Evaluating channel performance in multi-channel environments |
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| Institution: | 1. Eindhoven University of Technology, School of Industrial Engineering & Innovation Sciences, The Netherlands;2. Dartmouth College, Tuck School of Business, United States;3. University of Groningen, Faculty of Economics and Business, The Netherlands;1. School of Management and Economics, University of Electronic Science and Technology of China, No. 4, Section 2, North Jianshe Road, Chengdu, Sichuan 610054, China;2. School of Business Administration, Southwestern University of Finance and Economics, Chengdu 611130, China;3. Joseph M. Katz Graduate School of Business and College of Business Administration, University of Pittsburgh, Mervis Hall, Pittsburgh, PA 15260, USA;1. NEOMA Business School (Merger Between Rouen Business School and Reims Management School), Boulevard André Siegfried, 76825, Mont-Saint-Aignan, France;2. Sup de Co Montpellier Business School, 2300, avenue des Moulins, 34185 Montpellier cedex 4, France |
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| Abstract: | Evaluating channel performance is crucial for actively managing multiple sales channels, and requires understanding the customers’ channel preferences. Two key components of channel performance are (i) the existing customers’ intrinsic loyalty to a particular channel and (ii) the channel's ability to attract switching customers. We apply the Colombo and Morrison (Colombo, R., Morrison, D., 1989. A brand switching model with implications for marketing strategies. Marketing Science 8, 89–99) model to assess channel performance along these dimensions. Using data from a large home-shopping company, we analyze the evolution in the performance of its main channels over time, and test for differences in channel performance among different product categories offered by the company, as well as between different customer segments. Based on the results, we derive implications for managers to operate a company's multiple sales channels more effectively. |
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