Online Retailing Channel Addition: Risk Alleviation or Risk Maker?

dc.contributor.author Zhao, Lei
dc.contributor.author Chi, Huihui
dc.contributor.author Zhou, Wei
dc.contributor.author Jiang, Yi
dc.date.accessioned 2017-12-28T01:56:41Z
dc.date.available 2017-12-28T01:56:41Z
dc.date.issued 2018-01-03
dc.description.abstract The retailing industry traditionally considers the optimal products selection and pricing problem, a complex and challenging one, from marketing and consumer behavior's perspectives. In this study, we take a risk perspective and offer an alternative solution to tackling the problem, echoing the most recent literature that looks at non-risk aspects, such as expected consumer preference, market size and predicted profitability. Adopting a mean-variance framework, our approach explicitly takes into account the interconnectedness of retail products and their impact on risk at the portfolio (retailer) level. Extending the analysis to multiple-channel decisions, our results suggest that the introduction of a new retailing channel (e.g. online shops) can reduce the portfolio risk, whereas a lack of synergy between the new channel and the existing ones may lead to a negative impact on the overall performance. We also provide managerial implications on several conditions when retailers are more economically inclined to introduce more retail channels. Interestingly, our model indicates that larger retailers are less likely to expand their online platform.
dc.format.extent 10 pages
dc.identifier.doi 10.24251/HICSS.2018.481
dc.identifier.isbn 978-0-9981331-1-9
dc.identifier.uri http://hdl.handle.net/10125/50369
dc.language.iso eng
dc.relation.ispartof Proceedings of the 51st Hawaii International Conference on System Sciences
dc.rights Attribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.uri https://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subject Social Shopping: The Good, the Bad and the Ugly
dc.subject Multiple Channel Retailing, Risk Analysis, Social Shopping
dc.title Online Retailing Channel Addition: Risk Alleviation or Risk Maker?
dc.type Conference Paper
dc.type.dcmi Text
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