Showrooms Opening Strategies For Online Manufacturers Under Consumers Sensitive To Price And Delivery Lead-time

While e-channel retailing brings convenience to consumers,it is difficult for consumers to obtain direct product experience due to its virtual nature.To solve the pre-sales experience problem,some manufacturers choose to cooperate with retailers,but the intertwining of online and traditional retail channels causes channel conflicts.In view of the conflict between pre-sales experience and channels,a new retail innovation showrooms mode(Showrooms)has attracted attention.The showrooms mode allows consumers to experience the product before purchasing,and then they choose to purchase online after being satisfied with the product.This showrooms mode provides offline product experience and services,while maintaining the delivery leadtime of online channels.Delivery lead-time becomes one of the competitive advantages.How to determine a reasonable timing for the opening of the showrooms,as well as the online channel manufacturer's product prices and logistics decisions after the opening of the showroom have become the focus of attention.Based on this,the relevant background and research significance are first explained,and the current research status of omni-channel retailing,delivery lead-time and showrooms is briefly combed,and the key research content and framework are preliminarily explained.Secondly,this thesis studies the opening of showrooms mode of brand manufacturers with a single network channel.Based on the theory of consumer utility function,through modeling and numerical simulations,it analyzes the effect of given price and delivery lead-time,optimal price and delivery lead-time before and after showrooms is opened.Decisions and the impact of the opening of showrooms on the sales volume and profit of brand manufacturers.Studies have shown that,given the price and delivery lead-time,the opening of a showroom can increase the manufacturer's product sales.When the opening cost is low and the consumer's showroom experience is good,the opening of the showroom can increase the manufacturer's profit.In the context of optimal price and delivery lead-time,after the opening of the showrooms,product prices will arise,delivery lead-time will be shortened,and the extent of price increase and delivery lead-time will be positively correlated with the consumer experience effect,the reduction in delivery lead-time is positively correlated with the sensitivity coefficient of consumer delivery lead-time.A comparative analysis of the two scenarios shows that the total profit of the manufacturer is related to the consumer experience effect and the showrooms opening cost.The manufacturer will not blindly choose to open a showroom.It will only choose when the showroom opening cost is within a certain range and the consumer experience is satisfied.Opening a showroom,manufacturers seeking to maximize profits can improve the consumer experience by shortening the delivery time.In a given price and lead-time model,the demand for products will increase more,and in the optimal price and lead-time model,higher profits can be obtained.Manufacturers need to make an important assessment of the product shelf life and whether it is urgently needed to sell,and choose a reasonable strategy.Then,against the background of the two competitive brand manufacturers selling products through their own electronic channels,this thesis studies the impact of the opening of the offline showrooms of the two competitive manufacturers on the purchase decision behavior of consumers,as well as their own prices,logistics distribution,product sales and profits.Based on the heterogeneity of consumers in the market,they are divided into high-information consumers and low-information consumers.Considering showrooms experience cost of low information consumers,the Hotelling model is used to construct consumer utility functions when two manufacturers do not open,a single manufacturer opens,and both manufacturers open showrooms,and the corresponding market demand and profit are obtained.Then analyze the two manufacturers' showroom opening strategies and the price and delivery lead time decisions before and after the showroom opening.Studies have shown that the proportion of low-information consumers is closely related to price,delivery lead-time,and demand changes.The opening of showrooms requires reasonable price and delivery lead-time decisions to respond to market changes.Manufacturers are not blindly opening showrooms.Only when the market has a large proportion of low-information consumers and the cost of opening showrooms is relatively low,the choice of opening showrooms can make themselves profitable.The more low-information consumers in the market and the lower the low-information consumers' understanding of the product,the more likely it is that one of the manufacturers will choose to open a showroom first.However,when the investment cost of opening a showroom is high,regardless of the number of low-information consumers in the market or the level of information understanding,manufacturers will not open a showroom.Travel costs have become an important factor for consumers to weigh.The lower the travel cost of consumers to a certain showroom,the more advantageous the showrooms.When one or both online manufacturers decide to open showrooms,it is necessary to shorten delivery lead-time to improve the consumer's experience.Finally,take the operation of the online jewelry brand Blue Nile as an example,based on the research results in Chapters 2 and 3,this thesis analyzes its production and sales,logistics delivery,and showrooms opening strategies.