Volume 23, Issue 1, January 2024, Page 90-120
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JTAER, Vol. 19, Pages 54-72: Can the Conditional Rebate Strategy Work? Signaling Quality via Induced Online Reviews
JTAER, Vol. 19, Pages 54-72: Can the Conditional Rebate Strategy Work? Signaling Quality via Induced Online Reviews
Journal of Theoretical and Applied Electronic Commerce Research doi: 10.3390/jtaer19010004
Authors: Lu Xiao Chen Qian Chaojie Wang Jun Wang
Online reviews are an important part of product information and have important effects on consumers’ purchasing decisions. Some sellers try to manipulate the market by inducing online reviews. In this study, a signal game model based on Bayesian conditional probability is constructed to analyze the preconditions, decision-making process, and effect on market demand and profit of this behavior. The results show that first, when consumer sensitivity to rebates reaches a certain threshold, low-quality sellers will adopt a conditional rebate strategy to induce consumers to give positive reviews. Second, the optimal rebate cost (β*) is obtained, where β* increases with the product price (p), but it is not necessarily monotonic in consumers’ sensitivity to rebates (ρ) or the proportion of high-quality products (α). Third, the conditional rebate strategy can only work in a market dominated by low-quality goods. Using the conditional rebate strategy in a market dominated by high-quality goods will not bring benefits to low-quality sellers but will harm their profits. This study proposes that some developing online markets have collusive behaviors owing to a lack of regulations and laws, as well as consumers’ concern for small interests. Ensuring the orderly development of online markets will require joint efforts by platform enterprises, government agencies, and consumers.
JTAER, Vol. 19, Pages 40-53: Application of a Microeconomic Approach for Explanation of Citizen Participation in Open Government
JTAER, Vol. 19, Pages 40-53: Application of a Microeconomic Approach for Explanation of Citizen Participation in Open Government
Journal of Theoretical and Applied Electronic Commerce Research doi: 10.3390/jtaer19010003
Authors: María Verónica Alderete
The digital economy and the sharing economy have changed the role citizens may acquire in society. Citizens can perform at least two roles from the open government perspective: on the one hand, they can be passive users/demanders of information and, on the other hand, they can provide or produce the information in an active manner. The objective of this paper is to offer a theoretical model to explain citizens’ incentives to participate in open government projects. Which is the opportunity cost of participation for the citizen? Which are the drivers of the preferences for the social good? This model is based on the utility function and consumption theory. We complement the theoretical framework with an exploratory–descriptive analysis based on a case study’s primary data about citizen participation. In democracy projects where citizens actively collaborate and could earn monetary gains or become entrepreneurs, the opportunity cost of participation is lower than in a passive type and the amount of the social good depends on the preferences. Preferences for social goods are related to community experiences and e-government and they also affect the decision to participate. Very few studies in the field of open government have pretended to explain citizens’ participation by using microeconomic foundations.
JTAER, Vol. 19, Pages 20-39: Analysis of Green Innovation of the E-Tailer and Supplier with a Drop Shipping Option in E-Commerce
JTAER, Vol. 19, Pages 20-39: Analysis of Green Innovation of the E-Tailer and Supplier with a Drop Shipping Option in E-Commerce
Journal of Theoretical and Applied Electronic Commerce Research doi: 10.3390/jtaer19010002
Authors: Yuepeng Cheng Bo Li
As customer demand for green products increases in the digital economic era, this study analyses the green innovation of the e-tailer and supplier in drop shipping models. Moreover, drop shipping e-tailers and suppliers with a drop shipping option need to make choices regarding whether to provide green or normal products to the market. When a supplier with a drop shipping option produces green products, more fees may be invested in the production of green products than on normal products. The drop shipping e-tailers and suppliers with a drop shipping option can also choose to sell normal products at a low cost, as before. This study designs four models of drop shipping e-tailers and suppliers with a drop shipping option under different choices, analyzes their operational process in drop shipping models, and investigates five theorems. The optimal pricing decisions and green degree of drop shipping e-tailers and suppliers with a drop shipping option were evaluated in this study. The impacts of the green innovation factor, green elasticity coefficient, manufacturing and distribution costs on the drop shipping e-tailers and suppliers with a drop shipping option, and the effect of other environmental parameters on the green degree of green products are also analyzed through computer simulation. The findings of the simulation analysis provide valuable guidance for e-tailers and suppliers with green innovation in drop shipping models and offer important academic and practical implications for e-commerce and the digital economy.
