Research On The Influence Mechanism Of Buyer Power On Retailer’s Service Decision

In recent years,due to the impact of e-commerce platforms,various physical retailers are actively seeking changes to provide higher-level and more diverse services.In the first half of 2019,Carrefour Supermarket piloted the service of "payment without cashier" in major cities in China.In 2018,Amazon,Tencent,and Alibaba successively launched "unmanned stores".In 2017,Liaoning Publishing Group renovated and upgraded Goethe Bookstore and Northern Bookstore successively.Goethe Bookstore will provide 24-hour business services,and Northern Bookstore will be renamed"Northern New Life",focusing on providing consumers with cultural experience,cultural creativity and cultural consumption.At the same time,China Publishing Group also upgraded the Xinhua Bookstore,expanded its business area,extended its business hours,and provided various lectures and book sharing activities for citizens and friends.The services provided by the above retailers can be roughly divided into two categories.The first category is the service that exhibits a competitive effect,and the specific performance is:creating a better shopping environment,reducing the time for consumers to select products and clearing products,etc.;the other category is performance as convenience The car-effect service is specifically manifested as:providing more product information,enhancing the product experience for consumers before sales,etc.Scholars have previously studied the services that exhibit competitive effects and the services that exhibit free-riding effects,but they have not made clear definitions and definitions of services,and have not elaborated on the mechanism of service for specific manifestations.Therefore,the detailed differentiation of the services provided by retailers is one of the research purposes of this article.On the other hand,most of the retailers that provide higher levels at this stage are chained,that is,they have mastered the buyer’s power relative to the upstream suppliers.This makes us have to think about a question:Is there any relationship between the high service of retailers at this stage and the greater power of buyers?Does buyer power bring a higher level of service?At the same time,different types of services havedifferent influencing factors and mechanism of action,so what are the factors that affect different types of services?What is the mechanism of action?These are the questions that this article will answer.Based on buyer power and service-related literature,this paper conducts an indepth study on the relationship between buyer power and retailer service decisionmaking and its spillover effects.Specifically,this article has carried out the following work:(1)Combing the mechanism of buyer power determination in the existing buyer power literature,and finally borrowing from the "waterbed effect" model,using the threat of external selection as the determinant of buyer power,and taking wholesale prices As a result of the performance of buyer power.(2)Classify the services provided by retailers in the existing literature,and divide them into services that exhibit competitive effects and services that exhibit free-rider effects.(3)A two-dimensional Hotelling service competition model that can characterize the spatial location and time sensitivity of consumers is constructed.(4)Constructed a service free-riding model that can characterize the size of the service’s positive externalities.Through the above work,the following conclusions have been obtained:(1)Buyer power can bring about the improvement of the retailer’s service level.The basic principle lies in the cost space effect and the incentive effect,that is,the powerful retailer has the cost conditions and conditions to improve the service level.Enlarge market share through services to further enhance the motivation of buyer power.(2)In the research on the competitive effect of services,the change of consumers’ time sensitivity will affect the influence of buyer power on the retailer’s service level.Chain retailers with buyer power can better adapt to the changes of consumers and play Own cost advantage.(3)In the research on the free-riding effect of services,the free-riding effect of services will always bring about external effects that are not conducive to the service provided by retailers,and the cost space effect and incentive effect brought bybuyer power can offset the disadvantages of external effects.Impact,and ultimatelyimprove service levels.(4)From the perspective of property rights,with the increase in the degree of chain-linking of market segments,the degree of ambiguity in the property rights of providing free-rider services in the market segments has decreased.That is,the increase of buyer power can partially solve the ambiguity of property rights caused by externalities.(5)The buyer power brought about by retail chains should be limited,that is,it is guaranteed that non-chain retailers will not withdraw from the market.