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Multichannel management throughout a
customer’s lifecycle
How the customer lifecycle affects multichannel behavior
Student: Itai Cohen
Student number: 10001136 Professor: Umut Konus
MSc Business Studies (Marketing) Date: 30/06/2014
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Contents
Abstract………3
Introduction ... 3
Literature review ... 7
Hypotheses and measures: Channels ... 15
Research design ... 24
Results ... 28
Discussion ... 44
Conclusion ... 48
Managerial implications ... 49
Limitations and further research ... 51
References ... 53
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Abstract
The aim of this thesis is to investigate and identify the present status of multi-channel management in different phases of the customer’s lifecycle. It is of high importance for managers to efficiently use their resources for the right customers. This could yield a great competitive advantage. This study tries to explore the choices customers make during their
customer lifecycle. In the first part, present literature will be reviewed. Afterwards a questionnaire is filled in by 120 Dutch respondents regarding their channel choices in different stages of the lifecycle. The results of our questionnaire show that there is a high need
of specific category attention to be able to address all the wants and needs of the customers. It seems that different channels are not easy to generalize across all phases and all categories. Furthermore the offline channel can still be of high importance depending on the product or service category. At the end there are some recommendations for further research to extend
the literature on this topic.
Introduction
Which channel(s) to use in different stages of the consumer’s lifecycle?
Apple is currently one of the most successful retail stores, with revenue in 2013 of more than 10 milliard dollar (Apple, 2014). An important aspect of Apple’s great success is their leading position in customer loyalty. Around 84% of the customers responded that they would repeat their purchase of an I-phone. The customer relationship management gives Apple a unique position in comparison with their competitors. It seems to be vital for companies to satisfy the customers according to their needs and wants. But how can companies satisfy so many
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The Customer relationship management (CRM) theory has gained importance by stating that retaining loyal customers is more effective than acquiring new customers in terms of costs (Rosenberg & Czepiel, 1984). It is therefore very important for companies to keep existing customers satisfied and informed about the products and services the company offers. Of course, to retain loyal customers, it is first necessary to acquire those customers. But is it possible to acquire new customers and retain the same customers later on with information flowing through the same channel? Or is there a possibility for the use of multiple channels— an offline and online base, for example? It is extremely important to make the customer feel good throughout the whole process of buying a product or service. Serving the customer with the right channels at the right time is undeniably important in creating and ultimately retaining the loyal customers, just as Apple achieved. Furthermore managers can create a competitive advantage through the efficient use of their resources regarding the channel usage. This would decrease their costs and improve the customer satisfaction. A great understanding of the right channel usage at the right time in the customer lifecycle seems to be a profitable and valuable process.
The marketing world used to be simple, or at least a lot easier than at present. For example, several decades ago, the radio was the main advertising medium; later on, the television became more important, and now the Internet is taking over. Each medium tends to increase throughout the years, with more opportunities for companies to reach their
customers, but also more difficulties in determining the best way to reach customers. As customers are exposed to an increasing variety of advertising media, it is becoming
increasingly important for companies to choose the right marketing channel at the right time to capture customer value.
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The changes customers undergo are crucial for companies in making decisions on how to approach those customers. Companies should be aware of the so-called customer lifetime cycle, which consists of the phases of requirement, acquisition, ownership and retirement (Piccoli, Spalding & Ives, 2001). Every phase needs to be considered well to keep the customer as satisfied as possible. If companies know the requirements for every phase of the lifetime cycle, and can thus keep customers satisfied, their chance of enhancing the
relationship with their customers increases (Piccoli, Spalding & Ives, 2001). As a result, customers will be more likely to stay loyal to the specific company, which can give companies a sustainable competitive advantage. Thus, to enhance their position in the marketplace, companies should focus more on all the different phases of the customer lifecycle, with the goal to ultimately improve the customer relations—one of the keys to Apple’s success.
As customers go through different phases when buying a product, organizations
should think about how to approach the customers. In our current society, it is not sufficient to advertise all the customers the same way. The usage of multiple channels has gained more and more attention the last few years. About 40% of retailers sell through three or more channels, while another 42% sell through two channels (The DMA, 2005). It is becoming vital for companies to use multiple channels for two main reasons: customers are expecting more and more service and product quality and the requirements that are needed to fulfill those needs could not be achieved with a single channel. Furthermore there are new
developments in channel technology which give the companies more opportunities to reach their customers (Stone, Hobbs, Khaleeli, 2002). Keeping up with new technologies is a requirement to stay competitive. The use of multiple channels could also be an important factor in creating customer value at specific points of time in the above mentioned customer lifecycle. According to Stone, Hobbs and Khaleeli (2002), it can create value per customer,
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increase the convenience and experience, and create positive impacts on brand image. In other words, multichannel management can create positive customer value during every phase of the customer lifecycle, providing it is used right.
