IDEAS home Printed from https://ideas.repec.org/a/eee/joinma/v37y2017icp44-56.html
   My bibliography  Save this article

Private Sales Clubs: A 21st Century Distribution Channel

Author

Listed:
  • Betancourt, Roger R.
  • Chocarro, Raquel
  • Cortiñas, Monica
  • Elorz, Margarita
  • Mugica, Jose Miguel

Abstract

Private sales clubs are a novel service institution arising out of the Internet's ability to allow an exclusively online channel to distribute out of season or out of fashion inventories to a large set of customers. They have become a thriving industry in the 21st century. In this paper we enhance understanding of this technology mediated institution as a distribution channel. Furthermore, we show how to measure the impact of the distribution services it provides through the Internet on customer satisfaction and of the latter on economic performance. We rely on the technique of quantile regressions in this endeavor. The latter allows for asymmetries in the response function that have been noted as a major issue to be addressed in the analysis of both customer satisfaction and economic performance variables. Our most important empirical finding is that the distortions introduced by ignoring asymmetries in the response function with respect to customer satisfaction are extremely misleading for managers of private sales clubs.

Suggested Citation

  • Betancourt, Roger R. & Chocarro, Raquel & Cortiñas, Monica & Elorz, Margarita & Mugica, Jose Miguel, 2017. "Private Sales Clubs: A 21st Century Distribution Channel," Journal of Interactive Marketing, Elsevier, vol. 37(C), pages 44-56.
    • Handle: RePEc:eee:joinma:v:37:y:2017:i:c:p:44-56
    DOI: 10.1016/j.intmar.2016.09.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1094996816300603
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.intmar.2016.09.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kopalle, Praveen & Biswas, Dipayan & Chintagunta, Pradeep K. & Fan, Jia & Pauwels, Koen & Ratchford, Brian T. & Sills, James A., 2009. "Retailer Pricing and Competitive Effects," Journal of Retailing, Elsevier, vol. 85(1), pages 56-70.
    2. Kumar, V. & Pozza, Ilaria Dalla & Ganesh, Jaishankar, 2013. "Revisiting the Satisfaction–Loyalty Relationship: Empirical Generalizations and Directions for Future Research," Journal of Retailing, Elsevier, vol. 89(3), pages 246-262.
    3. Erik Brynjolfsson & Yu (Jeffrey) Hu & Duncan Simester, 2011. "Goodbye Pareto Principle, Hello Long Tail: The Effect of Search Costs on the Concentration of Product Sales," Management Science, INFORMS, vol. 57(8), pages 1373-1386, August.
    4. Marc Rysman, 2009. "The Economics of Two-Sided Markets," Journal of Economic Perspectives, American Economic Association, vol. 23(3), pages 125-143, Summer.
    5. Finn, Adam, 2011. "Investigating the non-linear effects of e-service quality dimensions on customer satisfaction," Journal of Retailing and Consumer Services, Elsevier, vol. 18(1), pages 27-37.
    6. Betancourt, Roger R. & Chocarro, Raquel & Cortiñas, Monica & Elorz, Margarita & Mugica, Jose Miguel, 2016. "Channel Choice in the 21st Century: The Hidden Role of Distribution Services," Journal of Interactive Marketing, Elsevier, vol. 33(C), pages 1-12.
    7. Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, number 9780521845731, September.
    8. Kim, Jiyoung & Jin, Byoungho & Swinney, Jane L., 2009. "The role of etail quality, e-satisfaction and e-trust in online loyalty development process," Journal of Retailing and Consumer Services, Elsevier, vol. 16(4), pages 239-247.
    9. Pauwels, Koen & Leeflang, Peter S.H. & Teerling, Marije L. & Huizingh, K.R. Eelko, 2011. "Does Online Information Drive Offline Revenues?," Journal of Retailing, Elsevier, vol. 87(1), pages 1-17.
