Sales Channels Research Articles

Optimal trade credit coordination policy in dual-channel supply chain with consumer transfer

The boom in online sales has inspired the enthusiasm of manufacturers to include their own online sale channel with the retailer’s offline channel. This paper investigates the impact of consumer transfer in a capital-constraint dual-channel supply chain and examines the optimal operational decision by considering a Stackelberg game. We capture the trade credit coordination mechanism of the supply chain facing with stochastic demand. The results show that trade credit contract would alleviate financial pressure of the capital-constraint retailer and achieve coordination in the dual-channel supply chain. Besides, the adoption of trade credit stimulates the ordering behaviour of retailers. However, by using trade credit, the default risk increases for the capital-constraint retailer compared to the retailer with sufficient capital. The manufacturer shares the risk with the retailer by trade credit in dual-channel supply chain. Furthermore, the effects of consumer transfer rates on the setting of the trade credit parameters are also presented in this paper.

Do online sales channels save brands of global companies from consumer boycotts? A geographical analysis

This study empirically investigates the link between global companies' brand strength and consumers' actual purchase behavior by considering online purchasability and the geographical area in the context of boycott campaigns. To test the hypotheses, we employ a hierarchical multiple regression model using online survey data collected from 571 South Korean consumers. Our findings reveal that online purchasability with strong brand strength could be a beneficial strategy for global companies to increase consumers’ actual purchase behavior. Further, non-metropolitan consumers show an increase in actual purchase behavior as compared to metropolitan consumers. This study has implications for global companies to adequately respond to unexpected consumer boycotts.

Effects of consumer loyalty and product web compatibility on cooperative advertising and pricing policies in a dual-channel supply chain

A common practice for brand manufacturers is to operate dual distribution channels in which they offer an online channel for direct sales to end consumers and an independently-managed retail channel for sales in physical stores. This structure enables the manufacturers to reach multiple segments of consumers with different online and offline shopping preferences, but it may create channel conflicts due to the manufacturers’ competitive position in the end market. Cooperative advertising programs can be implemented in response to the emerging competitive dynamics between the manufacturers and the retailers. We investigate the impact of the consumers’ sales channel preference (i.e., “consumer loyalty”) and the product compatibility with online shopping (i.e., “product web compatibility or web fit”) on the cooperative advertising and pricing decisions of a manufacturer and a retailer in a dual-channel supply chain. We use game-theoretical models and characterize the firms’ equilibrium behaviors under different power structures in the channel. Our results indicate that the level of the retailer’s advertising investment and the manufacturer’s reimbursement in the cooperative advertising program depend critically on consumer loyalty, product web compatibility, and the power distribution among the channel members. For example, when the channel power is symmetrically distributed or held asymmetrically by the retailer, the retailer’s local advertising level increases as the product web compatibility decreases or the proportion of store-loyal consumers increases; whereas this trend is reversed when the manufacturer is the channel leader. We examine how the introduction of the direct channel affects the profits, and we generate additional managerial insights from numerical experiments.

Product rollover and direct sales decisions in dual-channel supply chains

This study investigates product rollover and direct sales decisions in a supply chain with one fashion manufacturer and one retailer when two style generations are sequentially introduced to the market over two periods. The retailer serves as the exclusive sales channel during the introductory period of a style generation. Both the retailer and manufacturer are capable of selling the old style generation in the second period. The retailer adopts dual rollover if she sells the old style generation, and single rollover if she does not. We develop a two-stage game to explore the chain members’ equilibrium decisions while accounting for the manufacturer’s cost inefficiency in direct sales and consumers’ mental account deficit. We find that the manufacturer’s cost inefficiency has double-edged effects and can offset the negative effect of consumers’ mental account deficit on the introduction of a new style generation. Furthermore, a win–win outcome can be achieved when the manufacturer with an intermediate level of cost inefficiency engages in direct sales and consumers have high valuations of the old style generation or when the manufacturer with significant cost inefficiency does not engage in direct sales.

