4.7 Article

Preorder-online, pickup-in-store strategy for a dual-channel retailer

Publisher

PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/j.tre.2018.11.001

Keywords

Supply chain management; Dual channel; Synergy strategy; Retailing

Funding

  1. National Natural Science Foundation of China [71771053, 71628101, 71801170, 71371003]
  2. Key Research and Development Plan (Modern Agriculture) of Jiangsu Province [BE2018385]
  3. Humanity and Social Science Youth Foundation of Ministry of Education of China [18YJC630246]
  4. project of Philosophy and Social Science Research in Colleges and Universities in Jiangsu Province [2017SJB1893]
  5. startup foundation for introducing talent of Taizhou University [QD2016039]
  6. Natural Sciences and Engineering Research Council of Canada [312572, 201806690]

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This paper studies the preorder-online, pickup-in-store (POPU) strategy for a dual-channel retailer. Under a monopoly case, we find that the POPU strategy decreases the retailer's market share and reduces his profits. Under a competition case, when the operational cost of POPU mode is low, the POPU strategy can improve the retailer's market share and profits simultaneously. Also, we find that not all products are suited for the POPU mode under a competition case. The retailer should choose products with high value and a low degree of customer acceptance of the online channel for POPU.

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