Purpose As e-commerce continues to proliferate, an increasing number of retailers are using online coupons to attract consumers. Additionally, dual-channel retailers are adopting the Buy-online-and-pickup-in-store (BOPS) strategy, transitioning to an omni-channel strategy to enhance consumers' shopping experience. This article aims to analyse how retailers' online coupon distribution and BOPS strategy implementation jointly influence their decision-making in channel management. Design/methodology/approach We construct two decision models, dual-channel and omni-channel for an e-commerce supply chain consisting of a single retailer and a single e-commerce platform. The online-only coupon distribution strategies of the retailers under these two models are investigated separately. We develop a Stackelberg game model and utilize the Karush–Kuhn–Tucker (KKT) method along with backwards induction to determine the optimal decisions for retailers. Findings In a dual-channel decision-making model, whether a retailer distributes coupons online depends on the relationship between the consumers' preference for online shopping and travel costs. After implementing BOPS, retailers always distribute coupons online in the omni-channel. Finally, we find that the conditions promoting retailers to implement BOPS vary depending on the coupon distribution strategies employed. Furthermore, we extend the base model in multiple ways, including considering the coupon distribution across all channels with differentiated pricing strategies, the retailers' logistics and inventory costs, endogenizing commission rates and the platform responsible for coupon distribution. The results remain qualitatively unchanged. Originality/value This study provides insights into the consideration that under different coupon strategies for dual-channel and omni-channel, and how the firms can achieve maximum by opening BOPS.
Lin et al. (Tue,) studied this question.