The Advantages Of Online Direct Distributors In Taobao In Honesty And Sales

Online distributors can be divided into direct online distributors and online retailers. Distributors release information for consumers to choose through the network. There are two kinds of pricing strategies for the direct distributors and retailers: honest marketing strategy, which means that the price matches the quality; fraudulent marketing strategy, which means that all the goods are sold in the higher price.Through developing two infinite-stages dynamic games models, the author compares the long-term gain of two strategies between direct online distributors and retailers, and compares their credibility according to the credit rating of Taobao consumers.It proves that the direct distributors will pay more price than the retailers once the cheating is discovered. The data shows that the direct distributors’ credit score are also significantly higher than the retailers’ credit score. Good reputations bring high sales volume, so the good reputations has brought great benefits to direct online distributors and higher prices. It also shows that the network provides the producers a better marketing approach, and the study has important practical significance and practical value.