IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i13p9988-d1177766.html
   My bibliography  Save this article

Optimizing the Location of Virtual-Shopping-Experience Stores Based on the Minimum Impact on Urban Traffic

Author

Listed:
  • Shulin Wang

    (Faculty of Maritime and Transportation, Ningbo University, Ningbo 315211, China)

  • Shanhua Wu

    (Faculty of Maritime and Transportation, Ningbo University, Ningbo 315211, China)

Abstract

In order to enhance consumers’ experience of online shopping and to reduce their unnecessary car trips for offline shopping, a new mode, namely, establishing the virtual-shopping-experience store, is proposed in this paper. A bi-level programming model is then built with the aim of optimizing the location of the virtual-shopping-experience stores. The upper-level submodel is utilized to optimize the location of the experience stores, as well as the selection of virtual-reality (VR) devices purchased by the stores, by maximizing the social welfare generated from reducing the car trips for offline shopping after the establishment of the virtual-shopping-experience stores. The lower-level submodel is a binary Logit model, one which calculates the probability of consumers’ choices between online and offline shopping according to the locations of the experience stores output by the upper-level submodel. A genetic algorithm is adopted to solve the model. To validate the accuracy of the model, as well as that of the algorithm, case studies are carried out based on the real data collected in Dalian and Ningbo (two cities in China). The case study result demonstrates that the establishment of virtual-shopping-experience stores would contribute to reducing the frequency of car trips for offline shopping, as well as the distance of car trips for offline shopping and the time spent in car trips for offline shopping.

