359 research outputs found

    Grocery omnichannel perishable inventories: performance measures and influencing factors

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    Purpose- Perishable inventory management for the grocery sector has become more challenging with extended omnichannel activities and emerging consumer expectations. This paper aims to identify and formalize key performance measures of omnichannel perishable inventory management (OCPI) and explore the influence of operational and market-related factors on these measures. Design/methodology/approach- The inductive approach of this research synthesizes three performance measures (product waste, lost sales and freshness) and four influencing factors (channel effect, demand variability, product perishability and shelf life visibility) for OCPI, through industry investigation, expert interviews and a systematic literature review. Treating OCPI as a complex adaptive system and considering its transaction costs, this paper formalizes the OCPI performance measures and their influencing factors in two statements and four propositions, which are then tested through numerical analysis with simulation. Findings- Product waste, lost sales and freshness are identified as distinctive OCPI performance measures, which are influenced by product perishability, shelf life visibility, demand variability and channel effects. The OCPI sensitivity to those influencing factors is diverse, whereas those factors are found to moderate each other's effects. Practical implications- To manage perishables more effectively, with less waste and lost sales for the business and fresher products for the consumer, omnichannel firms need to consider store and online channel requirements and strive to reduce demand variability, extend product shelf life and facilitate item-level shelf life visibility. While flexible logistics capacity and dynamic pricing can mitigate demand variability, the product shelf life extension needs modifications in product design, production, or storage conditions. OCPI executives can also increase the product shelf life visibility through advanced stock monitoring/tracking technologies (e.g. smart tags or more comprehensive barcodes), particularly for the online channel which demands fresher products. Originality/value- This paper provides a novel theoretical view on perishables in omnichannel systems. It specifies the OCPI performance, beyond typical inventory policies for cost minimization, while discussing its sensitivity to operations and market factors

    PROMOTION OPTIMIZATION IN COMPETITIVE ENVIRONMENTS BY CONSIDERING THE CANNIBALIZATION EFFECT

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    This study proposes a new model to optimize sales promotion in competitive markets and examines the impact of competition on sales promotion planning and business performance in retail chains. The model can be used to determine the best promotional discount for different products with a cannibalization effect when competitors are present in the retail market and offer the same products with different discounts. An integer nonlinear programming problem is proposed to model the above issue. To solve the model, it is reformulated as a mixed-integer linear programming problem. Consequently, a MIP solver can be used to solve the model in a reasonable CPU time. Several examples are solved and a sensitivity analysis of the model parameters is performed. The results of our numerical study show interesting findings that considering different competitors is very important in promotion planning and optimization. Failure to take them into account can lead to loss of profits

    Strategic Assortment Decisions in Omnichannel Retailing: The Design and Evaluation of an Omnichannel Assortment Ontology for Consumer Confusion.

