Channel Power in Multi-Channel Environments
27 Pages Posted: 23 Jun 2006
Date Written: 24 2004 6,
In the literature, little attention has been paid to instances where companies add an Internet channel to their direct channel portfolio. However, actively managing multiple sales channels requires knowing the customers’ channel preferences and the resulting channel power. Two key components of channel power are (i) the existing customers’ intrinsic loyalty to a channel, and (ii) the channel’s ability to attract new customers. We apply the Colombo and Morrison (1989) model to analyze the channel loyalty and conquesting power of two direct channels operated by a given firm. In addition, we analyze the evolution over time in each channel’s power, and test for differences in channel power among different product categories offered by the firm, and among different customer segments.
Keywords: channel power, internet marketing, channel loyalty, conquesting power, Colombo-Morrison model
JEL Classification: M, M31, C44, M3
Suggested Citation: Suggested Citation