IDEAS home Printed from https://ideas.repec.org/a/taf/tjorxx/v73y2022i4p794-810.html
   My bibliography  Save this article

Optimal service decisions in an omni-channel with buy-online-and-pick-up-in-store

Author

Listed:
  • Xiaojun Fan
  • Lin Tian
  • Chengfu Wang
  • Shanshan Wang

Abstract

Omni-channel retailing has emerged as a major trend in e-commerce. The strategy of buy-online-and-pick-up-in-store (BOPS) has been applied in a variety of contexts. Customers make optimal purchasing decisions depending on the services provided by purchasing channels. Several studies have applied theoretical framework to analyze the effect of BOPS on omni-channel operations; however, they rarely considered the impact of BOPS on channel services. To fill the gap, in this study, we propose an analytical model consisting of a manufacturer with an online channel and an independent retailer. We examine the optimal service decisions in an omni-channel with BOPS and analyze the interaction between the service decisions and the BOPS strategy. Our analysis shows that BOPS attracts both existing and potential customers, whereas all channels will reduce their service levels after introducing BOPS when the cost of increasing online service levels is high. Further, we find that BOPS should be introduced when the service levels of all channels are low, and it may not be suitable for the case in which all channels’ service levels are high. While the adoption of BOPS is beneficial to the retailer, it will be disadvantageous for the manufacturer. Given that the total profit of members will increase after BOPS is introduced in some cases, we design a two-part traffic contract to ensure a win-win situation for all participants.

Suggested Citation

  • Xiaojun Fan & Lin Tian & Chengfu Wang & Shanshan Wang, 2022. "Optimal service decisions in an omni-channel with buy-online-and-pick-up-in-store," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 73(4), pages 794-810, March.
    • Handle: RePEc:taf:tjorxx:v:73:y:2022:i:4:p:794-810
    DOI: 10.1080/01605682.2020.1863753
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/01605682.2020.1863753
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/01605682.2020.1863753?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Feng, Yue & Zhang, Jianxiong & Feng, Lin & Zhu, Guowei, 2022. "Benefit from a high store visiting cost in an omnichannel with BOPS," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 166(C).
    2. Li, Zonghuo & Guan, Xu & Mei, Wanxia, 2023. "Coupon promotion and its cross-channel effect in omnichannel retailing industry: A time-sensitive strategy," International Journal of Production Economics, Elsevier, vol. 258(C).
    3. 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.
    4. Sarkar, Biswajit & Dey, Bikash Koli, 2023. "Is online-to-offline customer care support essential for consumer service?," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).

    More about this item

    Statistics

    Access and download statistics

    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:taf:tjorxx:v:73:y:2022:i:4:p:794-810. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/tjor .

    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.