Research on the recommendation strategy of dual-channel manufacturers for hybrid e-commerce platforms

IntroductionIn the context of hybrid e-commerce platforms with reselling mode and agency mode, this study considers the issue of channel management by manufacturers through recommendation strategies.MethodsFor three dual-channel structures composed of e-commerce platforms, manufacturers, and third-p...

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Main Author: Yang Wang
Format: Article
Language:English
Published: Frontiers Media S.A. 2024-12-01
Series:Frontiers in Physics
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Online Access:https://www.frontiersin.org/articles/10.3389/fphy.2024.1455165/full
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author Yang Wang
author_facet Yang Wang
author_sort Yang Wang
collection DOAJ
description IntroductionIn the context of hybrid e-commerce platforms with reselling mode and agency mode, this study considers the issue of channel management by manufacturers through recommendation strategies.MethodsFor three dual-channel structures composed of e-commerce platforms, manufacturers, and third-party retailers, game models were constructed for manufacturer’s non-recommendation, differentiated recommendation, and indiscriminate recommendation scenarios to investigate the optimal recommendation strategy for manufacturers.Conclusion(1) For different dual-channel structures, compared to scenarios without recommendations, it is not always profitable for manufacturers to adopt a recommendation strategy as recommended parties may not necessarily gain higher profits from recommendations. (2) The optimal recommendation strategy for manufacturers is influenced by channel structure, commission rates, and relative scale in the recommended market. Recommending direct sales channels is the preferred choice for manufacturers with a higher relative scale in the recommended market prompting them to recommend all channels to consumers. (3) Numerical simulations reveal that retail prices, total market demand, and supply chain profits are positively correlated with relative scale within the recommended market. Additionally, any recommendation strategy can increase demand for recommended parties as well as overall supply chain profit levels.
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spelling doaj-art-1a3ca28150b448d4b7ac313cb56130e42025-08-20T02:18:15ZengFrontiers Media S.A.Frontiers in Physics2296-424X2024-12-011210.3389/fphy.2024.14551651455165Research on the recommendation strategy of dual-channel manufacturers for hybrid e-commerce platformsYang WangIntroductionIn the context of hybrid e-commerce platforms with reselling mode and agency mode, this study considers the issue of channel management by manufacturers through recommendation strategies.MethodsFor three dual-channel structures composed of e-commerce platforms, manufacturers, and third-party retailers, game models were constructed for manufacturer’s non-recommendation, differentiated recommendation, and indiscriminate recommendation scenarios to investigate the optimal recommendation strategy for manufacturers.Conclusion(1) For different dual-channel structures, compared to scenarios without recommendations, it is not always profitable for manufacturers to adopt a recommendation strategy as recommended parties may not necessarily gain higher profits from recommendations. (2) The optimal recommendation strategy for manufacturers is influenced by channel structure, commission rates, and relative scale in the recommended market. Recommending direct sales channels is the preferred choice for manufacturers with a higher relative scale in the recommended market prompting them to recommend all channels to consumers. (3) Numerical simulations reveal that retail prices, total market demand, and supply chain profits are positively correlated with relative scale within the recommended market. Additionally, any recommendation strategy can increase demand for recommended parties as well as overall supply chain profit levels.https://www.frontiersin.org/articles/10.3389/fphy.2024.1455165/fullrecommendation strategychannel structuresales modele-commerce platformagency selling
spellingShingle Yang Wang
Research on the recommendation strategy of dual-channel manufacturers for hybrid e-commerce platforms
Frontiers in Physics
recommendation strategy
channel structure
sales model
e-commerce platform
agency selling
title Research on the recommendation strategy of dual-channel manufacturers for hybrid e-commerce platforms
title_full Research on the recommendation strategy of dual-channel manufacturers for hybrid e-commerce platforms
title_fullStr Research on the recommendation strategy of dual-channel manufacturers for hybrid e-commerce platforms
title_full_unstemmed Research on the recommendation strategy of dual-channel manufacturers for hybrid e-commerce platforms
title_short Research on the recommendation strategy of dual-channel manufacturers for hybrid e-commerce platforms
title_sort research on the recommendation strategy of dual channel manufacturers for hybrid e commerce platforms
topic recommendation strategy
channel structure
sales model
e-commerce platform
agency selling
url https://www.frontiersin.org/articles/10.3389/fphy.2024.1455165/full
work_keys_str_mv AT yangwang researchontherecommendationstrategyofdualchannelmanufacturersforhybridecommerceplatforms