Editorial

Editorial

ІННОВАЦІЙНІ КОНЦЕПЦІЇ РОЗВИТКУ РОЗДРІБНОГО РИТЕЙЛУ

According to the results of the research, the main trends that determine the innovative component of retail enterprises were revealed: a significant increase in the share of online sales, the involvement of augmented and virtual reality technologies, artificial intelligence, robotics, which led to a change in the consumer experience, simplification of the product selection process, saving time for making a purchase; optimization of innovative communication; blurring the lines between traditional offline and online retailers; the opening of new sales channels, such as trade through social networks and marketplaces. Implementation of innovations in the field of trade is the only prerequisite for their survival and a catalyst for increasing all components of innovation potential, which in the future will ensure comprehensive innovative development of the enterprise. The relevance of the research topic is characterized by the need to determine the innovative mechanism of retail development in the context of strengthening the need to implement opportunities for enterprises to use the achievements of scientific and technological development in order to create a basis for the formation of a new type of economy in Ukraine. Practical experience proves that the insignificant effectiveness of innovations occurs precisely at the micro level, therefore, the issues of innovative development of enterprises are defined as topical directions of scientific research, which is determined by the need to create a scientific and methodological basis capable of realizing the possibility of the process of innovative development of trade enterprises and its management mechanisms. The purpose of the study is to determine the essence, structure and types of innovative technologies of retail development. The tasks set in the article were solved using general scientific research methods, namely: analysis, systematization and generalization. The article examines the essence and advantages of using the latest technologies in retail trade, highlights the main trends in the use of innovations in retail, and examines their manifestations both for the consumer and for the enterprise itself. The practical value of the statements given in the article can be used to improve the adaptive management system of innovative retail activities, as well as to study disciplines under the educational programs of the field of knowledge 07 "Management and Administration". Prospects for further research. Analyzing world experience of modern trends in innovative development of retail and determination of strategies for innovative improvements in domestic enterprises.

신규 보험판매채널에 대한 고지수령권 인정 여부와 법적 쟁점

The insurance industry has undergone many changes due to the era of the 4th industrial revolution, which interconnects our digital and real worlds. Advances in big data have cleared the path for insurers to acquire the material information of the insured. New methods of collecting information about individual customers cause a need to reevaluate responsibilities and rights of both parties. In the current industry, the manufacturing and sales of insurance products is separate; the insurance company is in charge of the manufacturing of insurance products, and sales companies were established exclusively for the sale of insurance products. New types of sales channels such as Artificial Intelligence (AI) insurance solicitors have emerged. In April of 2021, Hanwha Life Financial Services, an insurance product sales company made by Hanwha Life Insurance company, launched, and immediately took the first place in the GA agency rankings. In general, large insurance agencies have larger capital and number of solicitors than small and medium-sized insurance companies. Therefore, it is necessary to emphasize responsibility at scale. According to Article 45 of the Financial Consumer Protection Act, it is not reasonable for an insurance company that entrusts sales to large general agencies, which are larger than small and medium-sized insurance companies, to assume primary responsibility for consumer damage caused by insurance sales. Through the amendment of the Act, major insurance agencies, which are classified as having 500 or more affiliated insurance solicitors, insurance companies specializing in insurance product sales such as Hanwha life financial services, and subsidiary-type insurance agencies are required to assume primary responsibility prior to the insurance company entrusting insurance sales. It is needed the size of the institution should make it possible to impose responsibilities that are reasonable. With the advent of the 4th industrial revolution, AI insurance solicitors are being introduced in addition to traditional insurance solicitors. It is necessary to revise the Insurance Business Act to allow to sale insurance products by solicits. It is necessary to grant the right to receive the duty of disclosure to exclusive insurance solicitors directly or indirectly under the influence of insurance companies, such as sales training from insurance companies and ethics training to prevent incomplete sales. It is necessary to protect insurance consumers who are trusted with the insurance company’s agent by granting the right to receive the duty of disclosure to the insurance solicitor in charge of explaining insurance products to the subject working as an insurance company’s exclusive solicitor.

