Research On Jump-Dealing Problem Of "Showrooming"

Jump-Dealing problem exists in many fields, such as medical industry, retailing industry, real estate agent. Because of the difference of the cause, the impact, and the solution, characteristic of the Jump-Dealing problem is different among each area. Many domestic and foreign scholars begin to involve in these areas to study. With the development of information technology, E-commerce of our country spread rapidly, which is changing the habits and styles of publics’ shopping. In the context of the rapid development of E-commerce, the problem of "Showrooming" is gradually revealed. Actually, the essence of " Showrooming" is Jump-Dealing Problem. "Showrooming" is a phenomenon in which a custom try to experience products in a virtual store, but buy it from an online retailer. Jump-Dealing problem of "Showrooming" has influence on virtual store to some extents, which brings about a lot of management and economic problems. However few scholars make an intensive study of Jump-Dealing problem of "Showrooming". Taking electronic retailing industry as an example, firstly, this paper builds the model and analyzes the cause and factors of Jump-Dealing Problem of "Showrooming", from the perspective of consumers, based on the theory of Consumer Perceived Risk in Consumer Behavior Theory and Utility in the economics. Secondly, this paper builds the model and analyzes the virtual and online retailers’optimal price and profit if consumers’Jump-Dealing behavior of "Showrooming" exists and economic substance of Jump-Dealing Problem of "Showrooming", based on Manufacturer Theory and Game Theory. Lastly, this paper points out virtual retailers’strategies when they are in face of the trend of E-commerce.Specifically, this paper analyzes Jump-Dealing problem of "Showrooming" through discussing the pattern of the impact on virtual retailer. First of all, it analyzes features of the Jump-Dealing problem of "Showrooming" of electronic retailing industry from the perspective of the attributes of products and customers. It analyzes how price and other non-price factors affect customer’s purchase decision from the demanding aspect and summarizes sufficient and necessary conditions of consumers’"Showrooming" behavior. Secondly, it points out that the essence of "Showrooming" is cross-channel free-riding of online retailers from the perspective of pre-sale service attributes and summarizes the optimal price and profit when there is cross-channel free-riding. Then the paper analyzes the result of the game. Lastly, the paper points out the measures that virtual retailers can take when they are in face of customers’ Jump-Dealing behavior of "Showrooming".