IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v81y2024ics0969698924001838.html
   My bibliography  Save this article

Continuous increasing consumer service for multi-item dual-channel retail management

Author

Listed:
  • Bose, Sarmee
  • Mukherjee, Shashi Bajaj
  • Dey, Bikash Koli
  • Sarkar, Biswajit

Abstract

Along with the advancement of technology and consumer expectations, online-to-offline retailing is seeking attention in the retailing industries. Online-to-offline retailing is a powerful strategy that bridges the gap between the convenience and reach of online shopping with the tangible experience and service of physical stores. Customer satisfaction and brand loyalty are basic pillars to enhance profit for the retail industry. Providing different services like repairs, exchanges, and home delivery enhances customer satisfaction and builds trust in the particular industry. In e-commerce, the importance of delivery service is emphasized, with fast and reliable delivery being a key factor in customer satisfaction. An online-to-offline retailing system for multiple items is developed in this study by considering consumer service efficiency demand. A pricing strategy that relies on the channel of distribution and the impact of advertising on consumer demand is taken into account. The manufacturer offers complimentary home delivery services for orders surpassing a specified threshold. To implement advanced technologies, a huge budget is required. To make the study realistic, a budget and space are considered. The retailing system's total profit is ultimately maximized by determining the optimal values for selling price, advertisement investment, customer care costs across various channels, ordering quantity, and investment to minimize setup costs for different items. A classical optimization approach is employed to derive a semi closed-form solution for the proposed model. Sensitivity analysis and examination of special cases are provided to demonstrate the practicality of this research. Through numerical illustrations, it is established that the profit maximization occurs when the defective rate adheres to a Chi-square distribution. Imposing budget and space restrictions leads to a 19.91% increase in system profit while offering free home delivery services boosts the profit by 15.77%.

