The Impact of the Introduction and Use of an Informational Website on Offline Customer Buying Behavior

39 Pages Posted: 28 Feb 2011

See all articles by Erjen van Nierop

Erjen van Nierop

University of Groningen

Peter S.H. Leeflang

University of Groningen - Faculty of Economics and Business

Marije L. Teerling

affiliation not provided to SSRN

Eelko K.R.E. Huizingh

University of Groningen

Date Written: February 28, 2011

Abstract

Do customers increase or decrease their spending in response to the introduction of an informational website? To answer this question, this study considers the effects of the introduction and use of an informational website by a large national retailer on offline customer buying behavior. More specifically, we study its effects on the number of shopping trips and the amount spent per category per shopping trip. The model is calibrated through estimation of a Poisson model (shopping trips) and a type-II tobit model (amount spent per category per shopping trip), with effect parameters that vary across customers. For the focal retailer, an informational website creates more bad than good news; most website visitors engage in fewer shopping trips and spend less in all product categories. The authors also compare the characteristics of shoppers who exhibit negative website effects with those few who show positive effects and thus derive key implications for research and practice.

Keywords: Website, Online and Offline Behavior, Decomposition

JEL Classification: M13, C15, C24, D12

Suggested Citation

van Nierop, Erjen and Leeflang, Peter S.H. and Teerling, Marije L. and Huizingh, Eelko K.R.E., The Impact of the Introduction and Use of an Informational Website on Offline Customer Buying Behavior (February 28, 2011). Available at SSRN: https://ssrn.com/abstract=1772785 or http://dx.doi.org/10.2139/ssrn.1772785

Erjen Van Nierop (Contact Author)

University of Groningen ( email )

Netherlands
+3150 363 6288 (Phone)
+3150 363 3720 (Fax)

HOME PAGE: http://www.rug.nl/staff/j.e.m.van.nierop/

Peter S.H. Leeflang

University of Groningen - Faculty of Economics and Business ( email )

Postbus 72
9700 AB Groningen
Netherlands

Marije L. Teerling

affiliation not provided to SSRN

Eelko K.R.E. Huizingh

University of Groningen ( email )

P.O. Box 800
9700 AH Groningen, Groningen 9700 AV
Netherlands

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