The Impact of the Internet on the Performance of Multi-Channel Retailers
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The Impact of the
Internet on the
Performance of
Multi-Channel Retailers
Wendy W. Moe and Peter S. Fader
This paper examines the impact of the Internet on the performance of multi-channel retailers. We use a unique data set that tracks individual-level purchasing behavior across both online and offline channels for a large sample of customers from a major retailer. Our results show that the introduction of an online channel has a positive effect on overall customer spending, but this effect varies significantly by customer segment. Specifically, we find that high-value customers tend to increase their spending more than low-value customers when given access to the online channel. Additionally, we observe that the online channel serves as a complement rather than a substitute for the offline channel, with many customers using both channels in tandem. These findings have important implications for retailers looking to optimize their multi-channel strategies.