Why Competition from a Multi-Channel E-Tailer Does Not Always Benefit Consumers

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dc.contributor.authorNault, Barrie R
dc.contributor.authorJeffers, Patrick
dc.date.accessioned2016-01-04T18:38:38Z
dc.date.available2016-01-04T18:38:38Z
dc.date.issued2011-02
dc.descriptionJohn Wiley & Sons, Can archive pre-print and post-print or publisher's version/PDF. Link to publisher's version http://ezproxy.lib.ucalgary.ca/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=58612907&site=ehost-liveen_US
dc.description.abstractEmpirical studies have delivered mixed conclusions on whether the widely acclaimed assertions of lower electronic retail (e-tail) prices are true and to what extent these prices impact conventional retail prices, profits, and consumer welfare. For goods that require little in-person pre- or postsales support such as CDs, DVDs, and books, we extend Balasubramanian's e-tailer-in-the-center, spatial, circular market model to examine the impact of a multichannel e-tailer's presence on retailers' decisions to relocate, on retail prices and profits, and consumer welfare. We demonstrate several counter-intuitive results. For example, when the disutility of buying online and shipping costs are relatively low, retailers are better off by not relocating in response to an e-tailer's entry into the retail channel. In addition, such an entry-a multichannel strategy-may lead to increased retail prices and increased profits across the industry. Finally, consumers can be better off with less channel competition. The underlying message is that inferences regarding prices, profits, and consumer welfare critically depend on specifications of the good, disutility and shipping costs versus transportation costs (or more generally, positioning), and competition.en_US
dc.description.refereedYesen_US
dc.identifier.citationJeffers, P.I., and B.R. Nault, "Why Competition From a Multi-Channel E-Tailer does Not Always Benefit Consumers," Decision Sciences, 42, 1 (February 2011), 69-91.en_US
dc.identifier.doi10.1111/j.1540-5915.2010.00302.x
dc.identifier.doihttp://dx.doi.org/10.11575/PRISM/33963
dc.identifier.issn0011-7315
dc.identifier.urihttp://hdl.handle.net/1880/51031
dc.language.isoenen_US
dc.publisherWileyen_US
dc.publisher.corporateUniversity of Calgaryen_US
dc.publisher.departmentManagement Information Systemsen_US
dc.publisher.facultyHaskayne School of Businessen_US
dc.publisher.institutionUniversity of Calgaryen_US
dc.subjectElectronic Commerceen_US
dc.subjectConsumersen_US
dc.subjectRetail Industryen_US
dc.subjectPricingen_US
dc.subjectPricesen_US
dc.subjectCommerceen_US
dc.titleWhy Competition from a Multi-Channel E-Tailer Does Not Always Benefit Consumersen_US
dc.typejournal article
thesis.degree.disciplineManagement Information Systemsen_US
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