IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i20p8600-d430268.html
   My bibliography  Save this article

Impacts of the BOPS Option on Sustainable Retailing

Author

Listed:
  • Yi He

    (School of Management, Hainan University, Haikou 570228, China)

  • Qianqian Xu

    (School of Management, Hainan University, Haikou 570228, China)

  • Da Zhao

    (School of Management, Hainan University, Haikou 570228, China)

Abstract

This paper focuses on the value of an omnichannel retailing option, Buy-Online-and-Pick-up-in-Store (BOPS), in reducing environmental impact. Analytical models were established to explore the impacts of the BOPS strategy on the pricing and expected profit of the dual-channel retailer as well as the environment. The equilibrium solutions under dual-channel and omnichannel scenarios were obtained. Then, we considered the impact of loyal store consumers in the extended model. We find that the retailer will increase the product price after adopting the BOPS strategy. Our analytical results also show that when the operating cost of the BOPS strategy is relatively low, the total demand under the omnichannel scenario is greater than that under the dual-channel scenario and vice versa. In addition, this strategy can always reduce the environmental impact in terms of the pure online demand. Finally, when the operating cost is lower and the fraction of consumers without channel preference is higher, the retailer can benefit from the BOPS strategy. In this case, the BOPS strategy can achieve profit improvement and environmental impact reduction.