The existing literature is quite clear on the need for multichannel management,
especially with the increasing online environment. But even though the need for multichannel management is evident, the specific channels to use to target specific customers have not yet been thoroughly researched. As stated earlier, the customer lifecycle does have an impact that cannot be neglected; if so, companies will suffer a loss of unserved customers. Also, to keep the customers satisfied during the whole process, every phase of a customer’s life cycle
should be considered equally important. Without a solid foundation, there is not much to build one when trying to improve the loyalty of customer, let alone reach that phase in the first place. Furthermore, a customer’s first impression of a company is very important, for it is that first experience which customers use to develop their opinion (Bitner, 1995). Since all these phases are vital in forming a customer’s opinion about a product or service, it becomes evident that all the different phases of a customer’s lifecycle must be given the same amount of consideration and importance. Companies should carefully choose how to reach their target customers and differentiate between the customers at various stages in the lifecycle. For this reason, multichannel management could be a potential source of advantage, providing it is used right and at the right time. Companies should know which channels are most effective at various stages in the lifecycle. For example, attracting new customers could require a
different channel than retaining existing customers. Since the existing literature does not show much research of this vital issue, this study will try to highlight the importance of the channel usage during different phases of the lifecycle and thereby give managers a general guideline concerning which channels to choose in the various stages of the customer’s lifecycle.
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The paper will follow up with a literature review, which will explore the topic using previous research. Thereafter, the conceptual framework will be presented, showing the hypotheses of this research. Subsequently, the research design and methodology will be explained, followed by the results of the survey. The paper will end with a discussion of the research and a short conclusion.
Literature review
Customer lifecycle
Customers change faster than we realize. While companies try to capture the customer as early as possible, their preferences can change in the subsequent elapsed time. The speed of change of customer preferences is increasing rapidly, especially with the entrance of the World Wide Web, which give the opportunity for consumers to search for and compare products at low or no costs (Peterson, Balasubramanian & Bronnenberg, 1997). It therefore is extremely important to capture the customer demand at the right time with the right tools before the customer moves on. Companies must especially pay attention to the customer lifecycle. The customer lifecycle is a path a customer takes from the first contact to the last contact with the company regarding a product or service (Ellis, 2012). Many researchers have shown that the customer experience throughout the lifecycle could be seen as a way of
competitive advantage (Pine and Gilmore 1998 and 1999). The attention given to the customer experience could affect customer satisfaction (Liljander and Strandvik 1997) and deliver customer loyalty (Yu and Dean 2001). These are just two components that could be
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influenced by customer experience. Despite the apparent urgency of paying attention to the customer experience, it has not been researched thoroughly.
Almost every model in use right now has dated back to the beginning of the 21st century or even more recently. If we analyze different lifecycle theories, it becomes evident that most look the same. Kincaid (2003) mentioned that a typical lifecycle covers four
different stages: consider, purchase, set-up, and use. This is quite similar to the view of Scholz & Zentes (2006), who differentiate the acquisition phase, the sales phase, and the recovery phase. Both approaches cover the pre-purchase phase of the customer and the after-purchase phase. Contemporary customer lifecycles do not vary significantly from this view. For
example, one modern customer lifecycle covers the acquisition, activation, retention, revenue, and referral phase (Carpenter, 2013). As we can notice from the development of the customer lifecycle, or the actual lack thereof, managers are still using customer lifecycles that were used many years ago. As mentioned earlier, little research has been conducted on customer experience, which could account for the similarity in customer lifecycle models. Another explanation could be that the existing models suffice. One thing that is evident, however, is that in a market-driven organization, satisfying customers is not enough. It should ultimately result in customer loyalty and long-lasting relationships with the companies, as is reflected in the contemporary customer lifecycle models (Day, 1999).
Thus, as mentioned above, there is little diversity in the various customer lifecycle models. Although limited research has been done, there are several studies that capture the importance of the individual phases of the customer lifecycles. Table 1 below highlights these important findings.
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Table 1
Authors Research Findings
Khalifa & Shen (2005) Relationship between customer satisfaction and the attraction and retention phase of the customer lifecycle
The significance of the
relationship between attraction satisfaction and retention satisfaction confirms the claim that prior judgments influence subsequent ones
Anderson, Fornell and Lehmann (1994)
The relationships between Customer Satisfaction, Market Share, and Profitability.
Firms that actually achieve high customer satisfaction also enjoy superior economic returns. An annual one-point increase in customer satisfaction has a net present value of $7.48 million over five years for a typical firm in Sweden
Thomas O. Jones, W. Earls-Sasser,Jr. (1995)
Satisfied customers and loyalty At the heart of any successful strategy to manage satisfaction is the ability to listen to the customers.
Werner Reinartz, Jacquelyn S. Thomas and V. Kumar (2005)
Balancing Acquisition and Retention Resources to Maximize Customer Profitability
Acquisition costs and retention costs should not differ that much, as they are equally important
When analyzing the findings in table 1, it appears that customer satisfaction plays a major role in the different stages of the customer lifecycle. It can create superior economic returns (Anderson, Fornell and Lehmann (1994), which is the main goal for most companies.
