Adding Bricks to Clicks: Predicting the Patterns of Cross-Channel Elasticities over Time

By Jill Avery, Thomas J. Steenburgh, J. Deighton, M. Caravella. 2011

481 citations recorded by the source corpus.

The authors propose a conceptual framework to explain whether and when the introduction of a new retail store channel helps or hurts sales in existing direct channels. A conceptual framework separates short- and long-term effects by analyzing the capabilities of a channel that help consumers accomplish their shopping goals. To test the theory, the authors analyze a unique data set from a high-end retailer using matching methods. The authors study the introduction of a retail store and find evidence of cross-channel cannibalization and synergy. The presence of a retail store decreases sales in the catalog but not the Internet channel in the short run but increases sales in both direct channels over time. Following the opening of the store, more first-time customers begin purchasing in the direct channels. These results suggest that adding a retail store to direct channels yields different results from adding an Internet channel to a retail store channel, as previous research has indicated.

Subfields: Marketing, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/f67bf0b69e164a7e99412f9d2edca6978c3fa0b2

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Citations in the corpus

Buying Groceries in Brick and Click Stores: Category Allocation Decisions and the Moderating Effect of Online Buying Experience (2015, background): “…the online and offline channel of the same retailer to account for differences in price/promotion sensitivity across channels (Wolk and Ebling 2010) or for more pragmatic reasons such as different account managers being in charge of the promotion planning in each channel (Avery et al. 2012).”
Are Multichannel Customers Really more Valuable? The Moderating Role of Product Category Characteristics (2013, unknown): “We classify the store and catalog channels under the unifying banner of a traditional channel because they have a much longer history than electronic channels and are perceived as close substitutes (Avery et al. 2012).”
The Showrooming Phenomenon: It's More than Just about Price (2017, background): “Enabling consumers to inspect products in stores is a capability of the brick-and-mortar store that complements online capabilities (Avery et al. 2012).”
The Value of Rapid Delivery in Omnichannel Retailing (2019, background): “Avery et al. (2012) Offline store opening by an omnichannel apparel retailer Internet and catalog sales at the zip code level Prior customer experience Offline store opening increased internet and catalog sales in the long run.”
Toward a three-dimensional framework for omni-channel (2017, unknown): “In effect, each channel should be utilized to actively cross-promote other channels and so create a sense of a ubiquitous brand identity (Avery et al. , 2012; Weathers et al. , 2015).”
The interrelationships between brand and channel choice (2014, methodology): “Avery et al. (2012) utilize a quasi-experiment to analyze the introduction of a new physical store.”
Can Offline Stores Drive Online Sales? (2017, methodology): “billboard effect, while Bell, Gallino, and Moreno-Garcia (2014) emphasize quality and fit information and Avery et al. (2012), though generally more agnostic about the mechanism, emphasize a brand-building billboard effect.”
Pleasant Ambient Scents: A Meta-Analysis of Customer Responses and Situational Contingencies (2020, background): “Internetborn firms now see the value of a physical presence (Avery et al. 2012), making competition fiercer.”