Channel Choice Research Articles

The environmental impact of buying groceries online/offline pre and during COVID-19. Any changes?

COVID-19 has represented a watershed in people's lifestyle. One important consequence has been the change in how people buy groceries online/offline that represent the most frequent shopping-related trip any household performs. Since this has substantially different transport and environmental implications, it is crucial to investigate what are the COVID-19-induced variations. This paper estimates both travel and environmental impacts grocery channel choice implies by comparing, in a diachronic fashion, the pre and during COVID-19 situation in Norway, considering alternative scenarios describing different service configurations for each channel considered. Stated preferences are used to estimate market shares for grocery purchase distinguishing between different channels: in-store, home delivery and click&pick. The robust comparative analysis between the two time periods is guaranteed by the use of the same methodological approach in the same geographical context. Results show that total emissions are lower during the pandemic and adopting a free delivery strategy not only increases home delivery market shares but also produces the lowest level of CO2 emissions regardless of COVID-19. The results obtained are particularly relevant in the "new normal" the world is experiencing both from a public policymaking perspective, when promoting transport-related interventions to curb emissions, and from a private standpoint, when customising market strategies to increase sales and profits.

Cost–Benefit Efficiency and Factors for Marketing Channel Choices among Avocado Farmers in Rungwe District, Tanzania

Avocado farming has grown into a significant agricultural industry in the Rungwe District, significantly contributing to the local economy. Improving market access for avocado farmers is essential to raising rural incomes and enhancing their standard of living. This paper aims to determine the most efficient avocado marketing channels and analyse the factors affecting marketing channel choices by avocado farmers in the Rungwe District. The study involved 196 smallholder avocado farmers and key informants. Data were collected through interviews, questionnaire surveys, and documentary reviews. Findings showed that the main avocado marketing channels used by farmers in the Rungwe District were categorized into brokers (90.3%) and local traders (9.7%). The local traders’ marketing channel was more efficient, with a price spread (per kg) of TZS 400 and a farmer’s share in consumers’ price of 75%. In comparison, the brokers’ marketing channel had a price spread of TZS 1300 and a farmer’s share in the consumer’s price of 48%, though it had a higher net price received by farmers (TZS 1200) than local traders (TZS 500). Findings from the multiple binary regression analysis indicated that the education level of the household head, farming experience, household size, farm size, access to market information, price, quantity of avocado purchased, mode of payment, and access to extension services had a significant influence on the choice of marketing channel. The findings recommend expanding avocado marketing channels and strengthening avocado farmers’ access to market information, extension, and credit services.

Understanding customers’ choice for digital D2C versus multi-brand operations

In recent years, the emergence of highly successful digital multi-brand retailers has facilitated an omnichannel distribution strategy to become the norm for brands. Rather than relying solely on these multi-brand retailers, it is necessary for companies’ omnichannel strategy to establish strong brand-owned direct-to-consumer (D2C) webstores. To help D2C brands make decisions regarding distribution channel choices, this paper investigates the circumstances under which customers prefer brands’ D2C webstores over digital multi-brand retailers and how these circumstances vary across phases of the customer journey. The results from an extensive experimental study demonstrate that, depending on the customer journey, brands’ D2C webstores can compete with digital multi-brand retailers, particularly in product categories characterized by deep assortments, the need for extensive product information, exclusive products, or a high degree of personalization.

Export Market Exploration: the Key to Optimizing Export Performance with the Support of Market Sensing Capability and Export Channel Choice

This study aims to determine the following: (1). the impact of market recognition capability on export performance in export furniture in Jepara. (2). the impact of export channel choice on export performance in export furniture in Jepara. (3). the impact of export market exploration on the export performance of export furniture in Jepara. This type of research is quantitative and uses primary data from questionnaires measured using a Likert scale. The population used in the study were export furniture companies in Jepara district that have been operating for more than three years. The sampling technique uses probability sampling technique with random sampling type. Data processing was analyzed using multiple linear regression analysis processed using SPSS software. The results of this study show that market recognition ability, export channel choice and export market exploration have a significant positive impact on export performance. Market discovery ability, export channel choice, and export market exploration variables simultaneously and partially affect export performance.

