Our paper shows that the parameters in existing theoretical models of channel substitution such as offline transportation cost, online disutility cost, and the prices of online and offline retailers interact to determine consumer choice of channels. In this way, our results provide empirical...

We empirically examine the trade-off between the benefits of buyingonline and the benefits of buying in a local retail store. How does aconsumer’s physical location shape the relative benefits of buyingfrom the online world? We explore this problem using data from Amazon onthe top selling...

Consumer-generated product reviews have proliferated online, driven bythe notion that consumers’ decision to purchase or not purchase aproduct is based on the positive or negative information about thatproduct they obtain from fellow consumers. Using research on informationprocessing as a...

We develop a formal model of online-offline retail channel substitution to identify three factors that drive consumers to purchase online: convenience, selection, and price. This model builds hypotheses on how features of offline retail supply impact online purchasing. We then examine how the...

Consumer-generated product reviews have proliferated online, driven by the notion that consumers' decision to purchase or not purchase a product is based on the positive or negative information about that product they obtain from fellow consumers. Using research on information processing...

We empirically examine the trade-off between the benefits of buying online and the benefits of buying in a local retail store. How does a consumer's physical location shape the relative benefits of buying from the online world? We explore this problem using data from Amazon on the top selling...