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Omnichannel supply chain operations for luxury products with conspicuous consumers

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  • Wei, Ying
  • Li, Feng

Abstract

In the context of omnichannel retailing, this paper intends to investigate how conspicuous behavior and concerns of stock availability influence a luxury firm’s operational decisions. Our analytical study indicates that with the firm's different channel strategy---store-only and omnichannel strategy--consumers’ behavior in terms of valuation and channel selection is varied. Furthermore, as compared to the store-only channel, the omnichannel strategy results in a lower price and a lower stock level in the store. The luxury firm may not benefit from it. Our results are robust for both the high-end and the mass luxury products in a variety of settings.

Suggested Citation

  • Wei, Ying & Li, Feng, 2020. "Omnichannel supply chain operations for luxury products with conspicuous consumers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 137(C).
    • Handle: RePEc:eee:transe:v:137:y:2020:i:c:s1366554519313729
    DOI: 10.1016/j.tre.2020.101918
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