A Study of BOPS Cooperation Strategy of Online and Dual-Channel Retailers Considering Consumers' Heterogeneous Buying Behavior

DOI: https://doi.org/10.62517/jbm.202509121

Author(s)

Cao Changhui, Zhang Lingzhen

Affiliation(s)

Global Business School, Chongqing College of International Business and Economics, Chongqing, China

Abstract

For the BOPS cooperation strategies of online and dual-channel retailers, the game model is constructed under three scenarios of online retailers' online-only sales, opening offline channels, and cooperating with dual-channel retailers, and the optimal scope of BOPS cooperation among retailers is analyzed. The study shows that online and dual-channel retailers have incentives to implement BOPS cooperation when the product waiting cost is small; when the product waiting cost is large, online retailers should choose dual-channel sales online and offline.

Keywords

BOPS Cooperation; Product Waiting Costs; Pricing Strategy; Channel Selection

References

[1]Bell D R, Gallino S, Moreno A. Inventory showrooms and customer migration in omni-channel retail: the effect of product information [J]. SSRN Electronic Journal, 2013, 2370535. [2]Liang Xi, Liang Lunhai. Dual-channel supply chain pricing strategy and channel selection considering channel cost differences[J]. Industrial Engineering, 2021, 24(02): 1-9. [3]Bian Y W, Cheng W C. Research on offline channel strategy and operation mode selection of platform supply chain[J/OL]. China Management Science: 1-26 [2024-01-17]. [4]Wallace D W, Giese J L, Johnson J L. Customer retailer loyalty in the context of multiple channel strategies[J]. Journal of Retailing, 2004, 80(4): 249-263. [5]Cattani K, Gilland W, Heese H S, et al. Boiling frogs: piecing strategies for a manufacturer adding a direct channel that competes with the traditional channel[J]. Production and Operations Management, 2006, 15(1): 40-56. [6]Nematollahi M, Hosseini-Motlagh S M, Pazari P. Analytical insights into coordination and competition in dual-channel supply chains: a multi-factor dependent demand perspective[J]. Journal of Retailing and Consumer Services, 2024, 78: 103706. [7]Sun C S, Adamopoulos P, Ghose A, et al. Predicting Stages in Omnichannel Path to Purchase: a Deep Learning Model[J]. Information Systems Research, 2022, 33(02): 399-764. [8]Lin H, Kumar S. Benefit of consumer showrooming for a physical retailer: a distribution channel perspective[J]. Management Science, 2023, 9-28. [9]Gao F, Su X M. Omnichannel retail operations with buy-online-and-pick-up-in-store[J]. Management Science, 2016, 63(8): 2478-2492. [10]Cao J, So K C, Yin S. Impact of an "online-to-store" channel on demand allocation, pricing and profitability[J]. European Journal of Operational Research, 2016, 248(1): 234-245. [11]Kong R X, Guan Z Z, Luo L. Research on omni-channel supply chain structure based on BOPS[J]. Journal of Management, 2019, 16(07):1072-1080. [12]Pei Z, Ghose S, Yan R L, et al. The strategic value of buy online and pick up from store service to the dual channel coordination[J]. Journal of Retailing and Consumer Services, 2024, 77: 103648. [13]Ge C C, Zhu J J. Research on omni-channel competitive strategy considering heterogeneous customers' multiple interaction behaviors[J]. Systems Engineering Theory and Practice, 2023, 43(05): 1395-1413. [14]Ge C C, Zhu J J. Effects of BOPS implementation under market competition and decision timing in omnichannel retailing[J]. Computer & Industrial Engineering, 2023, 179: 109227. [15]Qiu J, Zhao J, Fang X Y, Li T X. Research on retailers' BOPS strategy based on third-party logistics service pricing[J]. Journal of Management Engineering, 2023, 37(03):169-177. [16]Robert R R. Bertrand competition with cost uncertainty[J]. Economic Letters, 2010, 107(3): 356-359.