The marketing and logistics efficacy of online sales channels

International Journal of Physical Distribution and Logistics Management

Volumn 39, Issue 2, 2009, Pages 106-130

  Rao, Shashank ^a   Goldsby, Thomas J ^a   Iyengar, Deepak ^a  

^a UNIVERSITY OF KENTUCKY   (United States)

Author keywords

Electronic commerce; Internet; Marketing; Sales; United States of America

Indexed keywords

EID: 70349280240     PISSN: 09600035     EISSN: None     Source Type: Journal    
DOI: 10.1108/09600030910942386     Document Type: Article

References (92)

1. Alba, J., Lynch, J.G., Weitz, B., Janiszewski, C., Lutz, R. and Wood, S. (1997), Interactive home shopping: consumer, retailer, and manufacturer incentives to participate in electronic marketplaces, Journal of Marketing, Vol. 61, No.3, pp. 38-53.
2. Alptekinoglu, A. and Tang, C. (2005), A model for analyzing multi-channel distribution systems, European Journal of Operational Research, Vol. 163, pp. 802-24.
3. Ancarani, F. and Shankar, V. (2004), Price levels and price dispersion within and across multiple retailer types: further evidence and extension, Journal of the Academy of Marketing Science, Vol. 32, No.2, pp. 176-88.
4. Ang, S. and Straub, D. (1998), Production and transaction economies and IS outsourcing: a study of the US banking industry, MIS Quarterly, Vol. 22, No.4, pp. 535-52.
5. Ansari, A., Mela, C. and Neslin, S. (2008), Customer channel migration, Journal of Marketing Research, Vol. 45, No.1, pp. 60-76.
6. Arora, A. and Forman, C. (2007), Proximity and information technology outsourcing - how local are IT markets, Journal of Management Information Systems, Vol. 24, No.2, pp. 73-102.
7. Aubert, B., Rivard, S. and Patry, M. (2004), A transaction cost model of IT outsourcing, Information & Management, Vol. 41, No.7, pp. 921-32.
8. Bakos, Y. (1997), Reducing buyer search costs: implications for electronic marketplaces, Management Science, Vol. 43, No.12, pp. 1676-92.
9. Bannon, L. (2000), Selling Barbie online may pit Mattel vs. stores, The Wall Street Journal, November 17, p. B1.
10. Bettman, J., Luce, M.F. and Payne, J. (1998), Constructive consumer choice processes, Journal of Consumer Research, Vol. 25, No.3, pp. 187-217.
11. Bienstock, C.C. and Mentzer, J.T. (1999), An experimental investigation of the outsourcing decision for motor carrier transportation, Transportation Journal, Vol. 39, No.1, pp. 42-59.
12. Bolumole, Y., Frankel, R. and Dag, N. (2007), Developing a theoretical framework for logistics outsourcing, Transportation Journal, Vol. 46, No.2, pp. 35-54.
13. Bowersox, D.J. and Cooper, M.B. (1992), Strategic Marketing Channels, McGraw-Hill, Burr Ridge, IL.
14. Boyer, K. and Hult, T. (2005), Consumer behavior in an online ordering application: a decision scoring model, Decision Sciences, Vol. 36, No.4, pp. 569-98.
15. Brohan, J. (2008), The top 500 guide, June, 2008, available at: www.internetretailer.com/article.asp?id = 22579 (accessed July 30).
16. Brynjolfsson, E. and Smith, M.D. (2000), Frictionless commerce? A comparison of internet and conventional retailers, Management Science, Vol. 46, No.4, pp. 563-85.
17. Chircu, A. and Mahajan, V. (2006), Managing electronic commerce retail transaction costs for customer value, Decision Support Systems, Vol. 42, No.2, pp. 898-914.
18. Choudhury, V. and Karahanna, E. (2008), The relative advantage of electronic commerce: a multidimensional view, MIS Quarterly, Vol. 22, No.1, pp. 471-508.
19. Choudhury, V., Hartzel, K. and Konsynski, B. (1998), Uses and consequences of electronic markets: an empirical investigation in the aircraft parts industry, MIS Quarterly, Vol. 22, No.4, pp. 471-508.
20. Clark, B.H. (1997), Welcome to my parlor: the lure of marketing on the world wide web is great. Be sure you don't get stuck with wrong approach, Marketing Management, Vol. 5, No.4, pp. 11-22.
21. Clark, T.H.K. and Kauffman, R.J. (2000), Introduction to the special section: electronic intermediaries and networks in business-to-business electronic commerce, International Journal of Electronic Commerce, Vol. 4, No.4, pp. 5-6.
