Omnichannel service operations with order‐online‐and‐dine‐in‐store strategy

Guo, Qiang; He, Li; He, Yi

doi:10.1002/mde.3527

Cited by 3 publications

(1 citation statement)

References 48 publications

(63 reference statements)

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“…Zhang et al [39] studied the impact of price subsidies on product pricing and revenue in a single channel supply chain, as well as the impact of price subsidies and fairness concerns on supply chain revenue in a dual giant supply chain. Guo et al [40] studied the impact of online ordering and in-store dining strategies on restaurant optimal decision-making and maximum profit; they found that when the unit carbon tax price is relatively high, using this strategy can reduce carbon tax costs. Du et al [41] discussed four combinations of the pricing strategies (online and offline unified pricing and differential pricing) and delivery modes (self-distribution and platform distribution) of restaurants.…”

Section: O2o Supply Chain Pricing Strategiesmentioning

confidence: 99%

Group Buying Pricing Strategies of O2O Restaurants in Meituan Considering Service Levels

Dai,

Ma,

Zhao

et al. 2023

Systems

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After the COVID-19 pandemic has subsided, the catering industry has returned to its previous thriving scene. Many restaurants have launched group buying services and collaborate with third-party online platforms to attract more customers. For the optimal decisions and maximum profits of restaurants and online platforms, a two-layer supply chain model is designed to investigate and study the price strategies and service strategies. Considering the service levels of restaurants and platforms, we construct the mathematical expressions of the offline retail model, online retail model, and online group buying model, respectively, and solve the game equilibrium. The results are shown as follows: (1) With cooperation between the restaurant and platform, both the restaurant and platform can obtain their maximum profits when they apply optimal pricing strategies. (2) The optimal pricing strategies of the restaurant are influenced by the sensitivity coefficients of customers to the restaurant and platform’s service levels, and the cost coefficients of the restaurant and platform’s service levels. (3) The maximum profit of the restaurant is directly proportional to the number of new potential consumers who are attracted. The more potential consumers who are attracted, the higher the profit the restaurant earns. The research results provide a reference for restaurants and platforms to formulate price strategies and service strategies, to help restaurants and platforms achieve more profits.

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Section: O2o Supply Chain Pricing Strategiesmentioning

confidence: 99%

Group Buying Pricing Strategies of O2O Restaurants in Meituan Considering Service Levels

Dai,

Ma,

Zhao

et al. 2023

Systems

View full text Add to dashboard Cite

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Robust pricing and inventory decisions in ship‐from‐store omnichannel operations

Sun,

Qiu,

Sun

2024

Manage Decis Econ

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This work studies the deployment of the ship‐from‐store omnichannel strategy and the pricing and inventory decisions for an online retailer. Robust optimization models are constructed for the online‐only and the ship‐from‐store modes under a budgeted uncertainty set. The ARIMA model is used to predict the parameter values of the budgeted uncertainty set using historical demand data. The closed‐form optimal solution for the online‐only mode is obtained. The robust counterpart model for the ship‐from‐store mode is converted to a mixed integer quadratic programming model. Numerical studies are conducted to validate the theoretical results and to verify the effectiveness and practicality of the developed robust optimization solution approach. The results show that adopting a ship‐from‐store strategy may hurt the retailer's profit if a significant proportion of consumers are time‐sensitive with high travel cost. The ship‐from‐store strategy is optimal if it significantly boosts market growth.

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Strategic Interactions in Omnichannel Retailing: Analyzing Brand Competition and Optimal Strategy Selection

Yu,

Ren,

Zhou

2024

JTAER

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The rapid advancement of digital technology has blurred the line between online and brick-and-mortar stores, leading to the proliferation of omnichannel retailing. Two widely adopted strategies are Buy Online and Pick Up in Store (BOPS) and Ship from Store (SFS). This study examines a supply chain where a manufacturer sells national brand products through an e-commerce platform (e-platform) that also offers its own brand products. We analyze the optimal omnichannel strategies for both the e-platform and the manufacturer, considering scenarios of cooperation and brand competition, across four strategy combinations. Our findings highlight that the profits of both the e-platform and manufacturer are primarily influenced by the commission rate, product category valuation and competition intensity. The commission rate plays a pivotal role in shaping the e-platform’s strategy: a low rate leads to direct competition with the manufacturer, while a high rate prioritizes the manufacturer’s products. When the spillover profit is less than the net difference between the customer’s additional benefits and the firm’s additional costs for SFS compared to BOPS, and the commission rate is high, an equilibrium is achieved. Sensitivity analyses reveal that as the product differentiation decrease, the manufacturer’s profits decline, while the e-platform’s profits rise with an increasing commission rate.

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Omnichannel service operations with order‐online‐and‐dine‐in‐store strategy

Cited by 3 publications

References 48 publications

Group Buying Pricing Strategies of O2O Restaurants in Meituan Considering Service Levels

Group Buying Pricing Strategies of O2O Restaurants in Meituan Considering Service Levels

Robust pricing and inventory decisions in ship‐from‐store omnichannel operations

Strategic Interactions in Omnichannel Retailing: Analyzing Brand Competition and Optimal Strategy Selection

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