Basket Composition and Choice Among Direct Channels: A Latent State Model of Shopping Costs

Shoppers of multi-channel retailers often place orders using different channels on different shopping occasions. The differential use of channels is related to both basket composition and channel characteristics, such as the ability of the channel to provide additional information that resolves uncertainty about the purchase. In this paper, we examine the impact of basket composition on the choice among direct channels. We develop a two-stage, shopping cost model with two, latent states. Given a shopping basket, the shopper first decides if she needs additional information about items in the basket. If she is uncertain about the items in the basket meeting her needs, she uses an information rich channel, such as the retailer's website or call center, and risk reduction costs become salient in addition to the other shopping costs. If she does not require additional information, she places her order by choosing among all available channels, and she may incur a welfare loss from making a purchase that does not optimally meet her needs. We operationalize welfare loss with Shannon information and various metrics based on purchase history.Our empirical setting is a data set from a catalog retailer that offers multiple direct channels. Our estimates show that basket composition impacts channel choice. Large baskets shift to the Internet channel, suggesting that the Internet channel has lower ordering costs. High-risk baskets shift to call centers and this suggests that the call center has lower risk reduction costs. Collectively these estimates provide evidence for the notion of channel specialization—some channels are better at addressing certain shopping costs compared to others. Our estimates also show that electronic self-service channels have high initial access costs and a significant learning curve compared to the call center suggesting that these channels might be better suited to heavy users. We use the estimated model to quantify the value of channels, to identify categories that need risk reduction, and to segment and target shoppers for Internet ordering based on basket size and the potential to accumulate experience.     

Channel integration and profit sharing in the dynamics of multi-channel firms

With the rapid development of e-commerce, many brick and mortar firms are increasingly creating e-commerce channels that operate quite independently from existing physical channels, which lead to intensive channel conflicts. Channel integration with profit sharing can effectively eliminate channel conflicts and improve channel coordination for these multi-channel firms. In this study, we focus on the strategic role played by channel integration with profit sharing in the online-traditional channel competition. We use a game theoretic approach to investigate this issue. We compare non-integrated channel profits with integrated channel profits to show that both the online and traditional channels always benefit from a channel integration strategy by capturing some portion of the incremental profit gains generated by an integrated channel. We utilize a profit bargaining model to implement profit sharing for the online and traditional channels to achieve their channel integration. Based on our results, optimal marketing strategies are derived.     

Consumer Brand Marketing through Full- and Self-Service Channels in an Emerging Economy

A unique characteristic of emerging economies is the wide variety of dominant channel formats. We evaluate the influence of a brand's marketing mix on channel partners and consumer sales in both full and self-service channels in one emerging economy (Brazil). We use monthly stock-keeping-unit (SKU) level sales, and marketing mix data from the beverage category in southeastern Brazil spanning more than four years. In this study, we specify a panel vector autoregression framework with error decomposition to account for endogeneity between sales and marketing mix, cross-sectional heterogeneity among SKUs, seasonality, and the different aggregation of marketing mix elements across the channels. The results show that structural differences in these channels cause differences in the responses to some of the manufacturers' marketing mix elements. Package size variety, price and merchandising have a greater long-term effect on sales in self-service than in full-service channels. Brands' channel relationship programs support price increases in self-service channels without a corresponding decrease in sales. Distribution gains are important in both channels. In the full-service channel, package size variety has the highest long-term effect among all of the modeled marketing mix elements. Our study highlights that marketing mix strategies popular in the self-service dominant channels of the developed economies are not as effective in the full-service formats that remain important in emerging economies.     

Gender roles in advertising

This study discusses and provides a measure for the degree of stereotyping in advertisements. Applying this measure, the study shows to what degree gender stereotypes in advertising differ between public and private TV channels in Germany. The results show that gender stereotyping in advertising still prevails despite the change in the roles of men and women over the years. Contrary to their public mission, public TV channels do not show fewer gender stereotypes in advertisements compared to private TV channels. The degree of stereotyping as related to different stereotyping components differs significantly between these two types of channel. Gender stereotypes on private channels refer to role behaviour and physical characteristics and, thus, function as a means to sell a product. On the other hand, advertisements on public channels stereotype gender in terms of occupational status, and therefore interfere with the major goal of gender equality policy.     

