Research On The Selection Of E-book Sales Model Under Spillover Effect And Publisher Ownership

With the continuous improvement of electronic publishing technology and the popularity of Kindle and other e-readers,the cost of e-book reading is increasingly reduced,the e-book market is booming and diversified sales models are gradually developed.For publishers,it is essential to figure out which e-book sales model is the best way to maximize profits.Therefore,this paper focuses on the selection of the optimal sales model of e-books and discusses it from the following three parts.Firstly,this paper discusses the publisher’s choice of e-book direct selling mode and wholesale mode.Two decision-making models of e-book direct selling mode and wholesale mode under the leadership of publishers are considered.And the relationships between the profit of publishers,retailers and supply chain under different modes were discussed.The results show that: when the direct selling cost of e-books is small,although publishers prefer direct selling mode,e-book direct selling mode always erodes retailer’s profit.when the direct selling cost is large and the competition coefficient between paper and e-books is large,the retailer prefer direct selling mode,but it erodes publisher’s profit;when the direct selling cost and competition coefficient are within a certain range,publisher and retailer can achieve win-win;in addition,when there is a conflict of interests between publisher and retailer,there is a coordination mechanism within a certain range to achieve Pareto improvement.Secondly,the spillover effect on the selection of e-book sales model is investigated.This paper constructs two decision models of e-book wholesale model and direct model under spillover effect,obtains the optimal profit of publisher,retailer and supply chain by reverse induction method,and compares the profit relationship between them under the two models.The results show that: if(I)the unit operating cost of e-book direct sales channel is small,or(II)the operating cost is moderate and the spillover effect is weak,publishers tend to establish e-book direct channel;on the contrary,publishers tend to sell e-books through the retailer.Compared with the wholesale model,direct model always erode the retailer’s profits when they choose to establish e-book direct sales channel,and the stronger the spillover effect is,the more serious the erosion is.In addition,it is found that the profit of supply chain is higher than that of wholesale mode when publishers choose direct mode under certain conditions.Therefore,the publisher can coordinate the interests of the supply chain by paying the retailer a certain amount of fees,so as to achieve a win-win situation.Finally,the influence of publishers’ vertical shareholding on the choice of e-book sales model is studied.This paper constructs two decision models of e-book wholesale model and direct model in the case of publisher holding retailer,and analyzes and compares the balance strategy and profit between publisher and retailer in the two models.The results show that when publisher’s shareholding ratio and unit operating cost of direct channel are small,publishers prefer to establish direct e-book channel,whereas publishers prefer wholesale mode.When the publisher’s shareholding ratio and unit operating cost of direct channel are both large,retailer prefer publisher to build direct channels,otherwise retailer prefer the wholesale model.When publishers choose e-book direct selling mode,it always erode retailers’ profits and they cannot achieve a win-win situation.At this time,there is a coordination mechanism within a certain range to weaken the conflict between the two and coordinate the supply chain.