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Article
Publication date: 13 July 2015

Nathalie Spielmann and Margot Bernelin

The purpose of this paper is to understand what motivates consumers, in particular consumers of local food products or locavores, to purchase in local retail channels vs…

Abstract

Purpose

The purpose of this paper is to understand what motivates consumers, in particular consumers of local food products or locavores, to purchase in local retail channels vs traditional supermarkets. Using the Theory of Reasoned Action, and reviewing the literature on traceability, social relationships, involvement, values, motivation, and distribution channels, the authors propose a model explaining the antecedents and consequences of local food consumption for both locavores and traditional supermarket consumers.

Design/methodology/approach

Face to face interviews were conducted in supermarket and farmers market contexts in a mid-sized city in France. A structural equation modelling was used to explain the relationship between the examined variables.

Findings

The results suggest that consumers in traditional food distribution channels are not very involved with local food products. Alternatively, this research shows that for locavores, traceability and social links are positively related to involvement with local food products, which lowers price perceptions and positively influences utilitarian shopping value.

Originality/value

The research provides a first empirical and academic perspective on local food consumption within different food retail channels in Europe. Much of the recent results on locavores and their behaviours have been conducted in North America and/or have remained rather conceptual.

Details

International Journal of Retail & Distribution Management, vol. 43 no. 7
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 31 July 2009

Ruiliang Yan and Robert Yeh

The main purpose of this paper is to provide an analytical conceptual framework to help business marketers to identify the effect of consumer's online purchase cost on a…

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2068

Abstract

Purpose

The main purpose of this paper is to provide an analytical conceptual framework to help business marketers to identify the effect of consumer's online purchase cost on a firm's performance in a dual‐channel competitive market.

Design/methodology/approach

A structural model using game theory is developed to search the optimal strategies for both online and traditional channel retailers.

Findings

Our model results show that consumer's online purchase cost consistently has a valuable impact on a firm's profit, and consumer's online purchase cost shows a much more valuable impact on firm's profit when the traditional retail transaction cost and the product web‐fit change. We also find that consumer's online purchase cost has a greater impact on the firm's profit in a Stackelberg competition than in a Bertrand competition.

Research limitations/implications

The present study holds the assumption that all information is known to the online retailers and the traditional retailers. However, information could be incomplete and asymmetric. It is recommended that future research explores the value of consumer's online purchase cost under information asymmetry.

Practical implications

Our paper provides a comprehensive model framework for business managers who currently use or plan to use internet channel to sell their products.

Originality/value

Our research model fills a conceptual and practical gap with a structured analysis of the current state of knowledge about consumer's online purchase cost. The paper provides practical and solid advice and examples demonstrating the application of the different types of optimal marketing strategies for business managers.

Details

Marketing Intelligence & Planning, vol. 27 no. 5
Type: Research Article
ISSN: 0263-4503

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Article
Publication date: 6 September 2013

Yelin Fu, K.K. Lai and Liang Liang

The purpose of this paper is twofold: to investigate performance of both manufacturer-owned channel and traditional retail channel when the manufacturer encroaches upon…

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1672

Abstract

Purpose

The purpose of this paper is twofold: to investigate performance of both manufacturer-owned channel and traditional retail channel when the manufacturer encroaches upon the traditional channel in different forms (brick-and-mortar and online form) under different market structures (Stackelberg and Bertrand). To examine the effect of acceptance of the online channel and travel cost on profits of two channels.

Design/methodology/approach

The Hotelling model is employed to depict consumers ' channel choice behavior, where the consumer surplus captures travel cost, spatial distance and consumer heterogeneity in acceptance of the online channel. A game-theoretical framework is developed to determine the optimal encroachment form and market structure for both manufacturer-owned and traditional retail channels.

Findings

This paper finds that, in either form of encroachment, Stackelberg market structure always outperforms Bertrand market structure, and channel choice significantly relies on parameters, i.e. consumer acceptance of the online channel and travel cost. Moreover, a Pareto zone is proposed in which both channels consider the strategy that the manufacturer opens bricks-and-mortar channel under Stackelberg market structure as the optimal strategy.

