OPTIMIZATION OF DYNAMIC PRODUCT OFFERINGS ON ONLINE MARKETPLACES: A NETWORK THEORY PERSPECTIVE

Zuo, M., Angelopoulos, S., Ou, C.X.J, Liu, H., and Liang, Z. “Optimization of dynamic product offerings on online marketplaces: A network theory perspective”, Journal of Management Information Systems, (Forthcoming)

49 Pages Posted: 1 Jul 2020 Last revised: 14 Jul 2023

See all articles by Meihua Zuo

Meihua Zuo

Guangdong University of Technology

Spyros Angelopoulos

Durham University Business School

Carol Xiaojuan Ou

Tilburg University

Hongwei Liu

Guangdong University of Technology

Zhouyang Liang

Guangdong University of Technology

Date Written: July 13, 2023

Abstract

The fierce competition amongst brands on online marketplaces makes the optimization of offerings within this context a significant challenge. To address this challenge, we draw upon network theory and model the degree of competition through consumers’ consideration sets. We use a large empirical dataset from one of the biggest online marketplaces to explore the dynamic relationship between network position and the degree of competition, and we depict the redistribution of market share of related offerings after adjusting their array. In doing so, we provide a theoretical reference on when and how brands should optimize their product offerings on online marketplaces. We further demonstrate that intra-brand cannibalization relations have a significantly greater impact on the degree of competition compared to inter-brand ones, while intra-brand cannibalization relations represent the main reason for fluctuations in the degree of competition. Hence, contrary to existing theoretical insights and practical intuitions, our findings demonstrate that brands should minimize the number and heterogeneity of their offerings within a market segment to increase their sales on online marketplaces.

Keywords: Online marketplaces, dynamic competition analysis, clickstream data, spatial auto-regressive model, network analysis

Suggested Citation

Zuo, Meihua and Angelopoulos, Spyros and Ou, Carol Xiaojuan and Liu, Hongwei and Liang, Zhouyang, OPTIMIZATION OF DYNAMIC PRODUCT OFFERINGS ON ONLINE MARKETPLACES: A NETWORK THEORY PERSPECTIVE (July 13, 2023). Zuo, M., Angelopoulos, S., Ou, C.X.J, Liu, H., and Liang, Z. “Optimization of dynamic product offerings on online marketplaces: A network theory perspective”, Journal of Management Information Systems, (Forthcoming), Available at SSRN: https://ssrn.com/abstract=3598889 or http://dx.doi.org/10.2139/ssrn.3598889

Meihua Zuo

Guangdong University of Technology ( email )

No. 100 Waihuan Xi Road
Guangzhou Higher Education Mega Center
Guangzhou, Panyu 510006
China

Spyros Angelopoulos (Contact Author)

Durham University Business School ( email )

Mill Hill Lane
Durham, DH1 3LB
United Kingdom

Carol Xiaojuan Ou

Tilburg University ( email )

P.O. Box 90153
Tilburg, DC Noord-Brabant 5000 LE
Netherlands

Hongwei Liu

Guangdong University of Technology ( email )

No. 100 Waihuan Xi Road
Guangzhou Higher Education Mega Center
Guangzhou, Panyu 510006
China

Zhouyang Liang

Guangdong University of Technology ( email )

No. 100 Waihuan Xi Road
Guangzhou Higher Education Mega Center
Guangzhou, Panyu 510006
China

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
164
Abstract Views
1,288
Rank
340,260
PlumX Metrics