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Research on the Cashback Strategy of E-tailers with Strategic Consumers

In: Liss 2020

Author

Listed:
  • Danqin Yang

    (Nanjing University of Science & Technology, School of Economics and Management)

  • Nan Yan

    (Nanjing University of Science & Technology, School of Economics and Management)

  • Jiani Ding

    (Nanjing University of Science & Technology, School of Economics and Management)

Abstract

We integrate the cashback promotion strategy and the strategic consumer’s waiting behavior into a framework and consider a two-stage model in which an e-tailer sells products to strategic customers through two online platforms, e-shop and cashback website (CW). We develop a model to characterize the equilibrium decisions for each participant and investigate the impacts of cashback on the decisions and profits of e-tailer and customers. We found e-tailers can restrain strategic consumer behavior by reasonable use of cashback websites. And e-tailers can make the CW plays the role of advertising and price discrimination through pricing. When the CW only plays the role of advertising, e-tailers can make profits from it.

Suggested Citation

  • Danqin Yang & Nan Yan & Jiani Ding, 2021. "Research on the Cashback Strategy of E-tailers with Strategic Consumers," Springer Books, in: Shifeng Liu & Gábor Bohács & Xianliang Shi & Xiaopu Shang & Anqiang Huang (ed.), Liss 2020, pages 731-745, Springer.
    • Handle: RePEc:spr:sprchp:978-981-33-4359-7_51
    DOI: 10.1007/978-981-33-4359-7_51
    as

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