Suggested Citation

  • Shulin Wang & Shanhua Wu, 2023. "Optimizing the Location of Virtual-Shopping-Experience Stores Based on the Minimum Impact on Urban Traffic," Sustainability, MDPI, vol. 15(13), pages 1-25, June.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:13:p:9988-:d:1177766
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/13/9988/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/13/9988/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Charles S. Revelle & Gilbert Laporte, 1996. "The Plant Location Problem: New Models and Research Prospects," Operations Research, INFORMS, vol. 44(6), pages 864-874, December.
    2. Klose, Andreas & Drexl, Andreas, 2005. "Facility location models for distribution system design," European Journal of Operational Research, Elsevier, vol. 162(1), pages 4-29, April.
    3. Yu Ding & Huapu Lu, 2017. "The interactions between online shopping and personal activity travel behavior: an analysis with a GPS-based activity travel diary," Transportation, Springer, vol. 44(2), pages 311-324, March.
    4. Bin Kim, Woo & Jung Choo, Ho, 2023. "How virtual reality shopping experience enhances consumer creativity: The mediating role of perceptual curiosity," Journal of Business Research, Elsevier, vol. 154(C).
    5. Babin, Barry J & Darden, William R & Griffin, Mitch, 1994. "Work and/or Fun: Measuring Hedonic and Utilitarian Shopping Value," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 20(4), pages 644-656, March.
    6. Alzayat, Ayman & Lee, Seung Hwan (Mark), 2021. "Virtual products as an extension of my body: Exploring hedonic and utilitarian shopping value in a virtual reality retail environment," Journal of Business Research, Elsevier, vol. 130(C), pages 348-363.
    7. Beckers, Joris & Cardenas, Ivan & Sanchez-Diaz, Ivan, 2022. "Managing household freight: The impact of online shopping on residential freight trips," Transport Policy, Elsevier, vol. 125(C), pages 299-311.
    8. Wolff, Michael & Becker, Tristan & Walther, Grit, 2023. "Long-term design and analysis of renewable fuel supply chains – An integrated approach considering seasonal resource availability," European Journal of Operational Research, Elsevier, vol. 304(2), pages 745-762.
    9. Wang, Zhaodong & Xie, Siyang & Ouyang, Yanfeng, 2022. "Planning reliable service facility location against disruption risks and last-mile congestion in a continuous space," Transportation Research Part B: Methodological, Elsevier, vol. 165(C), pages 123-140.
    10. Kim, Sooyun & Park, Geebum & Lee, Yeonjoo & Choi, Sunmee, 2016. "Customer emotions and their triggers in luxury retail: Understanding the effects of customer emotions before and after entering a luxury shop," Journal of Business Research, Elsevier, vol. 69(12), pages 5809-5818.
    11. Adibfar, Alireza & Gulhare, Siddhartha & Srinivasan, Siva & Costin, Aaron, 2022. "Analysis and modeling of changes in online shopping behavior due to Covid-19 pandemic: A Florida case study," Transport Policy, Elsevier, vol. 126(C), pages 162-176.
    12. S. L. Hakimi, 1964. "Optimum Locations of Switching Centers and the Absolute Centers and Medians of a Graph," Operations Research, INFORMS, vol. 12(3), pages 450-459, June.
    13. Patricia Mokhtarian, 2004. "A conceptual analysis of the transportation impacts of B2C e-commerce," Transportation, Springer, vol. 31(3), pages 257-284, August.
    14. Zhuang, Hejun & Popkowski Leszczyc, Peter T.L. & Lin, Yuanfang, 2018. "Why is Price Dispersion Higher Online than Offline? The Impact of Retailer Type and Shopping Risk on Price Dispersion," Journal of Retailing, Elsevier, vol. 94(2), pages 136-153.
    15. Sang-Lin Han & Janghyun Kim & Myounga An, 2023. "The Role of VR Shopping in Digitalization of SCM for Sustainable Management: Application of SOR Model and Experience Economy," Sustainability, MDPI, vol. 15(2), pages 1-13, January.
    16. de Regt, Anouk & Plangger, Kirk & Barnes, Stuart J., 2021. "Virtual reality marketing and customer advocacy: Transforming experiences from story-telling to story-doing," Journal of Business Research, Elsevier, vol. 136(C), pages 513-522.
    17. Krarup, Jakob & Pruzan, Peter Mark, 1983. "The simple plant location problem: Survey and synthesis," European Journal of Operational Research, Elsevier, vol. 12(1), pages 36-57, January.
    18. Shi, Kunbo & Shao, Rui & De Vos, Jonas & Cheng, Long & Witlox, Frank, 2021. "Is e-shopping likely to reduce shopping trips for car owners? A propensity score matching analysis," Journal of Transport Geography, Elsevier, vol. 95(C).
    19. Meißner, Martin & Pfeiffer, Jella & Peukert, Christian & Dietrich, Holger & Pfeiffer, Thies, 2020. "How virtual reality affects consumer choice," Journal of Business Research, Elsevier, vol. 117(C), pages 219-231.
    20. Zhou, Yiwei & Wang, Xiaokun (Cara), 2014. "Explore the relationship between online shopping and shopping trips: An analysis with the 2009 NHTS data," Transportation Research Part A: Policy and Practice, Elsevier, vol. 70(C), pages 1-9.
    21. Xi, Nannan & Hamari, Juho, 2021. "Shopping in virtual reality: A literature review and future agenda," Journal of Business Research, Elsevier, vol. 134(C), pages 37-58.
    22. Sandeep Goyal & Bruno S. Sergi & Mark Esposito, 2019. "Literature review of emerging trends and future directions of e-commerce in global business landscape," World Review of Entrepreneurship, Management and Sustainable Development, Inderscience Enterprises Ltd, vol. 15(1/2), pages 226-255.
