Should manufacturers open live streaming shopping channels?

Live streaming shopping, as a novel sales channel, has caught much attention from researchers and practitioners. Its unique features, such as the commission rate, fixed fee and number of followers of the live streamer, appear different from traditional wholesale-contract sales channels. But few studies have examined the impact of these factors on manufacturers’ opening live streaming shopping channel decisions. To address this gap, we develop game theoretic models to examine whether a manufacturer should hire a live streamer to open a live streaming shopping channel on an e-commerce platform where the manufacturer's direct channel and third-party e-retailer co-exist. We consider the impact of the commission rate, fixed fee and number of followers of the live streamer on the operating decisions and profits of the manufacturer and e-retailer. Then we identify the threshold-conditions where the manufacturer and e-retailer are better off or worse off by opening a live streaming shopping channel. We show that opening a live streaming shopping channel may hurt or harm the manufacturer's profit, depending on the interaction of above three factors. The manufacturer may be willing to open a live streaming shopping channel when the commission rate and fixed fee are both small, or when the commission rate and number of followers are both large and the fixed fee is small. The e-retailer could also benefit from opening a live streaming shopping channel. These insights appear novel in the literature. We further show that opening a live streaming shopping channel could improve the consumer surplus. We extend our model to price competition to verify our main conclusions. These insights may help manufacturers decide whether or not to open live streaming shopping channels and help manufacturers and extant retailers develop optimal operating decisions and improve profits when participating in live streaming shopping.     

江苏省特色农产品电子商务的发展及策略分析

江苏省特色农产品品种丰富,为电子商务的发展提供了充足的货源,江苏地区的农产品电子商务呈现供销两旺的态势。缺乏强势农产品品牌,农产品物流不够成熟等因素成为江苏特色农产品电子商务发展的制约因素。重视特色农产品的品牌建设、创新农产品电子商务交易模式、加强涉农电子商务人才的培养等都能提高农产品的电子商务发展水平。     

What reduces product uncertainty in live streaming e-commerce? From a signal consistency perspective

E-commerce live streaming has become a popular emerging trend worldwide. However, as an obstacle to consumer decision-making, product uncertainty is still a concern in e-commerce live streaming contexts. Based on signaling theory and uncertainty literature, we propose that signal consistency can reduce product uncertainty and further facilitate consumers’ purchase intention. Moreover, using a sample of 338 live shoppers, we find that anchor-product fit and live content-product fit negatively affect product quality uncertainty but not product fit uncertainty. Danmaku content-product fit and self-product fit negatively influence product quality uncertainty and product fit uncertainty. Product quality uncertainty positively affects product fit uncertainty, and product quality uncertainty and product fit uncertainty have significant negative effects on purchase intention. Additional analyses suggest that four signal consistency cues and two product uncertainty can be combined in three causal configurations to induce high purchase intention. This study extends relevant theory and literature and guides management decisions for e-commerce live streaming sellers and platforms.     

The impact of customer awareness of manufacturer name disclosure on retail brand attitudes and loyalty in Korea

This paper explores the impact of exposing the name of the manufacturer on a retail brand product upon national brand loyalty, retail brand loyalty and store loyalty, It does so by exploring customer attitudes towards retail brands in South Korea, where there is a legal requirement for retail brands to portray the manufacturer׳s name. For international retailers entering markets where such disclosure is a legal requirement an understanding of the implications of this for retail brand management is essential. The findings suggest that in the Korean case revealing the name of the manufacturer who supplies the retail brand on the product packaging has a positive influence on attitudes towards retail brands, although it did not mitigate the perceived risks held by customers towards retail brand products in general.     

Follow my leader? Lookalike retailer brands in non-manufacturer-dominated product markets in the UK

Retailer brands are a common feature of most retail sectors today, and have made an important contribution to the financial performance of Britain's retailers. Over the past two decades, as retailers have adopted the marketing approach in their business activities, the nature and role of retailer brands in marketing strategies has changed. This paper reviews the development of retailer brands in the grocery market, from their original position as product alternatives to leading manufacturer brands, to brand alternatives in their own right. Part of this transformation has involved a revision of the packaging and presentation of these product ranges and this has led to accusations of copy-catting and theft of brand identity. The paper then explores the lookalike debate and reports on an exploratory study of retail brand recognition and the lookalike situation in those product markets which are not dominated by established manufacturer brands.     

