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Information sharing and channel structure in e-commerce supply chain considering data-driven marketing.

Feifei Han1, Mei Wang1, Zhengze Wu2

  • 1School of Management, Wenzhou Business College, Wenzhou, PR China.

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Summary

Manufacturers can incentivize e-tailers for greater data-driven marketing (DDM) efforts by adjusting wholesale prices. Information sharing and channel choices depend on spillover effects and costs in e-commerce supply chains.

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Area of Science:

  • Operations Research
  • E-commerce Strategy
  • Game Theory

Background:

  • E-tailers leverage data analytics for trend identification.
  • Data-driven marketing (DDM) is crucial for e-commerce success.
  • Understanding channel dynamics is key for manufacturers and retailers.

Purpose of the Study:

  • To model manufacturer encroachment and information sharing decisions.
  • To analyze the impact of data-driven marketing (DDM) on channel strategy.
  • To provide insights for optimal channel choice and information sharing in e-commerce.

Main Methods:

  • Game-theoretic modeling.
  • Analysis of manufacturer and e-tailer strategic interactions.
  • Derivation of optimal pricing and information sharing conditions.

Main Results:

  • Manufacturers may lower wholesale prices to boost e-tailer DDM effort under high spillover and low marginal costs.
  • E-tailers might share information during manufacturer encroachment if spillover effects are low.
  • Optimal agency channel selection depends on moderate DDM marginal costs and low commission rates.

Conclusions:

  • The study offers strategic guidance on channel selection and information sharing for e-commerce supply chains.
  • Findings help managers navigate complex decisions involving data-driven marketing and channel strategy.
  • Optimizing DDM effort and channel choice can enhance supply chain efficiency and profitability.