Research on Order Cancellation Strategy of Omni-channel Retailers Considering Consumers' Disappointment and Aversion Behavior

Abstract

In the omni-channel retail environment, online and offline channels are highly integrated, which provides great convenience for consumers to buy products or return products that do not meet their needs anytime and anywhere. In order to further quantify the omni-channel retailer order cancellation strategy based on consumer disappointment and aversion behavior, based on the disappointment theory, this paper establishes an optimization model of omni-channel BOPS operation considering consumer disappointment and disgust behavior, and uses the Kmurt condition to obtain the optimal pricing and service radius of omni-channel retailer operation. The research shows that, first, the consumer loss aversion coefficient has a significant impact on retailers' order cancellation policies. Second, for long-distance consumers, omni-channel retailers should formulate appropriate cancellation policies; for nearby consumers, omni-channel retailers should formulate strict or loose cancellation policies. The formulation of omni-channel cancellation policy can help retailers gain more market share and improve their management and operation level.