Optimal contracts with moral hazard and adverse selection in a live streaming commerce market

Live streaming commerce, as a new online selling channel, is increasingly gaining popularity and creating a vast market worth. Many brand suppliers are entrusting streamers to recommend their products via this channel. However, the cooperation between brand suppliers and streamers may not always achieve a win-win situation due to moral hazard and adverse selection problems, which has largely been ignored in previous studies. To address this gap, we develop two game models based on the Principal-agent theory to design incentive contracts under the streamer's influence and recommendation effort information asymmetry and investigate the price discount decisions in a live streaming commerce supply chain. The findings revealed that the equilibrium contracts depend on the prior beliefs that the brand suppliers hold on the streamers' influence. The information rent held by the high-influence streamers is unavoidable because of the information gap between the brand suppliers and streamers. Under double information asymmetry, brand suppliers maintain the unit commission and price discount for high-influence streamers unchanged while decreasing the unit commission and increasing the price discount for low-influence streamers. An important implication for brand suppliers is that they can obtain more benefits by cooperating with high-influence streamers who require low-price discounts.     

Store Brand Quality and Retailer’s Product Line Design

This study analyzes a retailer’s store brand quality decision in vertically differentiated product categories. We analyze a game theoretic model composed of one or two national brand manufacturers and a retailer, who strategically chooses the quality level(s) of its store brand(s) relative to the well-established national brand position(s) to maximize its category profit. Our analysis reveals that the nature of a retailer’s store brand quality positioning is quite different from the manufacturer’s national brand positioning decision, and that the best position for a store brand is not “as close to a national brand as possible” as previous studies suggest. Instead, the optimal quality position of each store brand is remarkably sensitive to the distribution of consumers’ willingness-to-pay. In particular, the relative proportions of quality sensitive consumers and price sensitive consumers determine the balance of three key strategic forces — the market expansion force, the retail margin force, and the consumer profitability force, leading to different optimal product line designs for store brands across different category environments. Interestingly, against multiple incumbent national brands, the retailer’s optimal product line design includes a store brand positioned at the highest quality level in the category only if most consumers are moderately quality conscious. We also analyze the implications of national brands’ brand equity for retailers’ store brand strategy.     

How attachment affects user stickiness on live streaming platforms: A socio-technical approach perspective

User stickiness is an important factor in the development of live streaming shopping platforms, which describes the degree of users' attention to the platforms. Although some e-commerce websites have provided live streaming services to improve the purchase experience of consumers, few people know how the services affect user stickiness. Building upon attachment theory and socio-technical approach, we developed a theoretical model to understand how live streaming service affects the user stickiness through users' attachment, which is tested by using 425 live streaming shopping platform's users. The results showed that technical factors (synchronicity and vicarious expression) and social factors (interaction and identification) positively affect emotional attachment to streamers and platform attachment respectively, which in turn increase the user stickiness.     

The retailer's brand promotion strategy under competition: The impact of supply uncertainty

While retailers are committed to promoting product brands to increase sales quantity and brand visibility, retailers are exposed to supply uncertainty. Therefore, we explore the brand promotion strategies of retailers in a competitive model. We then investigate the decision model under three different brand strategies and explore the equilibrium outcomes of stakeholders under supply uncertainty. In addition, we analyze and discuss social welfare under different scenarios. The results show that when the promotion cost is high (i.e., the cost effect dominates the market expansion effect), neither retailer promotes the product brand. When the promotion cost is low (i.e., the market expansion effect dominates the cost effect), both retailers tend to promote the product brands. When the promotion cost and market expansion match each other, only one retailer promotes the product brand becomes the equilibrium strategy. It is worth noting that when both retailers promote the product brand, the retailer falls into a prisoner's dilemma. In addition, we find that the supply uncertainty level diminishes the cost affordability and the motivation of retailers to promote the product brands. Interestingly, the supply uncertainty level reduces the possibility of retailers being in a prisoner's dilemma. Besides, market expansion (supply uncertainty) contributes to improving (diminishing) social welfare.     

Transformation and Rebirth of Chinese Brands: A Case From the Hotel Industry

ABSTRACT

Chinese domestic brands have developed rapidly in recent years, and yet few of them have entered global competition as product or service brands brands with exceptions such as Huawei. In addition, the evolution of Chinese brands has hardly been understood or introduced properly by international business educators. In this article, we identify the development patterns of Chinese domestic brands by using a local hotel brand as an example. Particularly, we examine and discuss how a Chinese brand can be established with specific positioning, brand image, and product offering, as well as how the brand can grow by vertical and horizontal extensions based on balancing market opportunities and the brand’s own capabilities. Moreover, we expect this research to facilitate the understanding of Chinese brands among international business education.     

