Channel Capabilities, Product Characteristics, and Impacts of Mobile Channel Introduction

33 Pages Posted: 29 Oct 2013

See all articles by Youngsok Bang

Youngsok Bang

McGill University

Dong-Joo Lee

Hansung University

Kunsoo Han

McGill University

Minha Hwang

McGill University - Faculty of Management

Jae-Hyeon Ahn

KAIST College of Business

Date Written: April 23, 2013

Abstract

Drawing on the notion of channel capability, we develop a theoretical framework for understanding the interactions between mobile and traditional online channels for products with different characteristics. Specifically, we identify two channel capabilities — access and search capabilities — that differentiate mobile and online channels, and two product characteristics that are directly related to the channel capabilities — time criticality and information intensity. Based on this framework, we generate a set of predictions on the differential impacts of mobile channel introduction across different product categories. We test the predictions using a counterfactual analysis based on vector autoregression and a large panel dataset from a leading e-market in Korea that covers a 28-month period and contains all the transactions made through the online and mobile channels before and after the mobile channel introduction. Consistent with our predictions based on the theoretical framework, our results suggest that the performance impact of the mobile channel depends crucially on the two product characteristics and the resulting product-channel fit. We discuss implications for theory and multichannel strategy.

Keywords: Counterfactual analysis, mobile commerce, multichannel strategy, substitute and complement, vector autoregression, multivariate baseline analysis

JEL Classification: M31, L86

Suggested Citation

Bang, Youngsok and Lee, Dong-Joo and Han, Kunsoo and Hwang, Minha and Ahn, Jae-Hyeon, Channel Capabilities, Product Characteristics, and Impacts of Mobile Channel Introduction (April 23, 2013). Available at SSRN: https://ssrn.com/abstract=2346285 or http://dx.doi.org/10.2139/ssrn.2346285

Youngsok Bang (Contact Author)

McGill University ( email )

1001 Sherbrooke St. W
Montreal, Quebec H3A 1G5
Canada

Dong-Joo Lee

Hansung University ( email )

Seoul, 136-792
Korea

Kunsoo Han

McGill University ( email )

1001 Sherbrooke St. W
Montreal, Quebec H3A 1G5
Canada

Minha Hwang

McGill University - Faculty of Management ( email )

1001 Sherbrooke St. West
Montreal, Quebec H3A1G5 H3A 2M1
Canada
514-398-4057 (Phone)

HOME PAGE: http://bigdataco.blogspot.ca

Jae-Hyeon Ahn

KAIST College of Business ( email )

85 Hoegiro, Dongdaemoon-gu
Seoul, 130-722
Korea, Republic of (South Korea)

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