IDEAS home Printed from https://ideas.repec.org/a/taf/tjorxx/v74y2023i1p157-180.html
   My bibliography  Save this article

Manufacturer’s online selling strategies under spillovers from online to offline sales

Author

Listed:
  • Lin Chen
  • Guofang Nan
  • Minqiang Li
  • Bing Feng
  • Qiurui Liu

Abstract

In this paper, we investigate a manufacturer’s online selling strategy choice between wholesale selling and agency selling, and discuss its impact in the presence of spillovers from online to offline sales. We find that the manufacturer’s optimal online selling strategies vary with consumers’ online channel acceptance and the extent of the spillover effect. In particular, when the online channel acceptance is high, the manufacturer prefers the agency selling strategy. When the online channel acceptance is moderate, if the sale in the online channel leads to a negative spillover effect on demand in the offline channel, the manufacturer has an incentive to adopt the wholesale selling strategy; otherwise, the agency selling strategy is a preferred choice for the manufacturer. When the online channel acceptance is low, if the sale in the online channel leads to a significant negative or a positive spillover effect on demand in the offline channel, the manufacturer should adopt the agency selling strategy; otherwise, reselling the products to an e-tailer is an optimal choice. Moreover, under certain conditions, we find a “win-win-win” result for the manufacturer, the offline retailer, and the online platform by adopting the agency selling strategy. Finally, we show that two types of spillover (i.e., stimulation effect and cannibalization effect) have different influences on supply chain participants.

Suggested Citation

  • Lin Chen & Guofang Nan & Minqiang Li & Bing Feng & Qiurui Liu, 2023. "Manufacturer’s online selling strategies under spillovers from online to offline sales," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 74(1), pages 157-180, January.
    • Handle: RePEc:taf:tjorxx:v:74:y:2023:i:1:p:157-180
    DOI: 10.1080/01605682.2022.2032426
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/01605682.2022.2032426
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/01605682.2022.2032426?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shigong Lv & Yanying Lv & Da Gao & Lulu Liu, 2023. "The Path to Green Development: The Impact of a Carbon Emissions Trading Scheme on Enterprises’ Environmental Protection Investments," Sustainability, MDPI, vol. 15(16), pages 1-15, August.
    2. Jiajun He & Xin Fan & Lin Chen & Haoruo Chen & Jin Luo & Zirui Huang, 2023. "Influencing Factors of the Post-Relocation Support Policy’s Satisfaction Degree for Rural Household: A Case Study of County M, Sichuan Province," Sustainability, MDPI, vol. 15(12), pages 1-21, June.
    3. Lin Chen & Ting Dong & Jin Peng & Dan Ralescu, 2023. "Uncertainty Analysis and Optimization Modeling with Application to Supply Chain Management: A Systematic Review," Mathematics, MDPI, vol. 11(11), pages 1-45, May.
    4. Joshi, Raunak & Basu, Sumanta & Jonnalagedda, Sreelata & Avittathur, Balram, 2023. "Multichannel retailer’s channel choice and product pricing: Influence of investment in fit-disclosing technology by competing retailers," International Journal of Production Economics, Elsevier, vol. 262(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:taf:tjorxx:v:74:y:2023:i:1:p:157-180. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/tjor .

    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.