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Online selling mode choice and pricing in an O2O tourism supply chain considering corporate social responsibility

Online selling mode choice and pricing in an O2O tourism supply chain considering corporate social responsibility

He, Peng, He, Yong, Henry, Xu and Zhou, Li ORCID: 0000-0001-7132-5935 (2019) Online selling mode choice and pricing in an O2O tourism supply chain considering corporate social responsibility. Electronic Commerce Research and Applications, 38:100894. ISSN 1567-4223 (doi:https://doi.org/10.1016/j.elerap.2019.100894)

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Abstract

This paper considers an online-to-offline (O2O) tourism supply
chain (TSC) consisting of an offline tourism service provider (TSP) and an online travel agency (OTA) who has a corporate social responsibility (CSR). We investigate three possible online selling modes: (1) the OTA purchases products from the TSP and sells them to end tourists (Mode R); (2) the OTA charges the TSP a profit-sharing rate (Mode M); (3) the TSP sells products through both the reselling and marketplace channels (Mode D). Based on these three modes, we establish three game-theoretic models to explore the optimal online selling mode and pricing decisions for the
TSC and its members. Our analyses and results show that when Mode D is unavailable: if OTA's cost advantage is relatively low, the TSC members should set a moderate profit-sharing rate and choose Mode M; Conversely, Mode R is better for them under a moderate or not too high profit-sharing rate. When Mode D is also available: Mode M is always worse than Mode D, while Mode R may be better than Mode D under some conditions. Furthermore, we conduct numerical studies and sensitivity analyses, which demonstrate that in Mode D, the TSC should pay more attention to CSR and improve consumers' channel acceptance for the reselling channel to create
more total utility.

Item Type: Article
Uncontrolled Keywords: tourism supply chain, corporate social responsibility, online selling mode choice, pricing
Subjects: H Social Sciences > HF Commerce
Faculty / Department / Research Group: Faculty of Business
Faculty of Business > Department of Systems Management & Strategy
Faculty of Business > Networks and Urban Systems Centre (NUSC)
Faculty of Business > Networks and Urban Systems Centre (NUSC) > Connected Cities Research Group
Last Modified: 29 Nov 2019 10:13
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
Selected for GREAT 2019: None
URI: http://gala.gre.ac.uk/id/eprint/25883

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