O2O Business Model Research Articles

Understanding how O2O service synergies drive customer continuance intention: a study of OTAs and hotels

ABSTRACT This study broadens the understanding of how online-to-offline (O2O) service synergy enhance customer satisfaction and further drive customer continuance intention. Drawing on the self-regulatory process, halo effect, and the O2O business model, this study is the first to investigate the interconnected relationship between online service quality and the perceived value of offline services in relation to online and offline satisfaction. The findings reveal that online service quality and the perceived value of offline services are crucial antecedents of customer satisfaction, resulting in increased customer continuance intention to use online services.

Factors influencing consumers' purchase decision-making in O2O business model: Evidence from consumers' overall evaluation

Online-to-offline (O2O) has become a rapidly growing e-commerce model worldwide, but the factors influencing consumers' purchase decision-making have not been examined well. After exploring the working mechanism of the O2O model, we extract eleven indexes of consumers' overall evaluation in the O2O model with Crawlzilla and R techniques. Social network analysis (SNA) is adopted to build social networks reflecting consumers' overall evaluation in the O2O model. Based on the modified social network and the extracted subgraph, this study (N = 768) reveals consumers' overall evaluation behavior patterns in the O2O model by calculating network density, central potential, edge betweenness. The results show that shoppers overall evaluate the eleven indexes, especially perceived product quality, online product price, promotion intensity, business reputation, and product brand, which reflects the significant associations between the indexes. Among all the eleven evaluation indexes, perceived product quality, online product price, and business reputation dominate consumers’ decision-making behavior. When making purchase decisions, consumers not only overall consider online product price, perceived product quality, and business reputation but also balance perceived product quality, business reputation, and promotion intensity. Finally, we make some suggestions on marketing strategy for e-commerce companies.

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Digital economy has significantly changed business reality. The radical transformations are ubiquitous. New patterns feature economic behaviour of market participants, their interactions, their business models and their market activities. What about competition? What forms of competitive conduct have lost importance in contemporary digital economy? And what are the newest strategies that enhance competitiveness of the firms? Which digital business practices could limit competition? And which of them could stimulate business rivalry? Digitalization has changed many, in not all, of our traditional conceptual visions in the area of competition, market, market power, relevant market actors. The nature of competition itself is under scrupulous investigation. What conclusions could we draw from current theoretical and empirical analyses of competition mechanism? First of all, we deal with new forms of competition. The old Schumpeterian question – whether competition is a creative innovative destruction or it leads only to unfair elimination of competitors from the market – has arisen again nowadays. Online competition has two radically different outcomes. On the one hand, lower transaction costs, more possibilities to compare prices and assortment, expanding markets beyond geographical limits, low entry barriers reinforce rivalry. On the other hand, online activity of the firms can mitigate competitive pressure though new forms of product differentiation and usage of phantom strategies, phantom products, phantom plans. In order to increase their overall competitiveness, firms have elaborated an O2O (online-to-offline) business model that is allowed to utilize virtual and actual activity at the same time. Restaurant business, cosmetic industry, taxi deals are examples of its successful implementation. Is more competition better for consumers? This concept has been considered doubtful. Digital competitive pressure has led to a novel format of product differentiation, that is, targeted product design. Unlike traditional view in line with Salop circular model, contemporary firms choose product strategies that target as little individuals as possible. The less the circle of potential clients is, the less their price elasticity would be, and the weaker price rivalry might become. Traditional concept views competition as a Markov stochastic process. Contemporary analyses demonstrate more complicated nature of competitive mechanism. Online and offline innovations transform competition into non-linear process with “humps and jumps”, the outcomes of which are not always in the interests of consumers’ welfare.

