IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0328040.html
   My bibliography  Save this article

Information sharing and channel structure in e-commerce supply chain considering data-driven marketing

Author

Listed:
  • Feifei Han
  • Mei Wang
  • Zhengze Wu

Abstract

E-tailers such as Amazon and Tmall can accurately recognize consumer interest in product categories and grasp current consumer trends through product recommendation algorithms and data-driven analysis. In this study, we develop a game-theoretic model to investigate the encroachment and information sharing decisions considering data-driven marketing (DDM). Our outcomes reveal that the manufacturer has the incentive to reduce the wholesale price to incentivize the e-tailer to increase the DDM effort when the spillover effect is high and the marginal cost is low. When the manufacturer encroaches on the direct channel, the e-tailer may share information if the spillover effect is low. Moreover, we derive the conditions under which the manufacturer encroaches on the direct channel. Lastly, we extend the model to the case where the agency channel exists, and we find that the manufacturer should select the agency channel only if the marginal cost of DDM effort is moderate and the commission rate is low. Our study provides useful insights for managers to understand and make channel choice and information sharing decisions in the e-commerce supply chain.

Suggested Citation

  • Feifei Han & Mei Wang & Zhengze Wu, 2025. "Information sharing and channel structure in e-commerce supply chain considering data-driven marketing," PLOS ONE, Public Library of Science, vol. 20(9), pages 1-22, September.
    • Handle: RePEc:plo:pone00:0328040
    DOI: 10.1371/journal.pone.0328040
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0328040
    Download Restriction: no
    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0328040&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pone.0328040?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. 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.
    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. 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.
    2. Donna, Javier D. & Pereira, Pedro & Trindade, Andre & Yoshida, Renan C., 2020. "Direct-to-Consumer Sales by Manufacturers and Bargaining," MPRA Paper 105773, University Library of Munich, Germany.
    3. Nico Schauerte & Ricarda Schauerte & Maren Becker & Thorsten Hennig-Thurau, 2024. "Making new enemies: How suppliers’ digital disintermediation strategy shifts consumers’ use of incumbent offerings," Journal of the Academy of Marketing Science, Springer, vol. 52(3), pages 672-694, May.
    4. Niu, Baozhuang & Ruan, Yiyuan & Yu, Xinhu, 2024. "Purchasing new for remanufacturing: Sourcing co-opetition, tax-planning and data validation," International Journal of Production Economics, Elsevier, vol. 273(C).
    5. Cao, Kaiying & Xu, Yuqiu & Hua, Ye & Choi, Tsan-Ming, 2023. "Supplier or co-optor: Optimal channel and logistics selection problems on retail platforms," European Journal of Operational Research, Elsevier, vol. 311(3), pages 971-988.
    6. Yinliang (Ricky) Tan & Janice E. Carrillo, 2017. "Strategic Analysis of the Agency Model for Digital Goods," Production and Operations Management, Production and Operations Management Society, vol. 26(4), pages 724-741, April.
    7. Yan, Yingchen & Zhao, Ruiqing & Xing, Tiantian, 2019. "Strategic introduction of the marketplace channel under dual upstream disadvantages in sales efficiency and demand information," European Journal of Operational Research, Elsevier, vol. 273(3), pages 968-982.
    8. Li, Jin & Hu, Zening & Shi, Victor & Wang, Qian, 2021. "Manufacturer's encroachment strategy with substitutable green products," International Journal of Production Economics, Elsevier, vol. 235(C).
    9. Hong Zheng & Lin Tian & Guo Li, 2023. "A bane or a boon? Profit‐margin‐guarantee contract in a channel with downstream competition," Production and Operations Management, Production and Operations Management Society, vol. 32(7), pages 2087-2100, July.
    10. Yingxiao Li & Jianheng Zhou, 2023. "Modeling the relationship between fairness concern and customer loyalty in dual distribution channel," Journal of Combinatorial Optimization, Springer, vol. 45(1), pages 1-25, January.
    11. Niu, Baozhuang & Xu, Jingwen & Lee, Carman K.M. & Chen, Lei, 2019. "Order timing and tax planning when selling to a rival in a low-tax emerging market," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 123(C), pages 165-179.
    12. Elahi, Hamid & Pun, Hubert & Ghamat, Salar, 2023. "The Impact of Capacity Information on Supplier Encroachment," Omega, Elsevier, vol. 117(C).
    13. Chen, Yan & Zhang, Tao & Li, Gang & Wang, Wei, 2024. "The interaction between manufacturer’s showroom deployment and online selling formats," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 192(C).
    14. Pan, Cong, 2019. "Manufacturer’s direct distribution with incumbent retailer’s product line choice," Economics Letters, Elsevier, vol. 174(C), pages 136-139.
    15. Zhang, Li-Hao & Liu, Chunxiao & Zhang, Cheng & Wang, Shanshan, 2023. "Upstream encroachment and downstream outsourcing in competing shipping supply chains," International Journal of Production Economics, Elsevier, vol. 255(C).
    16. Albert Y. Ha & Huajiang Luo & Weixin Shang, 2022. "Supplier Encroachment, Information Sharing, and Channel Structure in Online Retail Platforms," Production and Operations Management, Production and Operations Management Society, vol. 31(3), pages 1235-1251, March.
    17. 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.
    18. Wu, Yaobin & Huang, Jiazhou & Chen, Xiangfeng, 2024. "The information value of logistics platforms in a freight matching market," European Journal of Operational Research, Elsevier, vol. 312(1), pages 227-239.
    19. 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.
    20. Luo, Huajiang & Niu, Baozhuang, 2022. "Impact of competition type on a competitive manufacturer's preference of decision timing," International Journal of Production Economics, Elsevier, vol. 251(C).

    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:plo:pone00:0328040. 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: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    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.