Sun Yat-Sen Management Review

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Sun Yat-Sen Management Review  2022/9

Vol. 30, No.4  p.605-642


A Brand Vendor’s Optimal Channel Strategy on the Online Platform under the Existence of Third-Party Sellers
(158_M6323e7e0cd431_Full.pdf 1,902KB)

Cheng-Hsun Hsieh, Ting-Wei Shen, Lu Hsiao/

Department of Business Administration, National Chung Hsing University; Department of Business Administration, National Chung Hsing University; Department of Business Administration, National Chung Hsing University



(158_M6323e7e0cd431_Abs.pdf(File does not exist))




The increasing demand for online platforms motivates brand vendors to introduce online channels to reach more consumers. In this study, we analyze a brand vendor’s optimal channel strategy which could be a pure or mixed channel strategy. To address the research question, we build a dynamic game-theoretic model including the substitution effect among different merchandising channels, the transaction fees charged by platforms, fix fees, and the degree of demands for different selling-types. We try to analyze the difference in retail prices between channels and the brand vendor’s optimal channel strategy in the different marketing environments. The result shows that a mixed channel strategy is optimal only when transaction fees charged by the platform under B2C selling-type are moderate. Otherwise, a pure channel strategy works better. Further, the retail price under mixed channel strategy is not necessarily higher or lower than that under pure channel strategy. It is worth notice when third-party sellers have high demand, the retail price of the B2C selling-type under the mixed channel strategy is higher than the pure channel strategy.

(158_M6323e7e0cd431_Abs.pdf(File does not exist))


Third-Party Sellers, Agency Selling, Channel Strategies, Substitution Effect, Game Theory

Policy and management implications
(Available only in Chinese)


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