In many industries, upstream manufacturers pay downstream retailers for achieving quantity or market share targets. These “vertical rebates” may mitigate downstream moral hazard by inducing greater ...retail effort but may also incentivize retailers to drop competing products. We study these offsetting effects empirically for a rebate paid to one retailer. Using a field experiment, we exogenously vary the outcome of retailer effort. We estimate models of consumer choice and retailer behavior to quantify the rebate’s effect on retail assortment and effort. We find that the rebate is designed to exclude a competing product and fails to maximize social surplus.
•Consider fresh product supply chains with consumer preferences.•Demand is sensitive to price and freshness level.•Comparisons of retail mode, dual-channel mode and O2O mode are conducted.•The ...dual-channel mode could outperform the O2O mode for the supplier.•The O2O mode brings the highest consumer surplus.
This paper develops a supplier-retailer fresh product supply chain under three sales modes: retail mode, dual-channel mode, and O2O (Online-to-Offline) mode. For each mode, the optimal pricing and freshness-keeping decisions are investigated. It is shown that, in decentralized systems, the dual-channel mode could outperform the O2O mode for the supplier, while the retailer prefers O2O mode to retail mode and dual-channel mode. Under coordination, the O2O mode brings the highest supply chain profit; for consumer surplus, the dual-channel mode is not always better than the retail mode, but is always inferior to the O2O mode.
Logistics is a science widely recognized as a value-added component for organizations and their products and services as it optimizes the use of resources, minimizes costs and maximizes level of ...service by coordinating activities such as transportation, inventory management and material handling. In traditional systems, transportation streams from one echelon of the supply chain to the next. Systems that are more flexible allow transshipment movements within an echelon, enabling the sharing of inventories among wholesalers and consequently reducing inventories and handling costs without changing the service level. This paper introduces a multi-period, multi-product Inventory-Routing Problem with planned Transshipment (IRPT). The novelty with regard to existing approaches is that transshipment movements are performed by the same vehicles that are distributing from the factory, meaning that they are subjected to the same capacity, time and cost restrictions. We present an exact formulation and develop a metaheuristic for the problem. The methods are applied to a real large-scale Brazilian retail industry producing a reduction of 9% in logistics costs and 70% in inventory level compared to the existing operation.
•IRP with planned transshipment performed by regular distribution vehicles.•Metaheuristic for IRPT performed by the same vehicles used in regular distribution.•Direct shipping scenario is compared with routing with transshipment scenario.•Real case study application to a leading Brazilian retail industry.•Reduction of 9% in logistics costs and 70% in average inventory level.
Haptics are innovative sensory-enabling technologies that can be used to improve consumers' online shopping experiences. These technologies can be used in addition to other actual sensory ...stimulation, such as visual and auditory. However, little is known of how the addition of haptics affects consumers' mobile shopping behavior. Therefore, this article examines the effect of the presence of haptic feedback (i.e., vibrations) when shopping on a retailer mobile app. Drawing on the results of three quantitative studies, the findings show that the presence of haptic feedback influences consumer behavior, but consumers' perceptions modify the outcome, which is also moderated by individual need for touch. Moreover, the findings herein show a sequential mediating effect of psychological and affective variables on purchasing outcomes. These findings therefore stress the importance of considering haptics as a potential economic value for online shopping. Accordingly, we suggest that retailers should be more aware of their online sensory strategies and think about disclaimers and personalizing the consumer interface (e.g., turning off the haptic feedback).
The authors study how faster delivery in the online channel affects sales within and across channels in omnichannel retailing. The authors leverage a quasi-experiment involving the opening of a new ...distribution center by a U.S. apparel retailer, which resulted in unannounced faster deliveries to western U.S. states through its online channel. Using a difference-in-differences approach, the authors show that online store sales increased, on average, by 1.45% per business-day reduction in delivery time, from a baseline of seven business days. The authors also find a positive spillover effect to the retailer's offline stores. These effects increase gradually in the short-to-medium run as the result of higher order count. The authors identify two main drivers of the observed effect: (1) customer learning through service interactions with the retailer and (2) existing brand presence in terms of online store penetration rate and offline store presence. Customers with less online store experience are more responsive to faster deliveries in the short run, whereas experienced online store customers are more responsive in the long run.