Pricing strategies for O2O business model considering service spillover and power structures

AbstractIn contradistinction to the traditional dual‐channel retail model, the online and offline channels are two business units of a single retailer in an online to offline (O2O) business model. The service‐related effort of the offline channel has a spillover effect on the online channel. This paper establishes three game‐theoretic models to analyze how service spillover and power structures affect supply chain members’ performance in the O2O business model. The main results are as follows. First, a service spillover effect is always beneficial to the manufacturer's profit due to the increasing wholesale price and total demand in all three scenarios. Second, unlike the traditional dual‐channel model, service spillover does not inevitably cause price competition in the O2O dual‐channel model. Under different power structure conditions, the spillover intensity has a significant effect on the retailer's profit and service strategy. When the manufacturer is a Stackelberg leader, the effects of spillover on a retailer's profit depend on online channel acceptance level and service level. A service differentiation strategy can help the retailer increase profit margins under certain situations. When the manufacturer and retailer have the same power, retailer's profit increases with spillover intensity, and a service consistency strategy can be implemented. When the retailer is a Stackelberg leader, the retailer's profit decreases first and then increases, and a service mixed strategy will reduce the loss of retailer's profit. Finally, the switch in dominant power between manufacturer and retailer has no impact on retail prices and demand. The total supply chain profit in two Stackelberg models is also equivalent, but lower than that in the Nash model.

O2O Business Model of Meituan in China

The research applies performance evaluation of O2O Business Model of China. It means evaluate how well the company performance. The focus aim is achieved through the O2O Business Model and Meituan, Ratio analysis of Meituan (2017-2019), share price movement we have use average moving Meituan Dianping (3690.HK), price to sales ratio among E-commerce firms. It is most important factor for performance evaluation. The graphical analysis and comparison are applying analysis and company’s measurement of all type of financial ratio. Share price movement indicate the trend of company’s present performance, as well as price to sales ration comparison among other tech companies. That Meituan is waiting, the company will grow strongly by its core market the food delivery business.

The Impact of O2O on Store Operation Model and Consumption Behavior—A Case Study of POS APP

The O2O business model is not only a consumption model, but also a new operation model. In the new retail era, what considerations, function considerations and benefits will online store POS and traditional hardware POS bring to physical stores applying the O2O model? Therefore, this study takes online store POS and traditional hardware POS as the research scope to investigate the motivation, and satisfaction of POS App. For the purpose of this study, a questionnaire survey was used. A total of 400 copies of the questionnaire were distributed and 400 valid copies were recovered. The valid recovery rate of the questionnaire was 100.0%. SPSS software was used for data statistics and analysis. The results show that: (1) POS App's use motivation has a direct and significant impact on perceived value; (2) POS App's use motivation has a direct and significant impact on use satisfaction; (3) POS App's perceived value has a direct and significant impact on use satisfaction. It is hoped that the conclusions and suggestions provided in this study can be used as marketing adjustment strategies for physical stores when they implement O2O, so that the application of strategies can be more accurate and meets the needs of target customers.

Ordering Decision and Coordination of a Dual-Channel Supply Chain with Fairness Concerns Under an Online-to-Offline Model

We introduce reference dependence to describe the fairness utility functions of channel members and model a dual-channel supply chain (one manufacturer and one retailer) in three scenarios: only the manufacturer is concerned with fairness, only the retailer is concerned with fairness, and both parties are concerned with fairness. The ordering decisions and coordination of a dual-channel supply chain under the online-to-offline (O2O) business model are studied. Nash equilibrium solutions exist for the channel order quantities in all three scenarios, and the inventory transshipment strategy can be used to coordinate the dual-channel supply chain under the O2O business model. Numerical examples are used to analyze the effectiveness and feasibility of coordination. The inventory transshipment strategy can be used to directly coordinate the dual-channel supply chain when only the manufacturer is concerned with fairness. The retailer feels unfair in the other two scenarios, which affects cooperation. To maintain cooperation with the retailer and achieve optimal supply chain efficiency and channel coordination, the manufacturer must compensate the retailer or choose one with fewer expectations regarding its channel status or fewer fairness concerns.

