Omnichannel retailing operations with coupon promotions

This paper explores an omnichannel retail system under which the retailer offers coupons via online channels for market share and profit. It investigates action mechanism of coupon promotion on price operational decisions by employing a theoretical model. Three distribution modes are investigated; scenario in does not offer coupons, with common face value, or different value. The results show that always lead to increased share. Rather, volume may be reduced if competition between is intense. When conducting promotion, charges higher price, but negative effects competitive channel relatively large, will reduce their price. Larger cross-selling revenue comes from ‘Buy Online, Pick Up Store’ channel, indicating stronger willingness profits retailer. If takes characteristics consumers' preferences into consideration values across channels, they derive profits.