IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v72y2023ics0969698922003307.html
   My bibliography  Save this article

Do you think that the home delivery is good for retailing?

Author

Listed:
  • Dey, Bikash Koli
  • Sarkar, Mitali
  • Chaudhuri, Kripasindhu
  • Sarkar, Biswajit

Abstract

Order placing and delivery always play a significant role in any business industry. Nowadays, most customers want useful products at their doorstep without visiting any retail store. In this current study, an advanced dual-channel supply chain model is constructed for a single product with two players. Customers can order online or offline from the retail store. In contrast, retailers use only offline mode to take the product from the manufacturer, and retailers charge a different amount for delivery. To optimize profit and satisfy the consumers, retailers only provide a free transportation service when customers order a certain quantity. If customers order less than the desired amount, a transportation charge will be applied to the customers. Contrary to the existing research, demand for the products varies with the selling price online and offline and is also affected by the free home delivery service. Manufacturers use a single-setup multi-delivery (SSMD) transportation strategy to enrich the system's profit. To make the study more applicable, all unit costs are considered fuzzy. Signed-distance defuzzification technique is adopted to defuzzify the fuzzy values. Finally, the total profit of the supply chain is optimized along with the optimized value of the decision-making variable through an uncertain optimization technique. Numerical experiments are carried out along with sensitivity analysis to show the applicability and optimality of this study. Though the crisp data set provided a 0.72% better result compared to the fuzzy data set, but fuzzy data set provided a more realistic result. Numerical results prove that the home delivery service provided 14.59% better profit. Finally, it can be stated that the home delivery policy with some charged amount based on ordered quantity is the best retailing strategy for the dual-channel supply chain.

