Abstract
AbstractThis paper examines the e‐commerce platform decides whether to distribute electronic coupons during the promotional period: Single coupon (SC) and double coupon (DC) are available. We analyze the difference in promotional strengths and profit levels between the two coupon scenarios. With the retailer in the SC scenario promoting more when the platform commission rate is increased. In the DC scenario, the larger the gains of the manufacturer and the platform during the promotional period, and the profit trends of the dual‐channel in the original price period remain the same. The platform can only enjoy significant benefits when the platform fee is higher.
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