Journal
TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW
Volume 137, Issue -, Pages -Publisher
PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/j.tre.2020.101918
Keywords
Omnichannel; Channel strategy; Conspicuous consumption; Stock availability; Luxury product
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Funding
- Natural Science Foundation of China, China [71572070]
- Fundamental Research Funds for the Central Universities, China [Jinan University] [15JNQM003]
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In the context of omnichannel retailing, this paper intends to investigate how conspicuous behavior and concerns of stock availability influence a luxury firm's operational decisions. Our analytical study indicates that with the firm's different channel strategy-store-only and omnichannel strategy-consumers' behavior in terms of valuation and channel selection is varied. Furthermore, as compared to the store-only channel, the omnichannel strategy results in a lower price and a lower stock level in the store. The luxury firm may not benefit from it. Our results are robust for both the high-end and the mass luxury products in a variety of settings.
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