{"title":"Omni-channel strategy for an online retailer: considering experience service and shopping costs","authors":"Jinrong Liu, Qi Xu, Guoqing Zhang","doi":"10.1080/03155986.2020.1811613","DOIUrl":null,"url":null,"abstract":"Abstract Retailers are increasingly offering customers a seamless shopping experience through all available shopping channels. However, when should an online retailer open an offline showroom or a physical store to implement an omni-channel strategy? In this study, we establish profit models in four scenarios and obtain the conditions under which an online retailer can be profitable in different channels. The results show that, after opening a showroom or store, demand in the online channel decreases and total demand increases. Furthermore, the choice of opening a showroom or a physical store depends on the online return rate and the unit inventory holding costs of the online and offline channels. In addition, if the perceived experience service is not too high, the total profit after opening a showroom or store increases with the experience service and the shopping cost of the online channel. Furthermore, the growth rate with a showroom is higher than that with a store.","PeriodicalId":13645,"journal":{"name":"Infor","volume":"30 1","pages":"232 - 256"},"PeriodicalIF":1.1000,"publicationDate":"2020-08-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"2","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Infor","FirstCategoryId":"94","ListUrlMain":"https://doi.org/10.1080/03155986.2020.1811613","RegionNum":4,"RegionCategory":"计算机科学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"COMPUTER SCIENCE, INFORMATION SYSTEMS","Score":null,"Total":0}
引用次数: 2
Abstract
Abstract Retailers are increasingly offering customers a seamless shopping experience through all available shopping channels. However, when should an online retailer open an offline showroom or a physical store to implement an omni-channel strategy? In this study, we establish profit models in four scenarios and obtain the conditions under which an online retailer can be profitable in different channels. The results show that, after opening a showroom or store, demand in the online channel decreases and total demand increases. Furthermore, the choice of opening a showroom or a physical store depends on the online return rate and the unit inventory holding costs of the online and offline channels. In addition, if the perceived experience service is not too high, the total profit after opening a showroom or store increases with the experience service and the shopping cost of the online channel. Furthermore, the growth rate with a showroom is higher than that with a store.
期刊介绍：
INFOR: Information Systems and Operational Research is published and sponsored by the Canadian Operational Research Society. It provides its readers with papers on a powerful combination of subjects: Information Systems and Operational Research. The importance of combining IS and OR in one journal is that both aim to expand quantitative scientific approaches to management. With this integration, the theory, methodology, and practice of OR and IS are thoroughly examined. INFOR is available in print and online.
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