Abstract

In the current online distribution industry, there are various channel members, and they perform complex channel functions. However, existing researches on online distribution channels show limited understanding of current channel functions due to the general theory of channel function theories established in the era of offline traditional distribution channels. Furthermore, the online channels are simply treated as adding another type of channel to the exiting traditional channel systems. In the results, previous studies represent the distribution structure as too simple to analyze the actual reality of hybrid channels. In addition, the previous studies adopted only the general types of channel members such as manufacturers, wholesalers, retailers following the traditional study of Vaile, Greater and Cox(1952). This perspective on the members hurdles the appropriate analysis of the new types of channel members in the new online environment. Therefore, the purpose of this article is to present seven modified channel functions that have been extended from traditional channel functions to enhance understanding of online distribution channel system, and to present the online distribution channel eco-system framework which schematizes the structure and the functions of online distribution channels members. To achieve the purpose of the research, this study used the qualitative research methodology which examined wide range of literature reviews on online channel systems and conducted several in-depth interviews, focus group interviews. First, this study identify the changes in the online consumer behaviors. The expanded channel functions are presented by deriving changes in consumer service output demand(SOD) through changes in consumers

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