IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v39y2017icp305-313.html
   My bibliography  Save this article

Now what? Evaluating the sales effects of introducing an online store

Author

Listed:
  • Hernant, Mikael
  • Rosengren, Sara

Abstract

This study creates a framework for evaluating the sales impact of adding an online channel to an existing network of physical stores. Using a unique database consisting of pooled customer data from a Swedish retailer's online and offline stores, it investigates the purchase behavior of customers before and after the introduction of an online channel. The data overcome a crucial obstacle present in previous studies in that they permit matching of individual-level customer data for both online and offline behavior. The results show significant and substantial effects of online channel introduction on customer acquisition as well as on cannibalization of physical stores.

Suggested Citation

  • Hernant, Mikael & Rosengren, Sara, 2017. "Now what? Evaluating the sales effects of introducing an online store," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 305-313.
    • Handle: RePEc:eee:joreco:v:39:y:2017:i:c:p:305-313
    DOI: 10.1016/j.jretconser.2017.08.010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698917304642
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2017.08.010?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. Herhausen, Dennis & Binder, Jochen & Schoegel, Marcus & Herrmann, Andreas, 2015. "Integrating Bricks with Clicks: Retailer-Level and Channel-Level Outcomes of Online–Offline Channel Integration," Journal of Retailing, Elsevier, vol. 91(2), pages 309-325.
    2. Verhoef, Peter C. & Kannan, P.K. & Inman, J. Jeffrey, 2015. "From Multi-Channel Retailing to Omni-Channel Retailing," Journal of Retailing, Elsevier, vol. 91(2), pages 174-181.
    3. Pradeep K. Chintagunta & Junhong Chu & Javier Cebollada, 2012. "Quantifying Transaction Costs in Online/Off-line Grocery Channel Choice," Marketing Science, INFORMS, vol. 31(1), pages 96-114, January.
    4. Ganesh Iyer, 1998. "Coordinating Channels Under Price and Nonprice Competition," Marketing Science, INFORMS, vol. 17(4), pages 338-355.
    5. Melis, Kristina & Campo, Katia & Breugelmans, Els & Lamey, Lien, 2015. "The Impact of the Multi-channel Retail Mix on Online Store Choice: Does Online Experience Matter?," Journal of Retailing, Elsevier, vol. 91(2), pages 272-288.
    6. Erik Brynjolfsson & Michael D. Smith, 2000. "Frictionless Commerce? A Comparison of Internet and Conventional Retailers," Management Science, INFORMS, vol. 46(4), pages 563-585, April.
    7. Pauwels, Koen & Neslin, Scott A., 2015. "Building With Bricks and Mortar: The Revenue Impact of Opening Physical Stores in a Multichannel Environment," Journal of Retailing, Elsevier, vol. 91(2), pages 182-197.
    8. Deleersnyder, B. & Geyskens, I. & Gielens, K. & Dekimpe, M.G., 2002. "How Cannibalistic is the Internet Channel?," ERIM Report Series Research in Management ERS-2002-22-MKT, 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.
    9. Neslin, Scott A. & Shankar, Venkatesh, 2009. "Key Issues in Multichannel Customer Management: Current Knowledge and Future Directions," Journal of Interactive Marketing, Elsevier, vol. 23(1), pages 70-81.
