Journal article
Agency, reselling, or hybrid mode? Competing with store brand
Transportation research. Part E, Logistics and transportation review, v 184, 103487
Apr 2024
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
•We study how a supplier chooses sales mode in the presence of store brand product (SBP).•We comprehensively consider three sales modes for a supplier to sell national brand product (NBP) through an e-tailer.•The factors influencing a supplier' choice of sales mode include commission rates, consumers' perceived value of NBP and SBP.•The agency selling mode may not be the supplier's optimal choice in the presence of SBP.
Platform supply chains are emerging as a new form of global supply chain that encompass reselling, agency selling, and hybrid selling modes. This paper examines the impact of store brand products on the firms’ sales strategies. We consider the selection between three sales modes available to suppliers, both with and without the store brand products: reselling, agency selling, and hybrid selling. Comparing the firms’ optimal strategies shows that the hybrid mode consistently yields greater profits when compared to the agency selling mode. Notably, our findings reveal that firms’ optimal choice of sales mode varies depending on the commission rate. The optimal sales mode differs when the commission rate is lower or higher. In the presence of the store brand products, firms choose the reselling mode only when the commission rate is high and consumers’ perceived value of national brand products is low. Otherwise, equilibrium outcomes are not achieved.
Metrics
Details
- Title
- Agency, reselling, or hybrid mode? Competing with store brand
- Creators
- Wan Ke - Xidian UniversityXiaoyang Zhou - Xi'an Jiaotong UniversityBenjamin Lev - LeBow College of Business, Drexel University, Philadelphia, PA 19104, USAKai Zhang - Management School, University of Shanghai for Science and Technology, Shanghai 200093, China
- Publication Details
- Transportation research. Part E, Logistics and transportation review, v 184, 103487
- Publisher
- Elsevier
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Decision Sciences (and Management Information Systems)
- Web of Science ID
- WOS:001219579600001
- Scopus ID
- 2-s2.0-85188528711
- Other Identifier
- 991021864117604721
UN Sustainable Development Goals (SDGs)
This publication has contributed to the advancement of the following goals:
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Collaboration types
- Domestic collaboration
- International collaboration
- Web of Science research areas
- Economics
- Engineering, Civil
- Operations Research & Management Science
- Transportation
- Transportation Science & Technology