The probe squad led by Prof. YU Yugang from University of Science and Technology of China (USTC) of the Chinese Academy of Sciences, collaborating with Prof. ZHANG Fuqiang from Washington University successful St. Louis, studied the optimal bundling strategy of retail enterprises nether the level proviso concatenation structure. The results were published successful Production and Operations Management.
With the enactment of the caller procreation of accusation exertion and platform economy, "platform" has go a emblematic diagnostic of modern proviso chain.
Previous studies concerning the bundling strategy mostly focused connected the problems nether the accepted proviso chain. In this study, the researchers studied the bureau selling of the level with multi merchandise bundling. Agency selling is simply a income exemplary wherever suppliers wage a committee interest to the level to summation entree and merchantability straight to consumers.
The researchers recovered that upstream suppliers would strategically summation the retail terms of products to compel the retail level to usage the bundling strategy. In this case, erstwhile the committee proportionality paid to the retail level is successful the mediate range, the profits of the level would alteration if the level has bundling capability, compared with the concern without bundling ability. Also, the excessive retail terms of suppliers would trim the residual worth of consumers and harm societal welfare.
Based connected this finding, the researchers projected that the level promises not to bundle income successful beforehand to destruct the antagonistic effect of bundle income quality connected retail platforms and consumers and to amended societal welfare.
This survey reveals the suboptimal diagnostic of bundling strategy successful the cognition of retail level theoretically, which benefits the level proviso concatenation management. The operation and optimization of level proviso concatenation is not lone 1 of the large nationalist strategies, but besides an important contented successful the proposals for formulating the 14th Five-Year Plan (2021-2025) for National Economic and Social Development and the Long-Range Objectives Through the Year 2035.
More information: Xiaolong Guo et al, Optimal Bundling Strategy for a Retail Platform Under Agency Selling, Production and Operations Management (2021). DOI: 10.1111/poms.13366
Citation: Researchers uncover suboptimal conditions of level bundling strategy (2021, September 6) retrieved 6 September 2021 from https://techxplore.com/news/2021-09-reveal-suboptimal-conditions-platform-bundling.html
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