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Optimal strategies of social commerce platforms in the context of forwarding and bargaining

Author

Listed:
  • Xu Chen

    (South China University of Technology)

  • Yingliang Wu

    (South China University of Technology
    South China University of Technology)

  • Rujie Zhong

    (University of Edinburgh)

Abstract

“Forwarding and bargaining” is a new marketing pattern in social commerce that fully utilizes consumers’ social relationships and offers an alternative for enterprises struggling with traditional e-commerce platforms. In this paper, we assume a Stackelberg game model between a social commerce platform and an e-commerce enterprise to investigate their strategy changes in four scenarios under the forwarding and bargaining context. Our results show that (1) platforms in the early-mid stage tend to adopt a subsidy strategy to obtain massive user and traffic benefits; (2) for enterprises operating high-quality but low-added-value products, it is unnecessary to join a developed social commerce platform; (3) platforms as direct beneficiaries can always gain more profits than can enterprises from increased traffic benefits; and (4) platforms desire to reduce the forwarding cost, whereas enterprises favour maintaining a higher one.

Suggested Citation

  • Xu Chen & Yingliang Wu & Rujie Zhong, 2023. "Optimal strategies of social commerce platforms in the context of forwarding and bargaining," Operational Research, Springer, vol. 23(2), pages 1-28, June.
    • Handle: RePEc:spr:operea:v:23:y:2023:i:2:d:10.1007_s12351-023-00768-8
    DOI: 10.1007/s12351-023-00768-8
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    References listed on IDEAS

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    1. Wu Zhao & AnQi Wang & Yun Chen, 2019. "How to Maintain the Sustainable Development of a Business Platform: A Case Study of Pinduoduo Social Commerce Platform in China," Sustainability, MDPI, vol. 11(22), pages 1-26, November.
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    4. Haoyan Sun & Ming Fan & Yong Tan, 2020. "An Empirical Analysis of Seller Advertising Strategies in an Online Marketplace," Information Systems Research, INFORMS, vol. 31(1), pages 37-56, March.
    5. Qi Wang & Yunxia Mao & Ji Zhu & Xiaohang Zhang, 2018. "Receiver responses to referral reward programs in social networks," Electronic Commerce Research, Springer, vol. 18(3), pages 563-585, September.
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