CHOICE OF EXPORT CHANNEL BY MICRO, SMALL AND MEDIUM ENTERPRISES IN INDIA

Under globalization, with competitiveness as the sole policy objective of economies, it needs to be noted that countries do not trade; indeed, firms do. In general, international trade theories assume that enterprises wanting to sell their products in foreign markets export directly to the final consumers. On the other hand, in recent years, theories focusing on the exporting behavior of firms have taken into account the heterogeneity prevailing among trading firms in the presence of intermediaries. In India, studies have not taken into account the heterogeneity aspect of exporting firms to reach the international market. In this context, the present study has attempted to fill this gap by analyzing the factors that govern the choice of a particular channel of export by Micro, Small, and Medium enterprises in India. A multinomial logit model was employed to examine the factors influencing firms’ choice of export modes. Firms’ decision to trade through a particular channel is mainly driven by their size, fixed cost of exporting, and quality of products.

Consumers’ Marketing Channel Choice and the Impact on Logistics and Operations: A Systematic Literature Review of the Fresh Food and Grocery Sector

Background: Diverse marketing channels have been developed with the advent of digitalization. In the fresh food and grocery retail sector, consumers may have a large choice of channels to shop from. In this case, an analysis of their behavior is crucial for retailers. Therefore, the present paper provides a state-of-the-art review of existing papers dealing with consumers’ channel choice when buying groceries. Methods: A systematic literature review (SLR) is performed following the Preferred Reporting Items for Systematic Review and Meta-Analysis (PRISMA) procedure, identifying 36 research papers published in the last decade. Results: The results present the principal methodologies adopted by the analyzed research papers to address this topic, along with the various channels available to consumers to date. Other important outcomes of this review include the main variables that can affect consumer choice when deciding between the available channels and the limitations of the analyzed papers, along with suggestions for future research directions to address these limitations. Conclusions: This paper discusses the essential effects of consumers’ channel choice on the logistics and operation services of grocery retailers. It also provides an integrative framework linking the influencing factors of consumer choice with outcomes directly impacting grocery retailers’ logistics services.

Food Consumption Habits of Hungarian Organic Food Consumers and Their Policy Implications

Food production and consumption have a major impact on the environment and human health. Therefore, it is important to achieve transformations towards greater sustainability in the food sector. As in other countries around the world, Hungarian organic food consumers are characterised by the fact that they consume organic food primarily for health reasons. Direct forms, including online purchase, are preferred in the choice of channels since direct contact with producers is very important due to mistrust, which is one of the barriers to the further growth of consumption. Empirical tests of well-known and frequently applied theories also shed light on the connections above. First, an examination was conducted through logistic regression to determine if there exists a correlation between organic food consumption and environmentally and socially conscious consumption traits (such as supporting small-scale producers) within the broader sample (1148), encompassing not just organic food consumers. Subsequently, concentrating solely on organic food consumers (944), factor analysis was employed to reveal connections among the analysed variables and to group Hungarian organic food consumers into clusters based on their consumption and purchasing habits. In conclusion, it is reasonable to assume that organic food consumers are more likely to be environmentally conscious, as they are more aware of the environmental impact of their food choices. Three clearly distinguishable groups were obtained using cluster analysis. These groups can be targeted with different means in order to develop the sector.

Channel Choice and Customer Value

Channel Choice and Customer Value

Analyzing Factors Influencing Milk Marketing Channel Strategies in Punjab

Raising livestock has long been regarded as an important activity in the nation’s rural areas. The Indian dairy industry has undergone noteworthy changes with the tremendous increase in the production of milk. The provision of assured marketing channels is crucial for dairy farmers to reap the economic benefits of milk production. The present study aims to examine the drivers behind the dairy farmers’ decisions about milk marketing channels in Punjab. The primary data used in this study has been collected from 21 villages and 420 dairy farmers using a multistage sampling technique in 2019, belonging to three different zones of the state. Henry Garrett’s Ranking Technique was used to determine the significant factors influencing their choice of milk marketing channels. Higher milk price, with a mean value of 71.64, is found to be the main driver for choosing the milk marketing channel, followed by doorstep collection with a mean value of 56.70, and provision of advances with a mean value of 54.55. There is a need to strengthen the dairy cooperatives to reduce the involvement of the unorganized sector in the marketing of milk in the state of Punjab.

