Managing Multi- and Omni-Channel Distribution: Metrics and Research Directions

Ailawadi, Kusum L.; Farris, Paul

doi:10.1016/j.jretai.2016.12.003

Cited by 323 publications

(242 citation statements)

References 39 publications

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“…() focus on the pricing of substitutable products in a two‐echelon supply chain, which comprises one retailer and two manufacturers selling their products via traditional and online channels. Additionally, Ailawadi and Farris () present incidences of stockout and cross‐channel conversions (the number of visitors served by a retailer that subsequently buys the brand elsewhere) as key metrics of omnichannel.…”

Section: Review Of the Literaturementioning

confidence: 99%

Effects of customer response to fashion product stockout on holding costs, order sizes, and profitability in omnichannel retailing

Ovezmyradov

Kurata

2018

Int Trans Operational Res

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In retailing practice, customers may actively respond in one of the following ways after experiencing stockout of a preferred brand: switch to a substitutable brand, switch to another store (where the preferred brand could be available), or delay purchase (backlogging). This paper presents a model of active customer responses to stockout of fashion products. In the single-period model, a retailer maximizes profit by selling two substitutable brands through two different stores. Analytical results and numerical experiments suggest that active response to stockout increase the retailer's profitability due to (a) additional revenue from backlogging and brand and store switching and (b) decrease in optimal order size resulting in lower holding costs. Omnichannel fulfillment offers additional opportunities for retailers to benefit from active responses to stockout.

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Section: Review Of the Literaturementioning

confidence: 99%

Effects of customer response to fashion product stockout on holding costs, order sizes, and profitability in omnichannel retailing

Ovezmyradov

Kurata

2018

Int Trans Operational Res

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“…This transformative process brings a 'fundamental change of the retailing paradigm' (Verhoef et al, 2015) and heightened pressure to retailers at a different level for rearranging their strategic channel management. The increase variety of channel formats and advances in single, multi-channel and omni-channel marketing have made shoppers more convenient to shop and buy, but marketers have become harder to manage (Ailawadi & Farris, 2017). This development is affecting competitive strategies, as new channels will break down old barriers such as geography and consumer ignorance (Brynjolfsson et al, 2013).…”

Section: Introductionmentioning

confidence: 99%

Perceived Consumer Value of Omni-Channel Service Attributes in Japan and Korea

Kim

Matsui

Park

et al. 2019

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Digitization of retail platform and integration of various retail channel is coupled with rapid change in consumer shopping behavior and their expectation for retail experience. Consumers expect retailers to be able to provide seamless, consistent and personalized service in which they also have enriched retail experience (Picot Coupey et al., 2016). Omni-channel retailing has emerged to provide integrated retail service of various channels which enable consumers to use various channels and touch points synergistically. In this study, we investigated the effect of perceived value of attributes of the OC service on consumers’ decision process for omni-channel usage in Japan and Korea. The AHP method is applied to assess hierarchical process of consumers’ decision making in using omni-channel service. In the AHP framework, consumers’ decision making is structured hierarchically, and framed to have three levels of process in which consumers make decision on omni-channel usage based on three constructs: ‘Customer Value (CV), ‘Touch Point (TP)’ and ‘Payment System (PS)’. The AHP survey was administered to individual shoppers in Japan and Korea, and 240 respondents and 229 respondents answered the AHP survey in Korea and Japan, respectively. Findings reveal that ‘Customer Value (CV)’ is perceived to be more important than ‘Touch Points (TP)’ and the ‘Payment System (PS)’, affecting consumers’ decision for using the omni-channel service. Furthermore, consumers in two countries show different preferences for specific aspects of the CV attributes. The authors also discuss the methodological and managerial implications of the findings.

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“…The rapid growth of the internet and the increasing efficiency of logistics services have urged firms that commercialized their products exclusively through traditional channels to consider the option of selling directly to consumers through online channels, thus giving rise to multi-channel distribution (Ailawadi and Farris, 2017). Today, consumers want to be able to use new digital channels to interact with a company at any stage in the purchasing process.…”

Section: Introductionmentioning

confidence: 99%

The transition of small Spanish wineries toward multi-channel distribution

García

Gardó

Frasquet

2019

IJWBR

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Purpose This paper aims to analyses the development of exploitation and exploration capabilities, and the role of ambidexterity, in the evolution of small Spanish wineries toward multi-channel distribution systems. Design/methodology/approach A qualitative methodology based on the analyses of multiple cases supported by a computer assisted qualitative data analysis software with an abductive approach was used to study the relationship between ambidexterity and the multi-channel integration of six wineries. Findings Companies with more advanced multi-channel distribution systems have more developed ambidexterity capabilities. This ambidexterity stems fundamentally from the ability to simultaneously maintain relations with distributors and innovate and search for creative ways to satisfy new customers. Research limitations/implications The research is based on insights from companies based in Spain. Practical implications Spanish small and medium enterprises in the sector are in an underdeveloped phase of multi-channel integration. To be successful in this process, these companies must combine exploitation and exploration capabilities. Social implications If the company is able to develop an integrated multi-channel distribution system leading to an omnichannel system, consumers will benefit from it, getting complete information at each specific stage of shopping. Originality/value This study provides the first description in academic literature of the usefulness of the concept of ambidexterity as a dynamic capability to explain the degree of development and multi-channel integration.

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Managing Multi- and Omni-Channel Distribution: Metrics and Research Directions

Cited by 323 publications

References 39 publications

Effects of customer response to fashion product stockout on holding costs, order sizes, and profitability in omnichannel retailing

Effects of customer response to fashion product stockout on holding costs, order sizes, and profitability in omnichannel retailing

Perceived Consumer Value of Omni-Channel Service Attributes in Japan and Korea

The transition of small Spanish wineries toward multi-channel distribution

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