Return Mode Selection and Pricing Strategy for a Dual-Channel Retailer
With the rapid development of e-commerce and the economy, an increasing number of retailers are adopting a dual-channel retail strategy (DCRS), which allows customers to return unsatisfactory products, provided that their complaints are reasonable, and receive a full refund. This paper studies the p...
Saved in:
| Main Authors: | , , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Wiley
2020-01-01
|
| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2020/5261486 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1832546909778083840 |
|---|---|
| author | Xiaojian Hu Shuai Feng Jiqiong Liu Aifeng Yang Guanxiong Wang Hui Xu |
| author_facet | Xiaojian Hu Shuai Feng Jiqiong Liu Aifeng Yang Guanxiong Wang Hui Xu |
| author_sort | Xiaojian Hu |
| collection | DOAJ |
| description | With the rapid development of e-commerce and the economy, an increasing number of retailers are adopting a dual-channel retail strategy (DCRS), which allows customers to return unsatisfactory products, provided that their complaints are reasonable, and receive a full refund. This paper studies the pricing strategies of an integrated dual-channel retailer (DCR) when it provides return policies to customers, including original channel return, fixed cross-channel return, and relaxed cross-channel return. The relationship between the DCR’s system performance and channel pricing is impacted by customer channel preferences, and the return rates of different channels are discussed. The results show that the greater the difference in customer preferences between channels is, the greater the profitability of the DCR will be. A fixed cross-channel return model should be selected when the return rate in the online channel is higher or the cross-channel return rate is lower; otherwise, the original channel return model should be selected. When the return rate of a certain channel is high, the retailer should increase the price in that channel and reduce the pricing of its competing channel to compensate for the loss caused by the returns and transfer sales between channels. A selective return policy can not only improve the flexibility of business operations and enhance competitive advantage but also provide convenient customer returns and enhance consumers’ sense of security. |
| format | Article |
| id | doaj-art-e0e6a708b88d4b63968ffaa1e86471d1 |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2020-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-e0e6a708b88d4b63968ffaa1e86471d12025-02-03T06:46:39ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2020-01-01202010.1155/2020/52614865261486Return Mode Selection and Pricing Strategy for a Dual-Channel RetailerXiaojian Hu0Shuai Feng1Jiqiong Liu2Aifeng Yang3Guanxiong Wang4Hui Xu5School of Management, Hefei University of Technology, Hefei 230009, ChinaSchool of Management, Hefei University of Technology, Hefei 230009, ChinaSchool of Management, Hefei University of Technology, Hefei 230009, ChinaSchool of Management, Hefei University of Technology, Hefei 230009, ChinaSchool of Management, Hefei University of Technology, Hefei 230009, ChinaInstitute of Logistics, Beijing Wuzi University, Beijing 101149, ChinaWith the rapid development of e-commerce and the economy, an increasing number of retailers are adopting a dual-channel retail strategy (DCRS), which allows customers to return unsatisfactory products, provided that their complaints are reasonable, and receive a full refund. This paper studies the pricing strategies of an integrated dual-channel retailer (DCR) when it provides return policies to customers, including original channel return, fixed cross-channel return, and relaxed cross-channel return. The relationship between the DCR’s system performance and channel pricing is impacted by customer channel preferences, and the return rates of different channels are discussed. The results show that the greater the difference in customer preferences between channels is, the greater the profitability of the DCR will be. A fixed cross-channel return model should be selected when the return rate in the online channel is higher or the cross-channel return rate is lower; otherwise, the original channel return model should be selected. When the return rate of a certain channel is high, the retailer should increase the price in that channel and reduce the pricing of its competing channel to compensate for the loss caused by the returns and transfer sales between channels. A selective return policy can not only improve the flexibility of business operations and enhance competitive advantage but also provide convenient customer returns and enhance consumers’ sense of security.http://dx.doi.org/10.1155/2020/5261486 |
| spellingShingle | Xiaojian Hu Shuai Feng Jiqiong Liu Aifeng Yang Guanxiong Wang Hui Xu Return Mode Selection and Pricing Strategy for a Dual-Channel Retailer Discrete Dynamics in Nature and Society |
| title | Return Mode Selection and Pricing Strategy for a Dual-Channel Retailer |
| title_full | Return Mode Selection and Pricing Strategy for a Dual-Channel Retailer |
| title_fullStr | Return Mode Selection and Pricing Strategy for a Dual-Channel Retailer |
| title_full_unstemmed | Return Mode Selection and Pricing Strategy for a Dual-Channel Retailer |
| title_short | Return Mode Selection and Pricing Strategy for a Dual-Channel Retailer |
| title_sort | return mode selection and pricing strategy for a dual channel retailer |
| url | http://dx.doi.org/10.1155/2020/5261486 |
| work_keys_str_mv | AT xiaojianhu returnmodeselectionandpricingstrategyforadualchannelretailer AT shuaifeng returnmodeselectionandpricingstrategyforadualchannelretailer AT jiqiongliu returnmodeselectionandpricingstrategyforadualchannelretailer AT aifengyang returnmodeselectionandpricingstrategyforadualchannelretailer AT guanxiongwang returnmodeselectionandpricingstrategyforadualchannelretailer AT huixu returnmodeselectionandpricingstrategyforadualchannelretailer |