Incentive Mechanism for Product Quality of Retailers Based on Platform-Based ECommerce

Abstract

In order to explore the autonomous incentive mechanism of platform-based e-commerce to online retailers' products, a product quality incentive model based on deposit and commission management is established for single retailer single quality products, single retailer products at multiple quality levels and double-retailer different quality products in three cases. Comparative analysis of the equilibrium results in three cases reveals that the effectiveness of the incentive mechanism of platform discount in the first case depends on the deposit strategy of the platform and the influence of the unit cost of excellent and low-quality products. In the second case, the incentive mechanism of platform discount is completely effective. The platform price discount has a positive incentive effect on retailers. The online retailers' increasing the sales of high-quality products and reducing the sales of low-quality products improve the high-quality product rate in the market. In the third case, the effectiveness of the platform discount incentive mechanism is mainly affected by the unit cost of products.