Online versus offline encroachment? Channel selection and information sharing strategies in a multichannel supply chain considering consumer webrooming behavior

Abstract This paper develops a three‐party game model comprising a supplier, an online retailer, and an offline retailer, where the supplier wholesales the product to retailers. Considering webrooming (i.e., consumers experience and purchase offline after evaluating products online) and information leakage, we examine the supplier encroachment channel (i.e., online or offline) and retailers' information sharing strategies. We find that the channel selection of encroachment depends on the cost difference between online and offline encroachment. Information sharing by a retailer can result in another retailer not sharing. Webrooming influences encroachment strategy by altering cost thresholds, prompting the supplier to encroach on the offline channel as webrooming increases. However, a strong preference for online shopping will lead the supplier to forgo encroachment despite webrooming. We identify a “win‐win‐win” situation where all stakeholders benefit from webrooming. Finally, we discuss consumer surplus and social welfare and extend the model based on differential pricing and information confidentiality.

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Publication Details

Journal
International Transactions in Operational Research
Published
2025-09-21
DOI
https://doi.org/10.1111/itor.70101
Primary Topic
Supply Chain and Inventory Management
Type
article
Field-Weighted Citation Impact
0.00
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article

Online versus offline encroachment? Channel selection and information sharing strategies in a multichannel supply chain considering consumer webrooming behavior

Lingyun Guo, Yujie Zhao, L. Tong, Yifan Zhang
International Transactions in Operational Research
Supply Chain and Inventory Management
article

Online versus offline encroachment? Channel selection and information sharing strategies in a multichannel supply chain considering consumer webrooming behavior

Lingyun Guo, Yujie Zhao, L. Tong, Yifan Zhang
article en

Abstract

Abstract This paper develops a three‐party game model comprising a supplier, an online retailer, and an offline retailer, where the supplier wholesales the product to retailers. Considering webrooming (i.e., consumers experience and purchase offline after evaluating products online) and information leakage, we examine the supplier encroachment channel (i.e., online or offline) and retailers' information sharing strategies. We find that the channel selection of encroachment depends on the cost difference between online and offline encroachment. Information sharing by a retailer can result in another retailer not sharing. Webrooming influences encroachment strategy by altering cost thresholds, prompting the supplier to encroach on the offline channel as webrooming increases. However, a strong preference for online shopping will lead the supplier to forgo encroachment despite webrooming. We identify a “win‐win‐win” situation where all stakeholders benefit from webrooming. Finally, we discuss consumer surplus and social welfare and extend the model based on differential pricing and information confidentiality.

International Transactions in Operational ResearchVol. 33(3)
Hebei University of Technology (CN), Beihang University (CN)
Openalex Percentile: Top 58%
Supply Chain and Inventory Management
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