Omnichannel supply chain operations for luxury products with conspicuous consumers

Ying Wei and Feng Li

Transportation Research Part E: Logistics and Transportation Review, 2020, vol. 137, issue C

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.

Keywords: Omnichannel; Channel strategy; Conspicuous consumption; Stock availability; Luxury product (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (14)

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DOI: 10.1016/j.tre.2020.101918

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