Price, online coupon, and store service effort decisions under different omnichannel retailing models

This paper explores three omnichannel retailing models—that is, a Buy-Online, Pick-Up In-Store (BOPS) model, Showroom and an Interactive model (a that combines the characteristics of BOPS Showroom)—under which retailer offers coupons online invests in service efforts offline. For each coupon distribution scenarios (i.e. no coupon, with common value, different value) are discussed to investigate promotion policies operation strategies. Profits system under compared by deriving decision values: price, effort. The key findings show achieves profit improvement when incremental purchasing reaches large value. In addition, great effort coefficient leads high effort, profit. value largest among models, while its is lowest. Conversely, although less price not too still gains highest Additionally, it profitable for distinguish online-only channels consumers sensitive channel’s coupon. However, derives increasing providing channels.