Abstract
Embracing the advent of digital world, most of brands adopt concurrent usage of
online and offline channels to reach end customers. The debate with regard to the synergistic
or cannibalizing effects of online and offline channels is ostensive. However, the
investigation and examination regarding how to effectively manage the online and offline
channel to optimize brand’s overall sales profit remains rare. We introduce product
assortment differentiation (PAD) as an online and offline channel management strategy. With
the panel data of 281,413 observations of product sales across 36 months, we confirmed the
inverted U-shape between PAD and sales performance. Moreover, with the yearly sales data
and multi-informant survey data, we examined both its benefits of channel cooperation and
costs of increasing competition for resources, unpacking the underlying mechanisms of the
inverted U-shape relationship between PAD and overall sales performance.
online and offline channels to reach end customers. The debate with regard to the synergistic
or cannibalizing effects of online and offline channels is ostensive. However, the
investigation and examination regarding how to effectively manage the online and offline
channel to optimize brand’s overall sales profit remains rare. We introduce product
assortment differentiation (PAD) as an online and offline channel management strategy. With
the panel data of 281,413 observations of product sales across 36 months, we confirmed the
inverted U-shape between PAD and sales performance. Moreover, with the yearly sales data
and multi-informant survey data, we examined both its benefits of channel cooperation and
costs of increasing competition for resources, unpacking the underlying mechanisms of the
inverted U-shape relationship between PAD and overall sales performance.
| Original language | English |
|---|---|
| Title of host publication | AMA Winter Academic Conference 2021 |
| Subtitle of host publication | The Human Side of Marketing in an Age of Digital Transformation |
| Place of Publication | USA |
| Publisher | American Marketing Association |
| Volume | 32 |
| ISBN (Print) | 978-1-7138-2518-0 |
| Publication status | Published - Feb 2021 |
| Event | 2021 AMA Winter Academic Conference - Duration: 17 Feb 2021 → 19 Feb 2021 |
Conference
| Conference | 2021 AMA Winter Academic Conference |
|---|---|
| Period | 17/02/21 → 19/02/21 |