Get in the Game: The Effects of Game-Product Congruity and Product Placement Proximity on Game Players’ Processing of Brands Embedded in Advergames

This study focused on the effects of game-product congruity and product placement proximity on advergame players’ brand memory, brand attitude, game enjoyment, and future intention to play. A 2 (congruity) × 2 (proximity) repeated-measures experiment was used. Results revealed that players’ implicit memory improved for congruent games only. Explicit memory measures also showed signs of improvement for brands in the congruent/central game condition. Surprisingly, it appears that the incongruent/peripheral game condition produced the best results overall with the smallest negative attitude change, the most game enjoyment, and the highest intention to play again in the future. These contradictory findings suggest to brand marketers who design advergames to be careful when combining multiple game featurescongruity and proximity) within a single advergame because this strategic move may provide optimal brand memory while also producing the opposite desired effect for attitude toward the brand, game enjoyment, and intention to play.     

THE IMPACT OF ORDER FULFILLMENT SERVICE ON RETAILER MERCHANDISING DECISIONS IN THE CONSUMER DURABLES INDUSTRY

Historically, manufacturers held the upper hand in consumer goods supply chain relationships. There has been a pervasive shift of power to retailers over the past 20 years, however, ushering in an era of waning consumer loyalty to manufacturers' brands and increasing loyalty to retailers. While there is extensive research focusing on the manufacturer‐consumer relationship, retailers' increased ability to influence consumer purchases suggests that manufacturers should understand not only consumer perceptions of delivery service, but also retailer perceptions. We incorporate social network theory to examine the manufacturer‐retailer‐consumer linkages in the consumer durables industry, with the emphasis on the retailer in the role of the “broker” (Burt 1992). Specifically, we examine whether retailer perceptions of a manufacturer's order fulfillment service (OFS) positively impacts retailer perceptions of the manufacturer's brand, the importance of the product, and the likelihood of the retailers' salespeople to recommend the product to consumers. The research bridges OFS and retailer purchase behavior in a consumer durables industry characterized by high levels of consumer involvement, brand presence, and personal selling.     

Logistics mode strategy of firms selling fresh products on e-commerce platforms with private brand introduction

The popularity of online shopping has enticed many firms selling fresh products to establish third-party stores on e-commerce platforms. For those firms. adopting which logistics mode between platform logistics and third-party logistics (TPL) for their third-party stores is the real decision problem. Moreover, many platforms have introduced their private brands of fresh products to occupy more make share, which will inevitably affect firms' operation strategies. To explore the optimal logistics mode strategy of firms selling fresh products on platforms and the impacts of platform private brand introduction on those firms' operation strategies, four theoretical models are constructed. Main results show that regardless of whether platforms have introduced their private brands of fresh products or not, the optimal logistics mode strategy depends on the sizes of the platform logistics cost and the service level difference between platform logistics and TPL. Furthermore, introducing platform private brands of fresh products will increase firms' willingness to adopt TPL for their third-party stores on platforms. These main results are robust considering the existence of fresh product supplier and different consumer's sensitivity to freshness-keeping efforts.     

Determinants of customer brand loyalty in the retail industry: A comparison between national and private brands in South Korea

Finding motivations for customer brand loyalty is one of the most popular academic and practical research fields; in this regard, some scholars have explored motivations in the retail industry. As the concept of private brands has been one of the most widely employed strategies for business success in the industry, comparing private and national brands in terms of customer loyalty is an important topic in the retail industry. Thus, the current research focuses on exploring antecedents of customer loyalty in private and national brands, as well as investigating whether there are notable structural differences between the brands. The results, based on 1,631 responses, indicate that customer perceived service/product quality, satisfaction, trust, and cost are notable determinants of brand loyalty, while the relationship between customer satisfaction and service quality of private brands is not supported. Moreover, both indirect and direct effects of the employed factors on customer brand loyalty are reported.     

Why Do Local South Korean Market Leaders Supply Retailer Grocery Brands?

This article examines why many of the leading South Korean brand manufacturers produce retailer brand products within their major product categories. The reasons identified include pressure from retailers, protection of other national brand product ranges, maintenance or improvements in working relationships, protection of other distribution channels, savings in marketing budgets, diversification of product lines, and changing competitive structures. Evidence is also provided of the dynamic nature of decision making relating to retail brand supply across the whole portfolio of brands which the manufacturer offers, rather than in respect of individual product brands or markets, the focus of much existing work.     

Is similarity a constraint for service-to-service brand extensions?

Are service brands constrained in launching new service offerings? Both research evidence and managerial wisdom suggest brands should extend to similar categories. However, in five studies using real-life brands - four experiments and one large-sample survey - we provide evidence that similarity is less of a constraint for service brands extending to other service categories (service-to-service extensions), compared to cases involving parent brands or extension categories of a product nature. Importantly, we demonstrate that such an effect occurs because service brands possess associations relevant across the spectrum of service categories. Our results suggest that service brand managers have the opportunity to stretch their brands to dissimilar service offerings; yet, they need to ensure the marketing execution does not make the brands’ service associations inaccessible to consumers. The findings suggest that even product brands can build service associations by adding service components to their offering, thus becoming “servitized” and better able to extend to dissimilar service categories. Overall, our work contributes to the academic debate documenting that the principles governing the management of product vs. service brands are not identical.     

