Research on Cooperative Advertising Decisions in Dual-Channel Supply Chain Under Asymmetric Demand Information When Online Channel Implements Discount Promotion

This paper analyzes the both online-channel price discount and advertising decisions in a dual-channel supply chain involved one manufacturer and one retailer. A Stackelberg game dominated by the manufacturer is established. The influence of asymmetric demand information is analyzed. The study shows that retailer has a motivation to lie about the offline demand information and it always announces a higher advertising impact factor. To induce the retailer to reveal to true demand information, a franchise-fee contract is designed

An Empirical Investigation of the Existence and Causes of Noticeable Price Difference in Multi-Channel Retailers

Pricing strategy is one of the greatest difficulties facing multi-channel retailers (Gupta, Ting & Tiwari, 2019) as many retailers have switched to a multiple channel system (Ailawadi & Farris, 2017). Retailers are using their price strategies to encourage consumers to use either online or offline channels. Therefore, in many cases retailers want consumers to notice the price difference between channels. However, in some circumstances, retailers do not want consumers to notice the differentiation. Therefore, this thesis will answer two main research questions: How should optimal pricing be set for multiple channels that will make consumers more/less likely to notice price differentiation? What types of price presentation format are more/less likely to make consumers notice price differentiation? Prior investigations have studied noticeable price differences by using differential price thresholds in a single channel (e.g., Cheng & Monroe, 2013a; Sirvanci, 1993) rather than studying differential price thresholds for a single product when there is one retailer and two channels. Multi-channel retailers use different monetary and non-monetary promotions as price presentation formats. Previous researchers have studied the roles of monetary and non-monetary promotions in the price-framing effect. However, so far no study has investigated the price effect of different promotion presentation formats on noticing differentiation. This thesis integrates just noticeable difference theory and prospect theory to investigate consumers’ ability to notice price differentiation in different price presentation formats. It does so by conducting two experimental studies, each with 720 participants. It investigates the antecedent factors that influence the noticing of price differentiation in multiple channels. The results of the thesis have important implications for the multi-channel literature and for managerial practice. They show that consumers are more likely to notice price differentiation when the difference between the (online and offline) regular prices is 20%. The results also suggest that there is a difference in noticing price differentiation in different monetary promotional formats. The thesis can guide marketing managers to set optimal prices for single products when there is one retailer and two channels. They can decide whether to use the same price in both channels or different prices in the different channels depending on whether their strategy is to attract consumers and increase purchase intentions by making the price difference noticeable or not

Essays on the effect of retail innovation on consumer behavior

As a result of the convergence of online and offline retailers, and due to the notoriously low margins in the retail environment, innovation and technology have become more and more competitive differentiators. The purpose of this cumulative dissertation is to explore consumers’ behavioral reactions towards those technological innovations in brick and mortar retailing. As it is not feasible to consider every available technology in its own right, the focus of this dissertation is limited to the following three recent technologies: mobile payment, electronic shelf labels, and electric vehicle charging stations. By conducting experiments (Paper 1 and Paper 3) and leveraging real transaction data from a retailer (Paper 2), the author was able to formulate and investigate various research hypotheses, including a positive influence of new technology on the willingness to pay (Paper 1), mere revenue effect (Paper 2), and shopping intentions (Paper 3).:1 Introduction 2 Theoretical foundations 3 Purpose and focus of the dissertation 4 Article summary 4.1 Overview of dissertation articles 4.2 Summary of first article 4.3 Summary of second article 4.4 Summary of third article 5 General contributions and implications of this dissertation 6 Limitations and future research 7 Outlook References Appendix I: The effect of credit card versus mobile payment on convenience and consumers’ willingness to pay Appendix II: Behavioral consequences from converging channel capabilities: the effect of mere electronic shelf label presence on store revenue Appendix III: Recharge while you shop: the impact of free electric vehicle charging on shopping intention and shopping duratio

Optimal Online Service Strategy and Price Decision in Omnichannel Retail

As a new emerging sales promotion tool, various types of online services are increasingly adopted by firms to improve consumers' satisfaction and then increase profit. This paper simulates a two-echelon supply chain where a supplier sells the product through an offline or online retailer. Online channel is characterised by direct selling and reselling. We consider three online service strategies: no online service, pre-emptive and reactive online service. Several results are obtained. We find that investing in online services can benefit all players in most scenarios more than no service scenario. In the direct selling case, the offline retailer benefits the most from the reactive service strategy due to the webrooming effect, whereas the supplier performance best in the pre-emptive service strategy. However, in the reselling case, we find that the supplier, the online and offline retailers benefit the most from reactive service strategy. Furthermore, we compare the prices and service levels of the three strategies and find that the webrooming effect coefficient can affect the optimal wholesale price, retail prices and online service level. Finally, the findings indicate that the supplier's choice of the two cases depends on the fixed cost of the online channel

Trading-up on unmet expectations? Evaluating consumers’ expectations in online premium grocery shopping logistics

Geography and retail store locations are inherently bound together; this study links food retail changes to systemic logistics changes in an emerging market. The later include raising income and education, access to a wide range of technologies, traffic and transport difficulties, lagging retail provision, changing family structure and roles, as well as changing food culture and taste. The study incorporates demand for premium products defined by Kapferer and Bastien [2009b. The Luxury Strategy. London: Kogan Page] as comprising a broad variety of higher quality and unique or distinctive products and brands including in grocery organic ranges, healthy options, allergy free selections, and international and gourmet/specialty products through an online grocery model (n = 356) that integrates a novel view of home delivery in Istanbul. More importantly from a logistic perspective our model incorporates any products from any online vendors broadening the range beyond listed items found in any traditional online supermarkets. Data collected via phone survey and analysed via structural equation modelling suggest that the offer of online premium products significantly affects consumers’ delivery logistics expectations. We discuss logistics operations and business management implications, identifying the emerging geography of logistic models which respond to consumers’ unmet expectations using multiple sourcing and consolidation points

A Multilevel configurational analysis of resource integration in net-enabled retail organizations

Ph.DDOCTOR OF PHILOSOPH