Economic assessment of the enterprise performance and competitiveness

The competitiveness of an enterprise is directly related to the quality of its products. Therefore, in the process of production of the relevant assortment of products, it is necessary to optimally adjust the entire production and technological chain, i.e. from the moment of receipt of raw materials to the stage of finished product output. The purpose of the article is to analyze the main economic indicators of competitiveness on the example of “Import Oils” LLP. The subject of the research are organizational and economic relations in the process of increasing the competitiveness of the enterprise. In the process of research, we used methods of differentiated indicators of competitiveness evaluation of enterprise efficiency: liquidity indicators, indicators of financial stability, indicators of enterprise profitability. In this aspect, a special role is played by the process of forming the cost of production, as it forms the basis of pricing of the business entity. Consequently, the enterprise needs discriminatory pricing in those industries where the firm sells its products. In general, along with increasing the competitiveness of the enterprise, improving the quality of products sold and expanding its range, targeted work on the promotion of goods on the market. In this aspect, a special role should be given to issues of improvement of sales channels of the company's products. At the same time competitiveness of economic subjects will allow to form the balanced development of branch markets of separate kinds of production and services.

Conceptual bases of agricultural enterprises development

The subject of scientifc research is the scientifc and practical principles of development of various types of agricultural enterprises in Ukraine. The purpose of the article is to substantiate the conceptual directions of production in small, medium and large agricultural enterprises in the war and postwar period. The data of the State Statistics Service of Ukraine, regulatory acts of Ukraine and the scientifc research (abstract-logical, system approach, monographic, statistical-economic method) were used. Based on the retrospective analysis of agricultural enterprises production efciency, the key areas of economic activity of large, medium and small agricultural enterprises are identifed. In the conditions of wartime and the further postwar period, when a signifcant decline in investment activity is expected, agricultural production will be oriented towards more labor-intensive and less capital-intensive types of agribusiness, in particular in small and medium agricultural enterprises. In agricultural enterprises there is a different share of working capital in the total value of assets. In small enterprises, the capital structure is dominated by working capital, while in large – fxed capital and capital security is 3-4 times higher than in other types of enterprises in the branch. Based on this, in a state of war and the risk of capital investment in the industry, the most economically advantageous is the situation in small and medium enterprises, where the best rates of return on investment and rates of return. It is proved that for large agricultural enterprises it is necessary to determine the economic vectors of their development in the short and medium term. In particular, to diversify agribusiness and combine the development of crop and livestock production, to diversify sales channels to the external food market, and to focus on the domestic consumer market. Also, these companies need to pay attention to the production of biofuels, other energy resources and more. Based on the analysis of capital investment in various types of agricultural enterprises, the directions of investment in agricultural machinery and equipment are substantiated (they can be moved quickly in case of the military front approach). Such investment and reproduction processes can be traced in small and medium enterprises, in contrast to large enterprises, which have invested a lot in the construction of production and logistics facilities. Small, medium and large forms of entrepreneurship in agribusiness should take their place in the economy of rural areas. The study has generalized the conceptual directions – strategic landmarks of social and economic development of various types of agricultural enterprises for the future period are. Key words: entrepreneurship, agricultural enterprise, farming, food security, employment, economic efciency, capital investments.

