EURO 2024 Copenhagen
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1471. The optimal green product promotion strategy for omnichannel brand merchants

Invited abstract in session WA-23: Game theory for the circular economy, stream Circular Economy, Remanufacturing and Recycling .

Wednesday, 8:30-10:00
Room: 82 (building: 116)

Authors (first author is the speaker)

1. Wenting Han
school of management, Northwestern Polytechnical University
2. Jianfeng Cai
Northwestern Polytechnical University

Abstract

Electronic coupons are a conventional tool used by brands to gain market share. However, with the rise of e-commerce live streaming, more and more brands are adopting AI live streaming as a new promotional method. In the context of sustainable development, AI live streaming will promote green products beyond geographical and language barriers. Therefore, integrating AI live streaming into product promotion has become a new direction to reveal the trade-offs between all-channel brands in AI live streaming and electronic coupon strategies. We develop a co-opetition model to compare the different promotion methods. In this model, we considered the potential impact of network externalities and consumer social responsibility. We found that although AI live-streaming promotion is widely used, its advantages are only evident when network externalities are significant. It is noteworthy that the intelligence level of AI anchors is closely related to the investment level of brand merchants, and differences in consumer social responsibility sensitivity may limit brand merchants' choices in AI live-streaming promotion strategies. In such cases, brand merchants may be more inclined to adopt electronic coupons, to increase sales revenue. Finally, we further examine the impact of logistics costs and the mixed promotion strategy on the sales revenue of supply chain members to show the robustness of the main findings.

Keywords

Status: accepted

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