The most important conclusions that can be drawn from these findings are that customer satisfaction should be managed in each of the different stages of the customer lifecycle and that it is very important to capture the customer value from the start of a customer’s lifecycle till the end. If a company manages to satisfy the customer at the
acquiring phase, this will lead to a greater satisfaction at the retention phase as well (Khalifa & Shen, 2005).
Therefore, the customer lifecycle used in this research identifies four main phases from beginning to end, namely: requirement, acquisition, ownership, and retirement (Piccoli,
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Spalding & Ives, 2001). This particular lifecycle is chosen not only because of its clear distinction between the different phases, but also because of its distinction between the pre-purchase phase, the pre-purchase-phase and the after-pre-purchase phase. As research has already shown (table 1), attraction satisfaction (acquisition phase) does influence retention satisfaction (retirement phase), and customer satisfaction can be reached by listening carefully to the customer, also after he/she has purchased the product or service (ownership phase). The added value of this lifecycle is that it also captures the requirement phase, during which customers are increasingly aware of their need/desire for a particular product but are still open to any kind of product in that category.. This particular lifecycle truly captures the entire ‘road of purchase’ of a customer. Furthermore, the chosen model is supported by scientific research and the other models failed to make important contributions to this model
The different phases of this customer lifecycle are applicable for multiple categories, as every customer goes through these phases during the purchase of a product or service. Indeed, because every product or service is different, the specific way to address these phases might be different across different categories, but the sequential steps taken in this customer lifecycle are applicable for every purchase a customer makes.
Requirement
The requirement phase consists of preliminary screening of the product or service for which a customer is looking (Piccoli, Spalding & Ives, 2001). In this phase, the main purpose of a company is to inform the customer about the desired product and to specify the characteristics of the offered product or service. It is important to make the customer aware of the product or service that a company offers, even if the customer is not looking for it at that instant (Piccoli, Spalding & Ives, 2001). A customer is more likely to purchase a specific product or service if he/she is exposed to information about the product or service.
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Acquisition
Customer acquisition is defined as the customer’s first purchase (Jain & Jain & Singh, 2002). Every company needs to acquire new customers to start its business and to become successful. But acquiring new customers is not a straightforward process. Companies should know the requirements of their target customers, and manage these successfully. Even though much focus is currently on customer retention, customer acquisition is still of major importance for new companies, or for companies entering new markets. Thereby, there are always
opportunities for growth in the existing market with the developing technological advances (Ang & Buttle, 2006). Another reason for focusing on customer acquisition is the fact that customers are often not eager or able to develop strong, long-lasting relationships with a brand (Dowling, 2002). It is therefore extremely important to continually improve the customer acquisition; after all, there are new customers to a service or product every day.
Ownership
After purchasing a product or service, it seems there is little a company can do to satisfy the customer. But especially with more complex products, customers must fit these specific products or services in their existing way of life. There are great potential benefits for companies to assist the customer in this phase of their lifecycle (Piccoli, Spalding & Ives, 2001). Also, there is the challenge of keeping the product or service ‘in shape’ during its use. Over time, a specific product can become obsolete, so there is an opportunity for companies to assist to users in a satisfactory (Piccoli, Spalding & Ives, 2001). A good example of being active in the ownership phase of the lifecycle is the updates of the ‘android’ software on Samsung cell phones. Periodically, an automatic system updates Samsung phone to the latest version, thereby improving the phone’s functioning.
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Retirement
The last phase of this cycle is called retirement. It is the phase where consumers are finished using their product and service. The retirement phase could also be called the retention phase, as at this stage it is vital for companies to decide if they want to keep the customer, making him/her loyal, or let him/her go. As mentioned earlier, loyal customers are very important for a company and are more profitable than continually acquiring new customers (Rosenberg & Czepiel, 1984).
Loyalty can occur through two different means: because the costs of switching to someone else are too high, also named calculative commitment; or because of the personal commitment to a brand, also named affective commitment (Bendapudi and Berry 1997; Fullerton 2003). Businesses should focus on the latter commitment form.
All together the customer lifecycle begins with the ‘ignorant’ customer and
incrementally develops towards a more demanding customer who collects more and more information about the product or service. It is therefore important to be aware what kind of information you want to show to the customer. Is the customer for example new and ignorant and is your main goal to get their attention? Or is the customer already aware of the
product/service and should you give them more specific information regarding the product service? The providing of information is one of the key aspects businesses should consider while approaching the customer in the different phases of the customer lifecycle.
Multichannel management
Multichannel customer management (MCM) is “the design, deployment, and evaluation of channels to enhance customer value through effective customer acquisition, retention, and development” (Neslin, Grewal, Leghorn, et al. 2006). It can cover a range of different
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channels—call centers, the World Wide Web, magazines, and many others. This has created a challenge for companies with regard to targeting the audience effectively and efficiently. Multichannel customer management focuses more prominently on the customer than on the business (Rangaswamy and van Bruggen, 2005).
