Self-pickup or door-to-door: The impact of self-pickup service on e-tailers. Issue 6 (3rd October 2017)

• Record Type: Journal Article
• Authors: Liu, Chang; Xie, Bing-Lei; An, Shi
• Is Part Of: Journal of interdisciplinary mathematics. Volume 20:Issue 6/7(2017)
• Page Start: 1557
• Page End: 1562
• Publication Date: 2017-10-03
• Subjects: self-pickup -- door-to-door -- dual scenario -- pricing strategy -- e-tailer; 91B60; Mathematics -- Periodicals; Mathematics; Periodicals; 510.5
• DOI: 10.1080/09720502.2017.1382207
• Languages: English
• ISSNs: 0972-0502

Abstract

Abstract: Bearing heavy burden on logistics costs, e-tailers in China recently allow consumers to pick up packages themselves at the designated sites. This essay develops a stylized model based on Hotelling Model and study how consistent and inconsistent pricing strategies vary with e-tailer's profit and consumer's purchase decisions. The analysis demonstrates that adding self-pickup scenario avails e-tailer to obtain more profits, and e-tailer performs better when setting price differentiation for two scenarios.