Sales Channel Choice in the Hotel Industry: The Impact of Online Reviews

In this study, we investigate a hotel's sales channel choice when incorporating the impact of online reviews posted on the platform of the online travel agency (OTA) with which the hotel is cooperating. Online reviews can help to update potential consumers’ uncertain valuation of a hotel and, consequently, affect the hotel's sales channel choice: the hotel direct channel only, the OTA channel only, or both (the dual-channel). We find that the availability of online reviews can have either beneficial or detrimental impacts on the hotel's profit and, thereby, exert a significant influence on the hotel's sales channel choice. Interestingly, when incorporating the impact of online reviews, a hotel can still be better off by cooperating with the OTA even if doing so does not increase the market size, which is contrary to conventional wisdom. More specifically, negative (positive) reviews do not always induce a hotel to cease (to continue) to cooperate with the OTA, depending on other conditions, such as the hotel's capacity, the consumers’ channel preferences, as well as the increase in market size associated with the OTA channel. The findings have important managerial implications for hoteliers in determining under what conditions it is worthwhile to cooperate with an OTA and can be generalized to other industries with similar retail settings.

Analyzing Optimal Marketing Channels in the Vegetable Supply Chain: Exploring Factors Influencing Marketing Channel Selection

Potato is amongst most important vegetables being used in kitchens of ordinary and common men. The income elasticity of demand of potato is relatively high as compared with other vegetables. In Pakistan, the traditional fruit and vegetable markets and considered to be the places of pure competition and farmers are linked to these markets via different marketing channels. This study delves into the analysis of optimal marketing channels within the vegetable supply chain, with a focus on understanding the factors that influence the selection of these channels. The study used cross-sectional primary data gathered from different supply chain actors, including 120 potato growers, 20 retailers, 20 consumers, 16 commission agents, and 16 wholesalers from two districts of Punjab, namely Okara and Chinote. This research employs a two-fold methodology. First, it involves the identification of the optimal marketing channel among five alternatives using a unique ranking technique methodology. Second, it employs regression analysis with binary endogenous treatment to discern the factors affecting the choice of marketing channels. The study sheds light on the intricacies of marketing channel decisions in the vegetable supply chain, offering insights into the preferences and considerations of stakeholders in the Okara and Chinote districts of Punjab, Pakistan. The findings of the study contribute not only to the understanding of optimal channel selection but also to the broader knowledge of the factors that influence these decisions. These insights are valuable for practitioners, policymakers, and researchers aiming to enhance the efficiency and effectiveness of marketing strategies within the agricultural sector, benefiting farming communities and the country as a whole.

Level of utilization of eLearning among students at selected KMTC campuses

Background: Technology continues to impact various spheres of life, including learning. Over the years, eLearning has experienced a steady rise in popularity. At Kenya Medical Training College (KMTC), the influence of technology on education became more noticeable due in part to a policy directive. This directive, prompted partly by the COVID-19 pandemic, emphasized adopting online teaching to address the loss of instructional hours. This study addressed a specific gap in KMTC's internal quality assurance efforts by accumulating evidence related to the extent of E-learning and user satisfaction. Methods: The study employed a descriptive cross-sectional design, utilizing qualitative and quantitative techniques. It involved KMTC campuses conveniently selected from the Coast and Nairobi regions, with 1139 students selected through simple random, stratified, and proportionate sampling methods. A mixed questionnaire (both open and closed-ended questions) was used to collect data. Specifically, the study aimed to assess the level of eLearning utilization among students in selected KMTC campuses and identify the determinants of this utilization. Results: Most of the respondents (89.2%) participated in online classes; 11.8% of those who did not participate cited reasons such as lack of gadgets, bundles, and poor internet connectivity, among others. Despite widespread e-learning utilization, 76.8% of learners strongly preferred face-to-face classes. Conclusions: Key factors linked to e-learning utilization included effective instructional strategies, quality technical support, and well-conducted online classes. The choice of communication channels, particularly platforms like WhatsApp, was strongly linked to e-learning utilization. Therefore, this study recommends that KMTC should acknowledge the strong preference for face-to-face classes and offer hybrid learning options. Further, the KMTC should address accessibility challenges and competing responsibilities at home by supporting data connectivity, ensuring user-friendly online platforms, and providing flexible scheduling options for diverse learner needs.

