Effect of the buy‐online‐and‐pickup‐in‐store option on pricing and ordering decisions during online shopping carnivals

• DOI: 10.1111/itor.12942
• Publication Date: 2021-01-29T01:52:58Z
• Authors: Qingyun Xu; Zhen Shao; Yi He
• Keywords: Newsvendor model; Omnichannel; Benchmark (surveying); Goodwill

Abstract This study focuses on the value of buy‐online‐and‐pickup‐in‐store (BOPS) option during online shopping carnivals. We develop a newsvendor model in which retailer faces risk order overload and provides consumers with BOPS option. The optimal pricing ordering decisions under benchmark scenario omnichannel retailing are analyzed. results demonstrate that after implementing option, will maintain or lower price instead raising price. In addition, we find fraction consumers, unit goodwill loss, retailer's best service capacity play significant roles implementation identify condition can benefit from