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1 – 10 of over 2000The purpose of this paper is to provide a framework to help business marketers with a mixed online and traditional retail channel (multi‐channel company) to find the optimal…
Abstract
Purpose
The purpose of this paper is to provide a framework to help business marketers with a mixed online and traditional retail channel (multi‐channel company) to find the optimal pricing strategy and market structure in order to maximize their profits.
Design/methodology/approach
A game theory model is developed to determine the optimal pricing strategy for the multi‐channel company.
Findings
It was demonstrated that an optimal pricing strategy exists under different market structures for a multi‐channel company. When a company uses multiple channels to sell its product, the optimal pricing strategy is to use a low‐high pricing strategy if the online marginal cost is equal to or less than the traditional marginal cost, or a high‐low pricing strategy if the online marginal cost is far larger than the traditional marginal cost. Furthermore, in order to maximize its profit, the company using multiple channels should adopt channel integration as the optimal market structure.
Research limitations/implications
The present study assumed that all consumers have perfect information. However, information with the consumers could be incomplete. It is recommended that future research explore the pricing strategy under incomplete information settings.
Practical implications
The paper provides a very useful model framework, pricing strategy, and market structure for business managers who are using or planning to use multiple channels to sell their products.
Originality/value
This paper fills a conceptual and practical gap for a structured analysis of the current state of knowledge about multi‐channel pricing strategies. It provides practical and solid advice and examples demonstrating the application of the different types of pricing strategies for business managers.
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Sophie Jeanpert and Gilles Paché
When a company simultaneously manages several distribution channels, there are important issues regarding the sharing of marketing and logistical resources. This paper aims to…
Abstract
Purpose
When a company simultaneously manages several distribution channels, there are important issues regarding the sharing of marketing and logistical resources. This paper aims to discuss the integration of sales staff, communication and logistical operations to improve service delivery to multi-channel consumers.
Design/methodology/approach
The paper is based on a literature review regarding multi-channel strategy to build a conceptual framework. This framework is discussed using three illustrations from the French multi-channel distribution field (King Jouet, Fnac and Darty).
Findings
The exploratory research underlines the importance of information about how consumers order in different channels. This makes the global management of different channels difficult and threatens marketing and logistical sharing.
Practical implications
The integration process is becoming increasingly important in service recovery. Companies must therefore facilitate total access to logistical information. This requires an organisational interaction between marketing and the supply chain activities.
Originality/value
The paper underlines the importance of the integration process in service recovery management, particularly when a defective product must be replaced and a new product be made available to consumers.
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A well‐integrated multi‐channel format enables consumers to examine goods at one channel, buy them at another channel, and finally pick them up at a third channel. Multichannel…
Abstract
A well‐integrated multi‐channel format enables consumers to examine goods at one channel, buy them at another channel, and finally pick them up at a third channel. Multichannel retailing offers synergies, as it can result in an increased customer base, added revenue, and higher market share. Common characteristics of a well‐integrated retail strategy include: highly‐integrated promotions, product consistency across channels, an integrated information system that shares customer, pricing and inventory data across multiple channels, a process that enables store pick‐up for items purchased on the Web or through a catalog, and the search for multi‐channel opportunities with appropriate partners. This article provides a check‐list to enable a retailer to assess its readiness to undertake a multi‐channel strategy.
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Kai Wehmeyer, Alexander Kipp and Kai Riemer
The purpose of this paper is to develop a framework and a reference process for achieving channel alignment in companies that use traditional and electronic marketing channels…
Abstract
Purpose
The purpose of this paper is to develop a framework and a reference process for achieving channel alignment in companies that use traditional and electronic marketing channels. Instruments for gathering and structuring of information on channel deployment are proposed and integrated in the process of strategy formulation.
Design/methodology/approach
The research grounds on a conceptual model of strategic channel alignment (MSCA) that is a recently proposed modification of the well‐established strategic alignment model (SAM). Framework, instruments, and reference process were developed by drawing on results from literature analysis and experiences gathered in a research and consulting project at a large multinational corporation. The case context is explicated.
Findings
The developed management tools were successfully applied in strategic business units of the case company. They were found to be useful for facilitating strategic channel alignment by fostering processes of communication and collaboration between managers across organizational units. The framework helps to implement a common “strategy language” on multi channel management. The instruments support the creation of a shared information base on a company's multi channel strategy and operations.
