Download Online Channel Integration: Value Creation and Customer by Jochen Binder PDF

By Jochen Binder

Today, so much businesses hire on-line and offline distribution channels. buyers mix either channels for info seek and buy. even though, researchers and practitioners are nonetheless missing perception in regards to the production of extra shopper price, when it comes to a continuing buy event, through combining the net and offline channels. additionally, it's uncertain if those channel integration actions can really support multichannel enterprises receive a strategic virtue over their on-line pureplay opponents. Jochen Binder investigates how, why, and to what volume an built-in on-line channel raises buyer price and results in larger willingness to pay, client loyalty and buy purpose in a firm's on-line and offline stores.

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Extra info for Online Channel Integration: Value Creation and Customer Reactions in Online and Physical Stores

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However, going multichannel and increasing integration is also associated with operational difficulties and increased costs. The challenges for synergy creation across channels are identified as channel cross promotion management, data integration, customer cross-channel price comparisons, shared assets and operations, and the distribution of digitized services as support for physical products. The authors acknowledge that a multichannel firm must define the intensity and scope of its integration activities along a continuum of channel harmonization and complete homogenization of its channel system.

When companies use online and offline channels as part of their distribution policy, they have the basic choice of either combining or separating the alternative channels (Chavez et al. 2000; Emrich 2011). If firms follow the strategy of separating alternative channels, interaction between online and offline customer touch points is avoided. The processes and functions are not interlinked from the customer perspective. On the other hand, a channel integration strategy combines the different channels in order to create a 19 seamless transition between the different customer touch points (Gulati and Garino 2000).

2009). Firms employing brick-and-mortar stores in their channel system face new challenges since the Internet has gained increasing consumer acceptance as a touch point and has redefined the competitive rules of many market places (Bendoly et al. 2005). Not only are they competing with online pure play retailers, but they also have to simultaneously manage their online and offline channels and the looming channel 28 conflicts. On the other hand, the Internet also offers new opportunities for brick-andclick companies since their combination of online and offline channels makes them better equipped to react to new customer purchase patterns.

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