The two-stage pricing of preannouncement for platform introducing self-operated logistics under consideration of the first- or second-mover advantage

Purpose The optimization of transport efficiency by self-operated logistics has brought competitive advantages to platform, who is gradually developing self-operated logistics and adopting the preannouncement to announce the related information in advance. The purpose of this paper is to explore the development order of self-operated logistics on platform under consideration of preannounce behavior. Design/methodology/approach This paper considers the sequence of platform constructing the self-operated logistics and constructs the two-stage pricing models to analyze the optimal pricing of platforms under different preannounce strategies, including four scenarios: {no-preannounce, first mover}, {no-preannounce, second mover}, {preannounce, first mover} and {preannounce, second mover}. Findings The authors receive several conclusions: First, under no-preannounce scenario, regardless of the sequence of entry into self-operated logistics market, when the quality differentiation of two platforms’ self-operated logistics is moderate, the ratio pricing of two platforms at competition stage is positively correlated with quality differentiation of their self-operated logistics. Additionally, there exists the substitution effect between preannouncement and quality differentiation under no-preannounce condition, and the first-mover platform should increase the pricing of the monopoly phase until it is twice as high as its pricing during the competition phase. Interestingly, the pricing of platform and the strategy for developing self-operated logistics are symmetric between first- and second-mover scenarios. Originality/value First, this study analyzes the pricing and self-operated logistics construction under different preannounce strategies, enriching the interdisciplinary research on corporate marketing and providing scientific suggestions on how to use preannouncement to acquire competitive advantages. Second, this paper also considers the sequence of platform developing self-operated logistics and analyzes how platform develops self-operated logistics as well as pricing to gain first-mover and second-mover advantages. Third, this paper develops the two-stage pricing models that consider the continuity of pricing in different cycles, enriching the relevant theories and models.

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Publication Details

Journal
Asia Pacific Journal of Marketing and Logistics
Published
2024-11-13
DOI
https://doi.org/10.1108/apjml-07-2024-0982
Citations
3
Primary Topic
Transportation and Mobility Innovations
Type
article
Field-Weighted Citation Impact
0.61
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article

The two-stage pricing of preannouncement for platform introducing self-operated logistics under consideration of the first- or second-mover advantage

Ping Li, Bin Wu
3 citations
Asia Pacific Journal of Marketing and Logistics
Transportation and Mobility Innovations
0.61
article

The two-stage pricing of preannouncement for platform introducing self-operated logistics under consideration of the first- or second-mover advantage

Ping Li, Bin Wu
article en
3 citations

Abstract

Purpose The optimization of transport efficiency by self-operated logistics has brought competitive advantages to platform, who is gradually developing self-operated logistics and adopting the preannouncement to announce the related information in advance. The purpose of this paper is to explore the development order of self-operated logistics on platform under consideration of preannounce behavior. Design/methodology/approach This paper considers the sequence of platform constructing the self-operated logistics and constructs the two-stage pricing models to analyze the optimal pricing of platforms under different preannounce strategies, including four scenarios: {no-preannounce, first mover}, {no-preannounce, second mover}, {preannounce, first mover} and {preannounce, second mover}. Findings The authors receive several conclusions: First, under no-preannounce scenario, regardless of the sequence of entry into self-operated logistics market, when the quality differentiation of two platforms’ self-operated logistics is moderate, the ratio pricing of two platforms at competition stage is positively correlated with quality differentiation of their self-operated logistics. Additionally, there exists the substitution effect between preannouncement and quality differentiation under no-preannounce condition, and the first-mover platform should increase the pricing of the monopoly phase until it is twice as high as its pricing during the competition phase. Interestingly, the pricing of platform and the strategy for developing self-operated logistics are symmetric between first- and second-mover scenarios. Originality/value First, this study analyzes the pricing and self-operated logistics construction under different preannounce strategies, enriching the interdisciplinary research on corporate marketing and providing scientific suggestions on how to use preannouncement to acquire competitive advantages. Second, this paper also considers the sequence of platform developing self-operated logistics and analyzes how platform develops self-operated logistics as well as pricing to gain first-mover and second-mover advantages. Third, this paper develops the two-stage pricing models that consider the continuity of pricing in different cycles, enriching the relevant theories and models.

Asia Pacific Journal of Marketing and LogisticsVol. 37(6)
Southeast University (CN)
Industry, innovation and infrastructure
Openalex Percentile: Top 32%
Transportation and Mobility Innovations
0.61
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