    10. Scarpi, Daniele, 2012. "Work and Fun on the Internet: The Effects of Utilitarianism and Hedonism Online," Journal of Interactive Marketing, Elsevier, vol. 26(1), pages 53-67.
    11. Dong, Songting & Ding, Min & Grewal, Rajdeep & Zhao, Ping, 2011. "Functional forms of the satisfaction–loyalty relationship," International Journal of Research in Marketing, Elsevier, vol. 28(1), pages 38-50.
    12. Darke, Peter R. & Brady, Michael K. & Benedicktus, Ray L. & Wilson, Andrew E., 2016. "Feeling Close From Afar: The Role of Psychological Distance in Offsetting Distrust in Unfamiliar Online Retailers," Journal of Retailing, Elsevier, vol. 92(3), pages 287-299.
    13. Roger R. Betancourt, 2004. "The Economics of Retailing and Distribution," Books, Edward Elgar Publishing, number 3511.
    14. Jaiswal, Anand K. & Niraj, Rakesh & Venugopal, Pingali, 2010. "Context-general and Context-specific Determinants of Online Satisfaction and Loyalty for Commerce and Content Sites," Journal of Interactive Marketing, Elsevier, vol. 24(3), pages 222-238.
    15. Michael Lewis & Vishal Singh & Scott Fay, 2006. "An Empirical Study of the Impact of Nonlinear Shipping and Handling Fees on Purchase Incidence and Expenditure Decisions," Marketing Science, INFORMS, vol. 25(1), pages 51-64, 01-02.
    16. Paul A. Pavlou & David Gefen, 2004. "Building Effective Online Marketplaces with Institution-Based Trust," Information Systems Research, INFORMS, vol. 15(1), pages 37-59, March.
    17. Roger Betancourt & Monica Cortiñas & Margarita Elorz & Jose Mugica, 2007. "The demand for and the supply of distribution services: A basis for the analysis of customer satisfaction in retailing," Quantitative Marketing and Economics (QME), Springer, vol. 5(3), pages 293-312, September.
    18. Finn, Adam & Wang, Luming & Frank, Tema, 2009. "Attribute Perceptions, Customer Satisfaction and Intention to Recommend E-Services," Journal of Interactive Marketing, Elsevier, vol. 23(3), pages 209-220.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. José Múgica & Carmen Berné, 2020. "Direct and Indirect Tourism Online Channels. Do They Have a Different Potential for Customer Loyalty?," Sustainability, MDPI, vol. 12(11), pages 1-15, June.
    2. Ying Ding & Hean Tat Keh, 2017. "Consumer reliance on intangible versus tangible attributes in service evaluation: the role of construal level," Journal of the Academy of Marketing Science, Springer, vol. 45(6), pages 848-865, November.
    3. Carmen Berne-Manero & Maria Gómez-Campillo & Mercedes Marzo-Navarro & Marta Pedraja-Iglesias, 2018. "Reviewing the Online Tourism Value Chain," Administrative Sciences, MDPI, vol. 8(3), pages 1-18, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Betancourt, Roger R. & Chocarro, Raquel & Cortiñas, Monica & Elorz, Margarita & Mugica, Jose Miguel, 2016. "Channel Choice in the 21st Century: The Hidden Role of Distribution Services," Journal of Interactive Marketing, Elsevier, vol. 33(C), pages 1-12.
    2. Ratchford, Brian & Soysal, Gonca & Zentner, Alejandro, 2023. "Multichannel customer purchase behavior and long tail effects in the fashion goods market," Journal of Retailing, Elsevier, vol. 99(1), pages 46-65.
    3. Ratchford, Brian & Soysal, Gonca & Zentner, Alejandro & Gauri, Dinesh K., 2022. "Online and offline retailing: What we know and directions for future research," Journal of Retailing, Elsevier, vol. 98(1), pages 152-177.
    4. Carmen Berne-Manero & Maria Gómez-Campillo & Mercedes Marzo-Navarro & Marta Pedraja-Iglesias, 2018. "Reviewing the Online Tourism Value Chain," Administrative Sciences, MDPI, vol. 8(3), pages 1-18, August.
    5. Mingming Shi & Xiao Yan, 2017. "Heterogeneous consumers, search and retail formats," Frontiers of Business Research in China, Springer, vol. 11(1), pages 1-16, December.
