information Provision in a Distribution Channel," Production and Operations Management, Production and Operations Management Society, vol. 29(10), pages 2381-2402, October.
    12. Zhang, Xuefeng & Li, Guo & Liu, Mengqi & Sethi, Suresh P., 2021. "Online platform service investment: A bane or a boon for supplier encroachment," International Journal of Production Economics, Elsevier, vol. 235(C).
    13. Huan Cao & Xu Guan & Tijun Fan & Li Zhou, 2020. "The Acquisition of Quality Information in a Supply Chain with Voluntary vs. Mandatory Disclosure," Production and Operations Management, Production and Operations Management Society, vol. 29(3), pages 595-616, March.
    14. Tong, Yang & Lu, Tao & Li, Yina & Ye, Fei, 2023. "Encroachment by a better-informed manufacturer," European Journal of Operational Research, Elsevier, vol. 305(3), pages 1113-1129.
    15. Huang, Song & Zhang, Xianmei & Chen, Shuting, 2021. "Information acquisition with advertising threshold effect under manufacturer encroachment in a supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 153(C).
    16. Wu, Jie & Lu, Wei & Ji, Xiang, 2023. "The interactions between upstream quality disclosure and downstream entry," European Journal of Operational Research, Elsevier, vol. 309(2), pages 545-559.
    17. Du, Ningning & Yan, Yingchen & Qin, Zhongfeng, 2023. "Analysis of financing strategy in coopetition supply chain with opportunity cost," European Journal of Operational Research, Elsevier, vol. 305(1), pages 85-100.
    18. Matsui, Kenji, 2020. "Optimal bargaining timing of a wholesale price for a manufacturer with a retailer in a dual-channel supply chain," European Journal of Operational Research, Elsevier, vol. 287(1), pages 225-236.
    19. Yuanfang Lin & Amit Pazgal, 2016. "Hide Supremacy or Admit Inferiority—Market Entry Strategies in Response to Consumer Informational Needs," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 3(2), pages 94-103, June.
    20. Matsui, Kenji, 2024. "Should competing suppliers with dual-channel supply chains adopt agency selling in an e-commerce platform?," European Journal of Operational Research, Elsevier, vol. 312(2), pages 587-604.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:mgtdec:v:43:y:2022:i:7:p:2982-2999. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.