Pricing Model With Online Reviews Under Agency Selling

Online review is the evaluation of goods or services published by online consumers through enterprise websites or e-commerce platforms,which is a major form of online word-of-mouth.Under the background of the rapid development of ecommerce,more and more enterprises enter the e-commerce platform in the form of agency model to expand their online marketing channels.A large number of studies have shown that online reviews have a very important impact on consumers’ purchasing decisions and product sales.Therefore,it has become a concern of e-commerce enterprises to make reasonable pricing strategies and optimize the online review platform by using online reviews.This paper studies the e-commerce platform adopts the agency model under the channel structure of two competitive supplier selling alternative products on e-commerce platform,online reviews are how to affect the consumers’ perceptions of utility for products,will affect the supplier’s product pricing strategy,and electric business platform for profits,and according to the results of the study for the electronic commerce enterprise and operation of electric business platform to provide the guidance of the scientific and reasonable.In this paper,based on the consumer utility theory,based on the electric business platform is widely used for consignment business model,using Hotelling model built on online reviews influence consumer perception of the utility model,and based on the analysis of the composed of suppliers-electric business platform-consumers threelevel supply chain structure,the online review of the supplier product pricing and the influence of the electric business platform.The study found that the accuracy of online reviews and online review information had different impacts on vendors and ecommerce platforms selling different types of products.When the type of products sold by the supplier is search product,the quality information provided by online reviews will reduce the heterogeneity of consumers’ perception of utility,intensify the competition of upstream suppliers,and damage the interests of suppliers and ecommerce platforms.When the type of products sold by suppliers is experience-type products,the preference matching information provided by online reviews will increase the heterogeneity of perceived utility of consumers,reduce the competition of upstream suppliers,and benefit suppliers and e-commerce platforms.