    10. Deleersnyder, B. & Geyskens, I. & Gielens, K.J.P. & Dekimpe, M.G., 2002. "How cannibalistic is the internet channel? A study of the newspaper industry in the United Kingdom and the Netherlands," Other publications TiSEM 16dcb25c-7ea9-4c75-bdf6-5, Tilburg University, School of Economics and Management.
    11. Berry, Leonard L. & Bolton, Ruth N. & Bridges, Cheryl H. & Meyer, Jeffrey & Parasuraman, A. & Seiders, Kathleen, 2010. "Opportunities for Innovation in the Delivery of Interactive Retail Services," Journal of Interactive Marketing, Elsevier, vol. 24(2), pages 155-167.
    12. van Nierop, J.E.M. & Leeflang, P.S.H. & Teerling, M.L. & Huizingh, K.R.E., 2011. "The impact of the introduction and use of an informational website on offline customer buying behavior," International Journal of Research in Marketing, Elsevier, vol. 28(2), pages 155-165.
    13. Devavrat Purohit, 1997. "Dual Distribution Channels: The Competition Between Rental Agencies and Dealers," Marketing Science, INFORMS, vol. 16(3), pages 228-245.
    14. Sridhar Balasubramanian, 1998. "Mail versus Mall: A Strategic Analysis of Competition between Direct Marketers and Conventional Retailers," Marketing Science, INFORMS, vol. 17(3), pages 181-195.
    15. Grewal, Dhruv & Iyer, Gopalkrishnan R. & Levy, Michael, 2004. "Internet retailing: enablers, limiters and market consequences," Journal of Business Research, Elsevier, vol. 57(7), pages 703-713, July.
    16. Cao, Lanlan & Li, Li, 2015. "The Impact of Cross-Channel Integration on Retailers’ Sales Growth," Journal of Retailing, Elsevier, vol. 91(2), pages 198-216.
    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. Mohammad Delasay & Aditya Jain & Subodha Kumar, 2022. "Impacts of the COVID‐19 pandemic on grocery retail operations: An analytical model," Production and Operations Management, Production and Operations Management Society, vol. 31(5), pages 2237-2255, May.
    2. Timoumi, Ahmed & Gangwar, Manish & Mantrala, Murali K., 2022. "Cross-channel effects of omnichannel retail marketing strategies: A review of extant data-driven research," Journal of Retailing, Elsevier, vol. 98(1), pages 133-151.
    3. Carsten D. Schultz & Björn Gorlas, 2023. "Magic mirror on the wall: Cross-buying at the point of sale," Electronic Commerce Research, Springer, vol. 23(3), pages 1677-1700, September.
    4. Frasquet, Marta & Ieva, Marco & Ziliani, Cristina, 2021. "Online channel adoption in supermarket retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    5. Tran, Lobel Trong Thuy, 2021. "Managing the effectiveness of e-commerce platforms in a pandemic," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    6. Méndez-Suárez, Mariano & Monfort, Abel, 2020. "The amplifying effect of branded queries on advertising in multi-channel retailing," Journal of Business Research, Elsevier, vol. 112(C), pages 254-260.
    7. Fildes, Robert & Ma, Shaohui & Kolassa, Stephan, 2022. "Retail forecasting: Research and practice," International Journal of Forecasting, Elsevier, vol. 38(4), pages 1283-1318.
    8. Fildes, Robert & Ma, Shaohui & Kolassa, Stephan, 2019. "Retail forecasting: research and practice," MPRA Paper 89356, University Library of Munich, Germany.
    9. Qifan Hu & Qianyun Xu & Bing Xu, 2019. "Introducing of Online Channel and Management Strategy for Green Agri-food Supply Chain based on Pick-Your-Own Operations," IJERPH, MDPI, vol. 16(11), pages 1-25, June.

