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Dynamic effects of parallel selling channels on the electronic marketplace reputation and performance

Author

Listed:
  • Samira Ebrahimi

    (Iran University of Science and Technology)

  • Mohammad Fathian

    (Iran University of Science and Technology)

  • Seyyed-Mahdi Hosseini-Motlagh

    (Iran University of Science and Technology)

Abstract

By the spread of coronavirus disease 2019, the first option of most consumers for shopping is being e-marketplaces. As a result, under such a situation, e-marketplaces face intense competition. Accordingly, adopting an effective strategy for gaining more market share is significant for them. In the context of electronic marketplace literature, the dynamic effects of the parallel selling channels have not been examined on the profitability and reputation of the e-marketplace. In this study, an electronic marketplace is considered in which the products are sold through the parallel selling channels. In the parallel selling channels, local sellers deliver the consumers’ orders very fast and a price discount is offered by the hypermarket. The dynamic effects of the price discount and delivery lead time decisions are calculated by the dynamic game theory. Furthermore, the evolution of the electronic marketplace reputation is calculated over time. The problem is formulated in decentralized and centralized structures. Then, a combination of coordination contracts is proposed under the coordination system. The data of a case study is applied to evaluate the developed model. The results illustrate that to better manage the market share of the e-marketplace, managers can consider the simultaneous dynamic effects of the price discount and delivery time decisions. Further, determining the decisions over time leads to improve the electronic marketplace reputation over time. In addition, the electronic marketplace manager can influence the service level by the commission fees. Moreover, the coordination contract effectively improves the e-marketplace and sellers performance.

Suggested Citation

  • Samira Ebrahimi & Mohammad Fathian & Seyyed-Mahdi Hosseini-Motlagh, 2025. "Dynamic effects of parallel selling channels on the electronic marketplace reputation and performance," Annals of Operations Research, Springer, vol. 344(2), pages 847-875, January.
    • Handle: RePEc:spr:annopr:v:344:y:2025:i:2:d:10.1007_s10479-024-05838-4
    DOI: 10.1007/s10479-024-05838-4
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