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Integrating the physical and digital strategies for supplier: the role of offline showroom and augmented reality experiences
Journal article   Open access   Peer reviewed

Integrating the physical and digital strategies for supplier: the role of offline showroom and augmented reality experiences

Zhitang Li and Benjamin Lev
Computers & operations research, v 185, 107294
Jan 2026
DOI: https://doi.org/10.1016/j.cor.2025.107294
Featured in Collection :   Research Supported by Drexel Libraries' OA Programs
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https://doi.org/10.1016/j.cor.2025.107294View
Published, Version of Record (VoR)Open Access via Drexel Libraries Read and Publish Program 2025CC BY V4.0,  Open

Abstract

Retail Augmented reality (AR) Showroom Service Pricing Channel Augmented Reality Retail Industry
As the retail landscape evolves with the rise of digital technologies, the fusion of online and offline experiences is becoming a key strategy for businesses seeking to enhance customer engagement. This study examines the evolving dynamics of Online-to-Offline (O2O) retail, focusing on the integration of offline showroom experience services and online Augmented Reality (AR) endorsements. Offline showrooms allow consumers to evaluate products physically, while AR services provide immersive online experiences. Our findings highlight several interesting yet challenging insights. First, suppliers may shift from single-channel strategies to integrated interaction-based services when both showroom and AR effects are strong; however, when AR effects are weaker, offline showrooms become more dominant. Second, both offline and AR services stimulate respective service investments and improve supplier profitability, revealing the dual role of these channels as both substitutes and complements. Third, suppliers are more likely to pursue integration strategies when integration costs are low, but intriguingly, they may still integrate even under high costs if the interactive benefits are sufficiently large. Finally, pricing and service quality differentiation across channels illustrate the strategic difficulty of maintaining consistency in omnichannel environments. This research underscores the importance of balancing AR and showroom services, with integration offering strategic advantages for businesses like Apple Inc., especially when backed by strong financial resources to support higher integration costs.

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#12 Responsible Consumption & Production

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Collaboration types
Domestic collaboration
International collaboration
Web of Science research areas
Computer Science, Interdisciplinary Applications
Engineering, Industrial
Operations Research & Management Science
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