Price, online coupon, and store service effort decisions under different omnichannel retailing models

Li, Zonghuo; Wang, Di; Yang, Wensheng; Jin, Hyun Seung

doi:10.1016/j.jretconser.2021.102787

Cited by 33 publications

(26 citation statements)

References 59 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Quality of channel integration (Gao & Huang, 2021), customer experience in channel integration , and consumer experience in omni-channel retailing (Hsia et al, 2020) were also examined in the omni-channel context. Some literature also investigated the influence of channels from the retailer perspective; for example, optimal online selling models and pricing decisions of O2O tourism supply chain may be different (He et al, 2019), the optimal and profitable channel were based on pricing and discount strategy of online, offline, and price, coupon, and store service under various omni-channel retailing models (Li et al, 2022). In Table 1, the existing literature focused on channel selection, consumer behavior, loyalty, and channel strategy.…”

Section: Omni-channelmentioning

confidence: 99%

Analyzing the Omni-Channel Shopper Journey Configuration of Generations Y and Z

Chang

Chen

2022

Journal of Organizational and End User Computing

View full text Add to dashboard Cite

Omni-channel retailing has been an essential issue to enterprises nowadays. This research applies goal theory to Engel-Kollat-Blackwell model in the omni-channel context and adapt the concept of Harris, Riley & Hand (2018) to shopper journey configurations, including search, evaluation, and purchase of decision making process. This study selected iPhone as the product and collected 179 participants of Gen Y and 126 participants of Gen Z to analyze shopper’s journey. The results indicated Gen Y replied on online review after searching and made own judgement, and preferred store purchase. Gen Z either replied on online review or directly made own judgement after searching, and preferred store purchase. Both generations utilized all types of search and referred to online reviews of evaluation process, and purchased at the store. Our findings also benefit to companies’ mange profitable omni-channel strategy.

show abstract

Section: Omni-channelmentioning

confidence: 99%

Analyzing the Omni-Channel Shopper Journey Configuration of Generations Y and Z

Chang

Chen

2022

Journal of Organizational and End User Computing

View full text Add to dashboard Cite

show abstract

“…There is a large body of literature investigates one type of omnichannel model: the BOPS model (Gallino and Moreno, 2014; Cao et al , 2016; Gao and Su, 2017; Niu et al , 2019; Zhang et al , 2019; Kong et al , 2020; Li et al , 2020; Li et al , 2022; Sehoon et al , 2022). Some literature focuses on the impact of the BOPS model on consumer purchase behavior using the empirical approach, such as Gallino and Moreno (2014) and Sehoon et al (2022).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Gao and Su (2017) claim that the timely information about inventory in the offline channel can be provided to consumers through BOPS and explore the conditions for implementing BOPS from the perspective of inventory management. Li et al (2022) explore three omnichannel retailing models including BOPS mode and discuss the distribution of three types of coupons to investigate the impact of coupon promotion on omnichannel operations. Kong et al (2020) analyze how the introduction of BOPS affects retailers’ optimal prices, aggregate demand and profits under consistent and inconsistent pricing strategies.…”

Section: Literature Reviewmentioning

confidence: 99%

Pricing and advertising decisions in O2O supply chain with the presence of consumers’ anticipated regret

