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Manufacturer’s Online Sales Modes Selection Considering Sales Service and Service Cost Difference
FANG Debin,SHENG Jialiang
Wuhan University, Wuhan, China

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Abstract  Considering the sales service and the difference in service cost of online sales, we discuss the optimal decision of the manufacturer’s online sales modes in the case of whether the e-commerce platform bargains for wholesale prices, and analyze the impact of the manufacturer’s choice of sales modes on the e-commerce platform and the conditions for both parties to achieve a win-win situation.Using game theory to solve the equilibrium under the three sales modes and conducting comparative analysis, the following conclusions are obtained: ①When the service cost advantage of the e-commerce platform is large, the manufacturer tends to choose reselling mode in order to take advantage of the low service cost of the e-commerce platform; ②The choice of the manufacturer’s sales modes can achieve a win-win situation with the e-commerce platform in some cases; ③The e-commerce platform’s bargaining for wholesale prices will make manufacturer more inclined to choose the agency and direct sales mode. And it is more difficult for manufacturer with low bargaining power to achieve a win-win situation with e-commerce platforms in the reselling mode.
Key wordsservice quality      service cost difference      online sales modes selection      Nash bargaining     
Received: 07 December 2021     
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FANG Debin
SHENG Jialiang
Cite this article:   
FANG Debin,SHENG Jialiang. Manufacturer’s Online Sales Modes Selection Considering Sales Service and Service Cost Difference[J]. Chinese Journal of Management, 2023, 20(4): 568-.
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