A Study of E-supply Chain Advertisement Strategy Based on the Third Party E-commerce Platform for Sales

Abstract

Abstract:

With the development of Internet popularity and application, the E-supply chain has gradually formed and attracts more and more enterprises with its unique advantages. This paper studies the advertisement, pricing and service strategy of the E-supply chain. According to the different responsible parties of advertising strategies, four decision-making models are structured. Then, the four models are solved, and the optimal advertising strategy, pricing strategy, and e-commerce platform service strategy also are given. Lastly, combining with the numerical analysis, all models' the optimal variables are compared and the corresponding management implications are provided. The study shows that:(1) advertising strategy could increase the sales price and enhance manufacturers' profit growth and E-supply chain channels' competitiveness. (2)When the manufacturer and the e-commerce platform share advertising costs, the advertising investment reaches the largest. Moreover, when the e-commerce platform bears advertising cost solely, the advertising investment reaches the smallest. (3)Only when the advertising cost is borne by the manufacturer, will the advertising strategy lead to higher profit of the e-commerce platform. As a result, the e-commerce platform has little enthusiasm to participate in advertising. Coordination strategies should be used to mobilize its enthusiasm. (4)In the E-supply chain, the advertising investment of the manufacturer or e-commerce platform will not affect the service level of the e-commerce platform. The conclusions provide a theoretical basis for the enterprises to develop a reasonable advertising strategy in E-supply chain.

Key words: E-supply chain, advertising strategy, third party E-commerce platform

Wang Yuyan, Shen Liang. A Study of E-supply Chain Advertisement Strategy Based on the Third Party E-commerce Platform for Sales[J]. , 2019, 31(10): 124-132.

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