Zhang

Liu

2022

JBIM

View full text Add to dashboard Cite

Purpose Due to product value uncertainty, consumers do not know the product matching rate before they get the product, which is the probability of product fitness. Taking the consumers’ anticipated regret into account, this paper aims to develop a theoretical model to explore how the anticipated regret affects pricing and advertising decisions and profits of retailers in the online to offline (O2O) supply chain. Design/methodology/approach This paper considers an O2O supply chain consisting of an e-retailer and a brick-and-mortar retailer; both retailers cooperate to provide buying online and pick up in-store (BOPS) for consumers. Findings It shows three major findings. Retailers should decide whether to introduce BOPS channel according to the matching rate of the product when the BOPS channel is not very convenient for consumers. When the BOPS channel does not exist in the market, the profits of two retailers increase with the online regret of consumers, while the BOPS channel exists in the market and the matching rate of the product is low, the higher offline regret can enable both retailers to increase the profits; furthermore, when the matching rate is high, the higher degree of online regret can bring more profit to the O2O supply chain. Therefore, both retailers can take measures together to induce consumers’ regrets according to the different matching rates, which makes both retailers obtain more profits. Counterintuitively, consumer surplus will not always increase due to consideration of anticipated regret. Research limitations/implications The model has some limitations that are worth further discussing. First, in practice, the O2O supply chain includes many forms except the BOPS channel, for example, order online and pick-up in-store (ROPS) channel; future research can discuss and consider the impact of consumers’ anticipated regret on ROPS. Second, the authors consider that O2O is a supply chain composed of two retailers. In reality, there is also a situation where an oligopoly retailer opens two channels to realize O2O supply chain, in the case the inventory decision-making of the product is worth studying. Finally, to highlight the impact of the anticipated regret on consumers’ decision-making, the return of the product is not considered. Future research can take the return of the product into account to assess the robustness of the results. Originality/value The contributions are in two main aspects. First, this paper considers an O2O supply chain with consumer value uncertainty, where there are duopoly retailers in the market and most of the existing literature focus on oligopoly retailer operates both online and offline channels; meanwhile, consumers’ value perceptions of the product is deterministic. Second, this paper explores how the consumer anticipated channel regret affects the pricing and advertising decisions of O2O supply chain, and the authors take behavioral theory into account when studying omnichannel operations, while most studies on anticipated regret consider traditional two-stage price reduction management, product innovation, etc.

show abstract

“…Bauner et al [47] noted that the positioning of a privatelabel product in terms of quality and feature differentiation from a national brand played an important role in the profits of manufacturers and retailers. The recent papers most related to our research are Jiang et al [48], Li et al [11], Li et al [12], and Li et al [49]. The first three papers explored coupon strategies for an omnichannel retailer.…”

Section: Coupon Promotionsmentioning

confidence: 99%

“…Data from Kantar show that 3282 brands provided nearly $8.7 billion in e-coupon incentives in 2021 [10]. In addition, brands often distribute digital coupons in the online and BOPS channels to capture more market share in an omnichannel setting [11,12]. In practice, omnichannel brands usually adopt a unified pricing strategy for all channels to create synergy [13].…”

Section: Introduction 1background and Problem Descriptionmentioning

confidence: 99%

Digital Coupon Promotion and Inventory Strategies of Omnichannel Brands

Zhang

2022

Axioms

View full text Add to dashboard Cite

This paper investigates when an omnichannel brand should offer digital coupons in the online and buy-online-and-pick-up-in-store (BOPS) channels and, if so, the joint decision of coupon face value and store inventory. The impact of a digital coupon promotion on store inventory is also explored. Two scenarios are considered, one where consumers’ costs in the online and store channels are homogeneous and another in which they are heterogeneous, and two newsvendor models, with and without a coupon promotion, are constructed under each scenario. The results show that the issuance of coupons improves the omnichannel brand’s profit when the price is high and the coefficient of the difference in valuation between two types of consumers is low in the homogeneous scenario. In the heterogeneous scenario, the brand prefers the coupon promotion when the price is high or moderate and the coefficient of the difference in valuation between two types of consumers is high. In addition, offering a coupon promotion yields a higher store inventory in most cases. However, store inventory is decreased in some special cases in the homogeneous scenario. Moreover, an increased hassle cost in the BOPS channel significantly lowers the offline demand and profit increase from a digital coupon promotion. Furthermore, a coupon promotion is more likely to benefit both the brand and consumers as the cross-selling revenue increases. These results provide guidance for omnichannel brands to implement coupon promotions and adjust store inventory with stochastic demand.

show abstract

Price, online coupon, and store service effort decisions under different omnichannel retailing models

Cited by 33 publications

References 59 publications

Analyzing the Omni-Channel Shopper Journey Configuration of Generations Y and Z

Analyzing the Omni-Channel Shopper Journey Configuration of Generations Y and Z

Pricing and advertising decisions in O2O supply chain with the presence of consumers’ anticipated regret

Digital Coupon Promotion and Inventory Strategies of Omnichannel Brands

Contact Info

Product

Resources

About