Marketing Seminar（2016-11）

Title: Effects of Consumer-to-Consumer Product Sharing on Distribution Channel

Speaker: Baojun Jiang, Olin Business School at Washington University in St. Louis

Time: Wednesday, 29 June 13:30-15:00

Location: Room217, Guanghua Building 2

Abstract:

Consumers often buy and own products but do not fully utilize them. In recent years, collaborative consumption among consumers has become very prevalent in the economy. A product owner’s self-use values can differ over time, and in a period of low self-use value, the owner may rent out her product in a product-sharing market. This paper develops an analytical framework to study how consumer-to-consumer product sharing affects the distribution channel, where the manufacturer makes production capacity and wholesale pricing decisions and the retailer sells the product to forward-looking consumers. Our analysis reveals that there exists a threshold for the capacity cost coefficient, above which product sharing will increase the manufacturer’s optimal capacity and below which it will reduce the manufacturer’s optimal capacity. We find that the sharing market tends to increase the retailer’s share of the total gross profit margin in the channel. Furthermore, the existence of the sharing market tends to benefit the firms when capacity is relatively costly to build, but it is more likely to increase the retailer’s profit than the manufacturer’s profit.

Introduction:

Baojun Jiang is an assistant professor of marketing at the Olin Business School at Washington University in St. Louis. He received a B.A. in economics and physics from Grinnell College, an M.S. in physics and an M.S. in electrical engineering from Stanford University, an M.B.A. from the University of Texas at Austin, and an M.S. and Ph.D. in industrial administration from Carnegie Mellon University. His current research interests include the sharing economy, signaling, pricing, platform-based business models, innovations, competitive strategy, behavioral economics, and marketing-operations interface. His research has been published in journals such as Marketing Science, Management Science, and Journal of Marketing Research.

http://www.olin.wustl.edu/EN-US/Faculty-Research/Faculty/Pages/FacultyDetail.aspx?username=baojunjiang

Your participation is warmly welcomed!

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