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Copyright © 2022 Shizhen Bai and Mei Jiang. This is an open access article distributed under the Creative Commons Attribution License (the “License”), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License. https://creativecommons.org/licenses/by/4.0/

Abstract

This study analyzes how webrooming affects the O2O supply chain of an e-tailer and a brick-and-mortar store. Two types of brick-and-mortar stores are considered: self-owned and franchised. We first determine via game theory the optimal pricing and service decisions for the e-tailer and brick-and-mortar store when prices are uniform or nonuniform online and offline. The results indicate that webrooming benefits both the e-tailer and brick-and-mortar store when prices are nonuniform. For self-owned stores, the online market share and consumer traveling costs weaken the positive webrooming effect on the e-tailer’s profit when the price is nonuniform. For the franchised store, webrooming weakens the positive role of online market share and reinforces the negative effect of traveling costs for the e-tailer. The positive effect of webrooming on franchised stores in the case of nonuniform pricing is more significant than in the case of uniform pricing when online market share or traveling costs are lower. These results have important implications for management and should help e-tailers develop an omnichannel strategy.

Details

Title
Optimal Omnichannel Development Strategy in O2O Supply Chain under the Impact of Webrooming
Author
Bai, Shizhen 1 ; Jiang, Mei 1   VIAFID ORCID Logo 

 Management School, Harbin University of Commerce, Harbin 150028, Heilongjiang, China 
Editor
Nikunja Mohan Modak
Publication year
2022
Publication date
2022
Publisher
John Wiley & Sons, Inc.
ISSN
1024123X
e-ISSN
15635147
Source type
Scholarly Journal
Language of publication
English
ProQuest document ID
2722972022
Copyright
Copyright © 2022 Shizhen Bai and Mei Jiang. This is an open access article distributed under the Creative Commons Attribution License (the “License”), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License. https://creativecommons.org/licenses/by/4.0/