From clicks to bricks: The impact of product launches in offline stores for digital retailers

Yan Jiang, Jeeyeon Kim, Jeonghye Choi, Moon Young Kang

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)

Abstract

More digital retailers are expanding into offline channels by launching products in partners' stores, despite the mature offline shopping. Despite this extensive phenomenon, little attention is focused on the impact of offline product launches on sales. This paper examines how offline product launches via third-party offline stores affects online and mobile purchases, and extends understanding by investigating the moderating effect of offline store intensity. We analyze data obtained from a digital-first beauty retailer through a difference-in-differences analysis using a bivariate negative binomial distribution model. Empirical results show offline product launches are synergistic with online and mobile purchases, especially with respect to the latter. In addition, offline store intensity weakens the positive effect of offline product launches on online purchases, whereas it does not moderate the effect on mobile purchases. Moreover, we provide insights into developing geo-targeting launch strategies through what-if analyses. Our findings provide critical managerial implications for digital retailing.

Original languageEnglish
Pages (from-to)302-311
Number of pages10
JournalJournal of Business Research
Volume120
DOIs
Publication statusPublished - 2020 Nov

Bibliographical note

Funding Information:
This work is based on the first author's masters thesis at Yonsei University under the direction of the third author. The authors are grateful to Moo Jeon Kim and Jayoung Ahn for generously sharing data. The last author specially appreciates the Department of Entrepreneurship and Small Business, Soongsil University. This research was supported by the Yonsei University Research Fund of 2018 (2018-22-0140). This work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea (NRF-2017S1A3A2066788). This work was supported by the Ministry of Science and Technology, Taiwan (MOST 108-2410-H-110-003).

Funding Information:
This work is based on the first author's masters thesis at Yonsei University under the direction of the third author. The authors are grateful to Moo Jeon Kim and Jayoung Ahn for generously sharing data. The last author specially appreciates the Department of Entrepreneurship and Small Business, Soongsil University. This research was supported by the Yonsei University Research Fund of 2018 (2018-22-0140). This work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea (NRF-2017S1A3A2066788). This work was supported by the Ministry of Science and Technology, Taiwan ( MOST 108-2410-H-110-003 ).

Publisher Copyright:
© 2019 Elsevier Inc.

All Science Journal Classification (ASJC) codes

  • Marketing

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