Children and advergames: the role of product involvement,prior brand attitude,persuasion knowledge and game attitude in purchase intentions and changing attitudes

The central aim of this study is to build upon previous research by investigating the role of product involvement, prior brand attitude, persuasion knowledge and game attitude in the brand attitude changes and purchase intentions of children after playing an advergame. In all, 279 respondents between the ages of 10 and 12 years participated in the study. First, they were asked to complete a pre-test survey addressing product involvement and prior brand attitude towards several products and brands. Two weeks later, the respondents were asked to play an advergame and complete a survey addressing brand attitude, purchase intention, persuasion knowledge and attitude towards the game. Our analysis reveals that a positive attitude change is more likely when the game player has already evaluated the brand positively. Furthermore, game attitude is positively related to attitude changes towards the advertised brands, consistent with affect transfer theory. Counterintuitively, a higher level of persuasion knowledge is associated with a higher intention to buy the advertised product. Finally, children who had a more positive attitude towards the game were more likely to report higher purchase intentions, indicating that games which provide good experiences positively influence behavioural intentions. We conclude the paper by discussing the study's limitations and suggestions for future research.     

Money-back guarantee and pricing decision with retailer's store brand

This paper investigates the money-back guarantee (MBG) choice problem in the presence of store brand introduction in a two-echelon supply chain consisted of one manufacturer and one retailer. Game-theoretic models with different MBG policies regarding the national brand and the store brand are examined. We found that the MBG policy could be a strategic tool to help the retailer developing its store brand even when a fairer policy is chosen by the retailer and the store brand is considered by consumers as a low-end substitute for the national brand. The presence of MBG is beneficial to the retailer while unfavorable to the manufacturer, even though the retailer provides a fairer MBG policy, i.e., MBG for both two brands. Although the national brand has advantages over the store brand, MBG will increase the competition and cause customer shifting from the national brand to store brand and thus bring a profit loss for the manufacturer. Moreover, we have found that the manufacturer could provide coordinate contracts for the retailer to improve its performance with which a win-win outcome could be reached for both the manufacturer and the retailer.     

Factors that influence manufacturer and store brand behavioral loyalty

This study examines the factors that are linked to consumer goods brands having unusually high or low behavioral loyalty, after controlling for the association between brand size and loyalty that occurs due to the ‘double jeopardy’ effect. Behavioral, or repeat-purchase loyalty is measured as the brand's average share of category requirements (in volume) among its buyers over a 12-month period. We examine a range of factors that theory or past evidence suggests are associated with higher or lower behavioral loyalty, including brand type (store brand/manufacturer brand), price level, promotion intensity, as well as average brand volume per occasion and pack size. Using extensive US panel purchasing data, we find that store brands exhibit relatively higher behavioral loyalty than manufacturer brands. We explain the theory behind this result. We also find that the brand's average pack size and volume bought per occasion has a markedly positive association with behavioral loyalty. Finally, we find that the effect of low price on excess loyalty is moderated via a positive association with average volume purchase per occasion. These findings add to the body of knowledge relating to patterns in behavioral brand loyalty for both manufacturer and store brands, as well as the marketing-mix factors that influence it.     

Private Label Vendor Selection in a Supply Chain: Quality and Clientele Effects

We model a supply chain consisting of a national brand manufacturer and an independent manufacturer, both of whom are potential suppliers of store brand to a single retailer. The retailer serves two customer segments—a quality sensitive segment (high type) and a price sensitive (low type) segment. The retailer serves these two segments by targeting the national and store brands to the quality and price sensitive segments, respectively. When the national brand manufacturer supplies the store brand he internalizes the effect of store brand quality on the national brand's retail prices. This leads the national brand manufacturer to choose a lower store brand quality than the independent manufacturer. This decrease in store brand quality has the benefit of increased revenues from the high type customers along with an associated cost of decreased revenues from the low type customers. Thus, when the benefit outweighs the cost the retailer chooses the national brand manufacturer to supply the store brand. We show that the retailer will choose the national brand manufacturer to supply the store brand when (a) the size of the high type customer segment is large relative to the low type customer segment, (b) the valuations of the high type customer segment is large relative to the low type customer segment, and (c) the retailer's margin requirement on the store brand is not very high. Overall, these results suggest that retailers who serve a bigger sized quality (price) sensitive clientele would have the national brand (independent) manufacturer supply the store brand.