The online integrated order picking and delivery considering Pickers’ learning effects for an O2O community supermarket

The online-to-offline (O2O) community supermarket is currently a popular O2O business model in China. Owing to the small lot-size, high frequency, time-sensitive, and dynamic arrival of online customer orders, many O2O community supermarkets face challenges in how to pick up the dynamic arrival orders and deliver them to customers with minimum makespan and delivery cost. To achieve the global optimal order fulfillment performance, we study the online integrated order picking and delivery problem for an O2O community supermarket, and order pickers’ learning effects are considered to better plan the integrated problem. To propose a feasible and efficient schedule, the online algorithm A is established, and the competitive ratio is proved to be 2 theoretically. To further verify the effectiveness and efficiency of algorithm A in practice, we summarize the actual order fulfillment rules (named A1), and conduct numerical experiments to compare algorithm A with A1. Moreover order pickers’ workforce characteristics are varied to evaluate the learning effects on the order fulfillment process. The results show that Algorithm A performs better than A1 in different situations, and considering pickers’ learning effects is significant for the accuracy and predictability of order fulfillment process.

Data for: The Online Integrated Order Picking and Delivery Considering Pickers’ Learning Effects for An O2O Community Supermarket

Abstract The online-to-offline (O2O) community supermarket is currently a popular O2O business model in China. Owing to the small lot-size, high frequency, time-sensitive, and dynamic arrival of online customer orders, many O2O community supermarkets face challenges in how to pick up the dynamic arrival orders and deliver them to customers with minimum makespan and delivery cost. To achieve the global optimal order fulfillment performance, we study the online integrated order picking and delivery problem for an O2O community supermarket, and order pickers’ learning effects are considered to better plan the integrated problem. To propose a feasible and efficient schedule, the online algorithm A is established, and the competitive ratio is proved to be 2 theoretically. To further verify the effectiveness and efficiency of algorithm A in practice, we summarize the actual order fulfillment rules (named A 1 ), and conduct numerical experiments to compare algorithm A with A 1 . Moreover order pickers’ workforce characteristics are varied to evaluate the learning effects on the order fulfillment process. The results show that Algorithm A performs better than A 1 in different situations, and considering pickers’ learning effects is significant for the accuracy and predictability of order fulfillment process.

Study on core essential elements for O2O business model with value net theory

The O2O business model concept was given based on literature review. The O2O business model framework was established and the most basic seven major elements were identified in our research with value net theory as follow: customer, telecom operator, content provider, service provider, software provider, third-party payment platform and offline business entity. Then, we identified eight secondary elements and 22 three-level elements of O2O business model with Delphi, and the O2O business model core essential elements evaluation model was also established. We analysed the model systematically and figured out top ten core elements with analytic network process as follow: network speed and stability, mining the customer subject requirements, insight to customer demand, control the trading risk, the core technology research and development, the life service payment platform, after payment platform, financial services platform development, outburst requirements fulfilment and maintenance of direct correlation among enterprises. The top ten elements mainly concentrated in four dimensions as follow: customer, telecom operators, third-party payment platform, and software providers. We hope that the research can provide enlightenment to O2O business model essence and insight to O2O future trends.

Study on core essential elements for O2O business model with value net theory

The O2O business model concept was given based on literature review. The O2O business model framework was established and the most basic seven major elements were identified in our research with value net theory as follow: customer, telecom operator, content provider, service provider, software provider, third-party payment platform and offline business entity. Then, we identified eight secondary elements and 22 three-level elements of O2O business model with Delphi, and the O2O business model core essential elements evaluation model was also established. We analysed the model systematically and figured out top ten core elements with analytic network process as follow: network speed and stability, mining the customer subject requirements, insight to customer demand, control the trading risk, the core technology research and development, the life service payment platform, after payment platform, financial services platform development, outburst requirements fulfilment and maintenance of direct correlation among enterprises. The top ten elements mainly concentrated in four dimensions as follow: customer, telecom operators, third-party payment platform, and software providers. We hope that the research can provide enlightenment to O2O business model essence and insight to O2O future trends.

