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A consumer model for channel switching behavior

James Reardon (James Reardon is Wells Fargo Professor of Marketing at the University of Northern Colorado, Greeley, Colorado, USA)
Denny E. McCorkle (Denny E. McCorkle is Professor of Marketing, Southwest Missouri State University, Springfield, Missouri, USA.)

International Journal of Retail & Distribution Management

ISSN: 0959-0552

Article publication date: 1 April 2002

10533

Abstract

With the phenomenal growth of direct order marketing with the Internet and catalogs as alternative channels, customers increasingly face more choices of where to purchase goods and services. This paper develops a formal consumer model to explain channel switching behavior. Becker’s theory of time allocation is expanded to consumer decision making between distribution channels. The final model suggests that consumers face a tradeoff when deciding where to buy goods and services. From this tradeoff an indifference curve is developed where the consumer chooses between alternative distribution channels on the basis of the relative opportunity costs of time, costs of goods, pleasure derived from shopping, perceived value of goods, and relative risk of each channel. Strategies for direct and multi‐channel marketers are developed using this model.

Keywords

Citation

Reardon, J. and McCorkle, D.E. (2002), "A consumer model for channel switching behavior", International Journal of Retail & Distribution Management, Vol. 30 No. 4, pp. 179-185. https://doi.org/10.1108/09590550210423654

Publisher

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MCB UP Ltd

Copyright © 2002, MCB UP Limited

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