اشتراک گذاری اطلاعات در عصر تجارت الکترونیکی
Abstract
1- Introduction
2- Literature review
3- Model framework
4- Analysis
5- The effect of return policy on the value of information sharing
6- Conclusions
7- Managerial implications
References
Abstract
In this research, we consider a supplier-e-tailer supply chain where the e-tailer offers a full return policy (i.e., full refund) to its consumers and both the supplier and the e-tailer have their own information about the product demand of online selling. In this setting, we investigate what effective mechanism can be utilized to motivate the supplier and the e-tailer to share their information and also eliminate information distortion simultaneously, and how the e-tailer's return policy impacts the value of information sharing. Our results show that when the two-part tariff mechanism is implemented, both the supplier and the e-tailer would share their information conditionally. As a result, both the supplier and the e-tailer have their motivations to distort the shared information. However, the cooperative wholesale price with profit sharing is an effective mechanism to be utilized to motivate the supplier and the e-tailer to share their information truthfully and create a win-win solution. Furthermore, our results show that comparing to the two-part tariff mechanism, the cooperative wholesale price mechanism has a competitive advantage to help both the supplier and the e-tailer achieve higher profits. In addition, our results also indicate that both the supplier and the e-tailer have stronger motivation to implement an information sharing arrangement when a full return policy is offered to consumers.
Introduction
Product return is an essential option in the post-purchase decisionmaking process of consumers. As online shopping becomes more commonplace, the return policy is a critical part of doing business in the market today. Unlike consumers who shop at brick-and-mortar stores, online consumers don't have the chance to touch or physically inspect the product before buying it. As a result, consumers return online purchases for a variety of reasons. For example, sellers delivered the wrong product, the products turned out to be different from what was described, the product is defective or became damaged during shipping, the risk (e.g. performance risk, financial risk, and social risk) of keeping the product is perceived to be high, or the consumers change their minds after buying. Therefore, allowing consumers to return the products protects consumers who experience product misfit, wrong order, and other problems. Having a well-thought-out return policy is the key to attracting and keeping consumers and a lenient return policy potentially increases consumers' willingness to purchase the products and thus leads to more product purchases (Zhang et al., 2017); this in turn creates a competitive advantage for firms. However, product returns also increase monetary costs for companies. According to Stock et al. (2006), the value of products consumers returned to e-tailers in the U.S. market exceeds $100 billion each year. Therefore, the return policy is a set of tradeoffs for a firm: A generous return policy helps improve sales revenue by motivating more consumers to purchase but also results in higher costs due to more product returns. As a result, a key question arises: Should an e-tailer offer a full return policy (i.e. full refund) to consumers and what are the important implications of this on supply chain management?