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Online, offline, and buy-online-pick-up-in-store retail strategy under a dual-channel advertisement driven demand

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  • Sarkar, Biswajit
  • Amankou, Kunomboua Anicet Cyrille
  • Sarkar, Mitali
  • Seo, Yong Won

Abstract

The rapid growth of e-commerce along with the tendency for consumers to spend most of their time on the internet world has seen the development of new retailing strategies. The current study illustrates this trend by considering an online, offline and buy-online-pick-up-in-store retailing for consumer non-durable goods under an imprecise demand. The production firm sells its products through hybrid channels and increases sales by using online and offline advertisements. A characteristic relation between online, offline, and buy-online-pick-up-in-store selling is found in the development of a dual-channel advertisement driven demand. The study first develops a crisp model that is extended into a fuzzy model to include the imprecise nature of the demand. The optimal values of the decision variables are derived using a classical optimization approach. The global optimality of the solutions are validated using Hessian matrix. Numerical analysis is performed to validate the models and their applications. Sensitivity analysis of the key parameters is performed. The fuzzy model's result shows 10.44% more profit than the crisp model. Industry realizes more profit when considering dual-channel advertisement and omnichannel buy-online-pick-up-in-store retail strategy.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:joreco:v:81:y:2024:i:c:s0969698924002753
    DOI: 10.1016/j.jretconser.2024.103979
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