22. Cleary, M. (2000), The promise of multichannel retailing, Inter@ctive Week, Vol. 7, p. 50.
23. Coase, R. (1937), The nature of the firm, Economica, Vol. 4, No.16, pp. 386-405.
24. DMA (2005), 2005 Multichannel Marketing Report, Direct Marketing Association, New York, NY.
25. Devaraj, S., Fan, M. and Kohli, R. (2006), Examination of online channel preference: using the structure-conduct-outcome framework, Decision Support Systems, Vol. 42, No.2, pp. 1089-103.
26. Esper, T., Jensen, T., Turnipseed, F. and Burton, S. (2003), The last mile: an examination of effects of online retail delivery strategies on consumers, Journal of Business Logistics, Vol. 24, No.2, pp. 177-203.
27. Felberbaum, M. (2008), Circuit city to offer the same price in stores, on web, The Boston Globe, October 14, available at: www.boston.com/business/articles/2008/10/14/circuit_city_to_offer_same_p rice_in_stores_on_web/ (accessed October 15).
28. Forster, S. (2004), When one hand doesn't..., March 22, The Wall Street Journal, p. R3.
29. Gabrielsson, M., Kirpalani, V.H.M. and Luostarinen, R. (2002), Multiple channel strategies in the European personal computer industry, Journal of International Marketing, Vol. 10, No.3, pp. 73-95.
30. Gensler, S., Dekimpe, M.G. and Skiera, B. (2004), Evaluating channel performance in multi-channel environments, Journal of Retailing and Consumer Services, Vol. 14, No.1, pp. 17-23.
31. Goldsby, T.J. and Eckert, J.A. (2003), Electronic transportation marketplaces: a transaction cost perspective, Industrial Marketing Management, Vol. 32, No.3, pp. 187-98.
32. Grewal, D., Iyer, G. and Levy, M. (2004), Internet retailing: enablers, limiters, and marketing consequences, Journal of Business Research, Vol. 57, No.7, pp. 703-13.
33. Grover, V., Ramanlal, P. and Segars, A.H. (1999), Information exchange in electronic markets: implications for market structures, International Journal of Electronic Commerce, Vol. 3, No.4, pp. 89-102.
34. Hobbs, J.E. (1996), A transaction cost approach to supply chain management, Supply Chain Management, Vol. 1, No.2, pp. 15-27.
35. Howlett, G. (2008), Internet retailer top 500 released, Marketing Pilgrim, available at: www.marketingpilgrim.com/2008/06/internet-retailer-top-500-guide.html (accessed July 30, 2008).
36. Hunt, S. (1976), The nature and scope of marketing, Journal of Marketing, Vol. 40, No.3, pp. 17-28.
37. Ivanaj, V. and Franzil, Y.M. (2006), Outsourcing logistics activities: a transaction cost economics perspective, Proceedings of the 15th International Conference of Strategic Management, Geneva, June 13-16.
38. Janssen, M. and Sol, H.G. (2000), Evaluating the role of intermediaries in the electronic value chain, Internet Research, Vol. 10, No.5, pp. 406-17.
39. Keeney, R.L. (1999), The value of internet commerce to the customer, Management Science, Vol. 45, No.4, pp. 533-42.
40. Kim, J. and Park, J. (2005), A consumer shopping channel extension model: attitude shift toward the online store, Journal of Fashion Marketing & Management, Vol. 9, No.1, pp. 106-21.
41. Klein, L. and Ford, G. (2003), Consumer search for information in the digital age: an empirical study of prepurchase search for automobiles, Journal of Interactive Marketing, Vol. 17, No.3, pp. 29-49.
42. Klein, S., Frazier, G.L. and Roth, V.J. (1990), A transaction cost analysis model of channel integration in international markets, Journal of Marketing Research, Vol. 27, No.2, pp. 196-208.
43. Knemeyer, A.M., Corsi, T.M. and Murphy, P.R. (2003), Logistics outsourcing relationships: customer perspectives, Journal of Business Logistics, Vol. 24, No.1, pp. 77-109.
44. Kohli, R., Devaraj, S. and Mahmood, M.A. (2004), Understanding determinants of online consumer satisfaction: a decision process perspective, Journal of Management Information Systems, Vol. 21, No.1, pp. 115-35.
45. Kumar, N. and Ruan, R. (2006), On manufacturers complementing the traditional retail channel with a direct online channel, Quantitative Marketing and Economics, Vol. 4, No.3, pp. 289-323.
