研究期間:10108~10207;According to the statistics provided by Ministry of Economic Affairs, R.O.C., the sales of B2C e-commerce in Taiwan was NT$ 1.63 billion in 1999. The sales became NT$ 50 billion in 2005, and over NT$ 200 billion in 2009. Given the environment that the scale of virtual market grows rapidly, businesses confront the problem of retail channels choice: brick-and-mortar vs. virtual. As the related theoretical researches are insufficient, we would like to propose a model to analyze this important issue. In constructing the model, we consider consumers’ preferences of purchasing in brick-and-mortar stores or in virtual stores, the differentiation of firms’ operation costs, and the differentiation of product searching technologies. Through equilibrium analysis, we want to know how product searching technologies affect firms’ retail channels decisions, and how these factors affect firms’ pricing strategies in different retail channels.