The impact of a new online channel: An empirical study

Lu, Qiang (Steven), Yupin Yang and Ulku Yuksel

Annals of Tourism Research, 2015, vol. 54, issue C, 136-155

Abstract: This paper investigates the impact of adding a direct online channel on a firm and its intermediaries. We develop a set of testable hypotheses and then empirically test them on a longitudinal transaction dataset from the hospitality industry. Our results show that the introduction of a direct online channel significantly reduces the price premium charged by intermediaries, and the impact varies across consumer segments and product markets. More interestingly, we find that, after the adoption of a direct online channel: (1) the intermediaries are not necessarily worse off; (2) price dispersion increases for products sold through both intermediaries and direct channels; and (3) the price dispersion increase is higher for products sold by intermediaries.

Keywords: Direct online channel; Intermediary; Competitive advantage; Distribution channel; Pricing; Multichannel management (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0160738315000948
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:anture:v:54:y:2015:i:c:p:136-155

DOI: 10.1016/j.annals.2015.06.006

Access Statistics for this article

Annals of Tourism Research is currently edited by John Tribe

More articles in Annals of Tourism Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().