JTAER, Vol. 19, Pages 1-19: Time-of-Day and Day-of-Week Effects on TV and OTT Media Choices: Evidence from South Korea
JTAER, Vol. 19, Pages 1-19: Time-of-Day and Day-of-Week Effects on TV and OTT Media Choices: Evidence from South Korea
Journal of Theoretical and Applied Electronic Commerce Research doi: 10.3390/jtaer19010001
Authors: Yun-Woo Choi Changjun Lee
The objective of this manuscript is to investigate the determinants influencing the selection of over-the-top (OTT) platforms as opposed to traditional television mediums—cable, Internet protocol television (IPTV), and satellite broadcasting—for the consumption of content such as television shows and films. Employing data extracted from the 2020 Media Panel comprising 423,851 observations garnered from personal media diaries, this study scrutinizes the impacts of individual attributes, environmental conditions, and temporal factors on platform choice. The findings reveal a temporal influence characterized by a “Friday effect” and a heightened preference for OTT platforms during early afternoon (12:00–16:00) and late-night hours (00:00–04:00). Notably, the likelihood of selecting OTT platforms is significantly augmented during the late-night period in comparison to other time frames. In relation to individual characteristics, variables such as male gender, younger age, higher educational attainment, and elevated income levels were positively correlated with a predilection for OTT platforms. Additionally, environmental variables such as possession of an unlimited data plan and ownership of a tablet personal computer also emerged as significant predictors for OTT preference. Furthermore, the presence of a beam projector during late-night hours and residing in a household with multiple occupants during afternoon hours also served as contributing factors for OTT utilization. In conclusion, the study offers critical insights for stakeholders in both traditional television and burgeoning OTT markets, providing data-driven recommendations for the strategic allocation of resources in consideration of day-of-week and time-of-day variables.
Spreading Netflix Culture Stirs a Furore
Asian Journal of Management Cases, Ahead of Print.
The availability of a large number of smartphones, widespread internet access and the penetration of high bandwidth, coupled with competitively priced data plans, spurred tremendous growth in the Indian media and entertainment industry, particularly in the realm of over-the-top (OTT) platforms. The demand for OTT services surged even further during the lockdown period brought about by the COVID-19 pandemic. The focal point of this case lies in the entry and expansion of the multinational corporation ‘Netflix’ within India. The case delves into the company’s employment of the marketing mix to address the escalating demand for the novel OTT service in India amid intensifying competition and emerging challenges. In its eagerness to produce original content, Netflix appeared to have inadvertently offended and disregarded the sentiments, religious emotions and beliefs of its audience, resulting in consumer protests. This, in turn, led to the formulation of various regulations governing the content presented on OTT platforms. Owing to its controversial and insensitive content, Netflix faced backlash in India and globally, leading to legal battles in several countries. A recent instance occurred on September 18, 2021, where Nona Gaprindashvili, a Georgian chess prodigy who made history as the world’s first female grandmaster, took legal action against Netflix for defamation and invasion of privacy. This lawsuit was filed in a federal district court in California in response to their show titled ‘Queen’s Gambit’. The core of the lawsuit revolves around a scene in the final episode of the show, wherein a radio commentator suggests that Gaprindashvili was not regarded as a significant contender by her male counterparts. The lawsuit accuses Netflix of belittling Gaprindashvili’s achievements to craft a more sensational narrative and dismissing her previous defamation claim without issuing a public apology or retraction (https://www.npr.org/2021/09/18/1038442947/nona-gaprindashvili-netflix-lawsuit-chess-queens-gambit).
The availability of a large number of smartphones, widespread internet access and the penetration of high bandwidth, coupled with competitively priced data plans, spurred tremendous growth in the Indian media and entertainment industry, particularly in the realm of over-the-top (OTT) platforms. The demand for OTT services surged even further during the lockdown period brought about by the COVID-19 pandemic. The focal point of this case lies in the entry and expansion of the multinational corporation ‘Netflix’ within India. The case delves into the company’s employment of the marketing mix to address the escalating demand for the novel OTT service in India amid intensifying competition and emerging challenges. In its eagerness to produce original content, Netflix appeared to have inadvertently offended and disregarded the sentiments, religious emotions and beliefs of its audience, resulting in consumer protests. This, in turn, led to the formulation of various regulations governing the content presented on OTT platforms. Owing to its controversial and insensitive content, Netflix faced backlash in India and globally, leading to legal battles in several countries. A recent instance occurred on September 18, 2021, where Nona Gaprindashvili, a Georgian chess prodigy who made history as the world’s first female grandmaster, took legal action against Netflix for defamation and invasion of privacy. This lawsuit was filed in a federal district court in California in response to their show titled ‘Queen’s Gambit’. The core of the lawsuit revolves around a scene in the final episode of the show, wherein a radio commentator suggests that Gaprindashvili was not regarded as a significant contender by her male counterparts. The lawsuit accuses Netflix of belittling Gaprindashvili’s achievements to craft a more sensational narrative and dismissing her previous defamation claim without issuing a public apology or retraction (https://www.npr.org/2021/09/18/1038442947/nona-gaprindashvili-netflix-lawsuit-chess-queens-gambit).
Editorial
Asian Journal of Management Cases, Volume 21, Issue 1, Page 7-9, March 2024.
Paytm: Lack of a Cogent IPO Story?*
Asian Journal of Management Cases, Ahead of Print.
