Should offline retailers expand online under consumer showrooming based on the effects of intershowrooming and intrashowrooming?

Abstract

This study aims to find a way to alleviate or eliminate the negative impact of showrooming on brick-and-mortar retailers. Therefore, under careful consideration of the effects of intershowrooming and intrashowrooming, this study explores whether retailers can effectively solve the negative impact of showrooming by opening online channels. Conduct a comparative study on the decision-making of dual/multi-channel supply chain members before and after the retailer opens an online channel and analyze the influence. In addition, we also explored the impact of factors such as the market scale expansion effect and internet market power structure. Research has found that regardless of the market scale expansion effect generated, it is effective for the retailer to increase profits by opening an online channel. The impact of market scale expansion is not entirely beneficial to the retailer. Under the intrashowrooming, the effect of market scale expansion may benefit the manufacturer. But what is more noteworthy is that for the manufacturer, the impact of intrashowrooming is not necessarily the greater, the better, and the manufacturer's profit may decrease as this effect increases.