Hyperlocal delivery(HLD)refers to a novel model for delivering goods or services to customers within a very limited geographic area,typically within a few miles of their location,in a very short time.With more and mor...Hyperlocal delivery(HLD)refers to a novel model for delivering goods or services to customers within a very limited geographic area,typically within a few miles of their location,in a very short time.With more and more online retailers moving to HLD,it is imperative to analyse the impact of HLD on the pricing decisions of both online channels and modern trade outlets.For this,we assume a framework consisting of a manufacturer employing two downstream channels:modern trade outlets and online platforms,to reach the product to the end customer.The Stackelberg game is used to model the interplay between the manufacturer and downstream channel partners,while the horizontal Nash game captures the dynamics within the downstream channel partners.The downstream channel partners are also assumed to be risk-averse,and we used the Mean-Variance Approach for modelling.The study indicates that HLD provides a competitive edge to the online channel;however,strategic product selection enables modern trade outlets to counter this competition effectively.The study underscores the importance of aligning HLD costs with production costs for online channels to maintain profitability.Furthermore,it reveals that the risk aversion of downstream partners and channel competition significantly influence the profitability of both downstream and upstream partners.The findings will assist management professionals in their quest for profitability by providing them with actionable insights on choosing the right product and optimising hyperlocal delivery facilities.展开更多
文摘Hyperlocal delivery(HLD)refers to a novel model for delivering goods or services to customers within a very limited geographic area,typically within a few miles of their location,in a very short time.With more and more online retailers moving to HLD,it is imperative to analyse the impact of HLD on the pricing decisions of both online channels and modern trade outlets.For this,we assume a framework consisting of a manufacturer employing two downstream channels:modern trade outlets and online platforms,to reach the product to the end customer.The Stackelberg game is used to model the interplay between the manufacturer and downstream channel partners,while the horizontal Nash game captures the dynamics within the downstream channel partners.The downstream channel partners are also assumed to be risk-averse,and we used the Mean-Variance Approach for modelling.The study indicates that HLD provides a competitive edge to the online channel;however,strategic product selection enables modern trade outlets to counter this competition effectively.The study underscores the importance of aligning HLD costs with production costs for online channels to maintain profitability.Furthermore,it reveals that the risk aversion of downstream partners and channel competition significantly influence the profitability of both downstream and upstream partners.The findings will assist management professionals in their quest for profitability by providing them with actionable insights on choosing the right product and optimising hyperlocal delivery facilities.