Assessment of Marketing Channel Choice and its Impacts: The Case of Paddy Smallholders in India

Market access for smallholders is a key policy issue in developing economies. However, smallholders often face barriers in accessing remunerative marketing channels. Combining the theoretical framework drawn from resource-based view, social exchange, and transaction cost theory, we jointly estimate the determinants of marketing channel choice and the impact of channel choice in a joint framework. Results show that households’ resource endowments and social capital influence channel selection decision. Paddy sales through government agencies help farmers realize higher prices because of the higher government support prices and proximity to farms, whereas sales through licensed traders operating in the regulated markets (APMC) results in reduced paddy prices due to high transportation costs. Furthermore, smallholders preferring government agencies, processors, and licensed traders over village traders realize greater farm income. Reasons for such findings can be deduced to be the result of low marketable surplus for smallholders selling to village traders.

FACTORS AND REASONS FOR CHANGES IN THE MANAGEMENT OF DISTRIBUTION CHANNELS OF WHOLESALE ORGANIZATIONS OF SMALL BUSINESSES IN THE DIGITAL ECONOMY

The article is devoted to determining the factors and reasons influencing the choice of effective sales channels of wholesale organizations belonging to small business entities in the digital economy. The author justified the inevitability of the transformation of traditional distribution channels of wholesale small business companies and outlined the trends in the promotion and sale of goods, taking into account new opportunities for the introduction of ready-made digital solutions and their accessibility for small businesses. The results of the conducted research can have practical application in the form of recommendations on the choice of effective sales channels in the management of business processes. The materials of this study can be used in the training programs of higher educational institutions in the direction of “Trade” and in advanced training programs.

Subject Matter Complexity and Disclosure Channel Richness

ABSTRACT Despite the increase in and diversity of disclosure channels available, our understanding of how managers incorporate channel features into their disclosure decisions remains incomplete. I provide evidence that managers choose relatively rich channels that offer multiple cues, opportunities for interaction, and linguistic diversity (i.e., the earnings call, as compared to the press release) to communicate complex information. The positive relation between disclosure channel richness and subject matter complexity persists in both a document-level analysis and a small sample test examining disclosure channel choice from all possible disclosure channels. I provide some evidence that deviating from the complexity/richness matching strategy is associated with a muted market response to firms’ quarterly disclosures. The results are consistent with managers choosing disclosure channels to reduce investors’ information processing costs. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: G14; M41.

Optimal pricing for dual-channel retailing with stochastic attraction demand model

In dual-channel supply chains, where retailers sell their goods both online and in physical stores, determining the optimal pricing strategy while considering customer behavior is a critical challenge. This study introduces and investigates a dual-channel pricing model that accounts for customer channel choice behavior. Drawing inspiration from market-share models, we incorporate a demand model that reflects the attraction between online and physical stores. Our approach includes stochastic assumptions for potential market demand and price-based interactions between the two channels. In particular, we model the channel’s stochastic demand as a non-linear function of prices and we allow for different customer reactions when the physical store runs out of stock. This paper makes two key contributions. First, we highlight the analytical complexity involved in verifying the joint concavity of the retailer’s expected profit function with respect to selling prices. To address this challenge, we introduce a novel approach to establish the existence of optimal global prices in the context of non-linear demand and a non-linear, non-concave objective function. Secondly, our study offers practical insights by applying the model to various operational scenarios. We provide guidance on the best pricing strategy when physical store capacity is limited. Depending on customer channel preferences, prioritizing the showroom may lead to higher profits. However, optimizing for profit could result in a reduced market share. In a showroom configuration, the retailer’s choice may shift between exclusive physical and exclusive online retailing to maximize profit.