Suggested Citation

  • Bose, Sarmee & Mukherjee, Shashi Bajaj & Dey, Bikash Koli & Sarkar, Biswajit, 2024. "Continuous increasing consumer service for multi-item dual-channel retail management," Journal of Retailing and Consumer Services, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:joreco:v:81:y:2024:i:c:s0969698924001838
    DOI: 10.1016/j.jretconser.2024.103887
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698924001838
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2024.103887?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. Kar, Sumi & Basu, Kajla & Sarkar, Biswajit, 2023. "Advertisement policy for dual-channel within emissions-controlled flexible production system," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    2. Darima Fotheringham & Michael A. Wiles, 2023. "The effect of implementing chatbot customer service on stock returns: an event study analysis," Journal of the Academy of Marketing Science, Springer, vol. 51(4), pages 802-822, July.
    3. Sarkar, Biswajit & Sarkar, Mitali & Ganguly, Baishakhi & Cárdenas-Barrón, Leopoldo Eduardo, 2021. "Combined effects of carbon emission and production quality improvement for fixed lifetime products in a sustainable supply chain management," International Journal of Production Economics, Elsevier, vol. 231(C).
    4. Amir Hossein Nobil & Amir Hosein Afshar Sedigh & Leopoldo Eduardo Cárdenas-Barrón, 2020. "A multiproduct single machine economic production quantity (EPQ) inventory model with discrete delivery order, joint production policy and budget constraints," Annals of Operations Research, Springer, vol. 286(1), pages 265-301, March.
    5. Pei, Zhi & Wooldridge, Barbara Ross & Swimberghe, Krist R., 2021. "Manufacturer rebate and channel coordination in O2O retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    6. Wang, Qiang & Zhao, Nenggui & Wu, Jie & Zhu, Qingyuan, 2021. "Optimal pricing and inventory policies with reference price effect and loss-Averse customers," Omega, Elsevier, vol. 99(C).
    7. He, Bo & Gupta, Varun & Mirchandani, Prakash, 2021. "Online selling through O2O platform or on your own? Strategic implications for local Brick-and-Mortar stores," Omega, Elsevier, vol. 103(C).
    8. Pesendorfer, Martin & Schiraldi, Pasquale & Silva-Junior, Daniel, 2023. "Omitted budget constraint bias in discrete-choice demand models," International Journal of Industrial Organization, Elsevier, vol. 86(C).
    9. Waßmuth, Katrin & Köhler, Charlotte & Agatz, Niels & Fleischmann, Moritz, 2023. "Demand management for attended home delivery—A literature review," European Journal of Operational Research, Elsevier, vol. 311(3), pages 801-815.
    10. 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.
    11. Anbumathi, Rajendiran & Dorai, Sriram & Palaniappan, Umayal, 2023. "Evaluating the role of technology and non-technology factors influencing brand love in Online Food Delivery services," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    12. Mayr, Kathrin & Teller, Christoph, 2023. "Customer deviance in retailing: Managers’ emotional support and employees’ affective wellbeing," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    13. Kim, Hongbum & Ryu, Min Ho & Lee, Daeho & Kim, Jang Hyun, 2022. "Should a small-sized store have both online and offline channels? An efficiency analysis of the O2O platform strategy," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    14. Bibhas C. Giri & Anamika Dash, 2022. "Optimal batch shipment policy for an imperfect production system under price-, advertisement- and green-sensitive demand," Journal of Management Analytics, Taylor & Francis Journals, vol. 9(1), pages 86-119, January.
    15. 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).
    16. Bikash Koli Dey & Hyesung Seok, 2024. "Intelligent inventory management with autonomation and service strategy," Journal of Intelligent Manufacturing, Springer, vol. 35(1), pages 307-330, January.
    17. Amankou, Kunomboua Anicet Cyrille & Guchhait, Rekha & Sarkar, Biswajit & Dem, Himani, 2024. "Product-specified dual-channel retail management with significant consumer service," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    18. Arash Asadpour & MohammadHossein Bateni & Kshipra Bhawalkar & Vahab Mirrokni, 2019. "Concise Bid Optimization Strategies with Multiple Budget Constraints," Management Science, INFORMS, vol. 65(12), pages 5785-5812, December.
    19. Mittal, Mandeep & Sarkar, Biswajit, 2023. "Stochastic behavior of exchange rate on an international supply chain under random energy price," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 205(C), pages 232-250.
    20. Tang, Yuk Ming & Chau, Ka Yin & Xu, Duo & Liu, Xiaoyun, 2021. "Consumer perceptions to support IoT based smart parcel locker logistics in China," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    21. Bikash Koli Dey & Sarla Pareek & Muhammad Tayyab & Biswajit Sarkar, 2021. "Autonomation policy to control work-in-process inventory in a smart production system," International Journal of Production Research, Taylor & Francis Journals, vol. 59(4), pages 1258-1280, February.
    22. 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).
    23. Strauss, Arne & Gülpınar, Nalan & Zheng, Yijun, 2021. "Dynamic pricing of flexible time slots for attended home delivery," European Journal of Operational Research, Elsevier, vol. 294(3), pages 1022-1041.
    24. Gelbrich, Katja & Hagel, Julia & Orsingher, Chiara, 2021. "Emotional support from a digital assistant in technology-mediated services: Effects on customer satisfaction and behavioral persistence," International Journal of Research in Marketing, Elsevier, vol. 38(1), pages 176-193.
    25. Pesendorfer, Martin & Schiraldi, Pasquale & Silva-Junior, Daniel, 2023. "Omitted budget constraint bias in discrete-choice demand models," LSE Research Online Documents on Economics 117353, London School of Economics and Political Science, LSE Library.
    26. 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).
    27. Ullah, Mehran & Sarkar, Biswajit, 2020. "Recovery-channel selection in a hybrid manufacturing-remanufacturing production model with RFID and product quality," International Journal of Production Economics, Elsevier, vol. 219(C), pages 360-374.
    Full references (including those not matched with items on IDEAS)

