Channels

Channels are defined by Neslin et al. (2006) as a customer contact point or a me-dium which are used during the interaction between customer and the company.

Stone et al. (2002) recognizes two different types of channels, the communicative channels (channels, where customers communicate with company during different

stages of their journey or encounter) and the distribution channels (channels that allow customers to reach the products and services from companies).

Dholokia et al. (2010) considers dimensions for channels in order to understand the varieties they hold. They categorize channels to nine different dimensions, which are also represented in the table 2. Dholokia et al. (2010) states, first dimension is a basic distinction whether the channel is used for gaining information or for pur-chasing (similarly to Stone et al. 2002). Second dimension is a distinction that chan-nels can categorized whether they are physical or virtual (Dholokia et al. 2010).

Closely linked to the second is also the third dimension, as channels vary in the degree of accessibility (Dholokia et al. 2010). Mobile technologies and wireless in-ternet has made it possible for everyone to access certain channels from basically everywhere on the globe, compared to other channels that are stationary and limited strictly to certain geographical locations.

Fourth dimension creates distinction whether the communication of the channel per-mits real-time communication, or to expressed according to Dholokia et al. (2010), whether it is asynchronous (e.g., emails) or synchronous (real time communication, e.g., phone or chat-rooms). Fifth dimension is about the nature of their interface.

Mainly this is noted as physical stores have same interface and front to all customers and in virtual channels there can be a possibility to customize the interface to suit the customer’s preferences. Sixth dimension creates distinction in the level of con-venience, and typically greater level in terms of convenience is accompanied with higher costs for the consumers. (Dholokia et al. 2010)

Seventh dimension is about the ease of channel switches within the same company or to a competitor’s channel (Verhoef et al. 2007; Dholokia et al. 2010). This dimen-sion is more meaningful in online channels because competitors are only a few clicks away. Eighth dimension draws distinction to the degree of flexibility in the organization and depiction of their assortment (Dholokia et al. 2010). Online and mobile channels offer the possibility that allow customers to organize different prod-uct categories by themselves, compared to physical stores where the assortment is completed by the company and is more static in nature (Dholokia et al. 2010). How-ever, flexible categorization can discourage impulse shopping if all the pre-planned products align with pre-categorized purchasing plans (Dholokia et al. 2010). Ninth

dimension draws distinction whether the channel stores customer’s behavioral his-tory. Online channels generally maintain a record of the customer transaction, and it offers the possibility for customized communication, and offline channels typically do not necessarily keep records of the transaction (Dholokia et al. 2010).

Previous research (e.g., Verhoef et al. 2007; Konus et al. 2008) has generally con-sidered three general channel types; offline channels, online channels, and tradi-tional direct marketing channels (Verhoef et al. 2015). The focus of these channel types is often concerned from the perspective that the attention for multichannel is largely resulted from the evolution and the increased introduction of online channels and this influences companies and customers who are using the more traditional channels (Verhoef et al. 2015). Because of this perspective, the management of these channels have often been separated within companies, and with only limited integration of cross-departmental management (Verhoef et al. 2015). However, this is not a statement that multichannel literature does not take into consideration the integration of the channels. The importance of channel integration has been made by several authors (e.g., Neslin et al. 2006; Patrício et al. 2008), however, it still calls for further exploration considering the omnichannel (including, mobile technologies) experiences (chapter 3.2.5 in this study examines more of the issue).

The increased accessibility and number of channels is an indicator that consumers may consult more channels before making the purchase decision (Rangaswamy and van Bruggen 2005; Konus et al. 2008; Chiou et al. 2017). In addition, customers use different channels in different stages of the decision-making process (Verhoef et al. 2007). Verhoef et al. (2010) notes that multichannel purchasing increases overall sales compared to single-channel shopping. Therefore, it can be assumed that different channels are interdependent and often needs other channels to reach sales targets (van der Veen and van Ossenbruggen 2015).

Channels are created to cover different functions when it comes to communicating with customers (e.g., Dholokia et al. 2010). There is an implicit assumption that cus-tomers choose channels. However, it is noteworthy that all customer needs cannot be answered in all channels, some, more difficult needs may need revision from multiple channels and sources of information (van der Veen and van Ossenbruggen 2015). This often leads to that customers tend not to look for a specific channel, but

rather choose the environment that is suitable for the interaction requirements set by the customer (van der Veen and van Ossenbruggen 2015).

Customer needs are often described to be linked to the costs and benefits of the product (price, assortation and quality) and in the terms of purchase process itself (time/effort, enjoyment gained from shopping, and perceived risks) (Kollmann et al.

2012; van der Veen and van Ossenbruggen 2015). Online channels are generally associated with speed and convenience and typical choice for price-conscious cus-tomers (van der Veen and van Ossenbruggen 2015). However, the price-conscious-ness cannot solely be linked to online channels (Konus et al. 2008). Offline channel is seen compatible for customers looking for reliable service and advices. Consulting multiple channels is associated with customers’ awareness to reduce risks while in purchase-decision making phase. During the search phase, the use of multiple channels is based on the perceived likeliness of wrong decision (van der Veen and van Ossenbruggen 2015).

To consider the online channel more, the internet has become an everyday channel of service delivery (McLean and Wilson 2016). Recent years has proven that the online channel has become an important channel for obtaining information for both businesses and customers. Online channel has been regarded as a low-cost way to deliver services and a direct channel to communicate with customers (McLean and Wilson 2016). However, technological advances have led to customers becom-ing more anticipatory on terms of higher expectations of the quality of service in online environment (Martin et al. 2015; Grönroos and Voima 2013). Various of forms of online channels has also led to considering online channel to be more diverse than just a single channel (van der Veen and van Ossenbruggen 2015). Online channel includes multiple channels within, some of which are managed by the com-pany and some of which by third party sources. In addition, social media is often considered part of online medium (van der Veen and van Ossenbruggen 2015).