Punto de equilibrio productivo y márgenes de comercialización del productor de chile jalapeño (Capsicum annuum ‘alapeño’) en México

Farmers in Mexico are increasingly interested in higher-value alternatives to commodity production. The direct sales channel is a potentially attractive marketing alternative as it offers higher net income to farmers. However, in Mexico, few farmers use direct sales. The objective of this study, was to estimate the productive breakeven point and the marketing margins of the jalapeño pepper production in order to obtain profitability for the producers of this vegetable in Quintana Roo, Mexico. A sampling for finite populations was carried out, and the sample size was 89 producers. Results showed that a minimum of 10,754.5 kg.ha-1 is required with a rural sale price no less than 5.6 $.kg-1 of jalapeño pepper (equivalent to $0.20), to maintain a profitable and sustainable commercial supply of the crop. Producers sold most of their jalapeño production to wholesalers (58.4%), despite results showed the fact, that direct markets are the most profitable marketing channel for farmers of the area. The gross marketing margin was 74.5%, which indicated that, by each peso paid for jalapeño consumers, 74 cents corresponded to the intermediation process, and 25 cents to the producer. The organization of producers is crucial to increase the quality of the product and for a greater presence in the marketing chain.

A systematic literature review on e-commerce logistics: towards an e-commerce and omni-channel decision framework

ABSTRACT e-Commerce is the fastest-growing sales channel, while omni-channel retailing is becoming the new retailing standard. Omni-channel logistics is an essential complex aspect of omni-channel retailing, especially considering the increased consumer demand for seamless shopping experiences. This systematic literature review aims to synthesize the contemporary e-commerce logistics literature and to develop a logistics decision framework. This review shows how the focus of e-commerce logistics literature has evolved to multi-channel logistics, and lately to omni-channel logistics. The recent boom in omni-channel logistics publications highlights the importance of logistics in omni-channel retailing with increased complexity and a myriad of logistics design options. An omni-channel logistics decision framework covering 43 decision elements within supply and internal distribution, last mile consumer steering, last mile back-end fulfilment, last mile delivery, and reverse logistics is created by synthesizing 373 articles. This review identifies research opportunities and encourages researchers to complement existing narrower studies with broader empirical studies focusing on the elements’ interplay, and configuration studies associated with firm performance. The framework and future research avenues support retail executives in designing logistics, in decision-making and in developing strategies.

Interaction between non-state pension funds and citizens as a factor in the development of non-state pension provision

The article is devoted to the analysis of the interaction of non-state pension funds and citizens on issues of non-state pension provision (NPP). Non-state pension provision is one of the levels of the pension system, the purpose of which is to ensure the target pension amount. The analysis of the dynamics of NPP in Russia for 2011-2020 showed a consistent increase in the volume of pension reserves while stabilizing the number of participants (clients). Another market trend is its consolidation: the number of non-state pension funds (NPFs) operating in non-state pension provision has decreased from 146 in 2011 to 43 organizations by the end of 2020. An integral assessment of the activities of NPFs was carried out taking into account the Fishburn criterion by calculating the corresponding weighting coefficients for the indicators "Net assets per insured", "Pension reserves per insured", "Growth rate of pension reserves per insured", "Market share", "Accumulated profitability" and "Remuneration of the management company". An integral assessment of the activities of the NPF showed that the most significant factors for the activities of the NPF are such factors as an increase in net assets per insured person, the growth rate of pension savings per insured person. It is possible to increase such factors by attracting new participants (customers) and quality work with existing ones. Based on open data, it was concluded that a more active use of the bank sales channel and sales through partner networks can contribute to improving the interaction of non-state pension funds and citizens. The authors propose to consider financial marketplaces as one of the possible sales channels in the field of non-state pension provision.

Predictive Analysis of User Behavior Processes in Cross-Border E-Commerce Enterprises Based on Deep Learning Models

Currently, the global consumer market is moving toward digitalization, and cross-border e-commerce enterprises are no exception and have to make adjustments in their operational strategies. Digitalization brings complexity, dynamism, and fragmentation in sales channels, media environment, and consumer behavior, requiring cross-border e-commerce enterprises to react more quickly and timely, and the need for intelligent operations is becoming more and more urgent. In this paper, through the problem of predicting the e-commerce user behavior process, the model usually needs to focus on both long-term preferences and short-term preferences of e-commerce users in the current behavior sequence; otherwise, the behavior prediction will be much less effective. Specifically, through a comprehensive analysis of typical cases, the strategies and problems in the intelligent operation process of China’s cross-border e-commerce enterprises at the present stage are discussed, and corresponding suggestions are put forward, so as to promote the rapid development of China’s cross-border e-commerce enterprises.

