The process optimization method of the optimal online sales model of information product demand concerning the spillover effect

Abstract

Purpose – This paper examines the process optimization method of the online sales model of information product demand concerning the spillover effect. It illustrates the spillover effect (SE) of online product demand compared with traditional market demand. Also, optimized the SE for the ethical and ordinary consumer. Design/methodology/approach – This article primarily focused on two types of models for online marketing: one is wholesales, and another is the agency. Firstly, the wholesale and agency models without SE and the wholesale and agency models with SE are constructed, respectively, to realize the SE in different sales models. Secondly, online channel participants' optimal price, demand and profit under variant conditions are compared and analyzed. Finally, efficient supply chain theory is optimized for the decision-making of online marketing consumers using an equation-based comparative analysis method. Findings – The study found that when SEs are not considered, stronger piracy regulation makes online channel participants more beneficial. When the positive SE is strong, it is detrimental to manufacturers. When SEs are not considered, online channel participants only reach Pareto in agency mode. Pareto optimality can be achieved in wholesale and agency modes when SEs are considered. Originality/value – The research has practical implications for an effective supply chain model for online marketing. This is the first algorithm-based comparative study concerning theoretical spillover effect analysis in supply chain management.

Keywords

• Products information
• Spillover effect
• Effective supply chain
• Digital piracy
• Online business model