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    Consumer confusion is a phenomenon observed in retail settings where consumers feel irritation or frustration during the shopping journey. Consumers can be overwhelmed by assortment size, complex product variety, brand similarities, information inconsistencies or by intense stimuli from store atmospherics inducing information overload, leading to adverse reactions. Oftentimes, these experiences result in various negative short- and long-term consequences such as helplessness, purchase abandonment, dissatisfaction, or loss of trust or loyalty, thus representing a crucial challenge for retailers to prevent or mitigate. Consumer confusion has been studied extensively in a single-channel context, for instance, by investigating information overload phenomena in online shopping situations or examining increased choice sets resulting from large assortment sizes in physical stores. However, although omnichannel retailing has become the current state-of-the-art in the retail industry today, consumer confusion research from an omnichannel perspective is still very scarce. With the increased adoption of the omnichannel strategy by retailers that allow free switching behaviour for their customers during their shopping journeys, a new dimension to the consumer confusion phenomenon is observed. Customers are not only exposed to potential confusion at a specific retail situation in a single channel but are now confronted with potential new negative experiences while comparing products, prices, or information across channels. Particularly, when confronted with assortment inconsistencies across channels while switching channels, customers can experience irritation, frustration, or annoyance if the desired item is not to be found on the other channel, leading to adverse reactions that can potentially impact the retailer's financial performance. Prior literature has considered consumer confusion induced by assortment size, variety, or layout, but neglected its occurrence from assortment inconsistencies across channels from a channel switching perspective so far. This thesis focuses on the consumer confusion phenomenon resulting from assortment inconsistencies across channels from a channel-switching perspective in omnichannel retailing. Strategic assortment decisions in omnichannel retailing involve the coordination of the assortment between channels. Retailers can decide to realise a “Full”, “Asymmetric”, or “No Integration” approach for their assortment across channels. These strategic assortment decisions are taken at the Marketing-Operations-Interface (MOI), an interface harmonizing oftentimes conflicting relationships between objectives of the marketing and operations functions of the retailer. Although identical assortment across channels seems to be the desired solution to prevent consumer confusion (representing an objective from the marketing function), retailers oftentimes apply partial integration to benefit from channel-specific advantages such as the Long Tail effect (representing an objective from the operations function) which is detrimental to consumer confusion prevention. Retailers seem to neglect the significance of consumer confusion while making strategic assortment decisions at the MOI indicating that the phenomenon is not sufficiently explored or captured in an omnichannel context. Retailers appear to lack knowledge of the relevant concepts, dimensions, and consequences of the consumer confusion phenomenon. As a result, retailers are likely to fail in addressing and preventing the occurrence of the consumer confusion phenomenon in an omnichannel context. Current studies on strategic assortment decisions and consumer confusion in omnichannel retailing are very scarce and primarily based on experimental studies with a strong lack of empirical contributions. More importantly, none of the studies considers channel switching behaviour in the context of consumer confusion although representing the primary condition for the phenomenon to occur. There is a need for the integration and alignment of knowledge capturing the domains for strategic assortment decisions, the consumer confusion concept, and its short- and long-term consequences from a channel switching behaviour perspective in order to inform strategic assortment decisions at the MOI. Ontologies are explicit and formal specifications of shared conceptualisations that can structure and link information of specific domains and thus are a suitable technique for knowledge representation. Grounded on a Design Science project, this research designs and develops an ontology-based knowledge representation that captures and aligns domain knowledge on strategic assortment decisions, the consumer confusion concept and its consequences from a channel switching behaviour perspective in an omnichannel retailing context. The literature- and practitioner-informed Omnichannel Assortment Ontology for Consumer Confusion is able to integrate and represent relevant concepts and their relationships at the MOI in order to inform omnichannel retailers on the link between strategic assortment decisions and the consumer confusion phenomenon. The ontology is instantiated and evaluated through a System Dynamics model based on a case study that demonstrates successfully its ability to inform omnichannel retailers on strategic assortment decisions and the consumer confusion concept at the MOI. This study contributes to theory and practice in various ways. From a theoretical perspective, this is the first study to link strategic assortment decisions with the consumer confusion concept from a channel switching behaviour perspective. The solution design embodies novel design knowledge on the construction of an ontology-based knowledge representation. Moreover, the study enhances the fields of omnichannel assortment, consumer confusion, and channel switching behaviour research by introducing novel concepts, tools, and an improved understanding of the domains and their interplay with each other. From a managerial perspective, the ontology effectively serves as a knowledge reference that is able to guide strategic decision-making in assortment integration for omnichannel retailers at the MOI. This allows omnichannel retailers to identify and mitigate potential adverse consumer reactions induced by consumer confusion, thus eventually preventing financial impact on their retail performance

    What factors drive product returns in omnichannel retail?

