Management Review ›› 2023, Vol. 35 ›› Issue (6): 160-170.

• E-commerce and Information Management • Previous Articles     Next Articles

E-commerce Platform Store Brand Introduction and Pricing Sequence Selection

Yu Dongdong1,2, Luo Chunlin1, Tian Xin3,4, Wan Miyu5   

  1. 1. School of Information Management, Jiangxi University of Finance and Economics, Nanchang 330013;
    2. School of Fanli Business, Nanyang Institute of Technology, Nanyang 473004;
    3. School of Economics and Management, University of Chinese Academy of Sciences, Beijing 100190;
    4. Research Center on Fictitious Economy and Data Science, Chinese Academy of Sciences, Beijing 100190;
    5. School of Transportation and Logistics, East China Jiaotong University, Nanchang 330013
  • Received:2021-03-15 Published:2023-07-27

Abstract: Store brand strategy has become crucial for e-commerce platforms to gain competitive advantage. This paper explores the impact of pricing sequence on store brand introduction in a supply chain consisting of two competing manufacturers and one e-commerce platform. The results show that store brand introduction has competition effect and pricing effect, and there exists a boundary equilibrium, in which the sales volume of store brand is negligible, but its presence enables the e-commerce platform to enhance the competitiveness of upstream companies and obtain the wholesale price advantage. Moreover, the equilibrium may have a wider range when the e-commerce platform firstly sets retail price. The manufacturer who signs agency selling contract prefers to set retail price first, while the e-commerce platform and the manufacturer who sign reselling contract may have the second-mover advantage. As the fixed cost of introducing store brand increases, the manufacturers' preference for agency sales contracts decreases.

Key words: e-commerce platform, store brand, pricing sequence, competition effect, pricing effect