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

Table 2

Parameter settings.

Symbol	Value and description
	0.7 (probability of offline original channel return that is resalable)
	0.6 (probability of online original channel return that is resalable)
	0.6 (probability of online cross-return offline that is resalable)
	20 (unit purchase cost)
	1 (unit collection cost of returns)
	2 (unit freight)
	5 (salvage value)
	1000 (potential market size)
	0.35, 0.65 (offline customer preference)
	8 (own-price sensitivity of a channel)
	4 (cross-price sensitivity of a channel)