Evolutionary location and pricing strategies for service merchants in competitive O2O markets

doi:10.1016/j.ejor.2016.03.030

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	Evolutionary location and pricing strategies for service merchants in competitive O2O markets
	He, Zhou 1,2; Cheng, T. C. E.2; Dong, Jichang 1; Wang, Shouyang1,3
刊名	EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
	2016-10-16
卷号	254 期号:2 页码:595-609
关键词	Agent-based modeling Service competition Customer behavior Location Pricing
ISSN号	0377-2217
DOI	10.1016/j.ejor.2016.03.030
英文摘要	Attracting customers in the online-to-offline (O2O) business is increasingly difficult as more competitors are entering the O2O market. To create and maintain sustainable competitive advantage in crowded 020 markets requires optimizing the joint pricing-location decision and understanding customers' behaviours. To investigate the evolutionary location and pricing behaviors of service merchants, this paper proposes an agent-based competitive O2O model in which the service merchants are modeled as profit-maximizing agents and customers as utility-maximizing agents that are connected by social networks through which they can share their service experiences by word of mouth (WOM). It is observed that the service merchant should standardize its service management to offer a stable expectation to customers if their WOM can be ignored. On the other hand, when facing more socialized customers, firms with variable service quality should adopt aggressive pricing and location strategies. Although customers' social learning facilitates the diversity of services in O2O markets, their online herd behaviors would lead to unpredictable offline demand variations, which consequently pose performance risk to the service merchants. (C) 2016 Elsevier B.V. All rights reserved.
资助项目	Hong Kong Polytechnic University[G-UA39]
WOS研究方向	Business & Economics ; Operations Research & Management Science
语种	英语
出版者	ELSEVIER SCIENCE BV
WOS记录号	WOS:000377732300019
内容类型	期刊论文
源URL	[http://ir.amss.ac.cn/handle/2S8OKBNM/22895]
专题	系统科学研究所
通讯作者	He, Zhou
作者单位	1.Univ Chinese Acad Sci, Sch Econ & Management, 80 Zhongguancun East Rd, Beijing 100190, Peoples R China 2.Hong Kong Polytech Univ, Dept Logist & Maritime Studies, Kowloon, Hong Kong, Peoples R China 3.Chinese Acad Sci, Acad Math & Syst Sci, 55 Zhongguancun East Rd, Beijing 100190, Peoples R China
推荐引用方式 GB/T 7714	He, Zhou,Cheng, T. C. E.,Dong, Jichang,et al. Evolutionary location and pricing strategies for service merchants in competitive O2O markets[J]. EUROPEAN JOURNAL OF OPERATIONAL RESEARCH,2016,254(2):595-609.
APA	He, Zhou,Cheng, T. C. E.,Dong, Jichang,&Wang, Shouyang.(2016).Evolutionary location and pricing strategies for service merchants in competitive O2O markets.EUROPEAN JOURNAL OF OPERATIONAL RESEARCH,254(2),595-609.
MLA	He, Zhou,et al."Evolutionary location and pricing strategies for service merchants in competitive O2O markets".EUROPEAN JOURNAL OF OPERATIONAL RESEARCH 254.2(2016):595-609.