According to Stone, Hobbs and Khaleeli (2002), using multiple challenges holds several advantages for companies and customers. Companies can create greater efficiency and can effectively change between different channels. In addition, using multiple channels
increases the potential for gathering customer knowledge. Customers, on the other hand, have more to choose from. They are no longer limited to one or two channels and can choose their channel of preference at any instance.
Several aspects could influence customers’ channel choice. Customers could prefer one specific channel that is easy in use, for example. Furthermore, customers could choose or reject a specific channel based on previous positive or negative experiences with that channel (Stone, Hobbs & Khaleeli, 2002). Companies must consider all these factors when deciding which channel to use. According to Neslin, Grewal, Leghorn, et al. (2006), businesses should have a clear understanding of the needs and wants of customers and especially what factors motivate their decisions. A company’s potential influence on customers’ channel choice should be clear.
Since customers’ choice of channel usage is expanding lately, companies should be aware of the most effective channel for their target customers. It is no longer straightforward to use one channel to reach all target customers. As described before, customers go through different phases when buying a product or service—the customer lifecycle. It seems logical that customers use different channels at different phases in the lifecycle—channels that reflect the customers’ wishes and desires at that point in time. The right usage of a channel could
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enhance customer satisfaction and therefore create more profit for a company. Companies should thus be aware of the high importance of right channel usage in capturing the highest level of customer satisfaction. Neslin, Grewal, Leghorn, et al. (2006) are correct in stating that businesses should have a clear understanding of the needs and wants of customers, so that businesses can manage their channels most efficiently in every stage of the customer
lifecycle. If businesses manage their channels according to their customers’ lifecycle-specific wishes, it could be a potential competitive advantage; however, if companies do not manage their channels well, it could lead to a loss of customer base and therefore to a competitive disadvantage. Another important advantage mentioned earlier, is the cost advantage if the multiple channels are managed efficiently. If managers are able to use the right channel to reach the specific customer in a specific phase of the customer lifecycle, it will save them time and money which can be used for other purposes.
Gap in the literature
As becomes clear from the above literature research, little research has been done on the customer lifecycle as a whole; rather, research has focused on the different phases. Also, more research has been conducted on the multichannel management, which has developed strongly over the last few years. Although earlier research has shown that different factors influence the channel choice of customers (Stone, Hobbs & Khaleeli, 2002), it does not mention how companies can make use of these influences and, particularly, in which stage these influences have the greatest impact. Before companies can analyze the potential factors that influence the channel choices, companies should be aware what these choices are. This research tries to address this issue by investigating the usage of different channels in different phases of the customer lifecycle. If companies are aware of this, it can become easier to target specific
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customers (for example, new customers or existing customers). Also, it can prove (or disprove) the importance of multichannel management. The following question will try to answer the above-mentioned gap:
What are the right channel usages for companies such that they match the multiple
channels customers use during different phases of the customer lifecycle?
Hypotheses and measures: Channels
Since there is such a large selection of channels, this research focuses on the most popular contemporary marketing channels. Hoogenraad (2011) has gathered information from an American research regarding online marketing channels. The top five most effective online marketing tools are as follows: E-mail, Websites, Online advertising, Social Media and Blogs. The most effective ‘traditional’ advertising method, following the before-mentioned research, is the telephone. As online marketing has nearly outperformed the traditional marketing activities, this research is focuses on the difference in usage between online and offline channels. For the online analysis, the focus will be on the PC-based and mobile-based channel; for the offline setting, there will be a distinction between the shop and a call center. These channels are chosen because they capture the most effective marketing tools, as described above. For overview purposes, what follows is a brief description of the online and offline channels being investigated in this study; subsequently, the most popular
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Online channels
PC-based
PC-based marketing is the conventional web-based marketing by which companies can advertise through websites. Companies can reach a much bigger customer base and save on storage costs compared to offline methods (Melody Y. Kiang a, T.S. Raghu b , Kevin Huei-Min Shang, 2000). For customers, searching on the PC is cheap and easy—they can even do it from their own place. As a flea market, the Web possesses the fundamental characteristics of openness, informality, and interactivity—a combination of a community and a marketplace (Berthon et al., 1996b).
Because of this highly informative character and the interactive possibilities, the hypothesis about the PC-based channel is as follows:
Hypothesis 1: The customer use of the PC-channel is higher in the requirement and
ownership phase of the customer lifecycle in comparison to the other phases of the customer lifecycle.
Mobile-based
The high global penetration of mobile communication devices is only one indicator of the high potential of mobile marketing. Moreover, the specific characteristics of the mobile phone allow for marketing measures not realizable by the use of other media. A mobile phone is rarely used by any other person than its owner. It is thus always attributable to one single person, allowing for highly personalized marketing measures. The attributes inherent to mobile marketing—i.e., personalization, ubiquity, interactivity and localization—generate significant potential for this innovative form of commercial communication. It gives
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managers the opportunity to communicate with individual customers and it can therefore outperform the mass communication. (Hans H. Bauer,Stuart J. Barnes, Tina Reichardt, Marcus M. Neumann, 2005). Because of this highly personalized character of the Mobile-based channel, the hypothesis is as follows:
Hypothesis 2: The customer use of the Mobile-channel is higher in the retirement phase of the customer lifecycle in comparison to the other phases of the customer lifecycle.