Pertumbuhan Bisnis Melalui Metode O2O pada Usaha Mikro, Kecil dan Menengah (UMKM) di Indonesia

Upaya pemerintah dalam mendorong Usaha Mikro Kecil dan Menengah (UMKM) untuk “go online” mendapat dukungan besar dari para pelaku e-commerce. Hal ini disebabkan karena kekuatan ekonomi khususnya di Indonesia sebesar 60% terletak pada UMKM. Di era mobile internet saat ini, jumlah pengguna smartphone yang telah melakukan online adalah sumber utama dalam pengembangan UMKM. Salah satu strategi yang diadopsi oleh banyak pelaku bisnis di Indonesia adalah strategi Online to Offline atau Offline to Online (O2O). Model bisnis O2O tidak hanya mengubah mentalitas konsumen dan model layanan tetapi juga membawa tantangan baru bagi e-commerce tradisional. Dapat dikatakan bahwa e-commerce saat ini mencari cara baru untuk menggabungkan ekonomi online dan offline, yang merupakan tren yang tak terelakkan dalam pengembangan e-commerce. Oleh karena itu, model bisnis O2O adalah model bisnis yang tepat untuk UMKM karena memiliki prospek pengembangan yang besar. Makalah ini akan membahas pengenalan model O2O dan strategi pengembangannya kepada UMKM, dan juga untuk mempromosikan pengembangan aplikasi e-commerce berbasis O2O di UMKM.

Understanding usage transfer behavior of two way O2O services

E-commerce has become an established business model, and enterprises of all sizes are engaged in a wide range of business strategies to attract consumers. One strategy in particular, known as online-to-offline, or O2O, has developed particularly quickly. In comparison to past O2O studies which have focused on the purchase intention of individual O2O users, this study explores whether consumers' experience and behavior can be transferred between physical and virtual channels to create Online-to-Offline and Offline-to-Online behavior patterns. Furthermore, we explore key factors influencing consumers’ behavior in the O2O business model. To assess factors including “trust,” “perceived risk,” “service quality,” “satisfaction,” “subjective norms,” “social interaction,” “convenience,” and “behavioral intention,” an online questionnaire is distributed to consumers to solicit past experience with O2O business models and relevant opinions for both Online-to-Offline and Offline-to-Online models The collected data are tested through hypothesis analysis via structural equation modeling (SEM). The empirical results show that trust, perceived risk, the service quality of the system, subjective norms, and convenience have a positive impact on consumer satisfaction and behavioral intention in the Online-to-Offline model, while the impact of social interaction is found to be insignificant. In the Offline-to-Online model, trust, the service quality of the system, subjective norms, social interaction, and convenience have a positive impact on consumer satisfaction and behavioral intention, but perceived risk does not. The results of this study provide researchers and firms with a better understanding of the O2O business model.

How to Coordinate a Two-Echelon Supply Chain under O2O Business Model When Retailer Faces Disruptions

A two-echelon supply chain under O2O business model, a new kind of supply chain, is studied in this paper, in which it is composed of one supplier (she) and one O2O retailer (he). The supplier finds that demand disruption and retailer’s sales cost disruption happen simultaneously after her production plan is formulated. How to maximize the total supply chain profit in the centralized and the decentralized decisions is analyzed, which is a new problem compared with the previous studies. The results obtained are as follows. The supplier needs to adjust the retail price if the disruptions satisfy a given condition. If the disruptions satisfy other conditions, the supplier needs to adjust both the retail price and the production quantity. In the decentralized decision, an improved revenue-sharing contract, a new supply contract, can coordinate the disrupted supply chain. Finally, some numerical examples are given to show the results.