互联网渠道类型与管理机制研究

文章在回顾理论研究的基础上,以Appcom公司为典型企业,探讨了互联网渠道的类型、特征及如何有效管理互联网渠道。案例分析表明：互联网渠道包括了直接和间接两种类型,各自具有不同的特征。企业在管理互联网渠道时,一方面可以借鉴原有实体渠道中的管理方式,另一方面需要协调好企业内部各职能部门间、与第三方电子商务平台以及经销商等相关利益者间的关系,并解决互联网渠道与实体渠道间的冲突。文章的研究结论对于试图或者正在尝试互联网渠道的传统企业具有显著的指导意义,同时也拓展了现有的渠道理论研究。     

Financial structure and the heterogeneous impact of monetary policy across industries

The two general channels by which monetary policy impacts output are the neo-classical cost of capital channel and the credit channel. This paper decomposes the output response to a change in the stance of monetary policy to each of these channels. We use a unique industry level data set that measures the financial characteristics of firms operating at the industry level through time. We bring these financial characteristics formally into the regression analysis, thus allowing for a more precise identification of the two channels. The evidence indicates that both channels are active in the Canadian economy.     

Click Here to Print a Maker Movement Supply Chain: How Invention and Entrepreneurship Will Disrupt Supply Chain Design

Emerging technologies such as 3D printing promise to transform supply chain design and management. As these new technologies enable inventors to become entrepreneurs, new product introduction cycle times are being reduced and the variety of new products that are introduced through short channels of distribution is increasing. We show that these disruptive forces are growing and may have significant implications for practice, research, and teaching in supply chain management. We identify and elaborate important research questions, calling for theory‐driven research to explain and predict how these phenomena will impact supply chain management.     

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.     

The effect of trust,channel technology,and transaction type on the adoption of self-service bank channels

Few studies have examined customers' beliefs and intentions across different self-service technology channels and different intended uses of these channels. The present work integrates (a) technology acceptance variables (b) trusting beliefs and trusting intention as two distinct constructs, (c) level of customers' information about the channel, in order to test their effect on use intention for two channels, Internet and phone banking, and three banking transactions. Findings from a sample of 762 bank customers reveal that patterns of adoption are quite similar for the two channels but differ across transactions. Furthermore, the trusting intention has a strong mediating role between trusting beliefs and technology-acceptance variables on one hand, and intention to use these channels on the other hand. Several implications for developing intention to use technology-based channels are discussed.     

互联网对零售企业经营能力的影响

在电商零售发展的背景下,越来越多的实体零售企业增加了电商销售渠道。基于2001-2017年47个零售上市公司的数据,文章运用双重差分模型（DID）,选取了存货收入比与固定资产收入比作为衡量零售企业经营能力的指标,估计了增加电商零售渠道对二者的影响。研究发现：（1）增加电商渠道能够显著降低12%的零售企业库存收入比,提高零售企业的经营能力,该影响具有持续性与递增趋势,且商超类企业改善程度更高;（2）互联网并没有显著影响零售企业的固定资产收入比,说明大型实体零售企业大多采用的是商店与电商渠道共同发展的双渠道策略。研究结果说明互联网有利于零售效率提升,且应该注重电商-商店融合的双渠道新零售业态-构建。     

Does the Use of Mobile Phones by Smallholder Maize Farmers Affect Productivity in Ghana?

ABSTRACT

This study evaluates the effects of mobile technology on productivity and the channels of transmission of these effects. Using propensity score matching procedures, the results show that mobile phone ownership and use significantly improves agricultural productivity. Specifically, the mobile phone improves the productivity of user-farmers by at least 261.20 kg/ha per production season. Further, we find that phone ownership and use impacts productivity more than phone use only. The identified channels of effect are extension services, adoption of modern technology and market participation. These results have key policy implications for Ghana and developing economies at large.     