Originality/value

The present work fills a theoretical and practical gap for a structured analysis of the channel performance when the manufacturer encroaches upon the incumbent retail channel in different forms and under different market structure.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 25 no. 4
Type: Research Article
ISSN: 1355-5855

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Article
Publication date: 29 February 2008

Ruiliang Yan

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…

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7581

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.

Details

Journal of Product & Brand Management, vol. 17 no. 1
Type: Research Article
ISSN: 1061-0421

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Book part
Publication date: 24 November 2010

Eric T. Anderson, Duncan Simester and Florian Zettelmeyer

This chapter reports the findings of a large-scale study investigating the issues that arise when firms introduce a new Internet channel. Our analysis offers three key…

Abstract

This chapter reports the findings of a large-scale study investigating the issues that arise when firms introduce a new Internet channel. Our analysis offers three key contributions. First, we provide a framework to guide firms in anticipating and understanding the unique challenges of introducing an Internet channel. Second, we present a menu of alternatives to address these challenges. Finally, we pose a series of questions which identify which solutions are most appropriate given the particular market and firm context.

Details

Review of Marketing Research
Type: Book
ISBN: 978-0-85724-475-8

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Article
Publication date: 13 April 2018

Gino Marchet, Marco Melacini, Sara Perotti, Monica Rasini and Elena Tappia

Companies are currently moving from multi-channel strategies to offer their customers an omni-channel (OC) experience. So far, OC research has been mainly tackled from a…

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3890

Abstract

Purpose

Companies are currently moving from multi-channel strategies to offer their customers an omni-channel (OC) experience. So far, OC research has been mainly tackled from a sales-based view, with numerous operational challenges to be fully investigated yet. The purpose of this paper is to investigate how companies set the logistics variables in their OC management strategy and the business logistics models currently most adopted.

Design/methodology/approach

A two-step methodology was adopted. First, a systematic combining approach with scientific literature review and case studies allowed to derive a framework for classifying the key logistics variables and the related options. The framework was then used to conduct a qualitative survey targeting 92 Italian companies operating in food manufacturing, food retailing and non-food retailing. Collected data were analysed by means of cluster analysis.

Findings

Implementing an OC management strategy requires to set 11 logistics variables belonging to four strategic areas: delivery service, distribution setting, fulfilment strategy and returns management. A broad empirical investigation showed the choices made by companies when setting the logistics variables to implement an OC management strategy. Lastly, four business logistics models, differing in terms of both business sector and OC maturity, were discussed.

Originality/value

The proposed framework extends earlier studies by including additional significant logistics variables. The empirical analysis provides new insights on how to re-structure the business logistics model in OC, suggesting channel integration and the coexistence of multiple configurations as main enablers of an OC proposition.

Details

International Journal of Physical Distribution & Logistics Management, vol. 48 no. 4
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 1 June 2010

Ruiliang Yan

The purpose of this paper is to provide a framework to help business marketers with online and traditional retail channels (multi‐channel retailers) to find the optimal…

Downloads
7185

Abstract

Purpose

The purpose of this paper is to provide a framework to help business marketers with online and traditional retail channels (multi‐channel retailers) to find the optimal branding strategy and market structure in order to maximize their profits.

Design/methodology/approach

A game‐theoretic model is developed to determine the optimal branding strategy and market structure for the dual‐channel stores of a multi‐channel retailer.

Findings

The paper demonstrates that an optimal branding strategy and market structure exists for the dual‐channel stores of a multi‐channel retailer. When a retailer uses multiple channels in parallel to sell its product, the optimal branding strategy is to employ as large as possible brand differentiation between the dual‐channel stores, particularly when the price is less sensitive for consumers and the market base size is larger. Furthermore, it is also found that the optimal market structure is the Stackelberg mode, especially when the product brands between the two channels are less differentiated.

Research limitations/implications

The present study assumed that all information is known to both the online and traditional channels of a multi‐channel retailer. However, information could be incomplete. It is recommended that future research explore the value of product brand differentiation under incomplete information settings.

Practical implications

The paper provides a very useful model framework, branding 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 branding strategies. The paper provides practical and solid advice and examples demonstrating the application of product brand differentiation strategies for business managers.