On 18 November 2021, Paytm, India’s leading digital payments and financial services company, went public, but its shares were listed at a surprising 9% discount from the initial price. This underperformance of Paytm’s highly anticipated ₹183 billion IPO, the largest in India, stunned the market despite the BSE Sensex index hitting an all-time high in October 2021 with a 50% increase over the previous year. While other unicorns like Zomato (thirty-eight times oversubscribed) and Nykaa (nearly eighty-two times oversubscribed) saw tremendous success in the capital market, Paytm struggled on the stock exchange. This raised questions about why a prominent brand with 3.33 billion customers could not effectively engage with stakeholders and failed to excite investors as Zomato and Nykaa did. Raghavendra Das, a communications consultant seeking to work with Paytm, assessed the company’s communication strategy and shared insights with MD and CEO Vijay Shekhar Sharma. The big question now is, what steps should Paytm and Sharma take next?
On 18 November 2021, Paytm, India’s leading digital payments and financial services company, went public, but its shares were listed at a surprising 9% discount from the initial price. This underperformance of Paytm’s highly anticipated ₹183 billion IPO, the largest in India, stunned the market despite the BSE Sensex index hitting an all-time high in October 2021 with a 50% increase over the previous year. While other unicorns like Zomato (thirty-eight times oversubscribed) and Nykaa (nearly eighty-two times oversubscribed) saw tremendous success in the capital market, Paytm struggled on the stock exchange. This raised questions about why a prominent brand with 3.33 billion customers could not effectively engage with stakeholders and failed to excite investors as Zomato and Nykaa did. Raghavendra Das, a communications consultant seeking to work with Paytm, assessed the company’s communication strategy and shared insights with MD and CEO Vijay Shekhar Sharma. The big question now is, what steps should Paytm and Sharma take next?
Globate 360 Solutions: Test on the Wheels
Asian Journal of Management Cases, Ahead of Print.
Rohit Prashar, director of Globate 360 Solutions Private Limited, a Chandigarh-based third-party logistics company with a global presence, faced a pivotal challenge on 25 August 2020. He secured a project to transport 200 consignments of crucial medical equipment for COVID testing machines to multiple locations in north-eastern states, Kashmir and Leh, India. This project was awarded by a US-based freight forwarding company authorized by The Indian Council of Medical Research. It was a prestigious achievement, hard-won through extensive negotiations during the national lockdown. However, he knew that the real battle had just begun. The stringent government restrictions during the COVID-19 lockdown added complexity. The consignments had to be transported delicately to maintain the testing equipment’s accuracy, necessitating minimal jolts. Deciding between air and road transport posed another challenge. Furthermore, he grappled with the choice between a multinational company with a premium price tag and a regional player with more budget-friendly options. Securing skilled labour was an ongoing concern. In this predicament, he sought cost-effective solutions for each shipment, strategizing to minimize costs while delivering top-notch service to his clients.
Rohit Prashar, director of Globate 360 Solutions Private Limited, a Chandigarh-based third-party logistics company with a global presence, faced a pivotal challenge on 25 August 2020. He secured a project to transport 200 consignments of crucial medical equipment for COVID testing machines to multiple locations in north-eastern states, Kashmir and Leh, India. This project was awarded by a US-based freight forwarding company authorized by The Indian Council of Medical Research. It was a prestigious achievement, hard-won through extensive negotiations during the national lockdown. However, he knew that the real battle had just begun. The stringent government restrictions during the COVID-19 lockdown added complexity. The consignments had to be transported delicately to maintain the testing equipment’s accuracy, necessitating minimal jolts. Deciding between air and road transport posed another challenge. Furthermore, he grappled with the choice between a multinational company with a premium price tag and a regional player with more budget-friendly options. Securing skilled labour was an ongoing concern. In this predicament, he sought cost-effective solutions for each shipment, strategizing to minimize costs while delivering top-notch service to his clients.
Is Micro-warehousing a Solution to Agricultural Commodity Storage?
Asian Journal of Management Cases, Ahead of Print.
Addressing food security is a critical priority for development, particularly in India, where crop productivity is low and post-harvest losses reach 35%–40%, which is a considerable burden. One significant reason for these losses is the lack of storage facilities, especially in rural areas of Bihar. Micro-warehouse (MWH) company, recognizing this issue, took the initiative of introducing micro-warehouses as a solution. They focused on dealing with three commodities: paddy, maize and wheat, and also facilitated the connection between processors and farmers for selling their produce. This approach of micro-warehousing gained attention from investors, leading to funding for scaling up operations. The success of MWH company raises an important question: Can micro-warehousing be a viable strategy to address agriculture storage challenges in India? The founder of the company, considering this achievement, now contemplates expanding the business to other states.
Addressing food security is a critical priority for development, particularly in India, where crop productivity is low and post-harvest losses reach 35%–40%, which is a considerable burden. One significant reason for these losses is the lack of storage facilities, especially in rural areas of Bihar. Micro-warehouse (MWH) company, recognizing this issue, took the initiative of introducing micro-warehouses as a solution. They focused on dealing with three commodities: paddy, maize and wheat, and also facilitated the connection between processors and farmers for selling their produce. This approach of micro-warehousing gained attention from investors, leading to funding for scaling up operations. The success of MWH company raises an important question: Can micro-warehousing be a viable strategy to address agriculture storage challenges in India? The founder of the company, considering this achievement, now contemplates expanding the business to other states.