Building with bricks and mortar: the revenue impact of opening physical stores in a multichannel environment

Name: Building with bricks and mortar: the revenue impact of opening physical stores in a multichannel environment
Author: Pauwels, Koen Hendrik, Neslin, S. A

İsim	Building with bricks and mortar: the revenue impact of opening physical stores in a multichannel environment
Yazar	Pauwels, Koen Hendrik, Neslin, S. A
Basım Tarihi:	2015-06
Basım Yeri	- Elsevier
Konu	Multichannel customer management, Customer relationship management (CRM), Vector autoregression models, Stores; Internet, Returns
Tür	Süreli Yayın
Dil	İngilizce
Dijital	Evet
Yazma	Hayır
Kütüphane:	Özyeğin Üniversitesi
Demirbaş Numarası	0022-4359
Kayıt Numarası	5f2ee182-8465-4fa7-a59d-0dbcbc24e264
Lokasyon	Business Administration
Tarih	2015-06
Örnek Metin	A crucial decision firms face today is which channels they should make available to customers for transactions. We assess the revenue impact of adding bricks-and-mortar stores to a firm's already existing repertoire of catalog and Internet channels. We decompose the revenue impact into customer acquisition, frequency of orders, returns, and exchanges, and size of orders, returns, and exchanges. We use a multivariate baseline method to assess the impact of adding the physical store channel on these revenue components. As hypothesized, store introduction cannibalizes catalog sales and has much less impact on Internet sales. Also as hypothesized, returns and exchanges increase. Interestingly, transaction sizes of purchases, returns, and exchanges do not change. The “availability effect” produces a net increase in purchase frequency across channels. This more than compensates for increased returns, producing a net increase in revenues of 20% by adding the store channel. Our findings yield a deeper understanding of the revenue relation between channels, and of the dynamic cross-channel effects of marketing actions.
DOI	10.1016/j.jretai.2015.02.001
Cilt	91

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Building with bricks and mortar: the revenue impact of opening physical stores in a multichannel environment

Yazar Pauwels, Koen Hendrik, Neslin, S. A

Basım Tarihi 2015-06

Basım Yeri - Elsevier

Konu Multichannel customer management, Customer relationship management (CRM), Vector autoregression models, Stores; Internet, Returns

Tür Süreli Yayın

Dil İngilizce

Dijital Evet

Yazma Hayır

Kütüphane Özyeğin Üniversitesi

Demirbaş Numarası 0022-4359

Kayıt Numarası 5f2ee182-8465-4fa7-a59d-0dbcbc24e264

Lokasyon Business Administration

Tarih 2015-06

Örnek Metin A crucial decision firms face today is which channels they should make available to customers for transactions. We assess the revenue impact of adding bricks-and-mortar stores to a firm's already existing repertoire of catalog and Internet channels. We decompose the revenue impact into customer acquisition, frequency of orders, returns, and exchanges, and size of orders, returns, and exchanges. We use a multivariate baseline method to assess the impact of adding the physical store channel on these revenue components. As hypothesized, store introduction cannibalizes catalog sales and has much less impact on Internet sales. Also as hypothesized, returns and exchanges increase. Interestingly, transaction sizes of purchases, returns, and exchanges do not change. The “availability effect” produces a net increase in purchase frequency across channels. This more than compensates for increased returns, producing a net increase in revenues of 20% by adding the store channel. Our findings yield a deeper understanding of the revenue relation between channels, and of the dynamic cross-channel effects of marketing actions.

DOI 10.1016/j.jretai.2015.02.001

Cilt 91