Cannibalization or synergy? Consumers' channel selection in online–offline multichannel systems

Abstract

This paper develops and empirically validates customer shopping motives taking account of customer channel selection in multichannel systems. As each channel is associated with certain advantages and disadvantages from a customer's perspective, we develop – based on behavioral considerations – a customer typology to classify different segments of customers. This enables us to empirically analyze the interrelationship between distinct shopping motives prior marketing research has suggested and cannibalization and synergetic effects in online–offline multichannel systems. Our results show that a higher degree of customers' convenience orientation in contrast to the degree of risk aversion and service orientation encourages the selection of the online channel over the offline channel. In addition, we develop and empirically analyze a typology of customers to classify distinct segments of consumers, highlighting the associated interrelationship of individual shopping motives and cannibalization and synergetic effects. Our results indicate that the desire for service, rather than risk aversion, could potentially cannibalize customers away from the online channel.