Because the online channels investigated in this study covers a lot of online ‘sub-channels’, below is a brief overview of the most used online channels, as mentioned earlier. This will give some clarification on the possibilities within the PC-based and Mobile-based channel.
The e-mail-channel is used for different reasons. It is cheap and easy to use, and you can reach a lot of people at once with the same or different messages (sterne & priore, 2000). Furthermore, it is possible to personalize specific e-mails to customers and therefore send a message directly to a specific customer. Because of this personalization, and the low costs involved, we expect the e-mail channel to be the most effective channel in the retirement phase of the customer lifecycle.
Websites
If you are a customer looking for a product or brand, gathering information about it has never been easier. Just go to the website and find that for which you are looking. Parsons, Zeisser, and Waitman (1998) identify different opportunities for web-based marketing. It is a tool to communicate information about products or services to a broad audience; it provides the opportunity to use interactive media; and it leads to a two-way interaction with customers.
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Due to the ‘information communication’ function of websites and the range of customers that can be reached, it is expected that web-based marketing is most effective when used during the requirement and acquisition phase. There is also a possibility that it is useful in the ownership phase of the customer lifecycle, but that depends on the website’s possibility for customer interaction.
Online advertising
Advertising used to be positively effective in creating brand awareness and brand image; however, with the current advertisement possibilities, such as pop-ups and pop-unders, there are some negative associations as well. The main purpose of these online advertising means is to attract the attention of the customers toward the product or service (McCoy, Everard, Polak, DF Galletta, 2007). As this fits perfectly in the requirement phase, it is expected that it is most effective during the requirement phase of the customer lifecycle.
Social Media
Social media is very popular in our current society, with Facebook as the best example. Companies do recognize the importance of social media in their marketing campaigns, as thirty-nine (39) percent use social media as a tool to reach their customers (Saravanakumar & SuganthaLakshmi, 2012). Companies acknowledge that social media can increase awareness of the product, create word-of-mouth, and reach specific customer groups. Many people also give their opinions on social media, thus it is a great tool for receiving feedback
(Saravanakumar & SuganthaLakshmi, 2012). Because of the high usage rate among
customers, social media is the perfect tool to promote your product beforehand. It therefore fits perfectly in the requirement phase of the customer lifecycle. Since customers often talk about popular items, it can create a positive word-of-mouth as well. Many modern companies
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also use social media to answer customer queries and comments. This implies that social media is also suitable for the ownership phase of the customer lifecycle.
Blogs
According to Saravanakumar and Sugantha Lakshmi (2012), blogs are places where people can place comments, opinions, and information about products and services. It is the ideal place to communicate with each other and with the company. Its purpose is to give customers room for discussion; it is nog meant for corporate speaking. Blogs are therefore a typical place customers can visit after their purchase of an item. Thus, the ownership phase of the customer lifecycle seems to fit well with this type of advertisement. Since customers often influence the opinions of others, it could also be an effective marketing channel in the requirement phase of the lifecycle.
As can been seen from the information described above, the online marketing domain consists of many different ‘sub-channels’.
Offline channels
Telephone
Telephone marketing is used to communicate directly with customers. It gives customers the opportunity to directly talk to the company and ask questions for which they wish an
immediate response. From the business perspective, companies can gather customers’ wants and needs (Prahabkar et al., 1997). Customers most often initiate contact with the so-called call centers. However, in the case where customers are contacted by call centers with an attempt to sell a new product, this is not always experienced as positive, but rather as
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annoying. Therefore, telephone marketing seems to be more suitable in the ownership phase of the lifecycle, where customers can call for questions regarding a product they already own. This said, there might be a positive effect when a call center calls a customer for a special offer; after all, mobile devices provide this service to enhance customer loyalty. Therefore, this channel seems suitable in the retirement phase of the customer lifecycle as well.
Hypothesis 3: The customer use of the Telephone channel is higher in the ownership and retirement phase of the customer lifecycle in comparison to the other phases of the customer lifecycle.
Store
The store is the physical site where people can buy the product or service. It is the place where you can interact with employees in person. Products can be seen firsthand and customers can experience a service in a real-time setting (Chiang & Dholakia, 2003). In addition, customers generally do not have to wait for the products to arrive, as they most often acquire them immediately. Customers also have the choice to visit the store if they so desire. Furthermore, a store can use visible advertising to trigger the hidden motivation of passers-by, perhaps to the degree of purchase without previous intent.
Hypothesis 4: The customer use of the store channel is higher in the requirement and acquirement phase of the customer lifecycle in comparison to the other phases of the customer lifecycle.
