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Impacts of the BOPS Option on Sustainable Retailing

Author

Listed:
  • Yi He

    (School of Management, Hainan University, Haikou 570228, China)

  • Qianqian Xu

    (School of Management, Hainan University, Haikou 570228, China)

  • Da Zhao

    (School of Management, Hainan University, Haikou 570228, China)

Abstract

This paper focuses on the value of an omnichannel retailing option, Buy-Online-and-Pick-up-in-Store (BOPS), in reducing environmental impact. Analytical models were established to explore the impacts of the BOPS strategy on the pricing and expected profit of the dual-channel retailer as well as the environment. The equilibrium solutions under dual-channel and omnichannel scenarios were obtained. Then, we considered the impact of loyal store consumers in the extended model. We find that the retailer will increase the product price after adopting the BOPS strategy. Our analytical results also show that when the operating cost of the BOPS strategy is relatively low, the total demand under the omnichannel scenario is greater than that under the dual-channel scenario and vice versa. In addition, this strategy can always reduce the environmental impact in terms of the pure online demand. Finally, when the operating cost is lower and the fraction of consumers without channel preference is higher, the retailer can benefit from the BOPS strategy. In this case, the BOPS strategy can achieve profit improvement and environmental impact reduction.

Suggested Citation

  • Yi He & Qianqian Xu & Da Zhao, 2020. "Impacts of the BOPS Option on Sustainable Retailing," Sustainability, MDPI, vol. 12(20), pages 1-16, October.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:20:p:8600-:d:430268
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    References listed on IDEAS

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    Cited by:

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    3. Luca A. Panzone & Natasha Auch & Daniel John Zizzo, 2024. "Nudging the Food Basket Green: The Effects of Commitment and Badges on the Carbon Footprint of Food Shopping," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(1), pages 89-133, January.
    4. ur Rehman, Attique & Shakeel Sadiq Jajja, Muhammad & Farooq, Sami, 2022. "Manufacturing planning and control driven supply chain risk management: A dynamic capability perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 167(C).
    5. Han Wang & Chuan Pang & Huajun Tang, 2023. "Pricing and Carbon-Emission-Reduction Decisions under the BOPS Mode with Low-Carbon Preference from Customers," Mathematics, MDPI, vol. 11(12), pages 1-26, June.
    6. Shujun Yang & Ivan Kai Wai Lai & Huajun Tang, 2022. "Pricing and Contract Coordination of BOPS Supply Chain Considering Product Return Risk," Sustainability, MDPI, vol. 14(9), pages 1-21, April.

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