The Paradox of Choice: The False Premise of Omnichannel Services and How to Realize It

Title：The Paradox of Choice: The False Premise of Omnichannel Services and How to Realize It

Speaker：Chen Xiaole (The Chinese University of Hong Kong, Ph.D. Candidate)

Host：WANG Shan (Lingnan College, Sun Yat-sen University, Assistant Professor)

Date and Time： January 9th, 2020 (14:30-16:00)

Location： Wang Daohan Conference Room, Lingnan Hall

Language： English+Chinese

Abstract:

Omni-channel service, an integration of in-store service with online ordering, has been thriving thanks to innovative IT technologies. Major chains such as McDonald's and Starbucks are all establishing their omni-channel capability. Boutique coffee shops and restaurants are partnering with third-party platforms to offer holistic omni-channel services. In this study, we shall discuss the impacts of the omni-channel capability in the service industry. We adopt a game-theoretical queueing framework to explore customer channel choices and investigate the effectiveness and efficiency of the omni-channel system in comparison with a conventional walk-in only system. Our results demonstrate the inefficiency of the omni-channel system due to self-interested channel choices. We, thus, suggest several operational strategies that may curtail this inefficiency and establish a win-win outcome: the provider is able to improve her revenue while customers also enjoy higher social welfare.