Channel Power in Multi-Channel Environments
AbstractIn the literature, little attention has been paid to instances where companies add an Internet channel to their direct channel portfolio. However, actively managing multiple sales channels requires knowing the customersâ€™ channel preferences and the resulting channel power. Two key components of channel power are (i) the existing customersâ€™ intrinsic loyalty to a channel, and (ii) the channelâ€™s ability to attract new customers. We apply the Colombo and Morrison (1989) model to analyze the channel loyalty and conquesting power of two direct channels operated by a given firm. In addition, we analyze the evolution over time in each channelâ€™s power, and test for differences in channel power among different product categories offered by the firm, and among different customer segments.
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Bibliographic InfoPaper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. in its series Research Paper with number ERS-2004-041-MKT.
Date of creation: 24 Jun 2004
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Colombo-Morrison model; channel loyalty; channel power; conquesting power; internet marketing;
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