Using Distribution Alliance to Signal the Seller’s Service Quality in Online Retailing Platforms

Signal plays a significant role in the online retailing market, especially where the service quality of sellers is unobservable. In the current study, a game-theoretical model was formulated to help examine whether the new delivery service called distribution alliance in the electronic market can se...

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Main Authors: Yufei Yan, Zuoliang Ye, Xiaoxiao Gong
Format: Article
Language:English
Published: Wiley 2021-01-01
Series:Complexity
Online Access:http://dx.doi.org/10.1155/2021/7912567
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author Yufei Yan
Zuoliang Ye
Xiaoxiao Gong
author_facet Yufei Yan
Zuoliang Ye
Xiaoxiao Gong
author_sort Yufei Yan
collection DOAJ
description Signal plays a significant role in the online retailing market, especially where the service quality of sellers is unobservable. In the current study, a game-theoretical model was formulated to help examine whether the new delivery service called distribution alliance in the electronic market can serve as a superior signal in revealing online seller’s service quality. Our results showed that the certification accuracy and the application fee are closely related to the signaling effect of the distribution alliance. Specifically, we found a concrete analytical boundary where a certain high level of certification accuracy is required to guarantee the existence of market equilibrium, and a corresponding application fee can convoy the signal’s effectiveness. In addition, the potential extensions and limitations of this research were also discussed.
format Article
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institution Kabale University
issn 1076-2787
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language English
publishDate 2021-01-01
publisher Wiley
record_format Article
series Complexity
spelling doaj-art-0aafa488c91e4335a4e7481da95636ef2025-02-03T01:25:01ZengWileyComplexity1076-27871099-05262021-01-01202110.1155/2021/79125677912567Using Distribution Alliance to Signal the Seller’s Service Quality in Online Retailing PlatformsYufei Yan0Zuoliang Ye1Xiaoxiao Gong2School of Business Administration, Southwestern University of Finance and Economics, Chengdu 611130, ChinaSchool of International Business, Southwestern University of Finance and Economics, Chengdu 611130, ChinaSchool of Business Administration, Southwestern University of Finance and Economics, Chengdu 611130, ChinaSignal plays a significant role in the online retailing market, especially where the service quality of sellers is unobservable. In the current study, a game-theoretical model was formulated to help examine whether the new delivery service called distribution alliance in the electronic market can serve as a superior signal in revealing online seller’s service quality. Our results showed that the certification accuracy and the application fee are closely related to the signaling effect of the distribution alliance. Specifically, we found a concrete analytical boundary where a certain high level of certification accuracy is required to guarantee the existence of market equilibrium, and a corresponding application fee can convoy the signal’s effectiveness. In addition, the potential extensions and limitations of this research were also discussed.http://dx.doi.org/10.1155/2021/7912567
spellingShingle Yufei Yan
Zuoliang Ye
Xiaoxiao Gong
Using Distribution Alliance to Signal the Seller’s Service Quality in Online Retailing Platforms
Complexity
title Using Distribution Alliance to Signal the Seller’s Service Quality in Online Retailing Platforms
title_full Using Distribution Alliance to Signal the Seller’s Service Quality in Online Retailing Platforms
title_fullStr Using Distribution Alliance to Signal the Seller’s Service Quality in Online Retailing Platforms
title_full_unstemmed Using Distribution Alliance to Signal the Seller’s Service Quality in Online Retailing Platforms
title_short Using Distribution Alliance to Signal the Seller’s Service Quality in Online Retailing Platforms
title_sort using distribution alliance to signal the seller s service quality in online retailing platforms
url http://dx.doi.org/10.1155/2021/7912567
work_keys_str_mv AT yufeiyan usingdistributionalliancetosignalthesellersservicequalityinonlineretailingplatforms
AT zuoliangye usingdistributionalliancetosignalthesellersservicequalityinonlineretailingplatforms
AT xiaoxiaogong usingdistributionalliancetosignalthesellersservicequalityinonlineretailingplatforms