    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 & Amankou, Kunomboua Anicet Cyrille & Sarkar, Mitali & Seo, Yong Won, 2024. "Online, offline, and buy-online-pick-up-in-store retail strategy under a dual-channel advertisement driven demand," Journal of Retailing and Consumer Services, Elsevier, vol. 81(C).
    2. Guchhait, Rekha & Bhattacharya, Sandipa & Sarkar, Biswajit & Gunasekaran, Angappa, 2024. "Pricing strategy based on a stochastic problem with barter exchange under variable promotional effort for a retail channel," Journal of Retailing and Consumer Services, Elsevier, vol. 81(C).
    3. Sohani, Sahar & Barman, Tuli & Sarkar, Biswajit & Gunasekaran, Angappa & Pareek, Sarla, 2024. "Retail management policy through firefly algorithm under uncertainty using Dempster-Shafer theory for production firm," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    4. Sarkar, Biswajit & Dey, Bikash Koli & Ma, Jin-Hee & Sarkar, Mitali & Guchhait, Rekha & Ahn, Young-Hyo, 2024. "Does outsourcing enhance consumer services and profitability of a dual-channel retailing?," Journal of Retailing and Consumer Services, Elsevier, vol. 81(C).
    5. 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).
    6. Sarkar, Mitali & Ganguly, Baishakhi & Dem, Himani & Pramanik, Moumita & Sarkar, Biswajit & Bar, Nilkamal & Pareek, Sarla & Cárdenas-Barrón, Leopoldo Eduardo, 2024. "Risk due to insufficient retail service management considering satisfaction level for distributor and consumer," Journal of Retailing and Consumer Services, Elsevier, vol. 81(C).
    7. Amankou, Kunomboua Anicet Cyrille & Guchhait, Rekha & Sarkar, Biswajit & Dem, Himani, 2024. "Product-specified dual-channel retail management with significant consumer service," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    8. Guchhait, Rekha & Sarkar, Biswajit, 2024. "A decision-making problem for product outsourcing with flexible production under a global supply chain management," International Journal of Production Economics, Elsevier, vol. 272(C).
    9. Mishra, Mowmita & Ghosh, Santanu Kumar & Sarkar, Biswajit & Sarkar, Mitali & Hota, Soumya Kanti, 2024. "Risk management for barter exchange policy under retail industry," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    10. Bhattacharya, Sandipa & Sarkar, Biswajit & Sarkar, Mitali & Mukherjee, Arka, 2024. "Hospitality for prime consumers and others under the retail management," Journal of Retailing and Consumer Services, Elsevier, vol. 80(C).
    11. 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).
    12. Dey, Bikash Koli & Seok, Hyesung, 2024. "Synergic effect of carbon regulation policies and multi-period credit financing in global retailing with reworking," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    13. Mridha, Bablu & Sarkar, Biswajit & Cárdenas-Barrón, Leopoldo Eduardo & Ramana, G.V. & Yang, Liu, 2024. "Is the advertisement policy for dual-channel profitable for retailing and consumer service of a retail management system under emissions-controlled flexible production system?," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    14. 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).
    15. Datta, Alotosh & Sarkar, Biswajit & Dey, Bikash Koli & Sangal, Isha & Yang, Liu & Fan, Shu-Kai S. & Sardar, Suman Kalyan & Thangavelu, Lakshmi, 2024. "The impact of sales effort on a dual-channel dynamical system under a price-sensitive stochastic demand," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    16. Rekha Guchhait & Biswajit Sarkar, 2023. "Increasing Growth of Renewable Energy: A State of Art," Energies, MDPI, vol. 16(6), pages 1-29, March.
    17. 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).
    18. Saxena, Neha & Sarkar, Mitali & Sarkar, Biswajit, 2024. "Which retail strategy for shelf life products can satisfy consumers under game policy?," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    19. 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).
    20. Sarkar, Biswajit & Seok, Hyesung & Jana, Tapas Kumar & Dey, Bikash Koli, 2023. "Is the system reliability profitable for retailing and consumer service of a dynamical system under cross-price elasticity of demand?," Journal of Retailing and Consumer Services, Elsevier, vol. 75(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:81:y:2024:i:c:s0969698924001838. 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.