    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. Vaishnav, Bharat & Ray, Sourav, 2023. "A thematic exploration of the evolution of research in multichannel marketing," Journal of Business Research, Elsevier, vol. 157(C).
    2. Neslin, Scott A., 2022. "The omnichannel continuum: Integrating online and offline channels along the customer journey," Journal of Retailing, Elsevier, vol. 98(1), pages 111-132.
    3. Maier, Erik & Bornschein, Rico & Manss, Rico & Hesse, Damian, 2023. "Financial consequences of adding bricks to clicks," International Journal of Research in Marketing, Elsevier, vol. 40(3), pages 609-628.
    4. Timoumi, Ahmed & Gangwar, Manish & Mantrala, Murali K., 2022. "Cross-channel effects of omnichannel retail marketing strategies: A review of extant data-driven research," Journal of Retailing, Elsevier, vol. 98(1), pages 133-151.
    5. Saghiri, Soroosh & Wilding, Richard & Mena, Carlos & Bourlakis, Michael, 2017. "Toward a three-dimensional framework for omni-channel," Journal of Business Research, Elsevier, vol. 77(C), pages 53-67.
    6. Tagashira, Takumi & Minami, Chieko, 2019. "The Effect of Cross-Channel Integration on Cost Efficiency," Journal of Interactive Marketing, Elsevier, vol. 47(C), pages 68-83.
    7. Sodero, Annibal C. & Namin, Aidin & Gauri, Dinesh K. & Bhaskaran, Sreekumar R., 2021. "The strategic drivers of drop-shipping and retail store sales for seasonal products," Journal of Retailing, Elsevier, vol. 97(4), pages 561-581.
    8. Aiolfi Simone & Edoardo Sabbadin, 2017. "The New Paradigm of the Omnichannel Retailing: Key Drivers, New Challenges and Potential Outcomes Resulting from the Adoption of an Omnichannel Approach," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(1), pages 1-85, December.
    9. Shakir Goraya, M. Awais & Zhu, Jing & Akram, Muhammad Shakaib & Shareef, Mahmud Akhter & Malik, Aneela & Bhatti, Zeeshan Ahmed, 2022. "The impact of channel integration on consumers’ channel preferences: Do showrooming and webrooming behaviors matter?," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    10. Swoboda, Bernhard & Winters, Amelie, 2021. "Reciprocity within major retail purchase channels and their effects on overall, offline and online loyalty," Journal of Business Research, Elsevier, vol. 125(C), pages 279-294.
    11. Alice Mazzucchelli & Roberto Chierici & Francesca Ceruti & Laura Gavinelli, 2017. "Competing in an omnichannel environment. e-tailers strategies and challenges," ESPERIENZE D'IMPRESA, FrancoAngeli Editore, vol. 2017(1), pages 5-28.
    12. von Briel, Frederik, 2018. "The future of omnichannel retail: A four-stage Delphi study," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 217-229.
    13. Zhang, Sha & Pauwels, Koen & Peng, Chenming, 2019. "The Impact of Adding Online-to-Offline Service Platform Channels on Firms' Offline and Total Sales and Profits," Journal of Interactive Marketing, Elsevier, vol. 47(C), pages 115-128.
    14. Pauwels, Koen & Neslin, Scott A., 2015. "Building With Bricks and Mortar: The Revenue Impact of Opening Physical Stores in a Multichannel Environment," Journal of Retailing, Elsevier, vol. 91(2), pages 182-197.
    15. Scott K. Shriver & Bryan Bollinger, 2022. "Demand Expansion and Cannibalization Effects from Retail Store Entry: A Structural Analysis of Multichannel Demand," Management Science, INFORMS, vol. 68(12), pages 8829-8856, December.
    16. Zhuang, Hejun & Popkowski Leszczyc, Peter T.L. & Lin, Yuanfang, 2018. "Why is Price Dispersion Higher Online than Offline? The Impact of Retailer Type and Shopping Risk on Price Dispersion," Journal of Retailing, Elsevier, vol. 94(2), pages 136-153.
    17. Liu, Huan & Lobschat, Lara & Verhoef, Peter C. & Zhao, Hong, 2019. "App Adoption: The Effect on Purchasing of Customers Who Have Used a Mobile Website Previously," Journal of Interactive Marketing, Elsevier, vol. 47(C), pages 16-34.
    18. Wang Yixin & Gong Qiguo & Tian Xin & Wang Tingyan, 2021. "The Effect of Online Channel Addition on Store Performance: Empirical Evidence from Chinese Chain Retailers," Journal of Systems Science and Information, De Gruyter, vol. 9(4), pages 356-377, August.
    19. Cai, Ya-Jun & Lo, Chris K.Y., 2020. "Omni-channel management in the new retailing era: A systematic review and future research agenda," International Journal of Production Economics, Elsevier, vol. 229(C).
    20. Melis, Kristina & Campo, Katia & Lamey, Lien & Breugelmans, Els, 2016. "A Bigger Slice of the Multichannel Grocery Pie: When Does Consumers’ Online Channel Use Expand Retailers’ Share of Wallet?," Journal of Retailing, Elsevier, vol. 92(3), pages 268-286.

    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:joreco:v:39:y:2017:i:c:p:305-313. 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-retailing-and-consumer-services .

    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.