Social Contagion and Customer Adoption of New Sales Channels

We develop and test hypotheses regarding the role of social contagion in customer adoption of new sales channels. We examine two aspects of social contagion (local contagion and homophily) and two channels (Internet and bricks-and-mortar store). Drawing on diffusion theory, we propose a conceptual framework that identifies the factors associated with new channel adoption. Using longitudinal data from a major catalog company and a discrete-time hazard model, we find that (1) social contagion plays a major role in the adoption of new sales channels, (2) both local contagion and homophily influence channel adoption, (3) longer-tenured customers are less influenced by social contagion, and (4) adoption of the Internet channel is more influenced by social contagion than adoption of the bricks-and-mortar store. Managerially, our results suggest that marketing programs that encourage social contagion, for example, word-of-mouth campaigns, be targeted based on both physical and socio-economic proximity, and that such campaigns will play a bigger role in the adoption of new-to-the-world channels.     

Crosswise and reciprocal interdependencies within retailers’ multichannel structures

Understanding consumer behavior across channels is the fundamental basis for implementing successful multichannel retailing strategies. This study analyzes the crosswise and reciprocal relationships between offline and online brand beliefs, offline and online retail brand equity and consumers’ conative loyalty to a retailer in multichannel structures. The relationships are contextualized by investigating fashion and grocery retail sectors and different prior channel performances that are likely to affect the paths to loyalty across channels. To provide insight into these issues, two cross-sectional and two longitudinal models are employed. The results show that former brick-and-mortar retailers are able to significantly increase consumers’ loyalty to the firm by primarily designing offline (secondary online) attributes and beliefs. The results hold for retailers in both fashion and grocery retailing, however, with stronger effects in fashion, as well as for retailers with strong vs. weak prior channel performance. However, indirect effects indicate that online brand beliefs and offline retail brand equity are the central strategic levers for prior strong (vs. weak) retailers. Reciprocal relationships between online and offline retail brands underline important channel interdependencies. Managers thus need to take these crosswise and reciprocal interdependencies between channels into account when designing successful multichannel retailing systems. This study introduces the novel idea of simultaneous crosswise and reciprocal relationships within multichannel retail structures and shows that paths to loyalty vary for retailers in different retail sectors and retailers with strong vs. weak offline and online channel performances.     

Shopping Benefits of Multichannel Assortment Integration and the Moderating Role of Retailer Type

To what extent should multichannel retailers integrate assortments across channels? Previous literature controversially discusses the question of which integration strategy is most successful but arguments are only conceptual, and no empirical assessment exists. This article presents a framework that (a) shows how customers’ perceived shopping benefits of variety, convenience, and reduced risk mediate the impact of multichannel assortment integration (full, asymmetrical, no) on patronage intentions and (b) differentiates the impact for retailer types based on substitutive, complementary, and independent assortment relations. Two large-scale experimental studies empirically investigate whether a dominant integration strategy exists in the context of full and simultaneous information (Study 1) and more uncertain and subsequent information accessibility (Study 2). We consistently find that full integration dominates no integration across assortment relations, but asymmetrical integration—the strategy that is most often realized by multichannel retailers—can have a detrimental impact for substitutive relations compared with no integration. Asymmetrical integration can be more beneficial than full integration for independent relations, while customer outcomes differ less for complementary relations. Researchers and managers can use our findings to understand how shopping benefits of variety, convenience, and reduced risk explain the different customer outcomes of multichannel assortment integration, depending on retailer type.     

Negotiation Support for Multi-Party Resource Allocation: Developing Recommendation for Decreasing Transportation-Related Air Pollution in Budapest

Decisions about how to allocate scarce resources among potential programs are common sources of conflict in both public and private life. This paper describes a case in which negotiation support was provided for a five-member task force trying to reach agreement about how to allocate limited resources among programs designed to improve the air quality in Budapest, Hungary. The intervention consisted of a series of facilitated decision conferences, plus individual interviews. The task force eventually reached agreement about a recommended package of 15 air quality management programs costing 1,500 million Hungarian forints. The research makes four significant contributions. First, it demonstrated that resource allocation models provide a useful framework for understanding and facilitating multi-party negotiation processes. Second, because resource allocation models were elicited individually for each group member before building a single group model, it was possible to analyze the five-dimensional feasible settlement space (i.e., the joint distribution of benefits for each task member for all possible resource allocation packages). Third, several innovative applications of analytical techniques (i.e., Pareto-efficiency analyses, numerical and graphical analyses of feasible settlement spaces and efficient frontiers, and analyses of task force members' investment progressions) served to improve understanding of disagreements within the group and to evaluate the quality of potential resource allocation packages. Fourth, changes in individual preferences and group agreement were assessed over time. Group members appeared to change substantially and their level of agreement to increase markedly over time.     

