Omni-Channel Retailing With Consumer Preference and Carbon Emission Efforts

Abstract

With the popularity of omni-channel retailing, many retailers have begun to offer customers choices to decide whether to shop online or in a physical store, considering customers preference for different channels. This paper has studied omni-channel retailing in which the retailers sell low-carbon products through online and physical channels. The research has been conducted under three different decision circumstances (i.e., physical store-leader Stackelberg model and online store-leader Stackelberg model under the decentralized decision and centralized decision). The results show that both the retailers' profit in a single channel and the total profit in two channels will decrease with the customers' preference and the effort level of emission reduction. In addition, under decentralized decision, online store-leader Stackelberg model is more beneficial to the retailers.