Research On O2O Evolution Simulation Of Physical Products Based On Consumer Interactions

Recently, with the rapid development of Internet technology and smartphones, a new business model named O2O(Online to offline) is developing fast. O2 O business model depends on traditional brick and mortar channel and e-commerce channel, which is higher level of market competition. This model is not the fierce competition of one channel or some channels. The main idea of O2 O is that the company can serve the consumers at any time, at any place, with any way of shopping, entertaining and social intercourse by combing the physical and virtual shops. Theoretically, O2 O can help online parts, offline parts and consumers all-win. So based on so many benefits bringing from O2 O, more and more companies are devoted to developing this business model. There are few successful cases but more failures.Consumer interaction behavior is important for B2 C operation. As the recent research on O2 O lacks the considering of consumer interactions, this paper covers the influence of consumer interactions both online and offline on the O2 O of physical products, mainly focusing on demands, inventory costs and transportation costs. Based on the research on functional products/mass-market products and innovative products/niche products, considering physical type and service type, this paper classifies the current O2 O models to four types with two dimensions. Each type operates differently and examples are given to show the details. And then picking up the physical type of O2O(P-F model and P-I model), the paper constructs the consumer social network based the theory of complex network. The rule of consumer interactions is based on influence model. The simulation is based on the model by using multi-agent simulation and the same price online and offline(depending on company S). After simulation under different environment such as different consumer experience degree, picky degree, online complex network degree and different logistics plan, the paper calculates the logistic costs(including inventory cost and transportation cost).Finally depending on the results of the simulation, here are some main conclusions: implementing of O2 O model will not reduce the offline demands and even can raise the total demand; for more picky consumers, online demand will suffer more; using the plan which delivers the product to online consumers from the offline-shop whose distant is shortest is better than delivers from the warehouse and can reduce more logistic cost.Based on the conclusions, the paper offers some useful advice for O2 O operators: for the physical products with high experience degree, the operators should strengthen the experience degree offline; operators should keep the product quality and focus on innovation, otherwise the bad influence will broadcast very fast; for the O2 O model which need to reduce the logistic cost, maybe delivery by the offline shops is a good choice.