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The pricing strategies under the online platform selling mode with information sharing

Xiaogang Cao (School of Management, Wuhan Textile University, Wuhan, China) (Enterprise Decision Support Research Center, The Key Research Base of Humanities and Social Sciences, Wuhan Textile University, Wuhan, China)
Jing Yuan (School of Management, Wuhan Textile University, Wuhan, China)
Hui Wen (School of Science, Hubei University of Technology, Wuhan, China)
Cuiwei Zhang (School of Management, Wuhan Textile University, Wuhan, China)

Kybernetes

ISSN: 0368-492X

Article publication date: 5 January 2023

17

Abstract

Purpose

Different information sharing mechanisms and online platform information sharing to different charging models are compared and analyzed.

Design/methodology/approach

This paper uses the Stackelberg game model to study the demand information sharing and pricing decisions.

Findings

The results show that: (1) the retailer's pricing strategy is the highest when both of them obtain information, while the manufacturer's pricing strategy is affected by the related attributes of different products, such as the sensitivity of consumers to product prices; (2) in the online platform sales model, the demand information data sharing owned by the online platform can bring more expected profits to the whole supply chain and the members of the supply chain, and the higher the accuracy of the information, the higher the expected profit; (3) when the cost of obtaining demand information is zero, that is, the online platform shares the information data about market demand free of charge, the retailer and manufacturer tend to obtain information; (4) for the online platform, charging a certain fee can achieve higher expected profits than free sharing.

Originality/value

Based on the single platform online sales model, this paper uses the Stackelberg game model to study the demand information sharing and pricing decision of a manufacturer and a retailer selling products through the same online platform.

Keywords

Acknowledgements

Funding: The study is funded by the Key Project of Philosophy and Social Science Research of Hubei Provincial, Department of Education under the award number 20D056 and the Key Research Base of Humanities and Social Sciences in Hubei Province – Key Project of Enterprise Decision Support Research Center under the award number DSS20220602.

Citation

Cao, X., Yuan, J., Wen, H. and Zhang, C. (2023), "The pricing strategies under the online platform selling mode with information sharing", Kybernetes, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/K-06-2022-0848

Publisher

:

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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