Integrating Bricks with Clicks: Retailer-Level and Channel-Level Outcomes of Online-Offline Channel Integration

This research examines the impact of online-offline channel integration (OI), defined as integrating access to and knowledge about the offline channel into an online channel. Although channel integration has been acknowledged as a promising strategy for retailers, its effects on customer reactions toward retailers and across different channels remain unclear. Drawing on technology adoption research and diffusion theory, the authors conceptualize a theoretical model where perceived service quality and perceived risk of the Internet store mediate the impact of OI while the Internet shopping experience of customers moderates the impact of OI. The authors then test for the indirect, conditional effects of OI on search intentions, purchase intentions and willingness to pay. Importantly, they differentiate between retailer-level and channel-level effects, thereby controlling for interdependencies between different channels. The results of three studies provide converging evidence and show that OI leads to a competitive advantage and channel synergies rather than channel cannibalization. These findings have direct implications for marketers and retailers interested in understanding whether and how integrating different channels affects customer outcomes.