Showrooming, webrooming, and operational strategies for competitiveness

Jiao, Chuanya; Hu, Bin

doi:10.1111/poms.13747

Cited by 14 publications

(3 citation statements)

References 20 publications

(40 reference statements)

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“…The former can be understood as the average cost for consumers to visit offline stores, which is adopted in our paper for analytical tractability similar to mainstream studies (Balakrishnan et al., 2014; Gao and Su, 2017; Dan et al., 2021; Xu et al., 2021; Zeng and Hou, 2022; Chen et al., 2023). In addition, even if extended to consider heterogeneity, some key results still have similarity and robustness (Jing, 2018; Jiao and Hu, 2022).…”

Section: Problem Descriptionmentioning

confidence: 99%

Personalized pricing versus showrooming: competition between online and offline retailers

Ren,

Tian,

Kang

et al. 2024

Int Trans Operational Res

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This study examines how personalized pricing affects customers’ showrooming behavior in the duopoly competition with horizontal product differentiation between traditional and online retailers. For the available personalized pricing strategies, we obtained the optimal decisions for both retailers in the scenarios with and without showrooming. Our results indicate that adopting personalized pricing under particular conditions enables each retailer to be more profitable, even in the presence of showrooming purchases. This finding explains why an increasing number of online and offline retailers have implemented personalized pricing based on technical means and consumer purchase records. It is also demonstrated that personalized pricing can counter showrooming behavior of consumers amidst the competition between both retailers, which provides a novel theoretical basis for dealing with cross‐channel shopping in multichannel retail competition. We further clarify how retailers can avoid being trapped in a prisoner's dilemma when both sides have access to personalized pricing. Also, the adoption of personalized pricing can improve consumer surplus and social welfare.

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Section: Problem Descriptionmentioning

confidence: 99%

Personalized pricing versus showrooming: competition between online and offline retailers

Ren,

Tian,

Kang

et al. 2024

Int Trans Operational Res

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show abstract

“…Given that, in the traditional purchasing process, those who buy a greater number of product categories tend to use more shopping channels (Kumar & Venkatesan, 2005) and experts tend to use more strategies than do novices to perform the same tasks (Holyoak, 1991), consumers with experience in a greater variety of online purchases are expected to be more able and willing to use a greater variety of strategies in their Internet-based shopping. Recent evidence indeed suggests that individuals with more e-commerce experience tend to choose multi-mode strategies more regularly (Jiao & Hu, 2022). In the opposite situation, since performing complex activities on the Internet requires perceived self-efficacy and use experience (Eastin & LaRose, 2000), consumers with low variety of online purchases are expected to be less able and less willing to engage in the most complex online shopping behaviour.…”

Section: Variety Of E-commerce Usementioning

confidence: 99%

Variety of Shopping Modes: Theoretical Framework, Pivotal Factors, and Managerial Implications

Redondo,

Charron

2023

Journal of Business Economics and Management

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With the development of e-commerce and smartphones, consumers can use a variety of shopping modes (i.e., showrooming, webrooming, and completely offline/online shopping), each of which provides specific advantages in terms of price, assortment, service, etc. Using a great variety of these shopping modes can confer many benefits. However, previous studies have found evidence of sizable segments of consumers who typically avoid using a great variety of shopping modes. To understand the contrast in consumers’ variety of shopping modes, we propose a theoretical framework and measure the effect of the desired variety in the information-seeking and purchase processes. Results – from a representative sample of the Spanish consumers – confirm that the variety of shopping modes pivots on the extent to which e-commerce use, smartphone use, offline and online interactivity, and online device interchangeability differ. Better understanding the variety of shopping modes may help marketers adjust their channel strategies to the actual preferences of different consumer segments and assess the economic viability of an omnichannel approach.

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“…Basak et al [23] investigated the effect of wholesale prices by the manufacturer on the selling prices of the products in a multichannel environment affected by showrooming. Jiao and Hu [24] analyzed different product value information that consumers could learn by visiting a BM retailer and researching an online retailer and studied consumers' show/webrooming behavior in a unified model. Wang and Wang [25] revisited the showrooming effect on online and offline channels and investigated the effect of in-store service.…”

Section: Showrooming Effectmentioning

confidence: 99%

Pricing and Service Effort Decisions of Book Dual-Channel Supply Chains with Showrooming Effect Based on Cost-Sharing Contracts

et al. 2022

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It is becoming increasingly difficult to ignore circular and sustainable economies. A traditional chain transits to a dual-channel supply chain, extending its online channel for more customers, and keeping its offline channel so as to reduce resource utilization for sustainable business. However, there exists some conflict between offline and online channels, such as the showrooming effect (i.e., customers visit an offline store to experience products but then buy them online with a lower price). This work studies a three-echelon book dual-channel supply chain involving an author, an online publisher and an offline retailer. Based on Stackelberg game theory, it investigates the optimal pricing solutions and the optimal retailer’s service effort level with two copyright models and considers the showrooming effect based on either decentralized or centralized decision-making. Afterwards, it develops a cost-sharing contract to make them achieve Pareto optimality. Furthermore, this research studies the influence of the showrooming effect on the optimal decisions and the profits of each member through theoretical and numerical analyses. The findings show that a well-designed contract can lead dual-channel members to cut down the negative impact of the showrooming effect and realize the win–win situation. Finally, it proposes some managerial insights and possible directions for the future.

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Showrooming, webrooming, and operational strategies for competitiveness

Cited by 14 publications

References 20 publications

Personalized pricing versus showrooming: competition between online and offline retailers

Personalized pricing versus showrooming: competition between online and offline retailers

Variety of Shopping Modes: Theoretical Framework, Pivotal Factors, and Managerial Implications

Pricing and Service Effort Decisions of Book Dual-Channel Supply Chains with Showrooming Effect Based on Cost-Sharing Contracts

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