    6. Ahrholdt, Dennis C. & Gudergan, Siegfried P. & Ringle, Christian M., 2019. "Enhancing loyalty: When improving consumer satisfaction and delight matters," Journal of Business Research, Elsevier, vol. 94(C), pages 18-27.
    7. Pomirleanu, Nadia & Chennamaneni, Pavan Rao & Krishen, Anjala S., 2016. "Easy to please or hard to impress: Elucidating consumers' innate satisfaction," Journal of Business Research, Elsevier, vol. 69(5), pages 1914-1918.
    8. Stefan Meinzer & Johann Prenninger & Patrick Vesel & Johannes Kornhuber & Judith Volmer & Joachim Hornegger & Björn M. Eskofier, 2016. "Translating satisfaction determination from health care to the automotive industry," Service Business, Springer;Pan-Pacific Business Association, vol. 10(4), pages 651-685, December.
    9. Wei Wu & Qianwen Yang & Xiang Gong, 2024. "Impulsive Social Shopping in Social Commerce Platforms: The Role of Perceived Proximity," Information Systems Frontiers, Springer, vol. 26(4), pages 1527-1541, August.
    10. Zhiyi Wang & Lusi Yang & Jungpil Hahn, 2023. "Winner Takes All? The Blockbuster Effect on Crowdfunding Platforms," Information Systems Research, INFORMS, vol. 34(3), pages 935-960, September.
    11. Karl Taeuscher, 2019. "Uncertainty kills the long tail: demand concentration in peer-to-peer marketplaces," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(4), pages 649-660, December.
    12. Mencarelli, Rémi & Lombart, Cindy, 2017. "Influences of the perceived value on actual repurchasing behavior: Empirical exploration in a retailing context," Journal of Retailing and Consumer Services, Elsevier, vol. 38(C), pages 12-21.
    13. Pallant, Jason I. & Danaher, Peter J. & Sands, Sean J. & Danaher, Tracey S., 2017. "An empirical analysis of factors that influence retail website visit types," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 62-70.
    14. Wu, Ing-Long, 2013. "The antecedents of customer satisfaction and its link to complaint intentions in online shopping: An integration of justice, technology, and trust," International Journal of Information Management, Elsevier, vol. 33(1), pages 166-176.
    15. Maier, Erik & Wieringa, Jaap, 2021. "Acquiring customers through online marketplaces? The effect of marketplace sales on sales in a retailer's own channels," International Journal of Research in Marketing, Elsevier, vol. 38(2), pages 311-328.
    16. Grewal, Dhruv & Janakiraman, Ramkumar & Kalyanam, Kirthi & Kannan, P.K. & Ratchford, Brian & Song, Reo & Tolerico, Stephen, 2010. "Strategic Online and Offline Retail Pricing: A Review and Research Agenda," Journal of Interactive Marketing, Elsevier, vol. 24(2), pages 138-154.
    17. Christian Matt & Thomas Hess, 2016. "Product fit uncertainty and its effects on vendor choice: an experimental study," Electronic Markets, Springer;IIM University of St. Gallen, vol. 26(1), pages 83-93, February.
    18. Quach, Thu Nguyen & Thaichon, Paramaporn & Jebarajakirthy, Charles, 2016. "Internet service providers' service quality and its effect on customer loyalty of different usage patterns," Journal of Retailing and Consumer Services, Elsevier, vol. 29(C), pages 104-113.
    19. Meiseberg, Brinja, 2016. "The Effectiveness of E-tailers’ Communication Practices in Stimulating Sales of Niche versus Popular Products," Journal of Retailing, Elsevier, vol. 92(3), pages 319-332.
    20. Kopalle, Praveen & Biswas, Dipayan & Chintagunta, Pradeep K. & Fan, Jia & Pauwels, Koen & Ratchford, Brian T. & Sills, James A., 2009. "Retailer Pricing and Competitive Effects," Journal of Retailing, Elsevier, vol. 85(1), pages 56-70.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joinma:v:37:y:2017:i:c:p:44-56. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-interactive-marketing/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.