Author(s)

Huayu Chen, Danqin Yang

Corresponding Author

Huayu Chen

ABSTRACT

This paper studies whether the manufacturer with dual channels should carry out channel integration: BOPS (Buy-online-and-pick-up-in-store). Theoretical model is established to find out the optimal pricing and service strategies of the manufacturer before and after the implementation of BOPS. The influences of consumer’s online shopping acceptance on pricing, service level are analyzed, and the comparison of manufacturer’s price, online and offline service level, profits before and after the implementation of BOPS, and applicable conditions for the implementation of BOPS are given by numerical simulation.

KEYWORDS

Pricing strategy, Service strategy, BOPS, Omni-channel retailing