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This paper investigates the impacts of market segmentation and showrooming effect on the decision making of an O2O supply chain and puts forwards a contract to coordinate the O2O supply chain. Results show that the showrooming effect is beneficial to the manufacturer, retailer, and the supply chain, and the retailer will offer offline showrooming service. Under the influence of market segmentation, O2O supply chain structure is not necessarily better than single-channel supply chain structure. But adopting advertising and other means to improve consumers’ online channel acceptance, it can realize the successful transformation from single-channel structure to O2O structure. The benefits of showrooming effect can eliminate the disadvantage of market segmentation. Moreover, a service cost sharing contract is put forward, which can perfectly coordinate the O2O supply chain with market segmentation and showrooming effect. These research findings help supply chain managers to understand which channel structure is optimal by considering market segmentation and showrooming effect and identify possible pathways for them to perfectly cooperate.

Decision and Coordination of an O2O Supply Chain With Market Segmentation and Showrooming Effect