Suggested Citation

  • Yi He & Qianqian Xu & Da Zhao, 2020. "Impacts of the BOPS Option on Sustainable Retailing," Sustainability, MDPI, vol. 12(20), pages 1-16, October.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:20:p:8600-:d:430268
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/20/8600/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/20/8600/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Young Kwark & Jianqing Chen & Srinivasan Raghunathan, 2014. "Online Product Reviews: Implications for Retailers and Competing Manufacturers," Information Systems Research, INFORMS, vol. 25(1), pages 93-110, March.
    2. Jin, Delong & Caliskan-Demirag, Ozgun & Chen, Frank (Youhua) & Huang, Min, 2020. "Omnichannel retailers’ return policy strategies in the presence of competition," International Journal of Production Economics, Elsevier, vol. 225(C).
    3. Leela Nageswaran & Soo-Haeng Cho & Alan Scheller-Wolf, 2020. "Consumer Return Policies in Omnichannel Operations," Management Science, INFORMS, vol. 66(12), pages 5558-5575, December.
    4. Yu-Shan Chen & Shu-Tzu Hung & Ting-Yu Wang & A-Fen Huang & Yen-Wen Liao, 2017. "The Influence of Excessive Product Packaging on Green Brand Attachment: The Mediation Roles of Green Brand Attitude and Green Brand Image," Sustainability, MDPI, vol. 9(4), pages 1-15, April.
    5. Jinrong Liu & Qi Xu, 2020. "Joint Decision on Pricing and Ordering for Omnichannel BOPS Retailers: Considering Online Returns," Sustainability, MDPI, vol. 12(4), pages 1-18, February.
    6. Jasmina Burek & Daesoo Kim & Darin Nutter & Susan Selke & Rafael Auras & Sarah Cashman & Beverly Sauer & Greg Thoma, 2018. "Environmental Sustainability of Fluid Milk Delivery Systems in the United States," Journal of Industrial Ecology, Yale University, vol. 22(1), pages 180-195, February.
    7. Aijun Liu & Xiaohui Ji & Sang-Bing Tsai & Hui Lu & Gang Du & Feng Li & Guodong Li & Jiangtao Wang, 2018. "An Empirical Study on the Innovation Sharing Express Box: Collaborative Consumption and the Overlay Network Design," Sustainability, MDPI, vol. 10(7), pages 1-19, June.
    8. 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.
    9. Yi He & Qingyun Xu & Pengkun Wu, 2020. "Omnichannel retail operations with refurbished consumer returns," International Journal of Production Research, Taylor & Francis Journals, vol. 58(1), pages 271-290, January.
    10. Zhang, Juzhi & Xu, Qingyun & He, Yi, 2018. "Omnichannel retail operations with consumer returns and order cancellation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 308-324.
    11. Tian Zeng & Fabien Durif, 2019. "The Influence of Consumers’ Perceived Risks towards Eco-Design Packaging upon the Purchasing Decision Process: An Exploratory Study," Sustainability, MDPI, vol. 11(21), pages 1-29, November.
    12. Fei Gao & Xuanming Su, 2017. "Omnichannel Retail Operations with Buy-Online-and-Pick-up-in-Store," Management Science, INFORMS, vol. 63(8), pages 2478-2492, August.
    13. Kong, Ruixiao & Luo, Li & Chen, Liuxin & Keblis, Matthew F., 2020. "The effects of BOPS implementation under different pricing strategies in omnichannel retailing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).
    14. Babak Nemat & Mohammad Razzaghi & Kim Bolton & Kamran Rousta, 2019. "The Role of Food Packaging Design in Consumer Recycling Behavior—A Literature Review," Sustainability, MDPI, vol. 11(16), pages 1-23, August.
    15. Shi, Xiutian & Dong, Ciwei & Cheng, T.C.E., 2018. "Does the buy-online-and-pick-up-in-store strategy with pre-orders benefit a retailer with the consideration of returns?," International Journal of Production Economics, Elsevier, vol. 206(C), pages 134-145.
    16. Feiyu Chen & Hong Chen & Jiahui Yang & Ruyin Long & Qianwen Li, 2018. "Impact of Information Intervention on the Recycling Behavior of Individuals with Different Value Orientations—An Experimental Study on Express Delivery Packaging Waste," Sustainability, MDPI, vol. 10(10), pages 1-20, October.
    17. Byungsoo Na & Min Kyu Sim & Won Ju Lee, 2019. "An Optimal Purchase Decision of Reusable Packaging in the Automotive Industry," Sustainability, MDPI, vol. 11(23), pages 1-13, November.
    18. Ziynet Boz & Virpi Korhonen & Claire Koelsch Sand, 2020. "Consumer Considerations for the Implementation of Sustainable Packaging: A Review," Sustainability, MDPI, vol. 12(6), pages 1-34, March.
    19. Feng Dong & Yifei Hua, 2018. "Are Chinese Residents Willing to Recycle Express Packaging Waste? Evidence from a Bayesian Regularized Neural Network Model," Sustainability, MDPI, vol. 10(11), pages 1-24, November.
    20. Jin, Ming & Li, Gang & Cheng, T.C.E., 2018. "Buy online and pick up in-store: Design of the service area," European Journal of Operational Research, Elsevier, vol. 268(2), pages 613-623.
    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. Madia, Joan E. & Moscone, Francesco & Nicodemo, Catia, 2023. "Informal care, older people, and COVID-19: Evidence from the UK," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 468-488.
    2. Mai, Enping (Shirley) & Ketron, Seth, 2022. "How retailer ownership of vs. collaboration with sharing economy apps affects anticipated service quality and value co-creation," Journal of Business Research, Elsevier, vol. 140(C), pages 684-692.
    3. Luca A. Panzone & Natasha Auch & Daniel John Zizzo, 2024. "Nudging the Food Basket Green: The Effects of Commitment and Badges on the Carbon Footprint of Food Shopping," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(1), pages 89-133, January.
    4. ur Rehman, Attique & Shakeel Sadiq Jajja, Muhammad & Farooq, Sami, 2022. "Manufacturing planning and control driven supply chain risk management: A dynamic capability perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 167(C).
    5. Shujun Yang & Ivan Kai Wai Lai & Huajun Tang, 2022. "Pricing and Contract Coordination of BOPS Supply Chain Considering Product Return Risk," Sustainability, MDPI, vol. 14(9), pages 1-21, April.
    6. Han Wang & Chuan Pang & Huajun Tang, 2023. "Pricing and Carbon-Emission-Reduction Decisions under the BOPS Mode with Low-Carbon Preference from Customers," Mathematics, MDPI, vol. 11(12), pages 1-26, June.

