Research Article
Research on promotion strategies of offline retailers considering the long-term effect of promotion in the new retail context
@INPROCEEDINGS{10.4108/eai.15-3-2024.2346168, author={Yilin Zheng and Hai Shen and Xiaoying Cui}, title={Research on promotion strategies of offline retailers considering the long-term effect of promotion in the new retail context}, proceedings={Proceedings of the 5th International Conference on E-Commerce and Internet Technology, ECIT 2024, March 15--17, 2024, Changsha, China}, publisher={EAI}, proceedings_a={ECIT}, year={2024}, month={5}, keywords={new retail promotional strategies long-term effects of promotions offline retailer}, doi={10.4108/eai.15-3-2024.2346168} }- Yilin Zheng
Hai Shen
Xiaoying Cui
Year: 2024
Research on promotion strategies of offline retailers considering the long-term effect of promotion in the new retail context
ECIT
EAI
DOI: 10.4108/eai.15-3-2024.2346168
Abstract
[Objective] In the context of new retail, the research focuses on pricing and promotional decisions by platforms and retailers at different periods under varying levels of long-term promotional effects. [Methodology] Employing game theory, the study considers the continuity of promotions and introduces long-term promotional effects. It constructs a two-stage game model consisting of an international online platform and an offline retailer, addressing pricing and promotional decisions. [Results] (1)When the long-term promotional effect is positive, retailers increase selling prices to boost profits. (2) When the long-term promotional effect is negative, post-promotion demand surpasses demand during the promotional period. [Conclusion] The decision-making approach considering long-term promotional effects offers a novel avenue for optimizing pricing and promotional strategies for international online platforms and offline retailers