Highlights Investigation of consumer behavior and omnichannel operations for luxury products. Consumers are conspicuous and stock-sensitive with channel switching behavior. Operational decisions include pricing, stocking quantity, and stock availability. Implications for luxury firms’ channel strategy and operational decisions.
Abstract In the context of omnichannel retailing, this paper intends to investigate how conspicuous behavior and concerns of stock availability influence a luxury firm’s operational decisions. Our analytical study indicates that with the firm's different channel strategy---store-only and omnichannel strategy--consumers’ behavior in terms of valuation and channel selection is varied. Furthermore, as compared to the store-only channel, the omnichannel strategy results in a lower price and a lower stock level in the store. The luxury firm may not benefit from it. Our results are robust for both the high-end and the mass luxury products in a variety of settings.
Omnichannel supply chain operations for luxury products with conspicuous consumers
2020-03-13
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
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