Suggested Citation

  • Dey, Bikash Koli & Sarkar, Mitali & Chaudhuri, Kripasindhu & Sarkar, Biswajit, 2023. "Do you think that the home delivery is good for retailing?," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    • Handle: RePEc:eee:joreco:v:72:y:2023:i:c:s0969698922003307
    DOI: 10.1016/j.jretconser.2022.103237
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698922003307
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2022.103237?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kim, Sehoon & Connerton, Timothy Paul & Park, Cheongyeul, 2022. "Transforming the automotive retail: Drivers for customers' omnichannel BOPS (Buy Online & Pick up in Store) behavior," Journal of Business Research, Elsevier, vol. 139(C), pages 411-425.
    2. Duan, Yongrui & Liu, Tonghui & Mao, Zhixin, 2022. "How online reviews and coupons affect sales and pricing: An empirical study based on e-commerce platform," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    3. Mahsa Noori-daryan & Ata Allah Taleizadeh & Masoud Rabbani, 2020. "Advance booking pricing in O2O commerce with demand leakage using game theory for tourism supply chains," International Journal of Production Research, Taylor & Francis Journals, vol. 58(22), pages 6739-6774, November.
    4. Jena, Sarat Kumar & Meena, Purushottam, 2022. "Shopping in the omnichannel supply chain under price competition and product return," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    5. Elodie Huré & Karine Picot-Coupey & Claire-Lise Ackermann, 2017. "Understanding omni-channel shopping value: A mixed-method study," Post-Print halshs-01595944, HAL.
    6. Wenguang Tang & Haitao Li & Kaihao Cai, 2021. "Optimising the credit term decisions in a dual-channel supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 59(14), pages 4324-4341, July.
    7. Ali, Syed Mithun & Rahman, Md. Hafizur & Tumpa, Tasmia Jannat & Moghul Rifat, Abid Ali & Paul, Sanjoy Kumar, 2018. "Examining price and service competition among retailers in a supply chain under potential demand disruption," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 40-47.
    8. Jun Zhao, 2022. "Will the community O2O service supply channel benefit the elderly healthcare service supply chain?," Electronic Commerce Research, Springer, vol. 22(4), pages 1617-1650, December.
    9. Kaur, Puneet & Dhir, Amandeep & Bodhi, Rahul & Singh, Tripti & Almotairi, Mohammad, 2020. "Why do people use and recommend m-wallets?," Journal of Retailing and Consumer Services, Elsevier, vol. 56(C).
    10. Maher A. N. Agi & Hardik N. Soni, 2020. "Joint pricing and inventory decisions for perishable products with age-, stock-, and price-dependent demand rate," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 71(1), pages 85-99, January.
    11. Biswajit Sarkar & Bikash Koli Dey & Mitali Sarkar & Ali AlArjani, 2021. "A Sustainable Online-to-Offline (O2O) Retailing Strategy for a Supply Chain Management under Controllable Lead Time and Variable Demand," Sustainability, MDPI, vol. 13(4), pages 1-26, February.
    12. Wu, Yisheng & Lu, Ronghua & Yang, Jing & Xu, Feng, 2021. "Low-carbon decision-making model of online shopping supply chain considering the O2O model," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    13. Meena, Purushottam & Kumar, Gopal, 2022. "Online food delivery companies' performance and consumers expectations during Covid-19: An investigation using machine learning approach," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    14. Matthew Keeble & Jean Adams & Gary Sacks & Lana Vanderlee & Christine M. White & David Hammond & Thomas Burgoine, 2020. "Use of Online Food Delivery Services to Order Food Prepared Away-From-Home and Associated Sociodemographic Characteristics: A Cross-Sectional, Multi-Country Analysis," IJERPH, MDPI, vol. 17(14), pages 1-17, July.
    15. Niu, Baozhuang & Mu, Zihao & Li, Baixun, 2019. "O2O results in traffic congestion reduction and sustainability improvement: Analysis of “Online-to-Store” channel and uniform pricing strategy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 481-505.
    16. Kumari, Rashmi & Tatavarthy, Aruna Divya & Sahay, Arvind, 2022. "Too many cooks spoil the broth? Number of promotional gifts and impact on consumer choice," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).
    17. Hallikainen, Heli & Luongo, Milena & Dhir, Amandeep & Laukkanen, Tommi, 2022. "Consequences of personalized product recommendations and price promotions in online grocery shopping," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).
    18. Dastane, Omkar & Goi, Chai Lee & Rabbanee, Fazlul, 2020. "A synthesis of constructs for modelling consumers’ perception of value from mobile-commerce (M-VAL)," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    19. Li, Xiang & Li, Yongjian & Cao, Wenjing, 2019. "Cooperative advertising models in O2O supply chains," International Journal of Production Economics, Elsevier, vol. 215(C), pages 144-152.
    20. Huré, Elodie & Picot-Coupey, Karine & Ackermann, Claire-Lise, 2017. "Understanding omni-channel shopping value: A mixed-method study," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 314-330.