    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. Jiu, Song, 2022. "Robust omnichannel retail operations with the implementation of ship-from-store," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 157(C).
    2. Zhou, Yong-Wu & Zhang, Xiong & Zhong, Yuanguang & Cao, Bin & Cheng, T.C. Edwin, 2021. "Dynamic pricing and cross-channel fulfillment for omnichannel retailing industry: An approximation policy and implications," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 156(C).
    3. He, Yi & Xu, Qingyun & Shao, Zhen, 2021. "“Ship-from-store” strategy in platform retailing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    4. Qian Zheng & Manman Wang & Feng Yang, 2021. "Optimal Channel Strategy for a Fresh Produce E-Commerce Supply Chain," Sustainability, MDPI, vol. 13(11), pages 1-24, May.
    5. 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).
    6. Feng, Yue & Zhang, Jianxiong & Feng, Lin & Zhu, Guowei, 2022. "Benefit from a high store visiting cost in an omnichannel with BOPS," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 166(C).
    7. 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).
    8. Qiu, Ruozhen & Ma, Lin & Sun, Minghe, 2023. "A robust omnichannel pricing and ordering optimization approach with return policies based on data-driven support vector clustering," European Journal of Operational Research, Elsevier, vol. 305(3), pages 1337-1354.
    9. Sun, Yanhong & Wang, Zihan & Han, Xiaohua, 2020. "Supply chain channel strategies for online retailers: Whether to introduce web showrooms?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 144(C).
    10. Qiang Guo & Li He & Yi He, 2022. "Omnichannel service operations with order‐online‐and‐dine‐in‐store strategy," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2311-2325, September.
    11. Kong, Ruixiao & Luo, Li & Chen, Liuxin & Keblis, Matthew F., 2020. "The effects of BOPS implementation under different pricing strategies in omnichannel retailing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).
    12. 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).
    13. Jin, Delong & Caliskan-Demirag, Ozgun & Chen, Frank (Youhua) & Huang, Min, 2020. "Omnichannel retailers’ return policy strategies in the presence of competition," International Journal of Production Economics, Elsevier, vol. 225(C).
    14. Shujun Yang & Ivan Kai Wai Lai & Huajun Tang, 2022. "Pricing and Contract Coordination of BOPS Supply Chain Considering Product Return Risk," Sustainability, MDPI, vol. 14(9), pages 1-21, April.
    15. Li, Qi & Wang, Quansheng & Song, Peijian, 2022. "Do customers always adopt buy-online-and-pick-up-in-store service? Consideration of location-based store density in omni-channel retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    16. Niu, Baozhuang & Ruan, Yiyuan & Xu, Haotao, 2024. "Less is more? Channel separation to mitigate triple competition and combat copycats in agency e-commerce," European Journal of Operational Research, Elsevier, vol. 315(1), pages 242-270.
    17. Liu, Minjian & Du, Shaofu & Nie, Tengfei & Zhu, Yangguang, 2024. "Pricing, channel design, and platform operations with buy-online-and-pick-up-in-store in online food delivery market," International Journal of Production Economics, Elsevier, vol. 274(C).
    18. Yang, Lu & Li, Xiangyong & Xia, Ye & Aneja, Y.P., 2023. "Returns operations in omnichannel retailing with buy-online-and-return-to-store," Omega, Elsevier, vol. 119(C).
    19. Wang, Ronghui & Nan, Guofang & Kou, Gang & Li, Minqiang, 2023. "Separation or integration: The game between retailers with online and offline channels," European Journal of Operational Research, Elsevier, vol. 307(3), pages 1348-1359.
    20. Hübner, Alexander & Hense, Jonas & Dethlefs, Christian, 2022. "The revival of retail stores via omnichannel operations: A literature review and research framework," European Journal of Operational Research, Elsevier, vol. 302(3), pages 799-818.

    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:gam:jsusta:v:12:y:2020:i:20:p:8600-:d:430268. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.