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Control variables
Gender
Most demographic surveys have shown that slightly more men than women use the Internet and that this difference increases with more extensive Internet use (Bimber, 2000). Because of these slight differences in Internet use between males and females, the hypothesis states:
Hypothesis 5: In the requirement, acquirement, ownership, and retirement phase, male customers have a higher usage rate of online channels in comparison to female customers.
Time pressure
In current daily life, consumers get busier every day. According to the Perslijst (2012), the reasons for this are that people are working more frequently and are influenced by new innovative technologies. It is a lot easier to reach people around the clock, and people
therefore expect a quick response as well. This gives people a restless feeling. Because of this feeling of having less time every day, consumers try to find the easiest and fastest way to purchase products and services. Therefore, the hypothesis is:
Hypothesis 6: Highly occupied customers have a lower usage rate of offline channels in comparison to online channels.
Internet use
It is commonly known that the use of Internet has increased exponentially over the last few years. In the USA alone, the number of Internet users was 55 million back in 2000 and has grown continuously since then (Cheung, Christy and Lee, Matthew, 2000). This growing use
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of Internet will automatically affect the Internet usage rate of customers. We therefore expect that:
Hypothesis 7: Customers who spend more time on the Internet have a higher usage rate of the online channels in comparison to offline channels.
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With the main question, and the answers to this question, the aim is to make an important contribution to theory and practice. Where the existing literature focuses more on the development of multichannel management and the differences between individual
channels, this paper supplements the literature with a more detailed analysis concerning when specific channels can be used to their full potential. Rather than giving marketers information without prescription, this study combines the view of different scientists to give marketers applicable solutions. Specifically, it gives managers the opportunity to focus their activities on a certain type of customer, leading to an improved efficiency of channel usage during the different phase of the customer lifecycle.
To clarify the different relationships that will be measured in this research, a
conceptual framework (Figure 1) has been made. This framework gives an overview of the various relationships/associations that will to be measured. It is based on the literature described above.
24 The figure above shows multiple control variables that could have an impact on the channel usage. The red marked control variables (Internet usage, Gender and Time pressure) are being investigated in this study. Of course these are not the only variables that could have an impact on channel usage. Situational factors, the factors depending on a specific situation, can differ for every customer. The variable time pressure is one of many situational factors. Past channel usage on the other hand can impact the future channels usages as it can be used as an anchor point. The last control variable in the model is psychographics, which focuses more on the individual characteristics, like attitude and values. For this study the focus will be on the three variables mentioned above.
Research design
The sections before discussed existing literature related to the research problem and the conceptual framework, which gives rise to the hypotheses of this research. The research
Channel
usage
requirement acquirement ownership retirement Time pressureGender Internet usage
Situational factors
Past channel usage
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design and method through which these hypotheses will be tested are discussed in this section. First, the research design, in the form of a survey, will be discussed. Subsequently, the paper will elaborate on the sample that will be used, the data collection method, and the survey measures.
Research design
First of all there will be a quantitative analysis. This design is chosen to underpin our
arguments with numbers and so become more reliable. This research will use a questionnaire to collect the necessary data to answer the research question. A questionnaire is chosen because it is an easy way to collect data from individuals over a broad spectrum. Because of this broad spectrum, results are more generalizable. According to Saunders et al,.(2009), it is important that surveys contain standardized questions in order to generalize the results and enhance reliability. Every respondent will get the same question with the same type of answer formats. In this survey, respondents can choose between six different channels, described above in the literature review. It is therefore not possible to give open answers. An important point of attention is the length of the survey, as it appears that respondents are not willing to fully complete a survey if it is too long (Saunders et al,. 2009). Another point of attention is that the survey will be held online and offline. This is because it is expected that an online survey will have a relative low response rate, as will be discussed later on. Therefore, to improve the response rate, an offline survey will also be held.
Sample
For this research, the focus will be on Dutch consumers. Therefore, in order to generalize the results, a reliable sample must be drawn from the Dutch population (Saunders et al., 2009, p. 217). People will be randomly selected from social media, such as Facebook, by asking them to participate in this study with a proper explanation of its purpose. Because people in my
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surroundings on social media are generally around the same age—between twenty and thirty years old—I will also approach my parents’ business colleagues in an offline setting, with the aim of gathering information from a variety of respondents. I strive for a large sample size, because the larger the sample size, the better the results can be generalized (Saunders et al., 2009, pp. 217-218). I therefore aim for at least 100 respondents, and preferable more than 150 respondents.
The approximately 150 respondents that will be requested to complete the survey will be randomly chosen; this is to reduce the risk of biased results. Furthermore, through a few general questions at the end of the survey, possible differences between different subgroups will be analysed. We will research if these subgroups moderate the relationships going on between the different lifecycle phases and the channels to use. The average response rate of an online survey, depending on the survey type, lies between 40 and 60 percent (Archer, 2008). Other possible factors that can influence the response rate of an online survey are who the sponsors are, what the topic is, and how long the survey takes to complete (Fan &Yan, 2010). It is thus very important to acknowledge all possible factors that could negatively influence the response rate. With this in mind, we would like to get a minimum response rate of 40 percent. Thus, to gather the 150 respondents needed, at least 400 questionnaires should be distributed in the online setting, with additional respondents from the offline setting.