    21. Kumar, Sushant & Shah, Arunima, 2021. "Revisiting food delivery apps during COVID-19 pandemic? Investigating the role of emotions," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    22. Driediger, Fabian & Bhatiasevi, Veera, 2019. "Online grocery shopping in Thailand: Consumer acceptance and usage behavior," Journal of Retailing and Consumer Services, Elsevier, vol. 48(C), pages 224-237.
    23. Khorshidvand, Behrooz & Soleimani, Hamed & Sibdari, Soheil & Seyyed Esfahani, Mir Mehdi, 2021. "Revenue management in a multi-level multi-channel supply chain considering pricing, greening, and advertising decisions," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    24. Feng, Lin & Wang, Wan-Chih & Teng, Jinn-Tsair & Cárdenas-Barrón, Leopoldo Eduardo, 2022. "Pricing and lot-sizing decision for fresh goods when demand depends on unit price, displaying stocks and product age under generalized payments," European Journal of Operational Research, Elsevier, vol. 296(3), pages 940-952.
    25. Qiu, Huaxin & Wang, Sutong & Yin, Yunqiang & Wang, Dujuan & Wang, Yanzhang, 2022. "A deep reinforcement learning-based approach for the home delivery and installation routing problem," International Journal of Production Economics, Elsevier, vol. 244(C).
    26. Carlson, Jamie & Rahman, Mohammad M. & Taylor, Alexander & Voola, Ranjit, 2019. "Feel the VIBE: Examining value-in-the-brand-page-experience and its impact on satisfaction and customer engagement behaviours in mobile social media," Journal of Retailing and Consumer Services, Elsevier, vol. 46(C), pages 149-162.
    27. Li, Yimeng & Xiong, Yu & Mariuzzo, Franco & Xia, Senmao, 2021. "The underexplored impacts of online consumer reviews: Pricing and new product design strategies in the O2O supply chain," International Journal of Production Economics, Elsevier, vol. 237(C).
    28. Adivar, Burcu & Hüseyinoğlu, Işık Özge Yumurtacı & Christopher, Martin, 2019. "A quantitative performance management framework for assessing omnichannel retail supply chains," Journal of Retailing and Consumer Services, Elsevier, vol. 48(C), pages 257-269.
    29. Uzir, Md. Uzir Hossain & Al Halbusi, Hussam & Thurasamy, Ramayah & Thiam Hock, Rodney Lim & Aljaberi, Musheer A. & Hasan, Najmul & Hamid, Mahmud, 2021. "The effects of service quality, perceived value and trust in home delivery service personnel on customer satisfaction: Evidence from a developing country," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    30. Elodie Huré & Karine Picot-Coupey & Claire-Lise Ackermann, 2017. "Understanding omni-channel shopping value: A mixed-method study," Post-Print hal-02002141, HAL.
    31. Sana, Shib Sankar, 2020. "Price competition between green and non green products under corporate social responsible firm," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Daniel, Christopher & Hernandez, Tony, 2024. "What retail apocalypse? A Delphi forecast of commercial space demand in the Toronto region," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    2. Li, Zhaotong & Wu, Min & Teo, Chee-Chong & Yuen, Kum Fai, 2024. "An investigation of consumer switching intention on the use of automated courier station from a signaling perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    3. Sumi Kar & Anita Pal & Kajla Basu & Achyuth Sarkar & Biswajit Sarkar, 2023. "The Effect of Renewable Energy and Corporate Social Responsibility on Dual-Channel Supply Chain Management," Energies, MDPI, vol. 16(7), pages 1-26, March.
    4. Chauhan, Ruchi & Majumder, Arunava & Kumar, Varun, 2023. "The impact of adopting customization policy and sustainability for improving consumer service in a dual-channel retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    5. Sarkar, Biswajit & Dey, Bikash Koli, 2023. "Is online-to-offline customer care support essential for consumer service?," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    6. Davoudi, Zahra & Seifbarghy, Mehdi & Sarkar, Mitali & Sarkar, Biswajit, 2023. "Effect of bargaining on pricing and retailing under a green supply chain management," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    7. Sarkar, Mitali & Dey, Bikash Koli & Ganguly, Baishakhi & Saxena, Neha & Yadav, Dharmendra & Sarkar, Biswajit, 2023. "The impact of information sharing and bullwhip effects on improving consumer services in dual-channel retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    8. Saha, Subrata & Sarkar, Biswajit & Sarkar, Mitali, 2023. "Application of improved meta-heuristic algorithms for green preservation technology management to optimize dynamical investments and replenishment strategies," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 209(C), pages 426-450.
