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Many firms stimulate customers to use the E-channel for services, which provokes various consumer responses to such limits on their freedom of choice. In a study on bank customers, we examine the extent of customer reactance in response to various E-channel migration strategies, the potential of incentive programs in mitigating customer reactance, as well as the moderating role of attitudinal loyalty. Finally, we address the mediating role of customer forgiveness. Our study documents that rewarding the use of the firm-preferred E-channel is more effective than punishing the retention of the incumbent channel, and that a punishment-based E-channel migration strategy causes similar reactance levels as forced migration does. Importantly, the mere act of forcing also creates reactance among those customers who have already been using the firm-preferred E-channel. In addition, our results reveal that highly loyal customers exhibit lower reactance than less loyal customers. By including customer forgiveness as a process measure we show that this partially occurs because highly loyal customers tend to be more forgiving toward the firm than less loyal customers.

Customers switch among multiple channels offered by multiple firms and this means that multichannel shopping behavior also depends on the channels offered by competitors. To what extent do competitions' channel offerings influence the use of a new online channel introduced by a firm? This important issue remains largely untapped by marketers and managers since it requires not only multichannel but also integrated multifirm data. This study investigates the impact of customers' past and current purchases from competitors' channels on channel choice with a focal firm that introduces a new online purchase channel. Furthermore, we examine the effect of new online channel adoption on customer purchases (firm choice and order size) from the focal firm and its competitors. The data contain eight-year individual transactions from ten competitive multichannel home decoration retailers. Our research reveals that customers' previous purchases from competitors' online channels increase the probability of online channel adoption from a focal firm that introduces its online channel later than its competitors. This effect is greater for existing customers than new customers who are acquired after the introduction of the new online channel. Customer adoption and use of this new online channel reduce purchase frequencies of competitors, but increase purchase frequencies of the focal firm, for both existing and new customers. Together these findings illustrate the role of competitors' channels in determining customers' channel choice of the focal firm. Retailers therefore should consider the effects of competitors' channel offerings and tailor their channel strategies to accommodate the various needs of new and existing customers, when they plan to introduce a new online channel.