Addressing Industry Adaptation Resistance in Combating Brand Deception: AI-Powered Technology vs. Revenue Sharing

This paper studies a supply chain comprising a supplier, a third-party remanufacturer (TPR), and a retailer. The retailer sells both genuine and remanufactured products (i.e., Model O). Leveraging information advantages, the retailer may engage in brand deception by mislabeling remanufactured produc...

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Bibliographic Details
Published in:Journal of theoretical and applied electronic commerce research Vol. 20; no. 3; p. 154
Main Author: Liu, Peng
Format: Journal Article
Language:English
Published: Curicó MDPI AG 01.07.2025
Subjects:
Adaptation
AI-powered anti-counterfeiting technology
Artificial intelligence
Blockchain
brand deception
Consumer behavior
Consumers
Counterfeiting
Deception
Decision making
demand uncertainty
Innovations
Manufacturing
Profits
Remanufacturing
Retail stores
Revenue
Revenue sharing
revenue-sharing coordination
Suppliers
Supply chains
Technology adoption
ISSN:0718-1876, 0718-1876
Online Access:Get full text
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Summary:This paper studies a supply chain comprising a supplier, a third-party remanufacturer (TPR), and a retailer. The retailer sells both genuine and remanufactured products (i.e., Model O). Leveraging information advantages, the retailer may engage in brand deception by mislabeling remanufactured products as genuine to obtain extra profits (i.e., Model BD). AI-powered anti-counterfeiting technologies (AIT) (i.e., Model BA) and revenue-sharing contracts (i.e., Model C) are considered countermeasures. The findings reveal that (1) brand deception reduces (increases) sales of genuine (remanufactured) products, prompting the supplier (TPR) to lower (raise) wholesale prices. The asymmetric profit erosion effect highlights the gradual erosion of profits for the supplier, retailer, and TPR under brand deception. (2) The bi-interval adaptation effect indicates that AIT is particularly effective in industries with low adaptation resistance. When both the relabeling rate and industry adaptation resistance are low (high), Model BA (Model O) achieves a triple win. (3) Sequentially, when the industry adaptation resistance is low, AIT can significantly improve total profits, consumer surplus (CS), and social welfare (SW). Compared to Model BD, revenue-sharing offers slight advantages in CS but notable disadvantages in SW.
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ISSN:0718-1876
0718-1876
DOI:10.3390/jtaer20030154