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.