Optimal Online Service Strategy and Price Decision in Omnichannel Retail

Table 1

Summary of notations.

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: original total market demand

b: cross-price elasticity coefficient

: consumers’ preference for the offline channel

: wholesale price

s: online service level

: webrooming effect coefficient

: cost of online service

F: fixed online channel cost

: online channel price

: offline channel price

: online channel demand, i  {DN, DB, DA, RN, RB, and RA}

: offline channel demand

: profit of the supplier

: profit of the online retailer

: profit of the offline retailer

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