Research on the Joint Promotion Strategy of E-commerce Platform and Online Retailer in the Return Environment
Considering consumer return behavior,selecting an appropriate joint promotion strategy is a crucial issue faced by e-commerce platforms and online retailers.Current studies rarely consider both the return rate and the cost sharing of promotional efforts in joint promotion strategies.Therefore,this paper constructs a complete information dynamic game model to study how e-commerce platforms and online retailers maximize their profits through joint promotions in a return environment.It is found out that when retailers do not share the platform's promotional efforts and consumers are less or more sensitive to promotional efforts,the platform's(retailer's)discount increases(decreases)with the return rate.If retailers share the platform's promotional efforts and consumers are more sensitive to these efforts,the platform's(retailer's)discount first decreases and then increases(decreases)with the return rate.When the return rate is low,the retailer's optimal profit initially increases and then decreases with the ratio of shared promotional effort costs;conversely,the retailer's optimal profit decreases as this ratio increases.For the platform,when the cost-sharing ratio of joint promotions is low and the return rate is high,it is more advantageous for retailers to share the cost of promotional efforts,and this is beneficial for improving social welfare.
joint promotionpromotional effortsreturn ratecost-sharing ratio
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