Cross-channel free-riding consumer behavior in a multichannel environment: An investigation of shopping motives,sociodemographics and product categories

Cross-channel free-riding, in which consumers use one retailer′s channel to prepare a purchase and then switch to another retailer′s channel to purchase, can substantially erode profit margins. This research aims to understand such free-riding from a consumer empowerment perspective, investigating shopping motives and sociodemographic covariates, as well as how this behavior might differ across product categories. A survey study of decision-making behavior shows that cross-channel free-riders mainly seek to fulfill price comparison, convenience and flexibility needs. The likelihood of free-riding is higher when consumers adopt cross-channel rather than single-channel behavior, which highlights a negative outcome of multichannel retailing. The likelihood of cross-channel free-riding differs across products but not sociodemographic covariates. The findings can be used to develop recommendations for managing retention strategies.     

The Effects of Search-Related and Purchase-Related Mobile App Additions on Retailers’ Shareholder Wealth: The Roles of Firm Size,Product Category,and Customer Segment

Mobile channel additions have been shown to increase consumer-brand relationships, brand satisfaction towards and overall purchasing from a retailer, but what is less apparent is whether shareholders are fully rewarded for retailers’ mobile channel additions. Results from an event study on 115 announcements relating to mobile app additions of publicly traded U.S. retail firms between 2009 and 2016 indicate that the stock market responds generally positively to mobile app additions, but specifically to the two mobile app addition types. Stock market responses to search-related and purchase-related app additions are moderated by firm size, product category, and target customer age. For announcements of search-related apps, the market responds more positively to product retailers than to service retailers, and to small firms than large ones. For announcements of purchase-related apps, the market responds less positively to firms that target younger customers than firms who do not especially target them.     

Potential of the Internet as a Retailing Channel in South Africa

Abstract

This study examines the factors affecting retailers perceptions of the Internet as a potential retail channel. It examines the environmental factors as well as the organizational factors impacting on the potential of Internet retailing. Results are reported from 102 South African retailing chain organizations across all categories. The authors discuss the results and provide some guiding points for retailers who intend to use the Internet as a retailing channel in the future.     

An Illustrative Application of Multi-Unit Franchise Expansion in a Local Retail Market

Abstract

Retail expansion in a local market offers many challenges, and given the sensitivity of survival to location mistakes, it is imperative to develop site models that incorporate realistic impediments to that expansion. Small independent businesses or local area franchisees facing limits on all forms of capital rarely can open additional units without delays. In this paper, we test the benefit of using Kaufmann, Donthu and Brooks' (2000) multi-unit site selection model that incorporates the reality of delays in the opening of new stores as well as the recognition that local retail chains can face competition from many hard to identify sources. We use data from the actual introduction of a small set of stores in a major United States metropolitan market to estimate the potential for improvement over a pure sequential expansion strategy. When compared to the sequential strategy actually used by the retailer, we estimate that performance could have been improved by 15.5% if a model that anticipated the delays in opening the stores and competition from secondary sources would have been used.     

零售业多渠道库存策略研究

本文运用报童模型研究了在B2C电子商务模式下开辟多渠道的零售商普遍采用的三种库存运作策略,并通过数值算例分析了不同库存运作策略下的零售商、供应商的最优库存,同时分析了需求的不确定性程度对零售商、供应商及供应链整体的利润水平的影响。研究结果显示零售商分散化管理库存策略和供应商共享库存策略有利于零售商和供应商分别发挥各自优势,实现风险共担,利益共享,提高供应链整体利润水平。     

Impact of customers' assessment of website attributes on e-relationship in the securities brokerage industry: A multichannel perspective

The paper focuses on the comparison between pure e-retailers and multichannel retailers' customers and how they differ in their evaluations of functional and relational attributes of the website, as well as how these attributes impact online relationships. An online survey among online securities investors was conducted. Subjects were self-selected from blogs and forums dedicated to personal finance. A total of 326 questionnaires formed the final sample of this study. By using a series of univariate analyses of variance, structural equation modeling, and multi-group analysis, this research empirically demonstrates that the e-service quality evaluation and determinants of online relationship are different in multichannel contexts versus pure online ones. Results show that customers of multichannel retailers are not more loyal than those of pure online retailers. However, multichannel retailers exceed pure online retailers at achieving a higher level of online trust and a higher assessment of website features. The paper concludes with managerial implications that may be useful in multichannel retailing.     

A Cross-Category Analysis of Shelf-Space Allocation,Product Variety,and Retail Margins

Retailers' allocation of shelf space as well as the breadth of varietyoffered varies across categories. Many researchers have developedheuristics for determining what retailers should do with regard tothese decisions. We explore how these constructs are actually relatedin practice. We utilize data obtained from Marsh Supermarkets, a largeIndianapolis-based grocery retailer, to explore the relationshipsbetween these variables. The results of this analysis are a set of rawfacts concerning the relationship between some of grocery retailers'more important category-level decisions.     

试论网络经济的资源配置

经济学是以资源的稀缺性为出发点的，网络经济作为一种新的经济形态也离不开优化资源配置这一经济学主题。网络经济的出现改变了市场配置资源的过程，使资源配置的效率得到提高。     

Cost-Benefit Analysis: Regulatory Reform or Favoring the Regulated?

A look at OMB's proposal for cost-benefit analysis changes. JEL Classification D6,K2