    23. ReVelle, C.S. & Eiselt, H.A. & Daskin, M.S., 2008. "A bibliography for some fundamental problem categories in discrete location science," European Journal of Operational Research, Elsevier, vol. 184(3), pages 817-848, February.
    24. Ge, Houtian & Goetz, Stephan J. & Cleary, Rebecca & Yi, Jing & Gómez, Miguel I., 2022. "Facility locations in the fresh produce supply chain: An integration of optimization and empirical methods," International Journal of Production Economics, Elsevier, vol. 249(C).
    25. Shi, Kunbo & De Vos, Jonas & Yang, Yongchun & Witlox, Frank, 2019. "Does e-shopping replace shopping trips? Empirical evidence from Chengdu, China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 122(C), pages 21-33.
    26. Farah, Maya F. & Ramadan, Zahy B. & Harb, Dana H., 2019. "The examination of virtual reality at the intersection of consumer experience, shopping journey and physical retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 48(C), pages 136-143.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Yunen & Shao, Wei & Quach, Sara & Thaichon, Park & Li, Qianmin, 2024. "Examining the moderating effects of shopping orientation, product knowledge and involvement on the effectiveness of Virtual Reality (VR) retail environment," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    2. Shi, Kunbo & De Vos, Jonas & Cheng, Long & Yang, Yongchun & Witlox, Frank, 2021. "The influence of the built environment on online purchases of intangible services: Examining the mediating role of online purchase attitudes," Transport Policy, Elsevier, vol. 114(C), pages 116-126.
    3. Xu, Lu & Saphores, Jean-Daniel, 2024. "Does e-shopping impact household travel? Evidence from the 2017 U.S. NHTS," Journal of Transport Geography, Elsevier, vol. 115(C).
    4. Pelegrín, Mercedes, 2023. "New variants of the simple plant location problem and applications," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1094-1108.
    5. Wu, Shanhua & Yang, Zhongzhen, 2018. "Optimizing location of manufacturing industries in the context of economic globalization: A bi-level model based approach," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 501(C), pages 327-337.
    6. Shah, Harsh & Carrel, Andre L. & Le, Huyen T.K., 2021. "What is your shopping travel style? Heterogeneity in US households’ online shopping and travel," Transportation Research Part A: Policy and Practice, Elsevier, vol. 153(C), pages 83-98.
    7. Kunbo Shi & Long Cheng & Jonas De Vos & Yongchun Yang & Wanpeng Cao & Frank Witlox, 2021. "How does purchasing intangible services online influence the travel to consume these services? A focus on a Chinese context," Transportation, Springer, vol. 48(5), pages 2605-2625, October.
    8. Abdolsalam Ghaderi, 2015. "Heuristic Algorithms for Solving an Integrated Dynamic Center Facility Location - Network Design Model," Networks and Spatial Economics, Springer, vol. 15(1), pages 43-69, March.
    9. Xi, Nannan & Hamari, Juho, 2021. "Shopping in virtual reality: A literature review and future agenda," Journal of Business Research, Elsevier, vol. 134(C), pages 37-58.
    10. Li, Shengxiao (Alex), 2023. "Revisiting the relationship between information and communication technologies and travel behavior: An investigation of older Americans," Transportation Research Part A: Policy and Practice, Elsevier, vol. 172(C).
    11. Contreras, Ivan & Fernández, Elena & Reinelt, Gerhard, 2012. "Minimizing the maximum travel time in a combined model of facility location and network design," Omega, Elsevier, vol. 40(6), pages 847-860.
    12. Haase, Knut & Hoppe, Mirko, 2008. "Standortplanung unter Wettbewerb - Teil 1: Grundlagen," Discussion Papers 2/2008, Technische Universität Dresden, "Friedrich List" Faculty of Transport and Traffic Sciences, Institute of Transport and Economics.
    13. Limon Barua & Bo Zou & Yan Zhou & Yulin Liu, 2023. "Modeling household online shopping demand in the U.S.: a machine learning approach and comparative investigation between 2009 and 2017," Transportation, Springer, vol. 50(2), pages 437-476, April.
    14. Drexl, Andreas & Klose, Andreas, 2001. "Facility location models for distribution system design," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 546, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    15. Patrick Siegfried & Zhu Quankun, 2022. "The Development Prospect Of Retail Virtual Store," Malaysian E Commerce Journal (MECJ), Zibeline International Publishing, vol. 6(1), pages 14-16, February.
    16. Xi, Guangliang & Cao, Xinyu & Zhen, Feng, 2020. "The impacts of same day delivery online shopping on local store shopping in Nanjing, China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 136(C), pages 35-47.
    17. H K Smith & G Laporte & P R Harper, 2009. "Locational analysis: highlights of growth to maturity," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(1), pages 140-148, May.
    18. Arranz-López, Aldo & Blitz, Andreas & Elizondo-Candanedo, Raúl F. & Lanzendorf, Martin, 2024. "The connections between e-shopping and sustainable transport choices – Comparing urban and rural environments," Journal of Transport Geography, Elsevier, vol. 117(C).
    19. Jing Chen & Yong Zhang & Shiyao Zhu & Lei Liu, 2021. "Does COVID-19 Affect the Behavior of Buying Fresh Food? Evidence from Wuhan, China," IJERPH, MDPI, vol. 18(9), pages 1-15, April.
    20. Bin Kim, Woo & Jung Choo, Ho, 2023. "How virtual reality shopping experience enhances consumer creativity: The mediating role of perceptual curiosity," Journal of Business Research, Elsevier, vol. 154(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:13:p:9988-:d:1177766. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.