Cannibalization or Synergy? Consumers’ Channel Selection in Online-Offline Multichannel Systems

This paper develops and empirically validates customer shopping motives taking account of customer channel selection in multichannel systems. As each channel is associated with certain advantages and disadvantages from a customer's perspective, we develop – based on behavioral considerations – a customer typology to classify different segments of customers. This enables us to empirically analyze the interrelationship between distinct shopping motives prior marketing research has suggested and cannibalization and synergetic effects in online–offline multichannel systems. Our results show that a higher degree of customers' convenience orientation in contrast to the degree of risk aversion and service orientation encourages the selection of the online channel over the offline channel. In addition, we develop and empirically analyze a typology of customers to classify distinct segments of consumers, highlighting the associated interrelationship of individual shopping motives and cannibalization and synergetic effects. Our results indicate that the desire for service, rather than risk aversion, could potentially cannibalize customers away from the online channel.

[1]  Bert Weijters,et al.  Assessing response styles across modes of data collection , 2008 .

[2]  Linda B. Bourque,et al.  How to Conduct Self-Administered and Mail Surveys , 1995 .

[3]  Tobias Kollmann,et al.  Organizational readiness and the adoption of electronic business: the moderating role of national culture in 29 european countries , 2009, DATB.

[4]  J. A. Calvin.  Regression Models for Categorical and Limited Dependent Variables , 1998 .

[5]  Elena Karahanna,et al.  The Relative Advantage of Electronic Channels: A Multidimensional View , 2008, MIS Q..

[6]  Mark A. Fuller,et al.  Applying TAM to e-services adoption: the moderating role of perceived risk , 2003, 36th Annual Hawaii International Conference on System Sciences, 2003. Proceedings of the.

[7]  Dongsong Zhang,et al.  Predicting and explaining patronage behavior toward web and traditional stores using neural networks: a comparative analysis with logistic regression , 2006, Decis. Support Syst..

[8]  Alok Gupta,et al.  An Empirical Study of Consumer Switching from Traditional to Electronic Channels: A Purchase-Decision Process Perspective , 2004, Int. J. Electron. Commer..

[9]  Hung-Pin Shih,et al.  An empirical study on predicting user acceptance of e-shopping on the Web , 2004, Inf. Manag..

[10]  F. Huber,et al.  Segmenting cyberspace: a customer typology for the internet , 2007 .

[11]  Chris Janiszewski,et al.  The Influence of Avatars on Online Consumer Shopping Behavior , 2006 .

[12]  Alok Gupta,et al.  Risk profile and consumer shopping behavior in electronic and traditional channels , 2004, Decis. Support Syst..

[13]  Lee Rainie,et al.  Getting Serious Online. , 2002 .

[14]  John G. Lynch,et al.  Interactive Home Shopping: Consumer, Retailer, and Manufacturer Incentives to Participate in Electronic Marketplaces , 1997 .

[15]  J. S. Long,et al.  Regression Models for Categorical and Limited Dependent Variables , 1997 .

[16]  Hong-Youl Ha,et al.  Effects of consumer perceptions of brand experience on the web: brand familiarity, satisfaction and brand trust , 2005 .

[17]  M. Porter.  Competitive Advantage: Creating and Sustaining Superior Performance , 1985 .

[18]  Martin Boehm.  Determining the impact of internet channel use on a customer's lifetime , 2008 .

[19]  Scott B. MacKenzie,et al.  Common method biases in behavioral research: a critical review of the literature and recommended remedies. , 2003, The Journal of applied psychology.

[20]  Martha G. Russell,et al.  The Impact of Perceived Channel Utilities, Shopping Orientations, and Demographics on the Consumer's Online Buying Behavior , 2006, J. Comput. Mediat. Commun..

[21]  Madely du Preez.  Trust and New Technologies: Marketing and Management on the Internet and Mobile Media , 2009 .

[22]  E. Tauber.  Why Do People Shop , 1972 .

[23]  Nicole A. Lazar,et al.  Statistical Analysis With Missing Data , 2003, Technometrics.

[24]  Andrew J. Rohm,et al.  A typology of online shoppers based on shopping motivations , 2004 .

[25]  Inge Geyskens,et al.  How cannibalistic is the internet channel? A study of the newspaper industry in the United Kingdom and the Netherlands , 2002 .

[26]  H. Raghav Rao,et al.  On risk, convenience, and Internet shopping behavior , 2000, CACM.

[27]  F. Reichheld,et al.  E-LOYALTY: YOUR SECRET WEAPON ON THE WEB , 2003 .

[28]  Harry Bouwman,et al.  The Dynamics of Click-and-Mortar Electronic Commerce: Opportunities and Management Strategies , 2002, Int. J. Electron. Commer..

[29]  Ruth C. King,et al.  Impact of Web−based E−Commerce on Channel Strategy , 2002 .

[30]  S. Balasubramanian.  Mail Versus Mall: a Strategic Analysis of Competition Between Direct Marketers and Conventional Retailers , 1998 .

[31]  V. Barnett,et al.  Applied Linear Statistical Models , 1975 .

[32]  Xianggui Qu,et al.  Multivariate Data Analysis , 2007, Technometrics.

[33]  Andreas Kuckertz,et al.  Antecedents to Permission Based Mobile Marketing: An Initial Examination , 2007 .

[34]  R. Keeney,et al.  The Value of Internet Commerce to the Customer , 1999 .

[35]  Dheeraj Sharma,et al.  Internet channel and perceived cannibalization , 2009 .

[36]  Wann‐Yih Wu,et al.  The role of risk attitude on online shopping: Experience, customer satisfaction, and repurchase intention , 2007 .

[37]  R. S. Hancock.  Dynamic marketing for a changing world : proceedings of the 43rd National Conference of the American Marketing Assocation, June 15, 16, 17, 1960 , 1960 .

[38]  Fred D. Davis,et al.  Toward preprototype user acceptance testing of new information systems: implications for software project management , 2004, IEEE Transactions on Engineering Management.

[39]  Michael H. Kutner.  Applied Linear Statistical Models , 1974 .

[40]  H. Schröder,et al.  Linking multi-channel customer behavior with shopping motives: An empirical investigation of a German retailer , 2008 .

[41]  E. Tauber.  Marketing Notes and Communications: Why Do People Shop? , 1972 .

[42]  Michael R. Ward.  Will Online Shopping Compete More with Traditional Retailing or Catalog Shopping? , 2001 .

[43]  Glenn B. Voss,et al.  Determinants of online channel use and overall satisfaction with a relational, multichannel service provider , 2003 .

[44]  J. W. Taylor.  The role of risk in consumer behavior. , 1974 .

[45]  J. Jacoby,et al.  Consumer Behavior , 2009 .

[46]  E. B. Andersen,et al.  Modern factor analysis , 1961 .