    9. Sarkar, Biswajit & Kar, Sumi & Pal, Anita, 2024. "Does the bullwhip effect really help a dual-channel retailing with a conditional home delivery policy?," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    10. Taleizadeh, Ata Allah & Moshtagh, Mohammad Sadegh & Vahedi-Nouri, Behdin & Sarkar, Biswajit, 2023. "New products or remanufactured products: Which is consumer-friendly under a closed-loop multi-level supply chain?," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    11. Hu, Jianhao & Zhang, Xuan & Chen, Hanyu(Yuki) & Li, Wanyue, 2024. "When it rains, it pours? The impact of weather on customer returns in the brick-and-mortar retail store," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sarkar, Biswajit & Dey, Bikash Koli, 2023. "Is online-to-offline customer care support essential for consumer service?," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    2. Hota, Soumya Kanti & Sarkar, Biswajit & Ghosh, Santanu Kumar & Cheikhrouhou, Naoufel & Treviño-Garza, Gerardo, 2024. "What should be the best retail strategy to deal with an unequal shipment from an unreliable manufacturer?," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    3. Cai, Ya-Jun & Lo, Chris K.Y., 2020. "Omni-channel management in the new retailing era: A systematic review and future research agenda," International Journal of Production Economics, Elsevier, vol. 229(C).
    4. Taheri, Seyed Ghiasuddin & Navabakhsh, Mehrzad & Tohidi, Hamid & Mohammaditabar, Davood, 2024. "A system dynamics model for optimum time, profitability, and customer satisfaction in omni-channel retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    5. Tandon, Anushree & Kaur, Puneet & Bhatt, Yogesh & Mäntymäki, Matti & Dhir, Amandeep, 2021. "Why do people purchase from food delivery apps? A consumer value perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    6. Jena, Sarat Kumar & Meena, Purushottam, 2022. "Competitive sustainable processes and pricing decisions in omnichannel closed-up supply chains under different channel power structures," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).
    7. Sarkar, Mitali & Dey, Bikash Koli & Ganguly, Baishakhi & Saxena, Neha & Yadav, Dharmendra & Sarkar, Biswajit, 2023. "The impact of information sharing and bullwhip effects on improving consumer services in dual-channel retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    8. Neslin, Scott A., 2022. "The omnichannel continuum: Integrating online and offline channels along the customer journey," Journal of Retailing, Elsevier, vol. 98(1), pages 111-132.
    9. Gao, Mengjia & Huang, Lin, 2021. "Quality of channel integration and customer loyalty in omnichannel retailing: The mediating role of customer engagement and relationship program receptiveness," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    10. Acquila-Natale, Emiliano & Iglesias-Pradas, Santiago, 2020. "How to measure quality in multi-channel retailing and not die trying," Journal of Business Research, Elsevier, vol. 109(C), pages 38-48.
    11. Davoudi, Zahra & Seifbarghy, Mehdi & Sarkar, Mitali & Sarkar, Biswajit, 2023. "Effect of bargaining on pricing and retailing under a green supply chain management," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    12. Zhisong Chen & Chaonan Tang & Jianhui Peng, 2023. "Nominal effect vs actual effect: overconfidence in a consignment omnichannel," Electronic Commerce Research, Springer, vol. 23(2), pages 843-876, June.
    13. Benjamin Barann & Jan H. Betzing & Marco Niemann & Benedikt Hoffmeister & Jörg Becker, 2022. "Exploring customers’ likeliness to use e-service touchpoints in brick and mortar retail," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 523-545, June.
    14. Shankar, Amit & Jain, Sheetal, 2021. "Factors affecting luxury consumers’ webrooming intention: A moderated-mediation approach," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    15. Omar, Suha & Mohsen, Kholoud & Tsimonis, Georgios & Oozeerally, Adam & Hsu, Jen-Hsien, 2021. "M-commerce: The nexus between mobile shopping service quality and loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    16. Mencarelli, Rémi & Rivière, Arnaud & Lombart, Cindy, 2021. "Do myriad e-channels always create value for customers? A dynamic analysis of the perceived value of a digital information product during the usage phase," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    17. Beckers, Joris & Cardenas, Ivan & Le Pira, Michela & Zhang, Jia, 2023. "Exploring Logistics-as-a-Service to integrate the consumer into urban freight," Research in Transportation Economics, Elsevier, vol. 101(C).
    18. Ni Wayan Masri & Jun-Jer You & Athapol Ruangkanjanases & Shih-Chih Chen, 2021. "The Effects of Customer Learning and Shopping Value on Intention Purchase and Reuse in a Digital Market: The Institutional Trust–Commitment Perspective," Sustainability, MDPI, vol. 13(8), pages 1-25, April.
    19. Gao, Wei & Li, Wenqian & Fan, Hua & Jia, Xingping, 2021. "How customer experience incongruence affects omnichannel customer retention: The moderating role of channel characteristics," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    20. Tueanrat, Yanika & Papagiannidis, Savvas & Alamanos, Eleftherios, 2021. "A conceptual framework of the antecedents of customer journey satisfaction in omnichannel retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:72:y:2023:i:c:s0969698922003307. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.