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Decision and Coordination of an O2O Supply Chain With Market Segmentation and Showrooming Effect

Author

Listed:
  • Guohu Qi

    (Fuyang Normal University, China)

  • Xuemei Zhang

    (Fuyang Normal University, China)

  • Jiawei Hu

    (Fuyang Normal University, China)

  • Haoran Chen

    (Fuyang Normal University, China)

Abstract

This paper investigates impacts of market segmentation and showrooming effect on the decision-making of an O2O supply chain, and puts forwards a contract to coordinate the O2O supply chain. Results show that, the showrooming effect is beneficial to the manufacturer, retailer and the supply chain, and the retailer will offer offline showrooming service. Under the influence of market segmentation, O2O supply chain is not necessarily better than single-channel supply chain structure. But adopting advertising and other means to improve consumers’ online channel acceptance, it can realize transformation from single-channel to O2O structure. The benefits of showrooming effect can eliminate the disadvantage of market segmentation. Moreover, a service cost sharing contract is put forward, which can perfectly coordinate the O2O supply chain with market segmentation and showrooming effect. These findings help managers to understand which channel structure is optimal by considering market segmentation and showrooming effect and identify possible pathways for them to perfectly cooperation.

Suggested Citation

  • Guohu Qi & Xuemei Zhang & Jiawei Hu & Haoran Chen, 2022. "Decision and Coordination of an O2O Supply Chain With Market Segmentation and Showrooming Effect," International Journal of Information Systems and Supply Chain Management (IJISSCM), IGI Global Scientific Publishing, vol. 15(1), pages 1-42, January.
    • Handle: RePEc:igg:jisscm:v:15:y:2022:i:1:p:1-42
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    References listed on IDEAS

    as
    1. Maher Agi & Xinghao Yan, 2020. "Greening products in a supply chain under market segmentation and different channel power structures," Post-Print hal-02898158, HAL.
    2. Liu, Zhi & Li, Kevin W. & Li, Bang-Yi & Huang, Jun & Tang, Juan, 2019. "Impact of product-design strategies on the operations of a closed-loop supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 124(C), pages 75-91.
    3. Agi, Maher A.N. & Yan, Xinghao, 2020. "Greening products in a supply chain under market segmentation and different channel power structures," International Journal of Production Economics, Elsevier, vol. 223(C).
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