Omnichannel Pricing and Refunding Strategies Based on BODS

doi:10.12068/j.issn.1005-3026.2024.11.018

Abstract

Abstract:

The pricing and refunding decision models for a pricing and refunding problem of an omnichannel retailer with “buy?online?and?deliver?from?store” （BODS）， “buy?online?and?return?

online” （BORO） and “buy in?store” （BS） channels are established under the full and partial refunding strategies. The retailer’ s optimal pricing and refunding strategies are determined. Furthermore， the effects of factors such as the distribution range， the proportion of consumers across channels， and the salvage value of products returned online or in?store on optimal pricing and refunding decisions as well as on the optimal profits are analyzed， and the conditions under which the retailer should implement a full or partial refunding strategy are explored. Finally， numerical studies are verified. The results show that when the salvage value of products returned online is less than or equal to that of products returned to the store， the partial refunding strategy is better. Conversely， the proportion of online consumers who choose BORO within the store distribution range will affect the retailer’s refunding strategies.

Key words: omnichannel, pricing and refunding strategies, buy?online?and?deliver?from?store, buy?online?and?return?online, distribution range

CLC Number:

F 253.4

Yue SUN, Huan-huan HAO, Ruo-zhen QIU. Omnichannel Pricing and Refunding Strategies Based on BODS[J]. Journal of Northeastern University(Natural Science), 2024, 45(11): 1664-1672.

Figures/Tables 7

Fig.1 Distribution channel structure of the retailer

Fig.2 Optimal refunds r*, prices p* and profits for different values of α and θ when se>sp

Fig.3 Optimal refunds r*, prices p* and profits for different values of α and θ when se≤sp

Fig.4 Optimal refunds r*, prices p* and profits for different values of α and x when se>sp

Fig.5 Optimal refunds r*, prices p* and profits for different values of α and x when se≤sp

Fig.6 Optimal refunding strategies with different values of α and θ

Fig.7 Optimal refunding strategies with different values of α and x

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