46. Kumar, V. and Venkatesan, R. (2005), Who are multichannel shoppers and how do they perform? Correlates of multichannel shopping behavior, Journal of Interactive Marketing, Vol. 19, No.2, pp. 44-61.
47. Laseter, T.M., Rabinovich, E. and Huang, A. (2006), The hidden costs of clicks, Strategy + Business, Vol. 42, pp. 26-30.
48. Laseter, T.M., Rabinovich, E., Boyer, K.K. and Rungtusanatham, M. (2007), The future of the web: three critical issues in internet retailing, MIT Sloan Management Review, Vol. 48, No.3, pp. 58-64.
49. Lee, B.K. and Lee, W.N. (2004), The effect of information overload on consumer choice quality in an on-line environment, Psychology & Marketing, Vol. 21, No.3, pp. 159-84.
50. Liang, T. and Huang, J. (1998), An empirical study on consumer acceptance of products in electronic markets: a transaction cost model, Decision Support Systems, Vol. 24, No.1, pp. 29-43.
51. Lynch, J.G. and Ariely, D. (2000), Wine online, Marketing Science, Vol. 19, No.1, pp. 83-103.
52. Malone, T., Yates, J. and Benjamin, R. (1987), Electronic markets and electronic hierarchies, Communications of the ACM, Vol. 30, No.6, pp. 484-97.
53. Maltz, A.B. (1993), Private fleet use: a transaction cost model, Transportation Journal, Vol. 33, No.2, pp. 12-19.
54. Maltz, A.B. (1994), The relative importance of cost and quality in the outsourcing of warehousing, Journal of Business Logistics, Vol. 15, No.2, pp. 45-62.
55. Montoya-Weiss, M.M., Voss, G.B. and Grewal, D. (2003), Determinants of online channel use and overall satisfaction with a relational, multichannel service provider, Journal of the Academy of Marketing Science, Vol. 31, No.4, pp. 448-58.
56. Morwitz, V.G., Greenleaf, E.A. and Johnson, E.J. (1998), Divide and prosper: consumers' reactions to partitioned prices, Journal of Marketing Research, Vol. 35, No.4, pp. 453-63.
57. Muthitacharoen, A., Gillenson, M. and Suwan, N. (2006), Segmenting online customers to manage business resources: a study of the impacts of sales channel strategies on consumer preferences, Information & Management, Vol. 43, No.5, pp. 678-95.
58. Neslin, S., Grewal, D., Leghorn, R., Shankar, V., Teerling, M., Thomas, J. and Verhoef, P.C. (2006), Challenges and opportunities in multichannel customer management, Journal of Service Research, Vol. 9, No.2, pp. 95-112.
59. Noble, S., Griffith, D. and Weinberger, M. (2005), Consumer derived utilitarian value and channel utilization in a multi-channel retail context, Journal of Business Research, Vol. 58, No.12, pp. 1643-51.
60. Pache, G. and Sauvage, T. (1999), Logistics: Strategic Issues, Vuibert Entreprises, Paris, 2nd ed.
61. Pan, X., Ratchford, B. and Shankar, V. (2002), Can price dispersion in online markets be explained by differences in e-tailer service quality?, Journal of the Academy of Marketing Science, Vol. 30, No.4, pp. 433-45.
62. Peck, J. and Childers, T.L. (2003), To have and to hold: the influence of haptic information on product judgments, Journal of Marketing, Vol. 67, No.2, pp. 35-48.
63. Pisano, G.P. (1990), The R&D boundaries of the firm: an empirical analysis, Administrative Science Quarterly, Vol. 35, No.1, pp. 153-76.
64. Rabinovich, E. and Evers, P. (2003), Product fulfillment in supply chains supporting internet-retailing operations, Journal of Business Logistics, Vol. 24, No.2, pp. 205-36.
65. Rabinovich, E., Bailey, J.P. and Carter, C. (2003), A transaction-efficiency analysis of an internet retailing supply chain in the music CD industry, Decision Sciences, Vol. 34, No.1, pp. 131-72.
66. Rabinovich, E., Windle, R., Dresner, M. and Corsi, T. (1999), Outsourcing of integrated logistics functions: an examination of industry practices, International Journal of Physical Distribution & Logistics Management, Vol. 29, No.6, pp. 353-73.
67. Ratchford, B., Lee, M. and Talukdar, D. (2003), The impact of the internet on information search for automobiles, Journal of Marketing Research, Vol. 40, No.2, pp. 193-209.
68. Razzaque, M.A. and Sheng, C.C. (1998), Outsourcing of logistics functions: a literature survey, International Journal of Physical Distribution & Logistics Management, Vol. 28, No.2, pp. 89-107.
