Purpose

Due to product value uncertainty, consumers do not know the product matching rate before they get the product, which is the probability of product fitness. Taking the consumers’ anticipated regret into account, this paper aims to develop a theoretical model to explore how the anticipated regret affects pricing and advertising decisions and profits of retailers in the online to offline (O2O) supply chain.

Design/methodology/approach

This paper considers an O2O supply chain consisting of an e-retailer and a brick-and-mortar retailer; both retailers cooperate to provide buying online and pick up in-store (BOPS) for consumers.

Findings

It shows three major findings. Retailers should decide whether to introduce BOPS channel according to the matching rate of the product when the BOPS channel is not very convenient for consumers. When the BOPS channel does not exist in the market, the profits of two retailers increase with the online regret of consumers, while the BOPS channel exists in the market and the matching rate of the product is low, the higher offline regret can enable both retailers to increase the profits; furthermore, when the matching rate is high, the higher degree of online regret can bring more profit to the O2O supply chain. Therefore, both retailers can take measures together to induce consumers’ regrets according to the different matching rates, which makes both retailers obtain more profits. Counterintuitively, consumer surplus will not always increase due to consideration of anticipated regret.

Research limitations/implications

The model has some limitations that are worth further discussing. First, in practice, the O2O supply chain includes many forms except the BOPS channel, for example, order online and pick-up in-store (ROPS) channel; future research can discuss and consider the impact of consumers’ anticipated regret on ROPS. Second, the authors consider that O2O is a supply chain composed of two retailers. In reality, there is also a situation where an oligopoly retailer opens two channels to realize O2O supply chain, in the case the inventory decision-making of the product is worth studying. Finally, to highlight the impact of the anticipated regret on consumers’ decision-making, the return of the product is not considered. Future research can take the return of the product into account to assess the robustness of the results.

Originality/value

The contributions are in two main aspects. First, this paper considers an O2O supply chain with consumer value uncertainty, where there are duopoly retailers in the market and most of the existing literature focus on oligopoly retailer operates both online and offline channels; meanwhile, consumers’ value perceptions of the product is deterministic. Second, this paper explores how the consumer anticipated channel regret affects the pricing and advertising decisions of O2O supply chain, and the authors take behavioral theory into account when studying omnichannel operations, while most studies on anticipated regret consider traditional two-stage price reduction management, product innovation, etc.

中文翻译：

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存在消费者预期遗憾的O2O供应链定价与广告决策

目的

由于产品价值的不确定性，消费者在拿到产品之前并不知道产品匹配率，也就是产品适配的概率。考虑到消费者的预期遗憾，本文旨在建立一个理论模型，探讨预期遗憾如何影响线上到线下 (O2O) 供应链中零售商的定价和广告决策以及​​利润。

设计/方法/方法

本文考虑了一个由电子零售商和实体零售商组成的 O2O 供应链；两家零售商合作为消费者提供在线购买和店内提货 (BOPS)。

发现

它显示了三个主要发现。当 BOPS 渠道对消费者来说不是很方便时，零售商应根据产品的匹配率来决定是否引入 BOPS 渠道。当市场上不存在BOPS渠道时，两个零售商的利润随着消费者线上后悔的增加而增加，而市场上存在BOPS渠道且产品匹配率低时，较高的线下后悔可以使两个零售商增加利润；再者，匹配率高时，线上后悔度越高，可以为O2O供应链带来更多的利润。因此，两家零售商可以根据匹配率的不同，共同采取措施诱导消费者的后悔，从而使两家零售商获得更多的利润。违反直觉，

研究限制/影响

该模型有一些值得进一步讨论的局限性。首先，在实践中，O2O供应链除了BOPS渠道外，还包括多种形式，例如在线下单和店内取货（ROPS）渠道；未来的研究可以讨论和考虑消费者预期后悔对 ROPS 的影响。其次，作者认为O2O是由两个零售商组成的供应链。现实中也存在寡头零售商打开两条渠道实现O2O供应链的情况，在这种情况下产品的库存决策值得研究。最后，为了突出预期遗憾对消费者决策的影响，不考虑产品的退货。未来的研究可以考虑产品的回报来评估结果的稳健性。

原创性/价值

贡献主要体现在两个方面。首先，本文考虑了消费者价值不确定的O2O供应链，市场上存在双头垄断零售商，现有文献大多关注寡头零售商同时经营线上和线下渠道；同时，消费者对产品的价值认知是确定性的。其次，本文探讨了消费者预期渠道后悔如何影响O2O供应链的定价和广告决策，作者在研究全渠道运营时考虑了行为理论，而大多数关于预期后悔的研究都考虑了传统的两阶段降价管理，产品创新等