Channel Power in Multi-Channel Environments

Marnik Dekimpe and Bernd Skiera

ERIM Report Series Research in Management from 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

Abstract: 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: Colombo-Morrison model; channel loyalty; channel power; conquesting power; internet marketing (search for similar items in EconPapers)
JEL-codes: C44 M M3 M31 (search for similar items in EconPapers)
Date: 2004-06-24
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Citations: View citations in EconPapers (2)

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