IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v45y2024i1p492-511.html
   My bibliography  Save this article

Promoting end‐of‐season low‐carbon product through online retailing channel under different cooperation strategies

Author

Listed:
  • Qunli Wu
  • Xinxin Xu

Abstract

This paper considers the cooperation strategies in an online selling low‐carbon supply chain (OSLCSC). To promote the end‐of‐season low‐carbon product, the manufacturer in OSLCSC establishes a promotional online retailing channel based on a co‐operative agency sales format. Three possible collaboration strategies are considered. We examine the final cooperative equilibrium and find that from an environmental perspective, cooperation between the retailer and manufacturer can always promote ecological benefits. But from an economic perspective, the retailer and manufacturer will cooperate when the revenue‐sharing rate is high. In contrast, the retailer and manufacturer are always an incentive to partner with the platform. Furthermore, all the OSLCSC players could achieve a Pareto optimal in the three cooperation strategies under certain conditions. Additionally, we reveal that a high revenue‐sharing rate makes the retailer more beneficial when OSLCSC players do not cooperate. Lastly, we obtain that each cooperative strategy may be the ultimate equilibrium, depending mainly on the revenue‐sharing rate and customers' evaluation ratio of the online direct sales channel over online retailing channel.

Suggested Citation

  • Qunli Wu & Xinxin Xu, 2024. "Promoting end‐of‐season low‐carbon product through online retailing channel under different cooperation strategies," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(1), pages 492-511, January.
  • Handle: RePEc:wly:mgtdec:v:45:y:2024:i:1:p:492-511
    DOI: 10.1002/mde.4002
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.4002
    Download Restriction: no

