Author
Pauwels, Koen Hendrik, Leeflang, P. S. H., Teerling, M. L., Huizingh, K. R. E.
Publication Date
2011-03
Publication Place
-
Elsevier
Subject
Offline revenue effects of an informational website, Web-to-store shopping, Sensory products, Latent class model
Type
Periodical
Language
English
Digital
Yes
Manuscript
No
Library
Özyeğin University
Library Asset ID
0022-4359
Record ID
dd7b54e8-b5c7-4866-9969-dbb8ec6a98ad
Library Location
Business Administration
Date
2011-03
Notes
Nederlandse Organisatie voor Wetenschappelijk Onderzoek (NWO)
Sample Text
While many offline retailers have developed informational websites that offer information on products and prices, the key question for such informational websites is whether they can increase revenues via web-to-store shopping. The current paper draws on the information search literature to specify and test hypotheses regarding the offline revenue impact of adding an informational website. Explicitly considering marketing efforts, a latent class model distinguishes consumer segments with different short-term revenue effects, while a Vector Autoregressive model on these segments reveals different long-term marketing response.We find that the offline revenue impact of the informational website critically depends on the product category and customer segment. The lower online search costs are especially beneficial for sensory products and for customers distant from the store. Moreover, offline revenues increase most for customers with high web visit frequency. We find that customers in some segments buy more and more expensive products, suggesting that online search and offline purchases are complements. In contrast, customers in a particular segment reduce their shopping trips, suggesting their online activities partially substitute for experiential shopping in the physical store. Hence, offline retailers should use specific online activities to target specific product categories and customer segments.
DOI
10.1016/j.jretai.2010.10.001
Cilt
87
