Research On Omni-channel Strategy Selection With Consumer Returns

Nowadays,more and more retailers have implemented Omni channel strategy to provide consumers with uniform and seamless services through online stores and physical stores.Omni channel retail mode not only gives consumers great freedom of shopping,but also gives consumers great freedom of return.Therefore,under the background of omni-channel,the problem of return is particularly prominent.Providing high-quality return service has become a competitive strategy that many omni-channel retailers are different from other competitors.However,most of the existing research in the competitive environment focuses on the single channel and dual channel retailers,and the research content in the omni channel mode is relatively blank.This paper takes r retailer as the research object,as one of the omni channel retailers,it also begins to lay out Omni channel strategy in recent years.This paper analyzes the current situation of return management in R retailer’s omni-channel mode,and finds that in the competitive market,the "online purchase,to store self delivery"(BOPS)mode adopted by R retailer causes the loss of customers due to the low efficiency of refund processing,so a more optimized "online purchase,pay as you pick"(ROPS)mode is designed for R retailer.Considering the return of customers,this paper provides r retailers with the strategic decision of adopting ROPS strategy from the perspective of competition.Based on the theory of consumer utility and Hotelling model,this paper constructs a three-stage non cooperative game framework in duopoly market,and adopts the concept of perfect Nash equilibrium of sub game,taking the pricing decision of retailers,the purchase heterogeneity and return emotion of consumers into consideration.It is found that if consumers already have loyal retailers,there is only one retailer The adoption of ROPS policy by retailers can keep the balance,or both retailers can achieve the balance by either adopting ROPS policy or not adopting ROPS policy.As the brand characteristics of retailers become more and more obvious,at this time,both retailers adopt ROPS strategy as the only equilibrium solution,and the two retailers are trapped in prisoner’s dilemma.If consumers randomly choose a retailer to purchase,that is,the products sold by the two retailers are highly homogeneous,then they do not use the ROPS strategy to achieve equilibrium.In addition,in terms of the equilibrium profit of each sub game,in the equilibrium of asymmetric adoption of ROPS policy,compared with the retailers with symmetrical allocation of ROPS policy,both retailers will increase their income.However,the retailers who choose to adopt ROPS strategy can not guarantee more profits than the retailers who do not adopt ROPS strategy in the competitive market.In conclusion,for R retailers,the main strategy is to always adopt ROPS strategy after having loyal customers.The above findings are also verified by an example,and the management enlightenment is drawn: retailers need to understand their own short board and advantages,and develop personalized and differentiated retail strategies based on customer-centered and combined with their own development situation,which is conducive to the multi win situation between retailers and retailers,retailers and consumers.