Omnichannel marketing: Are cross-channel effects symmetric?

The rapid growth in omnichannel (e.g., Web, call center, sales agent, store) shopping and the need to effectively allocate resources across channels are prompting managers and researchers to better understand cross-channel effects, that is, the effects of marketing efforts in one distribution channel on shopping outcomes in other channels. We develop a broad set of hypotheses about cross-channel effects based on channel richness and influence roles (informative, persuasive). To test the hypotheses, we model the effects (own and cross) of channel marketing efforts on shopping outcomes in different channels through a simultaneous equation system. We estimate these models using data from the auto insurance industry that comprises the exclusive agent, the independent agent, the Web, and the call center channels. Our results offer novel insights. They show that cross-channel effects and elasticities are significant and asymmetric. While the effect of marketing efforts in a channel on shopping outcomes in a dissimilar (with a different primary influence role) channel is positive (e.g., exclusive agent, the Web, and the call center channels are complementary), the magnitudes of the cross-channel effects are asymmetric. Similarly, while the effect of marketing efforts in a channel on shopping outcomes in a similar (with the same primary influence role) channel is negative (e.g., independent agent and exclusive agent channels are substitutional), they are also asymmetric. Exclusive agent efforts have a greater negative effect on the outcomes of independent agent efforts than vice versa. Based on the results, we develop a channel influence vs. influenceability analysis tool for managers to better plan their channel efforts. We also illustrate a resource allocation model that shows substantial incremental profits from the reallocation of marketing efforts based on our model with cross-channel effects relative to a model without cross-channel effects.     

The Impact of Interactive Corporate Social Responsibility Communication on Corporate Reputation

Companies increasingly communicate about corporate social responsibility (CSR) through interactive online media. We examine whether using such media is beneficial to a company’s reputation. We conducted an online experiment to examine the impacts of interactivity in CSR messages on corporate reputation and word-of-mouth intentions. Our findings suggest that an increase in perceived interactivity leads to higher message credibility and stronger feelings of identification with the company, which also boost corporate reputation and word-of-mouth. This result implies that using interactive channels to communicate about CSR can improve corporate reputation. Our results also show that the detrimental impacts of negative user evaluations on corporate reputation are much higher than the favorable impacts of positive evaluations. This finding suggests that, despite the effectiveness of interactive communication channels, firms need to carefully monitor these channels.     

The relevance of interaction choice: Customer preferences and willingness to pay

As the number of available channels and ways to use these channels proliferate, current literature and managerial practice assume that broader interaction choice invariably generates value for customers. In light of the costs and complexity of offering these interaction options, the questions become how important having interaction choice is for customers, how much actual willingness to pay exists, and which customer groups particularly value such choice. To investigate this domain, two choice-based conjoint analyses are implemented in the health insurance industry, which provides a unique research opportunity since regulation naturally limits the relevant attributes of offerings. To cope with the substantial heterogeneity in prices for health insurance depending on the insureds' risks, the methodological innovation of quasi-individual pricing is introduced, which leads to highly satisfactory validity of the estimation results. The results indicate that customers have considerable additional willingness to pay for more interaction choice; however, in contrast to the extant literature, this does not hold for all interaction options. Customers' elicited preference structures further show that health insurers can optimize the configuration and pricing of their offerings to improve customers’ experiences and to create value.     

