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The Long-Term Effect of Multichannel Usage on Sales

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  • Tolga Bilgicer
  • Kamel Jedidi
  • Donald Lehmann
  • Scott Neslin

Abstract

The paper investigates the long-run consequences of multichannel shopping on customers’ spending. Using data from a major US catalog company which introduced an online channel, our results validate previous findings that multichannel customers spend more than mono-channel customers in the short run. However, the difference in spending dissipates over time with multichannel customers reverting to their regular consumption pattern in 3 years. As our results are based on observational data, we use different panel data econometric models and combine them with propensity score matching methods to control for potential self-selection biases. Our key results are consistent across the analysis methods. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Tolga Bilgicer & Kamel Jedidi & Donald Lehmann & Scott Neslin, 2015. "The Long-Term Effect of Multichannel Usage on Sales," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 2(1), pages 41-56, March.
    • Handle: RePEc:spr:custns:v:2:y:2015:i:1:p:41-56
    DOI: 10.1007/s40547-014-0031-y
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    Cited by:

    1. Neslin, Scott A., 2022. "The omnichannel continuum: Integrating online and offline channels along the customer journey," Journal of Retailing, Elsevier, vol. 98(1), pages 111-132.
    2. Campo, Katia & Lamey, Lien & Breugelmans, Els & Melis, Kristina, 2021. "Going Online for Groceries: Drivers of Category-Level Share of Wallet Expansion," Journal of Retailing, Elsevier, vol. 97(2), pages 154-172.
    3. Melis, Kristina & Campo, Katia & Lamey, Lien & Breugelmans, Els, 2016. "A Bigger Slice of the Multichannel Grocery Pie: When Does Consumers’ Online Channel Use Expand Retailers’ Share of Wallet?," Journal of Retailing, Elsevier, vol. 92(3), pages 268-286.

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