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A firm's distribution channels represent a key portfolio of resources that can be leveraged for competitive advantage. One approach to this portfolio that has become increasingly important in recent years is multichannel distribution (MCD). While this strategy has important benefits in terms of market coverage and firm performance, the use of multiple channels seriously affects downstream channel roles such as service delivery, as the financial rewards to channel members and the services they offer are separated. A channel member who offers poor or no service can free-ride on the services offered to the same customer from a different channel. We draw on agency theory to explain these negative consequences. Additionally, the resource-based view of the firm along with capabilities theory provides two key means of alleviating these consequences: channel tracking capabilities and reward alignment capabilities. The study, conducted in an industry facing serious MCD issues (the outdoor sporting goods industry), used key informant data matched to secondary data. Our results show that managers can reap the performance rewards of MCD strategies while minimizing its negative consequences.

Digital piracy represents a significant threat to the marketers of digital service products. Industry efforts to attenuate the practice, often deterrent in nature, have largely failed. We propose that one reason for this failure is the absence of a commensurably accepted model of the social psychological foundations underlying digital piracy behaviors. A modified version of Perugini and Bagozzi's (2001) Model of Goal Directed Behavior is advocated and empirically validated across both movie and music industry settings for this purpose. The results support the theoretical and empirical efficacy of the proposed model and highlight the importance of attitudes toward the act of digital piracy, the frequency of past digital piracy behaviors, and the motivations and intentions underlying digital piracy. A normative framework is proposed with five actionable recommendations to assist digital service marketers in better addressing digital piracy. The research implications of the reported study are also presented and discussed.