Are Quality Improvement and Store Brand Introduction Always Effective Strategies Under the Online Platform Case?

ABSTRACT Recently, many platform operators (p‐operators) have introduced store brands (SBs), which brings sales competition with suppliers' national brands (NBs) sold through these p‐operators with reselling or agency‐selling agreement. Confronting the encroachments of p‐operators' SBs, many suppliers usually conduct quality improvement to maintain the high‐end brand reputation of their NBs. We utilize the analytical model to investigate the effectiveness of quality improvement and SB introduction strategies in an online platform supply chain. Results reveal that the supplier always benefits from conducting quality improvement irrespective of the p‐operator's SB introduction strategy. The p‐operator always benefits from introducing SB if the supplier conducts quality improvement under reselling case, whereas this result cannot always hold under agency‐selling case. Although SB introduction hurts the supplier's profit, conducting quality improvement could mitigate the negative effect of p‐operator's SB on the supplier's profit. Counterintuitively, SB introduction may not necessarily decrease the NB's demand when the supplier conducts quality improvement. We also find that the supplier and p‐operator have a chance to achieve Pareto optimality under agency‐selling case, and the increased commission rate or/and brands substitutability would enlarge the chance of achieving Pareto optimality.

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Publication Details

Journal
Managerial and Decision Economics
Published
2025-02-20
DOI
https://doi.org/10.1002/mde.4503
Citations
1
Primary Topic
Consumer Retail Behavior Studies
Type
article
Field-Weighted Citation Impact
2.07

Funders

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article

Are Quality Improvement and Store Brand Introduction Always Effective Strategies Under the Online Platform Case?

Kaili Wang, Jie Wei
1 citations
Managerial and Decision Economics
Consumer Retail Behavior Studies
2.07
article

Are Quality Improvement and Store Brand Introduction Always Effective Strategies Under the Online Platform Case?

Kaili Wang, Jie Wei
article en
1 citations

Abstract

ABSTRACT Recently, many platform operators (p‐operators) have introduced store brands (SBs), which brings sales competition with suppliers' national brands (NBs) sold through these p‐operators with reselling or agency‐selling agreement. Confronting the encroachments of p‐operators' SBs, many suppliers usually conduct quality improvement to maintain the high‐end brand reputation of their NBs. We utilize the analytical model to investigate the effectiveness of quality improvement and SB introduction strategies in an online platform supply chain. Results reveal that the supplier always benefits from conducting quality improvement irrespective of the p‐operator's SB introduction strategy. The p‐operator always benefits from introducing SB if the supplier conducts quality improvement under reselling case, whereas this result cannot always hold under agency‐selling case. Although SB introduction hurts the supplier's profit, conducting quality improvement could mitigate the negative effect of p‐operator's SB on the supplier's profit. Counterintuitively, SB introduction may not necessarily decrease the NB's demand when the supplier conducts quality improvement. We also find that the supplier and p‐operator have a chance to achieve Pareto optimality under agency‐selling case, and the increased commission rate or/and brands substitutability would enlarge the chance of achieving Pareto optimality.

Managerial and Decision EconomicsVol. 46(5)
Hebei University of Technology (CN)
National Natural Science Foundation of China
Openalex Percentile: Top 15%
Consumer Retail Behavior Studies
2.07
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Are Quality Improvement and Store Brand Introduction Always Effective Strategies Under the Online Platform Case? — Kaili Wang, Jie Wei · Managerial and Decision Economics (2025) | TGRS Research Map | TGRS