An O2O Commerce Service Framework and its Effectiveness Analysis with Application to Proximity Commerce

• Published in: Procedia manufacturing 2015, Vol.3, p.3498-3505
• Main Authors: Tsai, Tse-Ming, Wang, Wen-Nan, Lin, Yu-Tin, Choub, Seng-Cho
• Format: Article
• Language: English
• Subjects: Effectiveness analysis; Online 2 Offline; Proximity commerce
• ISSN: 2351-9789; 2351-9789
• DOI: 10.1016/j.promfg.2015.07.668

With the exponential growth of smart handheld devices and social communities, mobile commerce, social commerce and proximity commerce are also created in the last decades. Recently, the newer commerce model is online to offline (O2O) commerce and various kinds of creative service models have been proposed. It becomes a major research topic since retailer and enterprise may not be ready to utilize the new service model and consumer may not be used to this type of service. This paper applies customer journey analysis of some popular O2O service scenarios, defines an O2O Commerce Service Model, and proposes an O2O Commerce System Framework. According to this framework, this paper implements a “One-Click Shopping Wall” service to conduct an experiment of the best practice of Proximity Commerce Service. In this case, some offline digital signage is formed to attract nearby users to interact and make some online transaction with their mobile device, and then guiding them to finish the act of consumption in bricks-and-mortar. According to this case study, we conduct the effectiveness analysis experiment to find the key factors of consumer behavior. The research also applied one day promotion where users have to purchase and share product on their Facebook Wall with One-Click shopping mall app. The experimental results includes 352 people counts, 27.5% App downloads, 6% product conversion, 31% coupon collection, and 30% social network sharing. This research proposes that 1) the distance between kiosk and store and 2) discount availability are highly correlated to the act of transaction. Thus, it provides a good reference for service providers to conduct attractive promotion to maximize O2O effectiveness. The research result can avoid the costly mistake of designing various mechanism and provide user adoption analysis and digital marketing strategy via online/offline in adopting this kind of innovation service.