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Customer Migration: An Empirical Investigation across Multiple Channels

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  • Sullivan, Ursula Y.

    (U of Illinois at Urbana-Champaign)

  • Thomas, Jacquelyn S.

    (Northwestern U)

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    Abstract

    Recent industry studies suggest that customers routinely use multiple channels of the same retailer to make their purchases. However, most studies about the drivers of customer profitability only focus on customer behavior in a single channel. This research investigates customer channel migration and the outcome of channel migration on the drivers of customer profitability. We find that all single-channel buyers and all multi-channel buyers are not alike. In addition, we discuss how forecasts of customer migration patterns can impact channel equity, channel expansion decisions, and promotion and product strategies.

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    File URL: http://www.business.illinois.edu/Working_Papers/papers/04-0112.pdf
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    Bibliographic Info

    Paper provided by University of Illinois at Urbana-Champaign, College of Business in its series Working Papers with number 04-0112.

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    Date of creation: 2004
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    Handle: RePEc:ecl:illbus:04-0112

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    Web page: http://www.business.uiuc.edu/Working_Papers/Main.asp
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    1. Berger, Paul D. & Bechwati, Nada Nasr, 2001. "The allocation of promotion budget to maximize customer equity," Omega, Elsevier, vol. 29(1), pages 49-61, February.
    2. Ganesh Iyer & Amit Pazgal, 2003. "Internet Shopping Agents: Virtual Co-Location and Competition," Marketing Science, INFORMS, vol. 22(1), pages 85-106, November.
    3. Ruth N. Bolton, 1998. "A Dynamic Model of the Duration of the Customer's Relationship with a Continuous Service Provider: The Role of Satisfaction," Marketing Science, INFORMS, vol. 17(1), pages 45-65.
    4. Michael Smith & Erik Brynjolfsson, 1999. "Frictionless Commerce? A Comparison of Internet and Conventional Retailers," Computing in Economics and Finance 1999 1022, Society for Computational Economics.
    5. William Boulding & Ajay Kalra & Richard Staelin, 1999. "The Quality Double Whammy," Marketing Science, INFORMS, vol. 18(4), pages 463-484.
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