A Research on O2O Channel Decisions of Enterprises Considering Value-added Consumption in Competitive Environment

doi:10.3969/j.issn.1007-7375.2022.03.003

Abstract

Abstract: Two enterprises providing value-added consumption for O2O consumers on the basis of standard consumption under the competitive environment are studied and the different operation modes of O2O channels discussed: only providing standard consumption, a single enterprise provides value-added consumption and two enterprises provide value-added consumption. Through the establishment of Hotelling model, the optimal decisions of enterprises under different modes are obtained. The results show that value-added consumption will aggravate the price competition among enterprises and make the profit of enterprises lower than when they only provide standard consumption; whether enterprises provide value-added consumption, combination with the enterprise's market competition strategy, O2O channel market scale and the proportion of consumers who choose value-added consumption, need to be considered.

Key words: standard consumption, value-added consumption, Hotelling model, O2O consumers

CLC Number:

F224

SHEN Chengran, ZHANG Yuman. A Research on O2O Channel Decisions of Enterprises Considering Value-added Consumption in Competitive Environment[J]. Industrial Engineering Journal, 2022, 25(3): 21-27,75.

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