In:
SAGE Open, SAGE Publications, Vol. 13, No. 2 ( 2023-04), p. 215824402311748-
Abstract:
We extend the mental accounting perspective to build models on product quality matching strategy, which is effective in resolving the conflict between traditional and online channels. We consider that perceived values of high-quality and low-quality products belong to different mental accounts, and construct three product quality matching strategies for a dual-channel supply chain. Comparing the profit of each member, we find that (1) the strategy where the traditional channel distributes premium products, while the e-tailer sells low-quality products, is most conducive to the manufacturer; (2) the profit elasticity of the e-tailer is larger than that of the traditional retailer; (3) traditional retailers should sell more price elastic products, and e-tailers should sell the product with lower price elasticity; and (4) the manufacturer has more monopoly power if consumers have a higher degree of acceptance for the online channel that distributes premium products.
Type of Medium:
Online Resource
ISSN:
2158-2440
,
2158-2440
DOI:
10.1177/21582440231174853
Language:
English
Publisher:
SAGE Publications
Publication Date:
2023
detail.hit.zdb_id:
2628279-3
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