Solving Dual-Channel Supply Chain Pricing Strategy Problem with Multi-Level Programming Based on Improved Simplified Swarm Optimization

With the evolution of the Internet and the introduction of third-party platforms, a diversified supply chain has gradually emerged. In contrast to the traditional single sales channel, companies can also increase their revenue by selling through multiple channels, such as dual-channel sales: adding a sales channel for direct sales through online third-party platforms. However, due to the complexity of the supply chain structure, previous studies have rarely discussed and analyzed the capital-constrained dual-channel supply chain model, which is more relevant to the actual situation. To solve more complex and realistic supply chain decision problems, this paper uses the concept of game theory to describe the pricing negotiation procedures among the capital-constrained manufacturers and other parties in the dual-channel supply chain by applying the Stackelberg game theory to describe the supply chain structure as a hierarchical multi-level mathematical model to solve the optimal pricing strategy for different financing options to achieve the common benefit of the supply chain. In this study, we propose a Multi-level Improved Simplified Swarm Optimization (MLiSSO) method, which uses the improved, simplified swarm optimization (iSSO) for the Multi-level Programming Problem (MLPP). It is applied to this pricing strategy model of the supply chain and experiments with three related MLPPs in the past studies to verify the effectiveness of the method. The results show that the MLiSSO algorithm is effective, qualitative, and stable and can be used to solve the pricing strategy problem for supply chain models; furthermore, the algorithm can also be applied to other MLPPs.

The Relationship between the Degree of Urban Intelligence and the Performance of Enterprises in the City Based on Artificial Intelligence and Soft Computing

With the rapid development of Internet technology, artificial intelligence and soft computing are gradually applied in various fields. Through active transformation, many companies use artificial intelligence, software computing, and other technologies to develop sales channels, improve corporate performance, and obtain greater benefits. However, some traditional enterprises have been gradually eliminated by the market because they have not rapidly transformed and improved their intelligence. Urban intelligence is the trend of urban economic development, and the degree of intelligence in a city is closely related to the number and scale of intelligent enterprises. In the context of artificial intelligence and soft computing, this paper expounds the relationship between enterprise performance and the degree of urban intelligence and analyzes the key factors affecting enterprise performance and the impact of enterprise performance on the degree of urban intelligence. The results show that Internet technologies such as artificial intelligence and soft computing can improve the performance of enterprises, thereby improving the level of intelligence in cities.

Dual-Channel Supply Chain Pricing Decisions under Discounted Advertising Value

Retailers advertise on different sales channels. When consumers buy online, the effectiveness of advertising is discounted because they cannot feel the product. Observing this phenomenon, this paper studies the advertising strategy of a dual-channel retailer. In this paper, we build stylized game models for the retailer’s price and advertising levels on online and offline channels, respectively. Our contribution is to provide prescriptions for how dual-channel retailers make price and advertise decisions and determine which channel is more profitable for retailers. We find that advertising discounts are not always harming the retailer’s profits. The level of advertising discounts causes retailers to increase the selling price when consumers engage in online shopping. Also, we derive that retailers can choose the sales channels based on the level of consumers’ channel preference of consumers. Interestingly, an increase in the level of advertising discounts will contribute to the growth of the retailer’s profit. Finally, by numerical analysis, we demonstrate the robustness of the results.

