Maximizing Consumer Value through Channel Integration

Multi-channel retailers have been adopting different multi-channel formats that range from complete channel separation (e.g., Victorias Secret) to close integration (e.g., Bed, Bath and Beyond). The purpose of this research is to determine which multi-channel strategy offers the most value to multi-channel shoppers. The success of a multi-channel retailing strategy is believed to depend on consumers perceptions of channel complementarity, which reflects the degree to which multiple retail channels work synergistically to create value. Using sophisticated methodologies, this research shows that consumers prefer greater fulfillment integration and moderate levels of merchandising similarity between the store and the website of a multi-channel retailer. Website is perceived more favorably than the store in facilitating merchandising diversity in the multi-channel distribution system. Furthermore, shoppers evaluations of channel complementarity appear to vary across their shopping motivations, technology factors and perceived risks. This research is addressed to academics studying channel integration issues as well as practitioners involed in channel design decisions.