• Journal of Distribution Science
• /
• v.9 no.2
• /
• pp.31-36
• /
• 2011

I conducted empirical analyses of what happens when an offline channel expands to an online channel and whether the pre-existing offline channel's competitive assets (e.g. brand reputation and level of service satisfaction) can be linked to online channel preference. I found that an offline channel's brand reputation and level of service satisfaction can have a direct influence on offline channel preference and a second-hand influence on online channel preference. Thus, if the competitiveness of the online channel is strong enough and its customers have a higher preference for the offline channel, they will be committed and loyal to the company. The resultant enhanced competitiveness of the offline channel will present opportunities for both present and future success. The main results are the following. First, the management of the distribution channel service quality is more important than that of the brand reputation. Customers' experiences of service and subjective evaluations are not important only as the leading factors in the long-term brand reputation management but also as influential factors in channel preference. SoThus, given that the service quality of the pre-existing channel is not the customers' main concern, a strategy of improving the level of service satisfaction aimed at present customers is more valuable than a wide brand positioning strategy aimed at general and new customers. Second, when an offline channel company establishes an internet shopping mall on an online channel, it is highly likely that the preference and subjective evaluation of the present customers will influence the online channel. This applies not only to the special case of an expansion from an offline intermediary channel to an online one, but also to an online channel acting as an expansion of the business model of a conventional manufacturing or service company: both cases are vertical integrations of marketing channels in an expansion of the distribution channel. My theory applies to a wide range of contexts. Third and finally, any business strategy can grasp the meaning of 'channel expansion. Fundamentally, it is an expansion of the sales activity channel and marketing activity. However, it is also a way of enhancing marketing and sales competitiveness through an expansion to an online or offline channel. The expansion of an offline company to an online channel could be seen not as improvement but as an innovation of the business process by which two goals are achieved with one technique. The former is expected to increase the sales of the offline company, and the latter is also expected to increase sales while also contributing to cost reduction.

• Journal of Digital Convergence
• /
• v.11 no.12
• /
• pp.245-256
• /
• 2013

This study illustrates factors that determine consumer types based on ways in which they alternate between online and offline channels for searching and eventually buying their desired products. This study conducted an online survey targeting 1,040 consumers. As per the study, consumer types fall into five groups: 1) on-on type(online search${\rightarrow}$online buying), 2) off-off type(offline search${\rightarrow}$offline buying), 3) on-off type(online search${\rightarrow}$offline buying), 4) off-on type(offline search${\rightarrow}$online buying), and, 5) on-off-on type(online search${\rightarrow}$ offline search${\rightarrow}$nline buying). The primary factors that determine how the different consumer types switch between online and offline channels are price orientation, convenience orientation,, risk-aversion orientation, and channel familiarity. Although they feel cross-channel shopping can be cumbersome, the findings show that cross-channel consumers would gladly switch channels to buy cheaper and proven products. The findings of this study will be useful for businesses that have both online and offline channels and point out the theoretical aspects of the decision-making process as consumers switch between channels.

• Journal of Distribution Research
• /
• v.12 no.3
• /
• pp.69-90
• /
• 2007

This study is set out to investigate the factors that influence customers' behavior of choice and switching between online and offline channels, separating the purchase decision into two stages, i.e., information search and purchase. Factors influencing channel choice are found to differ from stage to stage. The main results of this study are as follows. At the information search stage, customers' channel knowledge had impacts on the choice of the channel. Customers are more likely to visit offline bookstores when they have hedonic shopping orientation and higher involvement level with books. On the contrary, customers are more apt to search online when they have a lot of online shopping experiences. At the purchase stage, the results varied according to the search channel. When customers search for information online, the following variables lead to online purchases: online shopping experiences with books, price-focused shopping orientation, and time availability for shopping. Perceived risk made customers purchase offline even though they searched online. In case of offline searching, customers with more convenience-focused, hedonic-focused shopping orientation and less tim availability purchased offline.

• The Journal of the Korea Contents Association
• /
• v.16 no.5
• /
• pp.428-439
• /
• 2016

It becomes undeniable trends that offline shopping stores operate their own online shopping stores too. The multi-channel shopping stores like this allow consumers to have much choices to shop from either offline channel or online channel. This trend, however, also opens new research issues. Especially, we have found from literature survey that a new research model is necessary for more in-depth study of the consumer behavior analysis in the multi-channel trends like this, where those constructs such as offline trust, uncertainty, switching cost, and individual negative emotion are considered. It is noted, especially in the multi-channel environments, that uncertainty and switching cost need to be considered, and that individual tends to feel negative emotion much more. By relying on 406 valid questionnaires, we obtained empirical results such that switching cost and offline trust have a positive effect on continuance intention, and uncertainty tends to increase switching cost. Individual negative emotion also affects continuance intention significantly.