    File URL: https://libkey.io/10.1002/mde.4002?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. Gilles Laurent & Pierre Chandon & Brian Wansink, 2000. "A Benefit Congruency Framework of Sales Promotion Effectiveness," Post-Print hal-00458440, HAL.
    2. Vibhanshu Abhishek & Kinshuk Jerath & Z. John Zhang, 2016. "Agency Selling or Reselling? Channel Structures in Electronic Retailing," Management Science, INFORMS, vol. 62(8), pages 2259-2280, August.
    3. He, Yong & Zhao, Xuan & Krishnan, Harish & Jin, Shibo, 2022. "Cooperation among suppliers of complementary products in repeated interactions," International Journal of Production Economics, Elsevier, vol. 252(C).
    4. Xu, Changyan & Wang, Chuanxu & Huang, Rongbing, 2020. "Impacts of horizontal integration on social welfare under the interaction of carbon tax and green subsidies," International Journal of Production Economics, Elsevier, vol. 222(C).
    5. Bolton, Lisa E & Warlop, Luk & Alba, Joseph W, 2003. "Consumer Perceptions of Price (Un)Fairness," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 29(4), pages 474-491, March.
    6. Xiaqing Zhao & Hooi Lai Wan, 2017. "Drivers of online purchase intention on Singles' Day: a study of Chinese consumers," International Journal of Electronic Marketing and Retailing, Inderscience Enterprises Ltd, vol. 8(1), pages 1-20.
    7. Yang, Lei & Zhang, Qin & Ji, Jingna, 2017. "Pricing and carbon emission reduction decisions in supply chains with vertical and horizontal cooperation," International Journal of Production Economics, Elsevier, vol. 191(C), pages 286-297.
    8. Andrei Hagiu & Julian Wright, 2015. "Marketplace or Reseller?," Management Science, INFORMS, vol. 61(1), pages 184-203, January.
    9. Wei, Jie & Lu, Jinghui & Zhao, Jing, 2020. "Interactions of competing manufacturers’ leader-follower relationship and sales format on online platforms," European Journal of Operational Research, Elsevier, vol. 280(2), pages 508-522.
    10. El Ouardighi, Fouad & Sim, Jeongeun & Kim, Bowon, 2021. "Pollution accumulation and abatement policies in two supply chains under vertical and horizontal competition and strategy types," Omega, Elsevier, vol. 98(C).
    11. Li, Wei & Chen, Jing, 2018. "Backward integration strategy in a retailer Stackelberg supply chain," Omega, Elsevier, vol. 75(C), pages 118-130.
    12. Yuelin Shen & Sean P. Willems & Yue Dai, 2019. "Channel Selection and Contracting in the Presence of a Retail Platform," Production and Operations Management, Production and Operations Management Society, vol. 28(5), pages 1173-1185, May.
    13. Zhang, Yumeng & Hezarkhani, Behzad, 2021. "Competition in dual-channel supply chains: The manufacturers' channel selection," European Journal of Operational Research, Elsevier, vol. 291(1), pages 244-262.
    14. Kay-Yut Chen & Murat Kaya & Özalp Özer, 2008. "Dual Sales Channel Management with Service Competition," Manufacturing & Service Operations Management, INFORMS, vol. 10(4), pages 654-675, June.
    15. Forsythe, Sandra M. & Shi, Bo, 2003. "Consumer patronage and risk perceptions in Internet shopping," Journal of Business Research, Elsevier, vol. 56(11), pages 867-875, November.
    16. Wang, Cuixia & Leng, Mingming & Liang, Liping, 2018. "Choosing an online retail channel for a manufacturer: Direct sales or consignment?," International Journal of Production Economics, Elsevier, vol. 195(C), pages 338-358.
    17. Yanyan He & Juan Zhang & Qinglong Gou & Gongbing Bi, 2018. "Supply chain decisions with reference quality effect under the O2O environment," Annals of Operations Research, Springer, vol. 268(1), pages 273-292, September.
    18. Lisha Wang & Jing Chen & Huaming Song, 2021. "Manufacturer’s channel strategy with retailer’s store brand," International Journal of Production Research, Taylor & Francis Journals, vol. 59(10), pages 3042-3061, May.
    19. LAURENT, Gilles & CHANDON, Pierre & WANSINK, Brian, 2000. "A benefit congruency framework of sales promotion effectiveness," HEC Research Papers Series 698, HEC Paris.
    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. Huang, Song & Gao, Yuqing & Wang, Yun, 2023. "Supply chain channel structure with online platform and dual-purpose firms," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 180(C).
    2. 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.
    3. 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.
    4. Zhou, Xiaoyang & Liu, He & Li, Jialu & Zhang, Kai & Lev, Benjamin, 2023. "Channel strategies when digital platforms emerge: A systematic literature review," Omega, Elsevier, vol. 120(C).
    5. Zhen, Xueping & Xu, Shuangshuang, 2022. "Who should introduce the third-party platform channel under different pricing strategies?," European Journal of Operational Research, Elsevier, vol. 299(1), pages 168-182.
    6. Alaei, Amir Mohammad & Taleizadeh, Ata Allah & Rabbani, Masoud, 2022. "Marketplace, reseller, or web-store channel: The impact of return policy and cross-channel spillover from marketplace to web-store," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    7. Yanting Li & Cuihua Zhang & Chunyu Li & Yong Ma, 2024. "Online channel configuration strategy considering contract manufacturer encroachment and green investment," Electronic Commerce Research, Springer, vol. 24(3), pages 2065-2112, September.
    8. Boyuan Zhong & Houcai Shen, 2022. "Manufacturer selling mode choice for new‐version product introduction," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3316-3330, December.
    9. Yang, Xi & Dai, Bin & Xie, Xia, 2024. "Supplier encroachment strategies in a retail platform with strategic inventory holding behavior," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 187(C).
    10. Cheng, Xianghui & Deng, Shiming & Jiang, Xuan & Li, Yanhai, 2023. "Optimal promotion strategies of online marketplaces," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1264-1278.
    11. Hu, Shu & Fu, Ke, 2025. "Equilibrium analysis of the seller’s fulfillment channels and sales channels," European Journal of Operational Research, Elsevier, vol. 320(3), pages 544-558.
    12. Huang, Lingchen & Huang, Zongsheng & Liu, Bin, 2022. "Interacting with strategic waiting for store brand: Online selling format selection," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    13. Zhang, Tao & Tang, Zhongjun, 2023. "Should manufacturers open live streaming shopping channels?," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    14. Xu, Xiaoping & Choi, Tsan-Ming, 2021. "Supply chain operations with online platforms under the cap-and-trade regulation: Impacts of using blockchain technology," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    15. Cheng, Fei & Chen, Tong & Shen, Yuting & Jing, Xiaodong, 2022. "Impact of green technology improvement and store brand introduction on the sales mode selection," International Journal of Production Economics, Elsevier, vol. 253(C).
    16. Liu, He & Xu, Tianting & Jing, Shuai & Liu, Zhidong & Wang, Shouyang, 2023. "The interplay between logistics strategy and platform’s channel structure design in B2C platform market," European Journal of Operational Research, Elsevier, vol. 310(2), pages 812-833.
    17. Ma, Deqing & Li, Kaifu & Hu, Jinsong & Wang, Xue, 2024. "How to leverage blockchain to react to consumer reference effects and develop a distribution strategy in online retailing?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 187(C).
    18. Junyi Zhong & Jiazhen Huo, 2023. "How Does Green Store Brand Introduction Influence the Effects of Government Subsidy on Supply Chain Performance?," Mathematics, MDPI, vol. 11(14), pages 1-22, July.
    19. Zhou, Chi & Yu, Jing & Qian, Yong, 2024. "Should live-streaming platforms nonexclusively promote brands from traditional retail platforms?," Journal of Retailing and Consumer Services, Elsevier, vol. 80(C).
    20. Suyuan Luo & Tsan‐Ming Choi, 2022. "E‐commerce supply chains with considerations of cyber‐security: Should governments play a role?," Production and Operations Management, Production and Operations Management Society, vol. 31(5), pages 2107-2126, May.

    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:45:y:2024:i:1:p:492-511. 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.