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Modeling Consumer Distribution Channel Switching Behavior: The Case of Direct Vs. Traditional Channels

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Global Perspectives in Marketing for the 21st Century

Abstract

Based on Becker’s (1965) theory of time allocation, this paper develops a formal model to explain consumers’ distribution channel switching behavior. Our model suggests that consumers choose among alternative distribution channels on the basis of the relative opportunity costs of time, costs of the goods, pleasure derived from shopping, perceived value of the goods, and relative risk of each channel.

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Reardon, J., Lee, J., Vida, I. (2015). Modeling Consumer Distribution Channel Switching Behavior: The Case of Direct Vs. Traditional Channels. In: Manrai, A., Meadow, H. (eds) Global Perspectives in Marketing for the 21st Century. Developments in Marketing Science: Proceedings of the Academy of Marketing Science. Springer, Cham. https://doi.org/10.1007/978-3-319-17356-6_1

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