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Consumer heterogeneity and online vs. offline retail spatial competition

机译:消费者异质性以及在线与离线零售空间竞争

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机译:This paper develops a game-theoretic spatial model featuring consumer heterogeneity in online vs. offline retailers* spatial competition. We find that consumers1 browse-and-switch behavior intensifies the competition because both offline and online retailers'''' price and profit decline when the behavior occurs, but it is not necessarily a threat to offline retailers especially when the product relates more closely to experience. We consider six equilibrium seenarios for different combi nations of consumer behaviors when considering a hybrid retailer. The analysis taking consumer heterogeneity into consideration shows that the hybrid retailer operating both online and offline is not always the winner. Particularly, the business opportunity for the offline retailer lies in consumersz willingness to pay in store, and whether the retailer launches an online store depends on the type of products and services provided.

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