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The effects of BOPS implementation under different pricing strategies in omnichannel retailing
Transportation Research Part E: Logistics and Transportation Review ( IF 10.6 ) Pub Date : 2020-07-25 , DOI: 10.1016/j.tre.2020.102014
Ruixiao Kong , Li Luo , Liuxin Chen , Matthew F. Keblis

Many retailers have recently implemented buy online and pick up in store (BOPS) by integrating their online and offline channels. In this paper, considering a retailer who sells products through both online and offline channels, we develop a theoretical model to study the effects of BOPS adoption. Using our model, we first analyze how adoption of BOPS affects a retailer’s optimal prices, total demand and profit under consistent and inconsistent pricing strategies where a retailer employs the same pricing strategy both before and after BOPS implementation. We then conduct a comparative analysis of the two pricing strategies, discussing which one is most profitable to the retailer. Subsequently, we analyze the scenario where a retailer uses consistent pricing before BOPS adoption and inconsistent pricing afterwards and the scenario where a retailer uses inconsistent pricing before BOPS adoption and consistent pricing afterwards. We conduct numerical studies to obtain insights on when BOPS is most advantageous and which pricing strategy is better to use. Our study results show that BOPS is not always beneficial to the retailer, depending on the unit operating cost and customer hassle cost in the BOPS channel and the cross-selling profit. We also identify under what conditions a retailer is better off under different scenarios. Moreover, we find that BOPS is more beneficial to the retailer under inconsistent pricing especially when the unit operating cost in the BOPS channel is lower.



中文翻译:

全渠道零售中不同定价策略下BOPS实施的效果

许多零售商最近通过整合其在线和离线渠道实施了在线购买和实体店提货(BOPS)。在本文中,考虑到通过在线和离线渠道销售产品的零售商,我们开发了一种理论模型来研究采用BOPS的效果。使用我们的模型,我们首先分析采用一致和不一致的定价策略时BOPS的采用如何影响零售商的最优价格,总需求和利润,其中零售商在实施BOPS之前和之后采用相同的定价策略。然后,我们对两种定价策略进行比较分析,讨论哪一种对零售商最有利可图。后来,我们分析了在采用BOPS之前零售商使用一致的定价和之后采用不一致的定价的情况以及在采用BOPS之前零售商使用不一致的定价和之后采用一致的定价的情况。我们进行数值研究,以了解何时BOPS最有利以及哪种定价策略更适合使用。我们的研究结果表明,BOPS并不总是对零售商有利,这取决于BOPS渠道中的单位运营成本和客户麻烦成本以及交叉销售利润。我们还确定了在什么情况下零售商在不同情况下的状况会更好。此外,我们发现在价格不一致的情况下,BOPS对零售商更有利,特别是当BOPS渠道中的单位运营成本较低时。

更新日期:2020-07-25
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