Analysis on the Business Mode of Sports and Fitness O2O Platform in the Context of “Internet plus Sports”

Along with the proposed action plan of Internet plus, It has entered the era of mobile internet in China. When we open the mobile phone applications, social networking, shopping, taking a taxi, chat, and even the delivery industry are seizing the user of the mobile terminal market, mobile Internet reconstructs the people's life style and make life more convenient and intelligent, and create a good market environment and opportunities for the development of sports health industry. Along with people's sports fitness awareness increasing, based on the actual demand for sports interest plus social networking, It promotes the combination of the mobile Internet and sports fitness industry, the mobile App products in sports industry and sports fitness O2O platform emerge. It is a good choice to combine O2O business mode with the mobile Internet for the traditional sports industry. In this paper, it analyzes the meaning and development trend of Internet plus and the O2O business model and its application status in China, and the operation status and future profit model of sports O2O. Furthermore, it takes the sports exercise O2O platform “Coach Appointment” as an example to analyse the commercial application and prospect of O2O pattern in the sports and fitness industry based on the mobile internet.

Case Analysis of “Pin Hao Huo”—A New Business O2O Model of Fruit and Perishable Supply

With the rapid development of “internet +” and consumers’ increasing need for good bargains, more challenges are brought forward for the daily consumptions. Thus emerges the new online business model for perishables and fruits. Pin Hao Huo is one of the typical successful online fruit suppliers. From the Pin Hao Huo’s operation model, this paper analyses the perishable providers’ possibility of expanding their business through O2O business model and gives advice for their further development.

Modeling and simulating a smart information-based real estate online platform

We propose and study a novel O2O business model for real-estate purchases, called Information-based Real-Estate Platform (iREP in short). The new model leverages the power of Internet and mobile Apps for connecting directly the customers via a federation of human expert agents which work in a loosely coupled relation and on-demand basis. The unique features of this O2O model include: the use of mobile Apps in engaging customers together with selected agents, better resource sharing and allocation of the human agents, and relatively higher-speed of transactions by liberating the restrictions of agents. Unlike the traditional sales models where agents were dedicated to specific property agency companies, this one-stop model enables wider range of products to be marketed to all the potential buyers, leading to better matching between demands and supplies. iREP is modeled using BPR modeling tool for illustrating its model structure and the values that flow within the federation framework among the parties involved. Then the value model is subject to business process re-engineering simulation, for demonstrating how the dynamic processed are streamlined, thereby creating net values for both the developers and the end-consumers.

Research on O2O Business Model and Strategy of Urban Distribution in Mobile Internet Environment

According to mobile communication and Internet technology, we are now building the O2O commercial model of the deal for city distribution information, as well as achieving the high usage of social goods transportation resources and industrial energy-saving and emission-reduction. We will analyze the driving factor in urban distribution current operation mode revolution through mobile Internet environment, we will also study on urban distribution information transactions and credit management model so as to put forward urban distribution of O2O business model and enterprise software development, logistics parks, mobile Internet operators cooperation strategy based on the Internet according to the organization of urban distribution, business relationships and business processes of the complexity features.

Analysis of the Operating Mechanism of O2O Business Model in the Retail Industry Under the Internet Plus Era

With the rapid development of Internets (mobile Internet or Internet of Things), “Internet Plus” has been integrated into all fields of society and economy as a brand new economic form. Therefore to keep Retail Industry, one of our conventional industry growing healthy and to maintain its sustainability, it is imperative to adjust consistently the Retail Industry’s marketing strategy and transform its pure bricks-and-mortar operating to fit into the impact of internet technology on the industry.

Cultural Tourism O2O Business Model Innovation

It is absolutely not an accidental phenomenon that the development of Internet overlaps with boom of business model research. The emergence of the Internet has greatly promoted the development and study of business models. This paper focuses on exploration of O2O business model innovation by analyzing the main types, evolution and driving factors of Chinese Internet business model, taking Ctrip as the example. From the social prospective, O2O business model improves value and feeling of the customer experience as well as the operational efficiency of the enterprise value chain and utilization efficiency of social resources. This paper has also put forward what Ctrip can enlighten the development of tourism enterprises.