Affiliation:
1. School of Economics and Business Administration Chongqing University Chongqing China
2. Chongqing Key Laboratory of Logistics Chongqing University Chongqing China
Abstract
AbstractAiming to investigate whether a fresh produce e‐tailer should implement the strategy of advance selling considering the behavior of consumers' risk aversion, we build a two‐stage newsvendor decision‐making model and further explore how the advance selling value is affected by factors, such as the freshness‐keeping cost and the effect of demand information updating on reducing demand uncertainty. The results indicate that adopting advance selling strategy benefits the e‐tailer or not depends on consumer risk aversion and the effect of demand information updating on reducing demand uncertainty. The increasing effect of demand information updating on reducing demand uncertainty is conducive to improving the value of advance selling, and the freshness‐keeping cost may increase or decrease the value of advance selling. Besides, adopting the strategy of advance selling may benefit both the e‐tailer and the consumers under certain conditions.
Funder
National Natural Science Foundation of China
National Office for Philosophy and Social Sciences
Subject
Management of Technology and Innovation,Management Science and Operations Research,Strategy and Management,Business and International Management