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The role of the Internet on free-riding: An exploratory study of the wallpaper industry

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  • Umit Kucuk, S.
  • Maddux, Robert C.

Abstract

This study discusses the role of the Internet on possible free-riding activities for product categories where retail services are a critical part of the completed consumer purchase transaction. The study investigates free-riding in terms of consumer pre-purchase activities during the information search stage (how they process shopping information) and actual purchase decisions with a literature review. The study's empirical findings indicate that full-service retailers’ beliefs about online consumers’ choice of purchase outlet are predominantly influenced by online retailer prices rather than availability of a variety of products (place) on the Internet. This, in turn, indicates the possibility of strong free-riding opportunities in the sample wallpaper market. The study, in this context, proposes strategies and policies to eliminate many of the destructive effects of the opportunities for free-riding provided by the Internet for long-lasting channel and market effectiveness and efficiency.

Suggested Citation

  • Umit Kucuk, S. & Maddux, Robert C., 2010. "The role of the Internet on free-riding: An exploratory study of the wallpaper industry," Journal of Retailing and Consumer Services, Elsevier, vol. 17(4), pages 313-320.
    • Handle: RePEc:eee:joreco:v:17:y:2010:i:4:p:313-320
    DOI: 10.1016/j.jretconser.2010.03.003
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    Cited by:

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    2. Fassnacht, Martin & Beatty, Sharon E. & Szajna, Markus, 2019. "Combating the negative effects of showrooming: Successful salesperson tactics for converting showroomers into buyers," Journal of Business Research, Elsevier, vol. 102(C), pages 131-139.
    3. Daunt, Kate L. & Harris, Lloyd C., 2017. "Consumer showrooming: Value co-destruction," Journal of Retailing and Consumer Services, Elsevier, vol. 38(C), pages 166-176.
    4. Carol L. Esmark & Stephanie M. Noble, 2018. "Retail space invaders: when employees’ invasion of customer space increases purchase intentions," Journal of the Academy of Marketing Science, Springer, vol. 46(3), pages 477-496, May.
    5. Viejo-Fernández, Nuria & Sanzo-Pérez, María José & Vázquez-Casielles, Rodolfo, 2020. "Is showrooming really so terrible? start understanding showroomers," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    6. Schneider, Patricia J. & Zielke, Stephan, 2020. "Searching offline and buying online – An analysis of showrooming forms and segments," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).
    7. Umit Kucuk, S. & Timmermans, Harry J.P., 2012. "Resale Price Maintenance (RPM): The U.S. and E.U. perspectives," Journal of Retailing and Consumer Services, Elsevier, vol. 19(5), pages 537-544.
    8. Zhou, Yong-Wu & Guo, Jinsen & Zhou, Wenhui, 2018. "Pricing/service strategies for a dual-channel supply chain with free riding and service-cost sharing," International Journal of Production Economics, Elsevier, vol. 196(C), pages 198-210.

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