Data collection:
The online and offline survey will be generated using Qualtrics. This Web-based survey software allows simple questionnaires to be designed and administered. Participants will receive a link that directs them to the online survey. There, they can fill out the survey and finish it without further obligations. The participant will start the survey with a short
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invitation letter that briefly describes the purpose of the survey and thanks the participant for his/her participation. This method will save a lot of time, since the data will not need to be entered manually. Furthermore, it will make it easy to reach people in different geographical locations and within a short time span. Alternatively, the survey can be printed to use in the offline setting. In the offline setting, participants will be approached individually and asked if they want to fill out the questionnaire. In this case, people will be informed of the purpose of the survey in person. This will take a lot more time than the online survey, so it is intended as a supplement to the online survey to gather additional data.
Participants of this study will automatically give permission to use the data they submit, as it is a voluntary participation without any obligations, but respondents will remain anonymous. During the research process and upon completion, no names will be published. Measures:
In the online and offline survey, two main variables will be tested. One of the variables is the phase of the customer lifecycle: Requirement, Acquirement, Ownership, or Retirement. People will be asked questions relating to one of the four phases of the customer lifecycle. As it could be confusing to refer directly to the phase name, questions will be asked in a
descriptive manner that relates to the different lifecycle phases. The other variable, which will vary depending on the phase of the lifecycle, is channel usage: PC-based, Mobile-based, Store or Telephone. The participants will be asked several questions regarding there channel usage during one of the before-mentioned lifecycle phases. They can answer on a 7-point Likert scale, giving the participants a chance to indicate to what degree they (dis)like a certain channel in different phases of the customer lifecycle, rather than simply saying they do or do not use a particular channel. This will give them the opportunity to indicate which channel they use more or less.
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would only focus on one product category, such as electronics, it would be very hard to generalize the results for all products. Of course, the best way to generalize is to measure all the different categories, but since this is not feasible, we will focus on three main categories: electronics, clothes, and insurance. By focusing on three completely different categories, it will be easier to generalize the results if they are similar, or otherwise gather results that focus specifically on a particular category.
To attain comparable end results, the questions that will be asked will be the same for every category.
In addition to the main question regarding the different channels participants use in different phases of the lifecycle, several questions will be asked about their age, gender, and education. These results will give us more information about the possible deviations of each demographic factor.
Results
The previous section described the design and the measurements of the experiment. It outlined what was conducted to obtain the results. This section will provide the results that were derived from the completed experiment. First, there will be a discussion of the
descriptive statistics. Subsequently, a Paired sample T-test will be conducted to analyse the first four hypotheses to compare the means between the channel usage in different phases of a customer’s lifecycle. A Paired sample T-test has been chosen to compare one channel (PC-based for example) at two different moments. Next, an Independent T-test will be conducted for hypothesis 5 to analyse the difference in online channel usage between males and females. Finally, an Independent T-test will also be run to understand the relationships between
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chosen to compare the two different groups, males and females for example. Descriptives
This section gives general information about the participants of the experiment. It analysis what types of people participated and if there are special issues that must be addressed.
The total number of respondents that filled out the questionnaire was 191. After having a thorough analysis for missing data and incorrect answers (in terms of the answer
possibilities), it became evident that 71 respondents did not fill out the survey in a manner that allowed analysis of their results. We therefore excluded these respondents from the data, which resulted in a remaining correct respondent base of 120 people. Some of these respondents failed to fill out some questions, but as this number was quite low, this had no effect on the results. The questionnaire was completed by 38 male (31,7%) and 82 female (68,3%) respondents. The average age of the respondents was 33.15, with a standard deviation of 15,740. The oldest respondent was seventy years old; the youngest respondent was
seventeen years old.
The results regarding the participants’ educational completion or current enrolment give an unequal spread. With 35.8%, the university degree is the most common level of education . After University, the HBO degree is relatively common with a percentage of 25.0 %, followed by the VWO degree with 15.0%. The other degrees of education were all
between the range of 1.0-10 %. These results indicate that most respondents in this experiment were highly educated.
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Table 2: Demographic descriptives
Hypothesis 1
Hypothesis 1: The customer use of the PC-channel is higher in the requirement and
ownership phase of the customer lifecycle in comparison to the other phases of the customer lifecycle.
A series of paired-samples T-tests were conducted to compare the channel usage in the requirement phase to the usage in the acquirement and retirement phase, and to compare the channel usage in the ownership phase to the usage in the acquirement and retirement phase. The comparisons were made in the three categories: electronics, clothes, and insurances. The first paired-sample T-tests were conducted for the category electronics.