Evaluating strategies for promoting retail mobile channel using a hidden Markov model

With the proliferation of mobile communication technology, many firms, including retailers and consumer banks, are making efforts to develop mobile platforms to better engage with their customers and reduce operational costs. However, the cost advantage of these mobile technologies will not yield fruition unless the mobile channel accounts for a significant share of total transactions. In this article, we explore potential options for firms to promote usage of the mobile channel. To achieve this, we propose a hidden Markov model to both model customers’ decisions and assess different managerial strategies through simulations. While we apply our proposed model to data from a leading financial institution, our approach is equally applicable to other retail settings. The results show that customers’ choices of services and channels are sensitive to process time by type of channel. A 10% increase in process time through non-mobile channels leads to a nearly 14% increase in utilization of mobile banking channel. Therefore, retailing firms could potentially influence customers’ choice of different channels by changing channel-specific process times. Motivated by these findings, we present and compare performances across five different policies, in promoting the usage of mobile channel. Drawing on our simulation results, we also make personalized policy recommendations to firms facing different levels of financial constraints. For those with financial constraints, we recommend a policy of increasing process time for a selected subset of service requests through non-mobile channels. Firms not constrained by the resources might be better off improving process time with the mobile channel by targeting customers identified as having a better relationship with the firm.     

Transmission channels matter: Identifying spillovers from FDI

The empirical literature on the spillovers of foreign direct investment (FDI) has so far not analysed the well-established theoretical transmission channels through which FDI impacts on domestic firms. This paper shows how channels of transmission matter for productivity spillovers from FDI by providing more fuller and nuanced picture of the effects. We analyse a panel of eight sub-Saharan Africa countries spanning the period 2006–2014 and demonstrate the empirical relevance of distinguishing three channels – demonstration, labour mobility, and competition. We provide measures of these effects and also show that the size, significance, and sign of spillover effects depend on the local absorptive capacity, technology levels, geographical proximity, and foreign ownership structure. Overall, results suggest that demonstration spillovers are large and economically significant, whereas the patterns of labour mobility and competition spillovers are not stable across the various specifications and measures. Finally, the analysis involves several measures of further investigations and robustness checks. Results are robust to the construction of spillover and outcome variables, the introduction of additional explanatory variables and an alternative estimation method.     

移动平台对无线信道特性的影响分析

针对移动平台对无线信道特性的影响,在分析移动多径信道特性的基础上,建立了不同信道模型下多普勒效应的计算机仿真模型。不仅针对不同信道衰落条件下平台移动引起的多普勒效应进行仿真,而且为进一步阐述多普勒效应的影响,还对平台移动引起的数字通信误码率进行了仿真。信真结果表明,平台移动不但会扩展多普勒频谱,而且会加快信道衰落,造成误码率上升。     

Will Online Shopping Compete More with Traditional Retailing or Catalog Shopping?

This paper examines consumer substitution behavior among three distribution channels: online shopping, traditional retail and catalog shopping. A model of consumer transactions costs is presented in which consumer investments in shopping human capital determine distribution channel choice. This model predicts that consumers who make investments that spillover to multiple channels will tend to have lower transactions costs for those two channels and will tend to consider these two channels to be closer substitutes than other channels. The model implies that, even if these investments are not measured, they will represent a component of the regression models' residual terms, which will predict distribution channel choice. I test this implication using the GVU Center's survey data on channel selection for various product categories. The results strongly suggest that consumers consider online shopping and catalog shopping to be closer substitutes than any other pair of channels.     

The reach of TV channels

The number of television channels available to viewers is increasing in many countries. Results for large US cities which already have numerous over-air TV channels show a Double Jeopardy pattern whereby a channel with a small market share not only reaches fewer viewers, but is also watched less by those viewers it does reach. Whatever the size of channel, those watching it in a given week typically devote less of their viewing time to it than to the other competitive channels. The implications for television are discussed.     

Creative Strategies in Social Media Marketing: An Exploratory Study of Branded Social Content and Consumer Engagement

This study employed a content analysis of the creative strategies present in the social media content shared by a sample of top brands. The results reveal which social media channels are being used, which creative strategies/appeals are being used, and how these channels and strategies relate to consumer engagement in branded social media. Past research has suggested that brands should focus on maintaining a social presence across social channels with content that is fresh and frequent and includes incentives for consumer participation (Ling et al., 2004). This study confirmed the importance of frequent updates and incentives for participation. In addition, several creative strategies were associated with customer engagement, specifically experiential, image, and exclusivity messages. Despite the value of these creative approaches, most branded social content can be categorized as functional.