Details

European Journal of Marketing, vol. 44 no. 5
Type: Research Article
ISSN: 0309-0566

Keywords

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Article
Publication date: 12 August 2014

Christopher Reddick and Leonidas Anthopoulos

This paper aims to examine the factors that can predict citizen-initiated contact with e-government as an attempt to identify important differences between service channel

Downloads
1536

Abstract

Purpose

This paper aims to examine the factors that can predict citizen-initiated contact with e-government as an attempt to identify important differences between service channel selections. Although more than two decades have passed since the initiation of e-government, digital channel choice is still being questioned, compared to traditional channels, and the level of selection with channels is being investigated.

Design/methodology/approach

This study states three research questions that are answered through a literature review and statistical analysis of a survey in a developed country. More specifically, it identifies the factors that impact channel choice and validates them with survey results. To this end, this paper utilizes data from a national Canadian survey, where citizens empirically evaluated their channel choice – e-government, new digital media and traditional service channels – for government contacts.

Findings

Statistical analysis over this data return valuable findings such as that the e-government channel is more appropriate for information collection, whereas traditional service channels are more likely to establish individual problem solving. Moreover, the digital divide appears to have an impact on citizen channel choice. Furthermore, digitally literate citizens who are aware of privacy issues are more likely to use new digital media. Finally, citizens are quite satisfied from their new digital media experience, but are not as satisfied with their traditional contact experience.

Originality/value

These outcomes show that e-government obstacles regarding digital divide, trust and efficiency remain active and have to be addressed more carefully by governments. This study shows that e-government and new digital media are not simple channel choices, but are complex in public service delivery. These outcomes confirm the significance of channel choice for transforming government, as e-government appears to be a part of a broader channel choice agenda.

Details

Transforming Government: People, Process and Policy, vol. 8 no. 3
Type: Research Article
ISSN: 1750-6166

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Article
Publication date: 2 February 2018

Praveen Sugathan, Alexander Rossmann and Kumar Rakesh Ranjan

This study aims to conceptualize and test the effect of consumers’ perceptions of complaint handling quality (PCHQ) in both traditional and social media channels.

Downloads
2009

Abstract

Purpose

This study aims to conceptualize and test the effect of consumers’ perceptions of complaint handling quality (PCHQ) in both traditional and social media channels.

Design/methodology/approach

Study 1 systematically reviews the relevant literature and then carries out a consumer and manager survey. This approach aims to conceptualize the dimensionality of PCHQ. Study 2 tests the effect of PCHQ on key marketing outcomes. Using survey data from a German telecommunications company, the study provides an explanation for the differences in outcomes across traditional (hotline) and social media channels.

Findings

Study 1 reveals that PCHQ is best conceptualized as a five-dimensional construct with 15 facets. There are significant differences between customers and managers in terms of the importance attached to the various dimensions. The construct shows strong psychometric properties with high reliability and validity, thereby opening up opportunities to treat these facets as measurement indicators for the construct. Study 2 indicates that the effect of PCHQ on consumer loyalty and word-of-mouth (WOM) communication is stronger in social media than in traditional channels. Procedural justice and the overall quality of service solutions emerge as general dimensions of PCHQ because they are equally important in both channels. In contrast, interactional justice, distributive justice and customer effort have varying effects across the two channels.

Research limitations/implications

This study contributes to the understanding of a firm’s channel selection for complaint handling in two ways. First, it evaluates and conceptualizes the PCHQ construct. Second, it compares the effects of different dimensions of PCHQ on key marketing outcomes across traditional and social media channels.

Practical implications

This study enables managers to understand the difference in efficacy attached to different dimensions of PCHQ. It further highlights such differences across traditional and social media service channels. For example, the effect of complaint handling on social media is of particular importance when generating WOM communication.

Originality/value

This study offers a comprehensive conceptualization of the PCHQ construct and reveals the general and channel contingent effects of its different dimensions on key marketing outcomes.

Details

European Journal of Marketing, vol. 52 no. 5/6
Type: Research Article
ISSN: 0309-0566

Keywords

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Book part
Publication date: 30 July 2018

Abstract

Details

Marketing Management in Turkey
Type: Book
ISBN: 978-1-78714-558-0

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