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Chinese Journal of Management Science ›› 2021, Vol. 29 ›› Issue (4): 149-157.doi: 10.16381/j.cnki.issn1003-207x.2018.1838

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The Strategy of Manufacturer's Online Channel Considering Physical Store's Fairness Concern

PU Xu-jin, QIN Xi-bei, LIU Ran   

  1. School of Business, Jiangnan University, Wuxi 214122, China
  • Received:2018-12-26 Revised:2019-06-26 Published:2021-04-25

Abstract: Under the development of e-commerce, selling online has become a useful choice to encroach the market for manufacturers. This paper focuses on the suppliers' online encroachment by the mode of reselling and agency selling and compares the differences of wholesale prices, retail prices and manufacturers' profits under three sale modes. The influence of the fairness concern of physical stores on supplier' choice of online sales modes is examined. The results show that: (1) Different from previous studies that online encroachment may harm the interests of suppliers, this paper finds that it is always advantageous for suppliers to encroach under the influence of retailers' fairness concerns.. (2) When consumers have a higher acceptance of online products, suppliers will choose reselling to encroach if the fairness concern of physical store is low at the same time; When the consumer's acceptance of online products is moderate, if the physical store has a higher level of fairness concern, the suppliers choose the agency selling, while manufacturers will always choose reselling to encroach if consumers have a higher acceptance of online products.(3) In different online sales modes, The offline selling price is always higher than the online price. With the increase of physical store fairness concerns, both online and offline sales prices will rise.

Key words: fairness concern, supplier encroachment, reselling, agency selling, online platform

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