Manufactures' Channel Strategy Based on Product Experience in O2O Environment

In response to the rapid development of O2O, a manufacturer requires an appropriate channel strategy. In this paper, we first establish consumer utility function based on product experience. We then build the traditional single channel and O2O model for a manufacturer. Then, we analyze the demand and income changes of the online channel as a product information display, or at the same time as the trading platform under the different operation modes assuming centralized decision making by the manufacturer. Through model analysis and numerical simulations, we investigate the influence of product experience and selling price on O2O channel decisions.