Online Retailers'Digital Showroom Competing Strategy in the Presence of Product Returns
Digital showroom strategy is one of the widely used operational strategies of online retailers that are adopted to counteract product returns.This study aims to examine the optimal digital showroom competing strategy of two online retailers in the face of product returns.To this end,we consider four scenarios differentiated by whether each online retailer provides the digital showroom service or not,and then establish the corresponding decision-making model under each scenario.It is found that the optimal digital showroom strategies of the retailers are closely related to the degree of product competition and the digital showroom information degree.When the market is less competitive,neither retailer chooses to provide the digital showroom service.When the competition degree is sufficiently intense,the retailer's optimal choice of the digital showroom strategy is affected by the information degree of the digital showroom.In the asymmetric competitive market,the retailer's return policy is influenced by the digital showroom strategy.Compared with the symmetric competition,the provision of the digital showroom services in the asymmetric com-petition environment makes the return policy stricter.Our research findings provide a scientific basis for decisions on the digital showroom strategy of online retailers.
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