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A consumer model for channel switching behavior

A consumer model for channel switching behavior With the phenomenal growth of direct order marketing with the Internet and catalogs as alternative channels, customers increasingly face more choices of where to purchase goods and services. This paper develops a formal consumer model to explain channel switching behavior. Becker's theory of time allocation is expanded to consumer decision making between distribution channels. The final model suggests that consumers face a tradeoff when deciding where to buy goods and services. From this tradeoff an indifference curve is developed where the consumer chooses between alternative distribution channels on the basis of the relative opportunity costs of time, costs of goods, pleasure derived from shopping, perceived value of goods, and relative risk of each channel. Strategies for direct and multi-channel marketers are developed using this model. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Retail & Distribution Management Emerald Publishing

A consumer model for channel switching behavior

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References (42)

Publisher
Emerald Publishing
Copyright
Copyright © 2002 MCB UP Ltd. All rights reserved.
ISSN
0959-0552
DOI
10.1108/09590550210423654
Publisher site
See Article on Publisher Site

Abstract

With the phenomenal growth of direct order marketing with the Internet and catalogs as alternative channels, customers increasingly face more choices of where to purchase goods and services. This paper develops a formal consumer model to explain channel switching behavior. Becker's theory of time allocation is expanded to consumer decision making between distribution channels. The final model suggests that consumers face a tradeoff when deciding where to buy goods and services. From this tradeoff an indifference curve is developed where the consumer chooses between alternative distribution channels on the basis of the relative opportunity costs of time, costs of goods, pleasure derived from shopping, perceived value of goods, and relative risk of each channel. Strategies for direct and multi-channel marketers are developed using this model.

Journal

International Journal of Retail & Distribution ManagementEmerald Publishing

Published: Apr 1, 2002

Keywords: Marketing; Distribution channel

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