Omnichannel supply chain operations for luxury products with conspicuous consumers

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.