Return Mode Selection and Pricing Strategy for a Dual-Channel Retailer

Table 1

Symbols and corresponding descriptions.

Symbol	Description
	Return probability of offline original channel ()
	Return probability of online original channel ()
	Return probability of online cross-returned to offline ()
	Probability of resalable offline original channel return
	Probability of resalable online original channel return
	Probability of online purchase cross-returned offline and resalable
	Unit purchase cost
	Unit collection cost of returns
	Unit freight
	Salvage value ()
	Potential market size
	Offline customer preference ()
	Potential market size of offline channel
	Potential market size of online channel
	Own-price sensitivity of a channel
	Cross-price sensitivity of a channel
, or	Represents original channel return, fixed cross-channel return, and relaxed cross-channel return mode, respectively
and	Offline product price and online product price of return mode
and	Offline customer demand and online customer demand of return mode
and	Offline and online order quantities under return mode
and	Offline store profit and online store profit under return mode
	The total profit of the two channels of the DCR under return mode