Research limitations/implications
The paper contributes to research on strategic alignment processes and discusses model‐driven alignment as social process that aims at the construction of a common understanding of multi channel issues. The beneficial role of management tools in such processes is spelled out.
Practical implications
The generic nature of the proposed management tools makes further practical applications possible. Companies that strategically address the alignment of their marketing channels can utilize the methodology and adapt it to their specific needs.
Originality/value
The paper translates a conceptual management model into a practical methodology. Models like the SAM and the MSCA are frequently discussed but research and reports on their practical value has been scarce. This paper contributes to filling this gap and develops tools of practical value in a particular domain of strategic management.
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Filipe Coelho and Chris Easingwood
The use of multiple channels is increasingly an option for many products. Yet, despite their popularity, little is known in a systematic way about such channel structures. In…
Abstract
Purpose
The use of multiple channels is increasingly an option for many products. Yet, despite their popularity, little is known in a systematic way about such channel structures. In particular, there is a lack of research in respect of the reasons why multiple channels of distribution emerge. This work proposes to attempt to deal with this problem by developing and testing a model comprising a set of hypotheses regarding the circumstances under which companies go multi‐channel.
Design/methodology/approach
The work draws on the organisational environment literature and, in particular, the sources of environmental uncertainty. Data were collected from firms in the UK financial services industry through personally administered questionnaires. Research hypotheses were tested using logistic regression.
Findings
The results suggest that customer heterogeneity, customer volatility and environmental conflict positively influence the choice of multiple channels, whereas intermediary heterogeneity and volatility may reduce the need to use such channel strategies.
Research limitations/implications
The extent to which results can be generalised is limited by the relatively small sample size and by the focus on financial services. Additionally, it is also possible that channel typologies other than that considered in this study might have yielded different results.
Practical implications
The degree of environmental uncertainty is an important issue affecting multiple channel choices, and should be considered at the channel design stage.
Originality/value
This study has helped understand the drivers of multiple channel strategies, a poorly understood topic.
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Mika Yrjölä, Hannu Saarijärvi and Henrietta Nummela
This study examines how retailers leverage multiple-channel strategies in relation to their customer value propositions (CVPs). More specifically, the purpose of this paper is to…
Abstract
Purpose
This study examines how retailers leverage multiple-channel strategies in relation to their customer value propositions (CVPs). More specifically, the purpose of this paper is to identify and analyze how multi-, cross- and omni-channel CVPs differ in terms of how they create value and which types of shopping motivations they aim to satisfy.
Design/methodology/approach
This conceptual paper presents and synthesizes three theoretical discussions pertaining to consumer shopping motivations, CVPs and multiple-channel retailing strategies into a tentative conceptual framework. Nine case examples are used to illustrate three different channel strategies: multi-channel, cross-channel and omni-channel retailing.
Findings
A tentative framework for understanding retailers’ channel strategies is suggested.
Practical implications
Retailers will benefit from a structured and synthesized understanding of the differences between multiple-channel strategies and their links to CVPs.
Originality/value
This paper introduces and integrates the concept of CVPs with the literature on multi-channel retailing strategies.
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Erdem Galipoglu, Herbert Kotzab, Christoph Teller, Isik Özge Yumurtaci Hüseyinoglu and Jens Pöppelbuß
The purpose of this paper is twofold: to identify, evaluate and structure the research that focusses on omni-channel retailing from the perspective of logistics and supply chain…
Abstract
Purpose
The purpose of this paper is twofold: to identify, evaluate and structure the research that focusses on omni-channel retailing from the perspective of logistics and supply chain management; and to reveal the intellectual foundation of omni-channel retailing research.
Design/methodology/approach
The paper applies a multi-method approach by conducting a content-analysis-based literature review of 70 academic papers. Based on the reference lists of these papers, the authors performed a citation and co-citation analysis based on the 34 most frequently cited papers. This analysis included multidimensional scaling, a cluster analysis and factor analysis.
Findings
The study reveals the limited consideration of logistics and supply chain management literature in the foundation of the omni-channel retailing research. Further, the authors see a dominance of empirical research as compared to conceptual and analytical research. Overall, there is a focus on the Western retail context in this research field. The intellectual foundation is embedded in the marketing discipline and can be characterised as lacking a robust theoretical foundation.
