Competition with Online and Offline Demands considering Logistics Costs Based on the Hotelling Model

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ID: 67020
2014
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Abstract
Through popular information technologies (e.g., call centers, web portal, ecommerce and social media, etc.), traditional shops change their functions for servicing online demands while still providing offline sales and services, which expand the market and the service capacity. In the Hotelling model that formulates the demand effect by considering just offline demand, the shops in a line city will locate at the center as a the result of competition by games. The online demands are met by the delivery logistics services provided by the shops with additional cost; the consumers’ waiting time after their orders also affects their choices for shops. The main purpose is to study the effects of the following aspects on the shops’ location competition: two logistics costs (consumers’ travelling cost for offline demands and the shops’ delivery logistics cost for online demands), the consumers’ waiting cost for online orders, and the ratios of online demands to the whole demands. Therefore, this study primarily contributes to the literature on the formulation of these aspects by extending the Hotelling model. These features and effects are demonstrated by experiments using the extended Hotelling models.
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hu2014competitionmathematical Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors Hu, Zhi-Hua;Wei, Chen;Li, Qing;Xiao, Fan;
Journal mathematical problems in engineering
Year 2014
DOI
DOI not found
URL
http://dx.doi.org/10.1155/2014/160782
Keywords
Education Medicine (General) Engineering (General). Civil engineering (General) Information technology Medical technology psychology business philology. linguistics language and literature social history and conditions. social problems. social reform special aspects of education mathematics bibliography. library science. information resources civil engineering (general)mathematics engineering (general)

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