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“Do the electronic books reinforce the dynamics of book supply chain market?”–A theoretical analysis

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  • Li, Yongjian
  • Lin, Zhangxi
  • Xu, Lei
  • Swain, Ajaya

Abstract

In this paper, we develop a set of mathematical models to examine and compare different pricing and launch strategies of electronic books (e-books) under two types of copyright arrangements, namely the royalty and buyout arrangements. We conduct a sensitivity analysis to assess how various market structure parameters influence the publisher's pricing options in different copyright, launch modes, and channels of distribution. Aimed at gaining managerial insights into the complex issues in pricing and launch strategies involving e-books, we recommend optimal launch strategies and pricing decisions for the e-book supply chain.

Suggested Citation

  • Li, Yongjian & Lin, Zhangxi & Xu, Lei & Swain, Ajaya, 2015. "“Do the electronic books reinforce the dynamics of book supply chain market?”–A theoretical analysis," European Journal of Operational Research, Elsevier, vol. 245(2), pages 591-601.
    • Handle: RePEc:eee:ejores:v:245:y:2015:i:2:p:591-601
    DOI: 10.1016/j.ejor.2015.01.048
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    Cited by:

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    2. Hua Ke & Shujun Ye & Yutong Mo, 2022. "A comparison between the wholesale model and the agency model with different launch strategies in the book supply chain," Electronic Commerce Research, Springer, vol. 22(4), pages 1491-1513, December.
    3. Ajaya Kumar Swain & Ray Qing Cao, 2019. "Using sentiment analysis to improve supply chain intelligence," Information Systems Frontiers, Springer, vol. 21(2), pages 469-484, April.
    4. Cungen Zhu & Zhong Yao, 2018. "Comparison between the agency and wholesale model under the e-book duopoly market," Electronic Commerce Research, Springer, vol. 18(2), pages 313-337, June.
    5. Kenji Matsui & Yushi Tsunoda, 2022. "Effectiveness of exclusive territories by competing manufacturers managing dual‐channel supply chains," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(4), pages 1015-1024, June.
    6. Li Chen, 2016. "Selling or Renting: Competition of Electronic Book Retailers," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 6(5), pages 1-2.
    7. Matsui, Kenji, 2017. "When should a manufacturer set its direct price and wholesale price in dual-channel supply chains?," European Journal of Operational Research, Elsevier, vol. 258(2), pages 501-511.
    8. Lu, Qihui & Shi, Victor & Huang, Jiazhou, 2018. "Who benefit from agency model: A strategic analysis of pricing models in distribution channels of physical books and e-books," European Journal of Operational Research, Elsevier, vol. 264(3), pages 1074-1091.
    9. Peng Liu & Rong Zhang & Bin Liu, 2023. "Information sharing under agency selling in an e-commerce supply chain with competing OEMs," Operational Research, Springer, vol. 23(3), pages 1-27, September.
    10. Matsui, Kenji, 2018. "When and what wholesale and retail prices should be set in multi-channel supply chains?," European Journal of Operational Research, Elsevier, vol. 267(2), pages 540-554.
    11. Matsui, Kenji, 2016. "Asymmetric product distribution between symmetric manufacturers using dual-channel supply chains," European Journal of Operational Research, Elsevier, vol. 248(2), pages 646-657.
    12. Reinares-Lara, Pedro & Martín-Santana, Josefa D., 2019. "Managing point of purchase advertising: Effectiveness in terms of recall and recognition," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 289-296.
    13. Kittaka, Yuta & Matsushima, Noriaki & Saruta, Fuyuki, 2022. "Negative effect of price-matching policy on traditional retailers in a dual-channel supply chain with different content formats," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 161(C).

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