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 journalArticle

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
JournalJournal of Business Research
DOIs
Publication statusAccepted/In press - 2019 Jan 1

Fingerprint

Retailers
Purchase
Product launch
Negative binomial
Retailing
Shopping
Difference-in-differences
Targeting
Empirical results
Moderating effect

All Science Journal Classification (ASJC) codes

  • Marketing

Cite this

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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.",
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From clicks to bricks : The impact of product launches in offline stores for digital retailers. / Jiang, Yan; Kim, Jeeyeon; Choi, Jeonghye; Kang, Moon Young.

In: Journal of Business Research, 01.01.2019.

Research output: Contribution to journalArticle

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