Research On Retailers’ Product Empowerment Strategy With Consideration Of Heterogeneity In Consumer Channel Preference

In the context of new retail,retailers are adopting an omni-channel strategy to reach consumers through multiple digital and physical touch points,and enabling scenarios are born.Product empowerment is one of the strategies of e-commerce platforms to expand sales channels offline.It means that the platform assigns its products to physical stores for sales,so that the physical stores can sell their own products and platform products in the store at the same time,and use the channel advantages of both parties to achieve the effect of drainage.However,when the platform empowers partners,there will inevitably be inconsistencies between the goals and interests of the two parties and lead to channel conflicts.Retailers must better integrate channels to achieve the best omni-channel strategy.Based on consumers’ channel preference and platform diversion and pricing scheme,this paper studies the impact of online retailers’ product enabling strategy on different parameters and strategy of both parties.First,based on the different channel preferences of consumers,a model of product empowerment for online retailers to physical stores is constructed,and the influence of product empowerment on the product price,sales volume,revenue and profit of online and offline retailers is obtained.Secondly,on the basis of the empowerment model,consider two different referral traffic strategies: online retailers provide product information and geographic location at the same time,and online retailers only provide geographic location but not product information,and discuss how retailers should implement the recommendation diversion strategy and what role it plays in empowerment.Finally,this paper compares and analyzes the two scenarios of the same price and different prices in different channels,and finds the conditions under which retailers should adopt the same price(different price)strategy,so as to provide constructive opinions for enterprises.The research results show that the disutility of online purchases after empowerment will not necessarily damage the profits of online retailers.When the revenue sharing ratio is small,the profits of online stores will be inversely proportional to the disutility;otherwise,with the increase of disutility,the profits will first decrease and then increase.In addition,when the proportion of revenue sharing is small,it is more beneficial for physical stores not to provide store product information online,while online platforms prefer a referral traffic scheme that provides both geographic location and store product information.There is a pare between the two parties.In this area,a traffic strategy that only provides geographic information is adopted.Finally,Both online retailers and brick-and-mortar stores are more inclined to perform product empowerment under the same price strategy.