Online Pricing Strategy Of Retailers Under The Modes Of Door-to-door Delivery And BOPS

The integration of channels to meet consumers' different shopping experience has become the focus of more and more retailers.BOPS(Buy Online and Pick Up in Store)allows consumers to place orders online and pick up goods offline.For retailers,BOPS can stimulate store sales,promote online and offline coordinated development,and reduce the pressure of logistics distribution.For consumers,BOPS allows them to arrange pick-up time flexibly,save freight,avoid long waiting time and enjoy better offline services.Whether online retailers should provide BOPS or not,how to determine the price of products based on the BOPS is worth discussing.At the same time,online retailers have two different forms of quotation: split quotation and bundled quotation,which has a great influence on whether consumers buy and return goods.Therefore,how online retailers choose the form of quotation can obtain greater profits.Based on this,the pricing and profit model of online retailers is constructed.Based on the above purposes,this paper firstly constructs the decision-making model of online retailers in different quotation forms when they only provide door-to-door delivery.The expected utility of consumers and the profit function of online retailers are obtained by combining the trading rules of online shopping,and the optimal pricing and profit of split quotation and bundled quotation are solved and compared.Secondly,the pricing and profit models for online retailers to provide door-to-door delivery and BOPS are constructed and solved respectively.By comparing with the optimal decision which only provides door-to-door delivery mode,the applicable conditions of different decisions of online retailers under different quotation forms are obtained,and the two kinds of quotation forms are compared and analyzed.Finally,a numerical analysis of the different decisions of online retailers is carried out to study the impact of consumers' preference for BOPS,proportion of refund,proportion of logistics service fee to product price,consumers' preference for bundled quotation and satisfaction rate of consumers on the optimal price and profit.The following conclusions are obtained:1.Under the split quotation,when consumers have a greater preference for BOPS,online retailers can get more profits by providing two delivery modes and price is different than by only providing traditional door-to-door delivery.2.In the form of bundled quotation,when consumers have a lower preference for BOPS,the profit under two ways and the prices are different > the profit under two ways and the prices are same > the profit in the case of offering single door-to-door delivery.3.In the form of split quotation,the profit of online retailers are irrelevant to the refund ratio in the case of offering single door-to-door delivery and offering two delivery modes and price is different.Under the form of bundled quotation,the profit of online retailers in the case of single door-to-door delivery mode or the combination of the two ways has nothing to do with the refund ratio.And the price increases with the increase of refund proportion.4.In the case that online retailers provide two delivery modes and price is different,there is a threshold for consumers' preference for bundled quotation.When the preference degree is between the threshold value and 1,the profit of dividing quotation is greater than that of bundled quotation;otherwise,the profit of bundled quotation is greater.