E-store image influences purchase intention through perceived value. Though past studies fervently discuss the influence of store image and perceived value on purchase intention, few studies discuss ...the relationships among these three constructs. This study also argues that perceived risk influences a consumer's intention to purchase and thus mitigates perceived value's role as a motivator, which prompts the consumer to purchase online. The result of an online survey among consumers of two most popular shopping websites in Taiwan shows that e-store image influences purchase intention through perceived value and utilitarian value exerts a larger influence than hedonic value; however, perceived risk does not moderate the relationships between two types of perceived value and purchase intention. Meantime, the survey result shows that style, usefulness, and ease of use are the most important e-store image attributes.
► E-store image influences repurchase intention through perceived value. ► Utilitarian value exerts a larger influence on repurchase intention. ► The influence of perceived financial risk is not significant for current online shoppers. ► Style, usefulness, and ease of use are the most influential e-store image attributes.
PurposeContinuous change has long been recognized as a core characteristic of retailing, its recent acceleration unprecedented, yet innovation in retailing remains under-researched, especially within ...fashion retailing. Therefore, the aim of this paper is to generate a deeper understanding of if, and to what extent, fashion retailers across different market segments are innovating in terms of in-store technology diffusion over time by taking a long-term perspective over five years.Design/methodology/approachDrawing on retail change and innovation diffusion theory, the study takes a qualitative approach, using direct observation of 71 fashion stores in London (UK) in 2014 and 2019. In total, 142 stores were tabulated in Excel and qualitatively analysed manually and with NVivo.FindingsThe findings identify the innovation adoption strategies implemented, the types of in-store technologies adopted over time and the fashion retail innovation adopters.Originality/valueThe research offers new knowledge in terms of retail innovation and retail change, specifically on retail diffusion of innovation and the importance of in-store technology integration. Several practical implications for improving technology innovation management are also identified.
At the crossroads of culture and commerce, the advertising industry is a regime of paradoxes. This book examines the place of advertising on today’s creative industries, exploring the major ...challenges advertisers confront as they engage with other creative sectors. Izabela Derda, author, media scholar, and industry expert, offers insights into how the industry keeps deconstructing its own creative processes and collaborative models as it attempts to stay relevant. Through extensive case studies and interviews with industry professionals and thought leaders, this book examines the sector’s struggle to adapt to new business models and to monetize creativity in today’s media landscape, from re-engaging audiences through media more typical of arts and entertainment to managing intricate cross-sectoral creative collaborations. From redesigning workplaces to satisfy the expectations of the youngest generations of creatives to reconsidering the paradigm of conventional creative teams, the advertising sector has swiftly adjusted to the seismic changes in today’s media landscape. The book will be of interest to scholars and students of creative media, advertising, and media studies, as well as those interested in understanding the changing complexities and latest innovations of the creative industries. Advertising professionals, artists, and policymakers will find relevant insights and possible solutions for the major challenges facing the advertising industry today.
•This manuscript draws attention to the dawn of the Fifth Industrial Revolution (5IR) and highlights its potential for addressing a host of issues within retail and service domains.•The authors ...outline a 2 × 2 framework that categorizes retailers and service providers by their embrace of human–machine collaborations, a key aspect of the 5IR.•The authors outline the 5IR's expanded definition of stakeholders (companies, employees, customers, and society); the merging of digital, physical, and biological technologies in the 5IR promises enhanced well-being for societal actors across the board.•This article establishes a roadmap for how a retail/service (r)evolution is likely to progress and offers a set of key research questions that emerge as a result.
This manuscript draws attention to the dawn of the Fifth Industrial Revolution (5IR) and highlights its potential for addressing a host of issues within retail and service domains. With a retailing and service perspective, the authors outline the meaning of the 5IR, according to a 2 × 2 framework that categorizes retailers and service providers by their embrace of human–machine collaborations. They also propose an expanded definition of stakeholders in the 5IR (companies, employees, customers, and society). Merging digital, physical, and biological technologies promises enhanced well-being for societal actors across the board. By outlining these likely implications of the 5IR for retailing and services, this article establishes a roadmap for how the (r)evolution is likely to progress and offers a set of key research questions that emerge as a result.
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