• The Journal of the Korea Contents Association
• /
• v.22 no.1
• /
• pp.224-239
• /
• 2022

Despite an impressive growth of online sales, the bricks-and-mortar bandwagon still remain high-profile in the realm of consumer channel switching behavior. Different from the existing research exploring the consumer switching behavior from the offline to the online retailer, this study is an effort to investigate why and when do consumers switch from the online to the offline channel by applying the push-pull-mooring framework. Thus, structural equation modeling and SPSS were used to test the established hypotheses. The results, as expected, show that both push factors (i.e., perceived risk and dissatisfaction) and pull factors (alternative attractiveness and perceived ownership) are positively related to a consumer's intention to switch from the online to the offline channel. Moreover, all of expected interactions between push factors and mooring factors (i.e., switching costs, variety seeking, and subjective norms), and between pull factors and mooring factors are supported, except for the interactions between push factors and switching costs as well as between pull factors and subjective norms. Finally, implications and limitations are discussed.

• The Journal of Information Technology
• /
• v.7 no.1
• /
• pp.69-86
• /
• 2004

In this paper, a conceptual framework describing the dynamics of click and mortar businesses is provided. It directs our attention to the many potential sources of synergy that are available to firms that choose to integrate e-commerce with their existing traditional forms of business. It further emphasizes the many actions that firms can take to minimize channel conflicts and help achieve the benefits of synergy. Finally, it describes four categories of synergy-related benefits from the integration of e-commerce with traditional businesses, including potential cost saving, gains due to enhanced differentiation, improved trust, and potential extensions into new markets. The utility of the framework was demonstrated using the case of an electronics retailer that has chosen to tightly integrate its large chain of retail stores with its Web-based electronic store. The framework was also used to develop a series of propositions that can guide future empirical research. The discussion points to the need to develop new types of metrics to better judge the contributions of e-commerce channels, and provides some guidance for future empirical research that can test whether, and under what conditions, integrated click and mortar business models work well. Thus, the purpose of this study is to present the combining physical and virtual presence in e-commerce.

• Journal of Distribution Research
• /
• v.8 no.2
• /
• pp.1-18
• /
• 2003

This study has tried an integrated approach toward consumer response difference between the online internet shopping mall and the off-line department store focusing on the moderating role of shopping value according to shopping situation. This study has analyzed consumer behavior differences between online and off-line channel formats in one framework and identified differences in consumer behaviors between the two channel formats. Managerial implications of this paper include measuring the effects of the integration of online and off-line channel and developing multichannel strategy. This paper suggests marketers to develop channel strategies based on customer segmentation criteria reflecting different consumer shopping value between online and off-line channel formats rather than developing strategies based only on the conventional marketing mix.

• The Journal of Bigdata
• /
• v.8 no.1
• /
• pp.131-156
• /
• 2023

The traditional retail industry significantly changed over the past decade due to the mobile and online technologies. This change has been accompanied by a shift in consumer behavior regarding purchasing patterns. Despite the rise of online shopping, there are still specific categories of products, such as "Processed food" in Mongolia, for which traditional shopping remains the preferred purchase method. To prepare for the inevitable future of retail businesses, firms need to closely analyze the performance of their offline stores to plan their further actions in a new multi-channel environment. Retailers must integrate diverse channels into their operations to stay relevant and adjust to the shifting market. In this research, we have analyzed the performance data such as sales, profit, and amount of sales of offline stores by using clustering approach. From the clustering, we have found the several distinct insights by comparing the circumstances and performance of retail stores. For the certain retail stores, we have proposed three different strategies: a fulfillment hub store between online and offline channels, an experience store to elongate customers' time on the premises, and a merge between two non-related channels that could complement each other to increase traffic based on the store characteristics. With the proposed strategies, it may enhance the user experience and profit at the same time.

• The Journal of the Korea Contents Association
• /
• v.16 no.12
• /
• pp.707-723
• /
• 2016

The purpose of this study is to focus on the effects of different channel types of Word-of-Mouth on the product attitude. Additionally, the product involvement and gender are considered as moderating variables. The results of this study show that different word-of-mouth channel types have different effects on the product attitude, that is, off-line has more influence than on-line does. Also the product involvement moderates the relationship between the channel types of word-of-mouth and the product attitude, while the gender does not. The results imply that while building the word-of-mouth marketing strategy, companies should not only pay attention to the on-line media channel, but lay importance on the off-line communication channel.

• Knowledge Management Research
• /
• v.23 no.1
• /
• pp.69-88
• /
• 2022

Omni-channel enables businesses to provide a seamless customer experience by organically integrating data from multiple channels. Customers have increasingly used mobile applications to place orders and make payments in offline stores. In such context, this study investigated the effects of customer experiences on brand loyalty via offline and mobile channels. Additionally, it examined the role of habit in establishing brand loyalty in a daily service environment. This study confirmed the importance of functional, human, and mechanical cues on perceived value in the offline channel. Additionally, differences in the influence of customer experiences via offline and mobile channels on brand loyalty were examined at based on the age and gender. The research model was empirically validated using survey data collected from 365 customers who visit coffee chains via mobile applications. The analysis results found that both perceived value of offline stores and loyalty to mobile applications have a significant effect on brand loyalty. Habit plays another critical role in enhancing brand loyalty. The findings of this study help service providers better understanding of the formation mechanism of brand loyalty in the context of omni channel and will be able to develop more effective marketing and operations strategies.