Are Multichannel Customers Really more Valuable? The Moderating Role of Product Category Characteristics

Abstract

How does the monetary value of customer purchases vary by customer preference for purchase channels (e.g., traditional, electronic, multichannel) and product category? The authors develop a conceptual model and hypotheses on the moderating effects of two key product category characteristics-the utilitarian versus hedonic nature of the product category and perceived risk-on the channel preference-monetary value relationship. They test the hypotheses on a unique large-scale, empirically generalizable data set in the retailing context. Contrary to conventional wisdom that all multichannel customers are more valuable than single-channel customers, the results show that multichannel customers are the most valuable segment only for hedonic product categories. The findings reveal that traditional channel customers of low-risk categories provide higher monetary value than other customers. Moreover, for utilitarian product categories perceived as high (low) risk, web-only (catalog-or storeonly) shoppers constitute the most valuable segment. The findings offer managers guidelines for targeting and migrating different types of customers for different product categories through different channels.

Multiplication des canaux et valeur perçue de l’offre digitale dans la presse écrite : un effet de complémentarité ?

“…Si ce secteur offre un cadre intéressant pour appréhender les enjeux liés à la digitalisation des accès et des contenus (Jones et al 2008, Utesheva, Simpson et Cecez-Kecmanovic, 2016, il paraît pour autant difficile d'extrapoler les résultats obtenus à toutes les offres multiformes. Or les caractéristiques des produits sont susceptibles d'altérer fortement la valeur associée à une offre en contexte multicanal (Kushwaha et Shankar, 2013). Ainsi, dans le secteur de l'industrie musicale, le caractère fortement expérientiel du produit, mais également les comportements associés à la consommation de ce type d'offre (téléchargement illégal, écoute en streaming) et la stratégie des acteurs de cette industrie (Chaney, 2010), pourraient amener à des résultats sensiblement différents.…”

Adoption of Near Field Communication in hotel industry based on risk perspectives and individual characteristics

“…Risk is defined as the adverse consequences of an uncertain outcome before and during product/service consumption [8,9]. Since NFC is wireless technology transmitting transaction data, a higher level of risk should be considered.…”

“…As a result, this study examines six dimensions of perceived risk -psychological, social, financial, performance, privacy and time risks [10]. Specifically, social risk is a loss of self-esteem in front of family or friends when the results cause embarrassment [8,11]. Psychological risk is a loss of self-image or selfconcept due to the results of a poor choice [8,11].…”

“…Specifically, social risk is a loss of self-esteem in front of family or friends when the results cause embarrassment [8,11]. Psychological risk is a loss of self-image or selfconcept due to the results of a poor choice [8,11]. Financial risk is a financial loss as a result of hidden costs or maintenance costs incurred [8,12].…”

“…Psychological risk is a loss of self-image or selfconcept due to the results of a poor choice [8,11]. Financial risk is a financial loss as a result of hidden costs or maintenance costs incurred [8,12]. Performance risk is the loss incurred when the service does not perform as expected [8,12].…”