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| Sales Modes Selection for the Manufacturer Considering Direct Selling Cost and Platform Transaction Fee |
| SUN Zilai，WANG Xuping，RUAN Junhu，GAO Yan |
| 1. Dalian University of Technology, Dalian, Liaoning, China；2. Northwest Agriculture and Forestry University, Yangling, Shaanxi, China |
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Abstract Considering a marketing system composed of a manufacturer and a B2C e-retailer, three sales modes, namely online direct channel mode, platform flagship store mode and wholesale sales mode, are developed from the perspective of a manufacturer, and then, the decision-making bases of sales mode selection for a manufacturer are discussed through comparing the profits of every two kinds of sales mode. The results show that, when the price elasticity of demand is large, the manufacturer chooses the direct channel mode under the condition that the direct channel’s unit sales cost is very small; otherwise, it will choose the B2C e-commerce platform flagship store mode or wholesale mode. When the service elasticity of demand is large, the manufacturer chooses the B2C e-commerce platform flagship store mode or wholesale sales mode no matter how much the direct selling cost is. When the transaction fee ratio of the B2C e-commerce platform is small as well as the price elasticity of demand is large, the manufacturer chooses the B2C e-commerce platform flagship store mode, or chooses the wholesale mode if the service elasticity of demand is large.
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Received: 15 August 2017
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