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Pricing strategy for B&M store in a dual-channel supply chain based on hotelling model
International Journal of Production Research ( IF 7.0 ) Pub Date : 2020-09-14 , DOI: 10.1080/00207543.2020.1787536
Limeng Chai 1 , Desheng Dash Wu 2, 3 , Alexandre Dolgui 4 , Yongrui Duan 1
Affiliation  

We use hotelling model to analyse store brands as a strategy for B&M (brick-and-mortar) retailers to combat showrooming. We investigate how national-brand product mismatch and store-brand awareness affect supply chain’s performance. We reach four major conclusions. First, store-brand strategy may be an effective means for B&M stores to mitigate showrooming. However, it’s better to introduce premium store brands. Second, the B&M store’s profit grows – and the online store’s profit declines – as national-brand product mismatch increases in breadth. When many consumers feel the national-brand product does not match their needs, a product positioning strategy for the store brand can help B&M retailers improve profit margins. Third, as national-brand product mismatch increases in depth, the B&M store’s profit rises and online store’s profit falls. If national-brand products lack many features that consumers need, a product differentiation strategy can be implemented to use store brands to fill in the gaps left by national brands. Finally, the growth of store-brand awareness will not necessarily benefit the B&M store. The impact of store-brand awareness on the B&M store’s profit depends on the hassle cost factor t, and a brand promotion strategy will reduce the loss of B&M retailer’s profit.



中文翻译:

基于Hotelling模型的双渠道供应链B&M门店定价策略

我们使用hotelling 模型来分析商店品牌,以此作为B&M(实体店)零售商打击陈列室的策略。我们调查了民族品牌产品不匹配和商店品牌知名度如何影响供应链的绩效。我们得出四个主要结论。首先,门店品牌战略可能是 B&M 门店缓解陈列室的有效手段。但是,最好引入优质商店品牌。其次,随着民族品牌产品错配的广度增加,B&M 商店的利润增长——而在线商店的利润下降。当很多消费者觉得民族品牌产品不符合自己的需求时,门店品牌的产品定位策略可以帮助B&M零售商提高利润率。三是随着民族品牌产品错配深度加深,B& M店利润上升,网店利润下降。如果民族品牌产品缺乏消费者需要的很多功能,可以实施产品差异化战略,利用门店品牌来填补民族品牌留下的空白。最后,商店品牌知名度的增长不一定有利于 B&M 商店。店铺品牌知名度对 B&M 店铺利润的影响取决于麻烦成本因素t,而品牌推广策略将减少 B&M 零售商的利润损失。

更新日期:2020-09-14
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