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Now what? Evaluating the sales effects of introducing an online store |
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| Institution: | 1. Center for Retailing, Stockholm School of Economics, PO Box 6501, SE-113 83 Stockholm, Sweden;2. Skövde University, Box 408, SE-541 28 Skövde, Sweden;1. Faculty of Economics, University of Rennes 1, CREM UMR CNRS 6211, 7 Place Hoche, 35065 Rennes Cedex, France;2. Graduate School of Management (IGR-IAE Rennes), University of Rennes 1, CREM UMR CNRS 6211, 11 rue Jean Macé – CS 70803, 35708 RENNES Cedex 7, France;1. University of Technology Sydney, 5 Broadway, Ultimo, NSW 2007, Australia;2. Institute for Choice, University of South Australia, Level 13/140 Arthur Street, North Sydney, NSW 2060, Australia;1. Department of Service Management and Service Studies, Lund University, Sweden;2. Center for Retail Research, Lund University, Sweden;3. Centre for Consumer Science, University of Gothenburg, Box 606, 405 30 Gothenburg, Sweden |
| Abstract: | This study creates a framework for evaluating the sales impact of adding an online channel to an existing network of physical stores. Using a unique database consisting of pooled customer data from a Swedish retailer's online and offline stores, it investigates the purchase behavior of customers before and after the introduction of an online channel. The data overcome a crucial obstacle present in previous studies in that they permit matching of individual-level customer data for both online and offline behavior. The results show significant and substantial effects of online channel introduction on customer acquisition as well as on cannibalization of physical stores. |
| Keywords: | Online retailing Physical retailing Cannibalization Customer acquisition |
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