Industrial Engineering Journal ›› 2021, Vol. 24 ›› Issue (5): 55-62.doi: 10.3969/j.issn.1007-7375.2021.05.007

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A Research on Omni-channel Service Area and Pricing Optimization under Consumers' Strategic Behavior

HOU Yumei, ZHENG Diwen, KONG Lejia, SHEN Mengsi, GAO Xiaona   

  1. College of Economics and Management, Yanshan University, Qinhuangdao 066004, China
  • Received:2020-03-30 Published:2021-11-02

Abstract: Omni-channel retail brings not only more business opportunities to retailers, but also challenges to the operation of Omni-channel retailers. In order to study the impact of consumer strategic buying behavior on the Omni-channel BOPS (Buy-online-and-pick-up-in-store) operating service area and pricing. The operation mode of BOPS for Omni-channel retailers is modeled, and the optimal pricing and service area of Omni-channel retailers obtained by using the optimization theory (K-T condition). A numerical analysis further proves that consumer strategic buying behavior is an important factor that Omni-channel retailers should consider when formulating the BOPS operational service area and pricing strategy. The research results show that consumers who are far away from Omni-channel retailers need channel retailers to consider their customer strategic behavior and strive for more customers with customer strategic behavior to serve the store; and for consumers nearby, Omni-channel retailers do not need consider their behavior to reduce the channel operating costs of Omni-channel retailers. In addition, the determination of the optimal service area can enable retailers to provide better services to consumers with less channel cost and reduce their operational decision errors.

Key words: omni-channel, optimization theory, service area, customer strategic buying behavior

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