Interacting with strategic waiting for store brand: Online selling format selection

Lingchen Huang, Zongsheng Huang and Bin Liu

Journal of Retailing and Consumer Services, 2022, vol. 67, issue C

Abstract: This paper studies the interaction of online selling format selection with store brand introduction following national brand in the presence of strategic consumers. We find that platform under reselling format prefers the high pricing strategy for national brand while the manufacturer under agency selling format prefers the low pricing strategy. Moreover, highly strategic consumers discourage the platform from introducing the store brand and manufacturer from being the end-seller of national brand. Specifically, when consumers are less strategic, the platform tends to introduce a store brand with similar quality to national brand under reselling format, and a store brand with different quality to national brand under agency selling format. The manufacturer prefers agency selling format when consumers are less strategic; otherwise, reselling format is preferred. The platform and manufacturer can achieve a “win-win†result under agency selling with store brand when consumers are less strategic. However, the reselling format enables the manufacturer to deter the platform from introducing the store brand if the platform raises the accessing fee. We further extend to consider a store brand with quality better than the national brand and show above results remain valid.

Keywords: Strategic consumer; Store brand; Agency selling; Reselling (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:67:y:2022:i:c:s0969698922000807

DOI: 10.1016/j.jretconser.2022.102987

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