The impact of offline store presence on digital sales: The moderating role of product functionality

Jeeyeon Kim, Jeonghye Choi, Sue Ryung Chang and Minakshi Trivedi

Journal of Retailing and Consumer Services, 2024, vol. 78, issue C

Abstract: Multichannel companies are keen on creating synergies between traditional offline stores and digital channels. This research aims to investigate the effect of offline store presence on online and mobile sales and its variation by product functionality. This research examines two dimensions of offline store presence: absolute store presence (i.e., the number of offline stores in a region) and relative store presence (i.e., the ratio of the focal brand's offline stores to the competitors' stores). Using proprietary data from a beauty-product multichannel retailer, findings reveal that its own offline stores help mobile sales improve, while relatively dominant offline store substitutes digital sales. Moreover, product functionality moderates these relationships differently in online and mobile channels. These insights are crucial for retailers to optimize channel management and product alignment, enhancing the efficacy of multichannel strategies.

Keywords: Multichannel retailing; Offline store presence; Digital sales; Product functionality; Online channel; Model channel (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S096969892400050X
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:joreco:v:78:y:2024:i:c:s096969892400050x

DOI: 10.1016/j.jretconser.2024.103754

Access Statistics for this article

Journal of Retailing and Consumer Services is currently edited by Harry Timmermans

More articles in Journal of Retailing and Consumer Services from Elsevier
Bibliographic data for series maintained by Catherine Liu ().