Marketing performance and factors influencing farmers choice for agricultural output marketing channels: the case of garden pea (Pisum sativum) in India

Agriculture is the backbone of Indian economy and farmers play significant role in sustaining the sector. However, farmers face several challenges such as poor market access and limited access to market information which adversely affect their marketing performance. Therefore, this study aimed to examine the marketing performance and factors influencing farmers choice for agricultural output marketing channels in garden pea in the Indian state of Himachal Pradesh. The study utilized primary data collected through structured questionnaires administered via the interview method to a sample size of 400 farmers selected through a multistage stratified random sampling technique. The data collected were analyzed using descriptive statistics and acharya approach to study the marketing performance. Further, a multinomial logistic regression model was used to determine the factors that influence farmers marketing choice of marketing channels. Additionally, the constraints experienced by farmers during marketing were investigated using garret ranking. The study revealed that farmers who sold their pea directly to consumer had higher marketing performance than those who sold through market intermediaries such as local traders, commission agents and wholesalers. Further, the results indicated that farm income, farm experience, distance to the market and market information were significant determinants of farmers choice for marketing channels. Whereas, lack of market consultancy, high commission chargers and poor transportation were the major constraints faced by farmers during marketing of pea. The findings of this study highlight the need for policymakers to develop and implement interventions that enhance farmers marketing skill, facilitate access to markets, improve negotiation power which can lead to higher incomes for farmers, improve their livelihoods, better quality produce for consumers and a more efficient and sustainable food system.

Vertical Linkages in Agri-Food Supply Chains: Roles for Producers

Abstract Agricultural producers are entities that largely decide on the structure of the agri-food supply chain. Currently, the European Union is striving to shorten supply chains in agriculture, as short supply chains are ecologically, economically and socially more sustainable. The main objective of the paper is to examine the role of primary producers in the agri-food supply chains. The basic technique applied for data collection was questionnaire survey, which we carried out on family farms in Slovakia. Obtained data were statistically examined applying the statistical analysis using the Chi-square test. Based on the estimations, we could conclude that the choice of the main distribution channel depends on the size of the given company and also on the main type of production. Businesses with fewer than 10 employees prefer direct distribution channels that allow them to sell their products to final consumers. The identification of factors affecting the choice of the main distribution channel as well as a detailed analysis of the nature of dependence make it possible to formulate recommendations on what steps to take in order to increase the number of agricultural enterprises selling through short supply chains.

A comparison of the environmental sustainability of brick‐and‐mortar retailing and online retailing: Contrasting academic research and consumer perceptions

AbstractSustainability has become paramount in society and retail. Therefore, this study aims to compare the environmental sustainability of brick‐and‐mortar retail and e‐commerce. A literature review identifies various factors, such as buildings, shopping trips, order bundling, returns, packaging, transport and logistics, and environmentally conscious behavior, that determine the channel that is superior in terms of environmental sustainability. While these factors are context‐specific and depend on several actors (e.g., consumers, retailers, and logistics service providers), most studies consider e‐commerce to be more environmentally friendly than purchases from brick‐and‐mortar stores. However, this review demonstrates that most previous studies have focused on objective criteria (e.g., CO2). Therefore, to reflect the importance of consumers' perspectives on channel choice, we conducted four empirical studies that provide insights into the perceived environmental sustainability of each channel. In contrast to experts' views, consumers perceive e‐commerce as less sustainable than brick‐and‐mortar retailing. Hence, online retailers should improve their communication strategies and highlight the potential environmental advantages of e‐commerce and omni‐channel retailing. Brick‐and‐mortar retailers are advised to reduce the environmental damage they cause and encourage their customers to act in an eco‐friendly manner.

Frequency Offset Methods for Large-Scale Deployment of LoRa: A New Strategy to Reduce Data Retransmission

LoRa technology, renowned for its extensive range and robust anti-interference capabilities, has emerged as a linchpin for myriad IoT applications, ranging from agricultural intelligence to smart metering. Yet, its potential for large-scale deployment remains stymied by significant packet conflict issues at the gateway, particularly pronounced in extensive networks involving thousands of endpoints. Such conflicts, exacerbated during network reboots, instigate a domino effect of retransmissions, power consumption, and channel resource wastage, culminating in severely impeded communication efficiency. A pivotal challenge arises from the concurrent data uploads by numerous terminals, coupled with the restrictive uplink channel choices due to limited carrier frequencies and spreading factors. While existing solutions like phase, power, and inherent frequency offsets offer avenues for distinguishing between packet conflicts, they are riddled with practical constraints. This paper introduces a novel approach, leveraging a controlled frequency offset for LoRa symbols. Grounded in the fundamentals of LoRa demodulation, this innovative strategy promises to tackle large-scale congestion without adding system intricacy.