Consumers' Channel Choice and Inventory Management with Buy-Online-and-Pick-up-in-Store

摘要

With the development of E-commerce and IT facilities, the online and offline channel are integrated in multiple forms.We study consumers' channel choice and retailer's operational decisions with or without the introduction of Buy-online-pick-up-in-store implementation.We find that under these conditions BOPS is more profitable: (1) the inventory cost is high and additional sales are moderate;(2) the consumer hassle cost in adopting BOPS is low and additional sales are large.Furthermore, we extend the model in a decentralized scenario.This research provides managerial insights to entrepreneurs in channel integration practices.