Customers Seeking Cheap Products Flock to Third-party Electronic Commerce: Examination of Customer Experience in Sales Channels (72631)
Session Chair: Ming Zhou Yu
Wednesday, 11 October 2023 09:45
Session: Session 1
Room: Room A (Onsite)
Presentation Type:Oral Presentation
For manufacturer brands, the expansion of online sales entails difficult decisions about the relationship and terms to be maintained with third-party electronic commerce (EC) sites. Even if a short-term increase in sales volume is achieved using this channel, there is concern that a low-quality brand experience will lead to a decrease in loyalty. Loyalty is not determined by short-term purchases, but is gradually built over a long period of time. Based on this concern, LVMH have recently announced that they will withdraw from Amazon's EC and strengthen direct sales to consumers. However, such concerns are curiously lacking in academic discussion. This study clarified the characteristics of consumers who purchase through third-party channels. Logistic regression model was applied to an online survey of the Japanese personal computer (PC) market. As a result, the characteristics of consumers adopting online channels were women, frequent use of PCs, low prices, and Apple users. Furthermore, consumers who adopted third-party EC emphasized low prices. Therefore, there is a concern that third-party EC attracts low-loyalty customers who seek cheap products. A practical implication may be that the maintenance of a strong brand requires ruthless decisions about the relationship with third-party EC sites.
Authors:
Takumi Kato, Meiji University, Japan
About the Presenter(s)
Professor Takumi Kato is a University Assistant Professor/Lecturer at Meiji University in Japan
See this presentation on the full schedule – Wednesday Schedule
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