Optimal Pricing and Customer Experience Investment Strategy in an Omnichannel Supply Chain Under BOPS

Xu, Guitao; Kang, Kai; Lu, Mengyao

doi:10.1109/access.2022.3231482

Cited by 3 publications

(4 citation statements)

References 42 publications

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“…In addition, under some simple conditions, central decision-makers can obtain higher profits by adding BOPS channels by means of increasing the quality and price. Xu et al studied optimal experience investment and pricing strategy in an omnichannel supply chain [23]. To improve shopping experience, the supply chain provides BOPS services.…”

Section: A Omnichannel Retailingmentioning

confidence: 99%

“…Secondly, combined with the optimal control theory, this study analyzes the optimal replenishment control and dynamic pricing strategies of omnichannel retail enterprises from a long-term perspective. The previous studies are conducted based on a short-term Stackelberg game ( [23], [33], [34]). Finally, the BOPS-PLUS mode is deeply integrated.…”

Section: Customer Experiencementioning

confidence: 99%

“…• The retail enterprises have both online channels and physical channels, assuming that all consumers are rational and only physical channels need to experience investment [23].…”

Section: Model Assumptionsmentioning

confidence: 99%

“…In this subsection, an online retailing case is investigated. Let's assume that a few online customers will return goods because of sometimes receive products that do not achieve expectations [23]. For convenience, let's assume that the returned products can continue to be sold by online retailers.…”

Section: Basic Case a Online Casementioning

confidence: 99%

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An Omnichannel Retailing Operation for Solving Joint Inventory Replenishment Control and Dynamic Pricing Problems From the Perspective of Customer Experience

Kang

2023

IEEE Access

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Customer experience, a key element in the domain of omnichannel retailing, plays a vital role in attracting consumers. Implementing a new BOPS (buy online, pick up in store) strategy will not only affect the inventory structure and pricing strategy of retail enterprises, but will also impact the original sales channel. In accordance with the consumer experience, a dynamic optimization model of a retailer inventory system was established in this research. Based on the optimal control theory, analyze the optimal control strategies under four sales modes: online, offline, BOPS, and BOPS-PLUS (BOPS and buy offline online-logistics distribution). Through numerical experiments, the inventory control strategies and optimal discounted profits under the four modes are compared and analyzed. The results show that the optimal experience investment and dynamic pricing levels gradually decrease with time, and the inventory state has a vital influence on the discounted profit of the system. The traditional dual-channel retail model is optimal when the channel inventory is not out of stock. In situations where channel inventory is in short supply (both online and offline), a deeply integrated omnichannel retail mode BOPS-PLUS is best. The numerical analysis also reveals that price sensitivity coefficient, experience service coefficient and online return rate also have significant influence on the selection of optimal channel strategy.

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Section: A Omnichannel Retailingmentioning

confidence: 99%

Section: Customer Experiencementioning

confidence: 99%

“…• The retail enterprises have both online channels and physical channels, assuming that all consumers are rational and only physical channels need to experience investment [23].…”

Section: Model Assumptionsmentioning

confidence: 99%

Section: Basic Case a Online Casementioning

confidence: 99%

See 2 more Smart Citations