Multichannel retailers' prominent attribute and product positioning strategies
International Journal of Retail & Distribution Management
ISSN: 0959-0552
Article publication date: 22 March 2022
Issue publication date: 30 August 2022
Abstract
Purpose
This paper studies how multichannel retailers choose the product quality level and decide which attribute to make prominent in their physical store in a competitive environment.
Design/methodology/approach
This paper develops a game theoretic model, in which multichannel retailers' decisions are made in three stages. Using prominent experiential attributes (e.g. functionality) in their offline store and product quality decisions, multichannel retailers are capable of transferring the sales between different channels.
Findings
This analysis shows that making different attributes prominent in their physical store may be an equilibrium, and each multichannel retailer chooses the highest quality level for the prominent attribute. However, the prominent attribute of the highest quality level is not always optimal. Under certain conditions, multichannel retailers may make the experiential attribute prominent in their respective physical stores, which can result in equilibrium.
Practical implications
The results indicate that multichannel retailers should avoid blindly highlighting high-quality attributes in a competitive environment, or falling into price completion.
Originality/value
From the perspective of prominent attributes, this study designs the optimal product line based on channel characteristics. The results of the research can provide practical implications for multichannel retailers to increase sales.
Keywords
Acknowledgements
The first and the second authors share the first authorship equally.
The authors acknowledge the financial support provided by the National Natural Science Foundation of China (No. 71872073, 72102015) and the Fundamental Research Funds for the Central Universities (No. 19JNYH02).
Conflict of interest: No potential conflict of interest was reported by the authors.
Citation
Wang, Z., Lu, Y., Ran, L. and Yang, D. (2022), "Multichannel retailers' prominent attribute and product positioning strategies", International Journal of Retail & Distribution Management, Vol. 50 No. 10, pp. 1205-1220. https://doi.org/10.1108/IJRDM-10-2020-0424
Publisher
:Emerald Publishing Limited
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