Originality/value
The contribution of this research is identifying, evaluating and structuring the literature of omni-channel research and providing an overview of the state of the art of this research area considering its interdisciplinary nature. This paper thus supports researchers looking to holistically comprehend, prioritise and use the underpinning literature central to the phenomena of omni-channel retailing. For practitioners and academics alike, the findings can trigger and support future research and an evolving understanding of omni-channel retailing.
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Frances Slack, Jennifer Rowley and Sue Coles
The purpose of this paper is to complement existing work on multi‐channel environments of shopping experiences and retail channels by exploring the use of different channels in…
Abstract
Purpose
The purpose of this paper is to complement existing work on multi‐channel environments of shopping experiences and retail channels by exploring the use of different channels in the consumer decision‐making processes associated with ticket purchase for performances in a regional annual theatre festival.
Design/methodology/approach
Analysis of the audience questionnaire focuses on the relative use of different channels and specifically the importance of the Internet in the stages leading up to attendance at the festival – awareness, information gathering, decision making and purchase transaction.
Findings
The extent of use of different channels at different stages in the decision‐making process varies, although the Internet is the only channel that can be and is used to support all stages of the process. Throughout the process, with the exception of purchase transaction, the use of word‐of‐mouth is significant. Customers who started using the Internet at the awareness stage often continued to use it. Neither gender nor age has a significant effect on patterns of channel use.
Originality/value
This study contributes to research into the use of multiple channels in consumer decision making, particularly in relation to customer multi‐channel employment, the factors that affect channel use, and the role of word‐of mouth in multi‐channel contexts.
Multi‐channel marketing in the retail environment involves the integration of marketing activities in retail stores, with catalogs and with online marketing. The online component…
Abstract
Multi‐channel marketing in the retail environment involves the integration of marketing activities in retail stores, with catalogs and with online marketing. The online component of this is critical to the success of the overall effort and it is becoming more powerful, sophisticated and measurable. This case study chronicles the use of multi‐channel marketing by REI, a 66‐year‐old purveyor of specialty outdoor gear and apparel. The case study shares the essential components of multi‐channel marketing used by REI and how the various components work together.
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Pietro Beritelli and Roland Schegg
Hotel managers are being challenged by the increasing multitude of distribution and sales channels. Online travel agencies (OTAs) in particular generate a great deal of…
Abstract
Purpose
Hotel managers are being challenged by the increasing multitude of distribution and sales channels. Online travel agencies (OTAs) in particular generate a great deal of uncertainty: Which are the best ones? Which ones offer the best conditions? How many channels are optimal for my hotel? How can I evaluate costs versus benefits? These and other questions concerning the optimal online distribution channel strategy have produced different reactions in practice. The aim of this paper is to challenge the need for an over-optimization of channel strategy by proposing that the consumer, at the end, deals with a network of information presented on one networked environment, including the Web. Hence, the network effect of the numerous online platforms is what drives consumer choice and, finally, bookings.
Design/methodology/approach
A series of multiple regressions with representative samples of hotels in Switzerland from the years 2009, 2010, 2011 and 2012 was performed to estimate the importance of the number of platforms against other independent variables. Additionally, further multiple regressions with samples from the years 2011 and 2012 using the most important platforms (first-tier channels) shows again that the number of platforms is more important.
Findings
The analyses show that the estimated number of online bookings by the respondents in the hotels is a result of the number of channels, not the type of channel. This is particularly true for non-categorized establishments and one- and two-star hotels. The analyses do not confirm the billboard effect, according to which particular platforms (first-tier channels) increase the probability of bookings. Thus, the survival strategy is to maximize share of shelf and to build on interdependencies and network effects.
Research limitations/implications
The study looks only at online bookings. Additional research into the connection between online and offline channels, particularly from the viewpoint of the consumer, will provide further insights. The study looks at the booking volume per channel, not the monetary sales volume or the profit. A study that quantifies not only the volume of bookings but also the total profit or the contribution to profit per channel could quantify the benefits of the multi-channel strategy.
Originality/value
The multiple online channel strategy seems to be the more effective approach to maximizing bookings online, regardless of the platforms chosen. Results of the study challenge the current opinion among practitioners that the multitude of distribution channels forces them to choose among single online channels and, therefore, drives the search for criteria to assess these channels or even to disregard them. The consistent results across 2009-2012 show that even in the turbulent phase of the advent of OTAs in the travel industry, hotels can adopt a winning strategy. Finally, the results suggest that the intermediation of online distribution of hotel beds has approached the condition of perfect competition, causing the OTA business model to be cannibalized.
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