Are Multichannel Customers Really More Valuable? The Moderating Role of Product Category Characteristics
by Tarun Kushwaha and Venkatesh Shankar
The article is forthcoming in Journal of Marketing.
How does the monetary value of customer purchases vary by customer preference for purchase channels (e.g., traditional, electronic, multichannel) and product category? The authors develop a conceptual model and hypotheses on the moderating effects of two key product category characteristics—the utilitarian versus hedonic nature of the product category and perceived risk—on the channel preference–monetary value relationship. They test the hypotheses on a unique large-scale, empirically generalizable data set in the retailing context. Contrary to conventional wisdom that all multichannel customers are more valuable than single-channel customers, the results show that multichannel customers are the most valuable segment only for hedonic product categories. The findings reveal that traditional channel customers of low-risk categories provide higher monetary value than other customers. Moreover, for utilitarian product categories perceived as high (low) risk, web-only (catalog- or store-only) shoppers constitute the most valuable segment. The findings offer managers guidelines for targeting and migrating different types of customers for different product categories through different channels.
by Thomas Dotzel, Venkatesh Shankar, and Leonard L. Berry
This article is forthcoming in Journal of Marketing Research.
Service innovativeness, or the propensity to introduce service innovations to satisfy customers and improve firm value at acceptable risk, has become a critical organizational capability. Service innovations are enabled primarily by the Internet or people, corresponding to two types of innovativeness, e- and p-innovativeness. The authors examine the determinants of service innovativeness and its interrelationships with firm-level customer satisfaction, firm value, and firm risk and investigate the differences between e- and p-innovativeness in these relationships. They develop a conceptual model and estimate a system of equations on a unique panel data set of 1,049 innovations over five years, using zero-inflated negative binomial regression and seemingly unrelated regression approaches. The results reveal important asymmetries between e- and p-innovativeness. While e-innovativeness has a positive and significant direct effect on firm value, p-innovativeness does not. P-innovativeness has an overall significantly positive effect on firm value through its positive effect on customer satisfaction, but only in human-dominated industries. Both e- and p-innovativeness are positively associated with idiosyncratic risk, but customer satisfaction partially mediates this relationship for p-innovativeness to lower this risk in human-dominated industries. The findings suggest that firms should nurture e-innovativeness in most industries and p-innovativeness in human-dominated industries.
The objectives of this course are to enable the participants develop a deep understanding of retail economics, shopper marketing, solution selling, total promotions, cross-selling, and channel partnering. The key topics covered also include retail environment, trends in and future of retailing, retail buying behavior, total promotions, and communicating the value proposition to channel partners.
This course is designed to give you a good understanding of branding fundamentals, how to craft a successful branding strategy, and how to revitalize the brand to achieve business objectives. The focus will be on understanding and application of strategic branding concepts in the form of presentation and discussion of real-world examples. The module will emphasize the following key elements: 1. Strategic Analysis of Branding Issues: Issues of focal concern include analysis of customers, target audience, value proposition/positioning, brand equity, branding strategy, and brand revitalization; and 2. Branding Decision Making Process: This process enables executives and managers to systematically organize the relevant issues to make appropriate decisions on branding issues based on analysis of the market situation. The major emphasis of this process will be on application of the relevant branding analysis tools to the branding decisions.
The objectives of this course are to enable the participants better appreciate the importance of customer solutions and channel management, understand the essentials of customer solutions and channel management, and apply the concepts to real life cases. The key topics covered include: customer-centric mindset, customer value and needs, customer-centric strategy, customer solution and solution selling, customer segmentation, targeting, and value proposition to partner, channel design, channel development, channel monitoring and control, and channel relationship management.