Joint influence of online store attributes and offline operations on performance of multichannel retailers

Abstract

This study examines the synergistic interchange between online and offline operations. To this end, this study proposed a multichannel performance model integrating Herzberg's (Herzberg 1966: Work and the Nature of Man, World Publishing, Cleveland, OH) motivation-hygiene theory and Thorndike's (Thorndike 1920: J. Appl. Psychol., 4, 25 – 29) halo effect, and empirically tested it. The essence of the model was that e-satisfaction is formed by a varying influence of online (basic and marketing-related attributes) and offline (firm reputation, consumer offline channel use, and consumer offline satisfaction) factors, which then increases e-loyalty. Analyses on a sample of 203 multichannel consumers revealed that, in general, the hypothetical paths were significant except in two cases. In a multichannel's online operation, marketing-related online attributes (e.g. merchandising) exerted significant influence on e-satisfaction, but basic attributes (e.g. security) did not. In a multichannel's offline operation, firm reputation and consumer offline satisfaction contributed to increasing e-satisfaction. Both firm reputation and consumer offline channel use increased consumer offline satisfaction, which in turn increased online satisfaction. However, consumer offline loyalty did not transfer to online loyalty. Theoretical and managerial implications were suggested based on findings.