Abstract
Retailers are experiencing a systematic shift in the buying habits of their customers as more customers buy across different channels. Marketing managers face the daunting task of embracing online and offline channels to engage consumers, influence choice, and create habits to sustain a competitive advantage. We develop a dynamic segmentation model of channel choice and purchase frequency to ...
Abstract
Retailers are experiencing a systematic shift in the buying habits of their customers as more customers buy across different channels. Marketing managers face the daunting task of embracing online and offline channels to engage consumers, influence choice, and create habits to sustain a competitive advantage. We develop a dynamic segmentation model of channel choice and purchase frequency to assess the responsiveness of segments to catalogues and email communications. In addition, we perform profitability analysis to offer insights on the profitability of using catalogues and emails to reach customers. For certain firms, especially those with a history of using catalogue mailings, the findings suggest that catalogues remain relevant and are an effective tool at influencing purchases across both online and offline channels despite the increasing trend toward digital marketing. In addition, we found a segment of digital consumers respond favorably to both emails and catalogues. We argue catalogues have retained their competitive advantage over email marketing communication because the catalogue may not compete for attention with consumers' other digital distractions. Crown Copyright (C) 2019 Published by Elsevier B.V. All rights reserved.
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