 Is multichannel retail marketing integration a panacea?Guiomar Martín-Herrán and Simon-Pierre Sigué Journal of the Operational Research Society, 2025, vol. 76, issue 8, 1630-1648 Abstract: Channel integration/centralization understood as joint pricing of multiple channels is touted as the ideal organization to maximize the profitability of multichannel retailers. This study challenges this claim and analytically examines with two two-period models whether multi-channel retailers should centralize or decentralize online and offline pricing decisions when vertical channel interactions and consumer reference price effects are considered. We found that under certain conditions (which depend on several factors, including the manufacturer’s advertising strategies over the two periods, the intensity of price competition between channels, and the consumers’ sensitivity to price changes over time), the retailer may find it optimal to centralize or decentralize online and offline pricing decisions. Therefore, our findings support the idea that multichannel retailing integration is not a panacea, especially in a context where complex vertical interactions with manufacturers are taken into account and where consumers compare current market prices to recent past prices at the time of purchase. Date: 2025 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:tjorxx:v:76:y:2025:i:8:p:1630-1648 Ordering information: This journal article can be ordered from DOI: 10.1080/01605682.2024.2430337 Access Statistics for this article Journal of the Operational Research Society is currently edited by Tom Archibald More articles in Journal of the Operational Research Society from Taylor & Francis Journals |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.