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    Purpose: Retail businesses aim to give customers a positive experience when shopping in their stores or online channels. Easy or "frictionless" product returns are part of this experience, which is hoped to encourage additional purchases. However, customer-friendly policies lead to increased return rates and consequently a detrimental effect on the environment due to increased product wastage as well as additional packaging and transportation. Product returns also significantly affect retailers' profits through a reduction in net sales and the costs of processing returns. A better understanding of what drives product returns allows retailers to optimise their returns management. Design/methodology/approach: Based on a review of literature, we conducted 14 semi-structured interviews with 19 experts from retailers, retailer associations and retail technology providers in the UK, the US and Canada. The interviews were transcribed and thematically analysed using an inductive approach. Findings: We provide a comprehensive picture of the factors driving customers returns, building a framework of customer experience in product returns, and formulates actions that retailers can take to manage returns rates in view of their economic and environmental costs as well as the opportunities they offer for engaging with customers. Originality: Whilst many authors have discussed selected drivers of product returns, predominantly with a focus on customer related aspects, there is no comprehensive overview. This article explores retailer related drivers of product returns and provides a synthesis of existing work enriched with new insights

    E-Commerce Digital Information Transparency and Satisfaction. Can We Have Too Much of a Good Thing?

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    Despite core product and service quality improvements and advances in shopping processes and technology, customers often report being unsatisfied with their online purchases. One plausible reason for lower customer satisfaction rates is too much or too little information that is shared with the customers about their orders. We show that when forming their perceptions about the purchases, customers form digital information satisfaction (DIS) levels as they evaluate supplementary informational services in addition to the core product being purchased. We believe that DIS is one of the dimensions of overall customer satisfaction. We also show that supplementary informational services are essential in meeting the increased informational needs of online shopping and, thus, can explain the decreased overall customer satisfaction level through the decreases in DIS. We develop and test the Digital Information Transparency and Satisfaction (DITS) model that shows how supplemental informational services influence digital information satisfaction (DIS_ in e-commerce. By doing so, this dissertation introduces a new dimension of satisfaction in the era of online shopping. This helps close the knowledge gap in the current research on overall customer satisfaction by showing that too much information transparency can harm the overall experience of the customers, thus leading to decreases in DIS. The study results provide a platform for future research on the influence of informational services provided during online shopping. Explaining the role of information shared with the customers in their perceptions of transparency and, consequently, DIS may help provide crucial practical business insights. Thus, by proposing the DITS model, this dissertation brings contributions to both theory and praxis by enhancing the understanding of DIS, which can serve as a robust foundation for future research on decreasing levels of overall customer satisfaction in a digital setting, as well as help companies improve their customer relationships

    Gestión logística y rentabilidad de inventarios en una empresa Retail de Nuevo Chimbote, 2022

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    Actualmente se vive un proceso de readaptación de los sistemas logísticos debido a los periodos de inactividad operativa presentes en los últimos años, los cuales han acrecentado la incertidumbre sobre cuánto es lo óptimo para satisfacer las necesidades del mercado, abriendo el umbral a problemáticas de sobre stock y quiebre dentro de las empresas. La presente tesis tiene como objetivo realizar un análisis de la gestión logística enfocada en el control de inventarios para establecer su relación con la rentabilidad de inventarios en una empresa del sector retail en Nuevo Chimbote. La investigación fue aplicada y mantuvo un diseño no experimental descriptivo, desarrollada con el propósito de determinar los efectos de la gestión logística en la rentabilidad de los inventarios, implementando un instrumento de recolección de datos, el método probabilístico Montecarlo y el coeficiente de correlación de Pearson. En conclusión, no existe una relación entre los incidentes en la operación de sistemas logísticos y la rentabilidad de inventarios puestos que p-valor>0,00

    4th. International Conference on Advanced Research Methods and Analytics (CARMA 2022)

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    Research methods in economics and social sciences are evolving with the increasing availability of Internet and Big Data sources of information. As these sources, methods, and applications become more interdisciplinary, the 4th International Conference on Advanced Research Methods and Analytics (CARMA) is a forum for researchers and practitioners to exchange ideas and advances on how emerging research methods and sources are applied to different fields of social sciences as well as to discuss current and future challenges. Due to the covid pandemic, CARMA 2022 is planned as a virtual and face-to-face conference, simultaneouslyDoménech I De Soria, J.; Vicente Cuervo, MR. (2022). 4th. International Conference on Advanced Research Methods and Analytics (CARMA 2022). Editorial Universitat Politècnica de València. https://doi.org/10.4995/CARMA2022.2022.1595
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