Multi-Channel Management and Design: An Analysis of their Impact on Multi-Channel Conflict and Success

Abstract

Despite the widespread use of multiple sales channels and the significant potential benefits and drawbacks associated with this strategy, relatively few studies have researched this topic. Therefore, this paper identifies and explores the impact of key mechanisms for multi-channel management (multi-channel instructions, incentives, and communication) and unique characteristics of multi-channel design (the number of sales channels, degree of sales channel overlap, and degree of vertical integration). Based on a large-scale empirical study, it shows that while these management mechanisms all ultimately serve to increase the success of a multi-channel strategy, they do so in different ways and with different strengths. Moreover, results indicate that the effectiveness of these mechanisms varies significantly depending on a company’s multi-channel design. For example, with a larger number of sales channels, the effectiveness of multi-channel instructions and multi-channel communication increases, whereas the effectiveness of multi-channel incentives decreases. Besides providing conceptual and empirical insights into the particularities of the use of multiple sales channels, this paper also gives practical guidance to managers on how to best handle a multi-channel system.