Development of the concept of a brand of shoes for schoolgirls in ballet style

The article shows the importance of brand and consumer communication codes in creating a trademark, logo, designing a retail space and its equipment, creative approach in designing your own brand that meets the stated requirements, finding points of contact with consumers. The first thing a consumer faces when perceiving a new brand is its attributes as a set of communication elements identifying a product or service. The concept of brand attributes can be considered in a narrow and broad sense. In a narrow sense, they include the name, corporate identity and packaging. In a broad sense, brand attributes include such components as advertising messages, media strategies, sales channels, etc. All brand attributes must correspond to its place in the market, which it occupies in relation to competitors, as well as meet customer needs and perceptions. Differentiated positioning, as a rule, is specified and specified according to one of the theses: positioning according to the characteristics of the product (when launching a new product that is functionally different from competitors); according to the benefits; according to the use of the product; by users (market segmentation according to the characteristics of the target audience); by prices; by sales channels; image positioning (giving a new image to the brand). Brand associations, correctly transformed into its attributes, contribute to the formation of the necessary brand image in the mind of the buyer and, as a result, consumer loyalty.

Innovation features in the hotel industry: Croatian hotel websites

Abstract The hotel industry undeniably holds strong market power. Its economic impact can affect the infrastructural, economic, and digital development of a particular region. In addition to numerous advantages, digital development has also posed certain challenges for the hotel industry, such as fierce competition and a struggle for market power, which in turn lead to constant searching for new beneficial solutions. Hotel websites need to be of good quality to have a positive impact on profitability. Quality websites are functional and useful, and innovation is a common factor observed when testing quality. The aim of this paper is to provide an overview of the innovation activity of Croatian hotel websites. Two methods were used for research purposes: the e-MICA framework and content analysis. Descriptive statistics and the significance of Chi-squared tests were used to analyse the results. Research findings suggest that Croatian hotels have adopted innovative features on their websites modestly: mostly, 5-star hotels, hotel chains, and foreign-owned hotels as well as hotels focused strategically on direct sales channels. The obtained results are important for future research which should analyse the issue in more depth. Furthermore, hoteliers could also benefit from these results, and use them to their advantage in order to revise and improve their existing strategies.

Analisis Niat Beli Kembali Produk Tabungan Emas di Pegadaian Dalam Konteks Omnichannel

Omnichannel is a business model in which its operations and services are integrated in all sales channels owned by the company in one overall system. Omnichannel combines all store marketing channels both online and offline which can make it easier for customers to find information, process, and make decisions in making product purchases. The purpose of this study was to analyze customer engagement as a mediating variable between channel integration quality and repurchase intention on gold savings products at Pegadaian Medan. The sample in this study was 90 respondents and this sampling method used accidental sampling technique. The data analysis method to answer the hypothesis uses SmartPLS 3.0. The results showed (1) Customer engagement in the omnichannel context had a significant effect on repurchase intention, (2) Channel integration in the omnichannel context had no positive and insignificant effect on customer engagement, (3) Channel integration had a positive and significant effect on purchase intention.

Joint Decisions of Inventory Optimization and Order Allocation for Omni-Channel Multi-Echelon Distribution Network

Firms with omni-channel multi-echelon distribution networks (OMDC) integrate all of their sale channels and distribution echelons to achieve an effective matching of multi-type orders and a shared inventory. However, the high operational cost caused by insufficient use of inventory resources and unreasonable order allocation restricts the sustainable development of firms. To this end, the joint decisions of inventory optimization (IO) and order allocation (OA) are explored to achieve cost-efficient and sustainable omni-channel operations. Specifically, from the perspective of IO, an inventory integrated policy is proposed for online and offline inventory sharing within nodes and lateral transshipment between nodes; from the aspect of OA, an order allocation mechanism is designed for the minimum cost under the influence of multiple factors (inventory replenishment, holding, order delivery distance and time) among different echelon nodes. A joint optimization model of an inventory and orders is therefore developed and is subsequently solved using the Genetic Algorithm (GA). Results obtained show that the proposed strategy has a better performance with regards to operational cost and customer service level and is also more sustainable than alternative strategies. The proposed joint strategy provides a relatively novel approach to realize flexible and sustainable omni-channel distribution systems.