69. Reibstein, D. (2002), What attracts customers to online stores and what keeps them coming back?, Journal of the Academy of Marketing Science, Vol. 30, No.4, pp. 465-73.
70. Sarkar, M., Butler, B. and Steinfield, C. (1998), Cybermediaries in the electronic marketspace: toward theory building, Journal of Business Research, Vol. 41, No.3, pp. 215-21.
71. Saunders, C. (2002), Survey: multi-channel buyers worth pursuing, ClickZ, January 28, p. 30, available online at: www.clickz.com/963321 (accessed July 30, 2008).
72. Schoenbachler, D.D. and Gordon, G.L. (2002), Multi-channel shopping: understanding what drives channel choice, Journal of Consumer Marketing, Vol. 19, No.1, pp. 42-53.
73. Sharma, A. and Sheth, J. (2004), Web-based marketing: the coming revolution in marketing thought and strategy, Journal of Business Research, Vol. 57, No.7, pp. 696-702.
74. Simon, H.A. (1990), Invariants of human behavior, Annual Review of Psychology, Vol. 41, pp. 1-19.
75. Slack, F., Rowley, J. and Coles, S. (2008), Consumer behavior in multi-channel contexts: the case of a film festival, Internet Research, Vol. 18, No.1, pp. 46-59.
76. Srinivasan, S., Anderson, R. and Ponnavolu, K. (2002), Consumer loyalty in e-commerce: an exploration of its antecedents and consequences, Journal of Retailing, Vol. 78, No.1, pp. 41-50.
77. Stank, T.P. and Maltz, A.B. (1996), Some propositions on third party choice: domestic v/s international logistics providers, Journal of Marketing Theory and Practice, Vol. 4, No.2, pp. 45-54.
78. Stern, L.W., El-Ansary, A.I. and Coughlan, A.T. (1996), Marketing Channels, Prentice-Hall, Upper Saddle River, NJ, 5th ed.
79. Sullivan, U. and Thomas, J. (2008), Customer migration: an empirical investigation across multiple channels, working paper, University of Illinois (UIUC), Urbana-Champaign, IL, available at: www.business.uiuc.edu/Working_Papers/papers/04-0112.pdf
80. Swaminathan, V., Lepkowska, W., Elzbietam, R. and Bharat, P. (1999), Browsers or buyers in cyberspace? An investigation of factors influencing electronic exchange, Journal of Computer Mediated Communication, Vol. 5, No.2., available at: www.ascusc.org/jcmc/vol5/issue2/oldswaminathan.html
81. Swinyard, W. and Smith, S.M. (2003), Why people (don't) shop online: a lifestyle study of the internet consumer, Psychology & Marketing, Vol. 20, No.7, pp. 597-657.
82. Tang, F.F. and Xing, X. (2001), Will the growth of multi-channel retailing diminish the pricing efficiency of the web?, Journal of Retailing, Vol. 77, No.3, pp. 319-33.
83. Tsay, A. and Agarwal, N. (2004), Channel conflict and coordination in the e-commerce age, Production and Operations Management, Vol. 13, No.1, pp. 93-110.
84. Van den Poel, D. and Leunis, J. (1999), Consumer acceptance of the internet as a channel of distribution, Journal of Business Research, Vol. 45, No.3, pp. 249-56.
85. Verhoef, P.C., Neslin, S.A. and Vroomen, B. (2007), Browsing versus buying: determinants of customer search and buy decisions in a multi-channel environment, working paper, University of Groningen, Groningen.
86. Williamson, O.E. (1975), Markets and Hierarchies: Analysis and Antitrust Implications, Free Press, New York, NY.
87. Williamson, O.E. (1979), Transaction-cost economics: the governance of contractual relations, Journal of Law & Economics, Vol. 22, No.2, pp. 233-61.
88. Williamson, O.E. (1985), Economic Institutions of Capitalism: Firms, Markets, and Relational Contracting, The Free Press, New York, NY.
89. Wu, D., Ray, G. and Whinston, A. (2008), Manufacturers distribution strategy in the presence of an electronic channel, Journal of Management Information Systems, Vol. 25, No.1, pp. 167-98.
90. Xing, P., Ratchford, B.T. and Shankar, V. (2004), Price dispersion on the internet: a review and directions for future research, Journal of Interactive Marketing, Vol. 18, No.4, pp. 116-35.
91. Young, S.J. (2001), Make the most of every channel, Catalog Age, Vol. 18, pp. 58-9.
92. Zeithaml, V., Parasuraman, A. and Malhotra, A. (2002), Service quality delivery through web sites: a critical review of extant knowledge, Journal of the Academy of Marketing Science, Vol. 30, No.4, pp. 362-75.