Article | Journal of Marketing | May 2012

Adding Bricks to Clicks: Predicting the Patterns of Cross-Channel Elasticities over Time

by Jill Avery, Thomas J. Steenburgh, John Deighton and Mary Caravella

Abstract

The authors propose a conceptual framework to explain whether and when the introduction of a new retail store channel helps or hurts sales in existing direct channels. A conceptual framework separates short- and long-term effects by analyzing the capabilities of a channel that help consumers accomplish their shopping goals. To test the theory, the authors analyze a unique data set from a high-end retailer using matching methods. The authors study the introduction of a retail store and find evidence of cross-channel cannibalization and synergy. The presence of a retail store decreases sales in the catalog but not the Internet channel in the short run but increases sales in both direct channels over time. Following the opening of the store, more first-time customers begin purchasing in the direct channels. These results suggest that adding a retail store to direct channels yields different results from adding an Internet channel to a retail store channel, as previous research has indicated.

Keywords: marketing; channels; channels of distribution; Distribution; e-commerce; retailing; channel management; channel migration; multichannel retailing; Framework; Customers; Marketing Channels; Sales; Internet; Demand and Consumers; Competency and Skills; Distribution Channels; Retail Industry; United States;

Citation:

Avery, Jill, Thomas J. Steenburgh, John Deighton, and Mary Caravella. "Adding Bricks to Clicks: Predicting the Patterns of Cross-Channel Elasticities over Time." Journal of Marketing 76, no. 3 (May 2012): 96–111.