In this increasingly competitive world, the emergence of online business has threatened the market of offline business. Supported with the advancement of information technologies and big data analysis, online business has gained more competitive advantages as they are able to learn their costumers’ behavior better than offline business. Even so, as the customers embrace the Internet and smartphones more and more, online business can attract costumers easier than ever before. Traditional physical stores that fail to adapt to this new market characteristics will be more likely to lose their sales and struggle to keep up with other competitors in the near future.
In this study, we will see how traditional stores can regain their competitive advantage through a framework of O2O (Online to Offline) commerce business model that can create an omni-channel retailing environment. With smartphone as the selected device to bridge end-costumers to the system, we will utilize the data gained from digital receipt to know beforehand the certain customer’s buying pattern, combine the technology of Internet of Things to detect the customer’s current location inside a physical store, and finally through an integrated application we can give the right information for customized product promotion in a context-aware persuasive framework. Finally, a set of incentive mechanism strategies is generated in order to make certain that customers are willing to take part in this system. The proposed strategies are distinguished into three parts, which are increasing store traffic, in-store engagement, and increasing returning customers.

In this increasingly competitive world, the emergence of online business has threatened the market of offline business. Supported with the advancement of information technologies and big data analysis, online business has gained more competitive advantages as they are able to learn their costumers’ behavior better than offline business. Even so, as the customers embrace the Internet and smartphones more and more, online business can attract costumers easier than ever before. Traditional physical stores that fail to adapt to this new market characteristics will be more likely to lose their sales and struggle to keep up with other competitors in the near future.
In this study, we will see how traditional stores can regain their competitive advantage through a framework of O2O (Online to Offline) commerce business model that can create an omni-channel retailing environment. With smartphone as the selected device to bridge end-costumers to the system, we will utilize the data gained from digital receipt to know beforehand the certain customer’s buying pattern, combine the technology of Internet of Things to detect the customer’s current location inside a physical store, and finally through an integrated application we can give the right information for customized product promotion in a context-aware persuasive framework. Finally, a set of incentive mechanism strategies is generated in order to make certain that customers are willing to take part in this system. The proposed strategies are distinguished into three parts, which are increasing store traffic, in-store engagement, and increasing returning customers.

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