There was no significant difference in the comparison scores for PC channel usage for the requirement (M=6.32, SD=0.871) and acquirement phase (M=6.30, SD=0.857)
conditions; t(115)=0.249, p =0.805 > 0.05. We found no significant difference in the usage of the PC channel between the requirement an acquirement phase.
Demographic Descriptives Respondents 120 Male 38 Female 82 Av. Age ……….33.15% University ……….35.8% HBO 25% VWO 15%
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There was a significant difference in the comparison scores for PC channel usage for the requirement (M=6.32, SD=0.871) and retirement phase (M=6.12, SD=0.906) conditions; t(115)=2.285, p =0.024 < 0.05. Our results reveal a significant difference between the
requirement and retirement phase. Specifically, this means that people use the PC channel slightly more in the requirement phase.
The following paired-sample T-tests were conducted for the ownership phase in comparison to the acquirement and retirement phase. There was a significant difference in the comparison scores for PC channel usage for the ownership (M=5.51, SD=1.356) and
acquirement phase (M=6.32, SD=0.841) conditions; t(111)=-6.554, p =0.000 < 0.05. According to these results, there is a significant difference in the usage of the PC channel between the requirement and acquirement phase; specifically, individuals use the PC channel more in the acquirement than in ownership phase, which contradicts the hypothesis.
There was a significant difference in the comparison scores for PC channel usage for the ownership (M=5.51, SD=1.345) and retirement phase (M=6.11, SD=0.910) conditions; t(113)=-5.131, p =0.000 < 0.05. This implies that there is a significant difference in the usage of the PC channels between the ownership and retirement phase; specifically, the results contradict the hypothesis and show that people use the PC channel more in the retirement than in the ownership phase.
Table 1: means and significance hypothesis 1 PC channel (electronics) Mean 1 SD 1 Mean 2 SD 2 significance Requirement(1)-Acquirement (2) 6.32 0.871 6.30 0.875 0.804 X Requirement(1)-Retirement (2) 6.32 0.871 6.12 0.906 0.024 √
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Ownership(1)-Acquirement (2) 5.51 1.356 6.32 0.841 0.000 √ Ownership(1)-Retirement (2) 5.51 1.345 6.11 0.910 0.000 √
The same analyses were conducted for the clothes category. The outcomes of those analyses were the same as for electronics category, with the exception that there was no significant difference in the comparison scores for PC channel usage for the requirement (M=5.24, SD=1.658) and retirement phase (M=5.41, SD=1.528) conditions; t(110)=-1.412, p =0.161 > 0.05. This result suggests that there is no significant difference in the usage of the PC channel in the requirement and retirement phase.
The last (same) analyses were conducted for the insurances category. Again, the results obtained were the same as those for the electronics category, implying there is little difference between the three categories for hypothesis 1.
The results mostly contradict hypothesis 1. The only result that agrees with the hypothesis is that people in the clothes category use the PC channel slightly more in the requirement phase than in the retirement phase. The expectation that the PC channel is used more often in the requirement and ownership phase of the customer lifecycle compared to in the other phases is therefore not in accordance with reality, and holds for all three categories.
Hypothesis 2
Hypothesis 2: The customer use of the Mobile-channel is higher in the retirement phase of the customer lifecycle in comparison to the other phases of the customer lifecycle.
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in the retirement phase with the other phases; the comparisons were made in the three categories electronics, clothes, and insurances.
There was no significant difference in the comparison scores for Mobile-channel usage for the retirement phase (M=4.45, SD=1.864) and requirement phase (M=4.48, SD=1.793) conditions; t(106)=-0.234, p =0.815 > 0.05. This result suggests there is no significant
difference is the usage of the Mobile-channels between the retirement and requirement phase. There was no significant difference in the comparison scores for Mobile-channel usage for the retirement phase (M=4.45, SD=1.864) and acquirement phase (M=4.38, SD=1.897) conditions; t(106)=0.610, p =0.543 > 0.05. The findings show there is no significant
difference in the usage of the Mobile-channels between the retirement and acquirement phase. There was a significant difference in the comparison scores for Mobile-channel usage for the retirement phase (M=4.45, SD=1.864) and ownership phase (M=3.88, SD=1.810) conditions; t(106)=4.548, p =0.000 < 0.05. This shows there is a significant difference in the usage of the Mobile-channels between the retirement and ownership phase; specifically, people tend to use the mobile channel more in the retirement phase than in the ownership phase.
Table 2: means and significance hypothesis 2 Mobile channel
(electronics)
Mean 1 SD 1 Mean 2 SD 2 significance
Retirement (1)-Requirement (2) 4.45 1.864 4.48 1.793 0.815 X Retirement (1)- Acquirement (2) 4.45 1.864 4.38 1.897 0.543 X
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Retirement (1)- Ownership (2) 4.45 1.864 3.88 1.810 0.000 √
For the clothes category, there was one difference compared to the electronics category. There was a significant difference in the comparison scores for Mobile-channel usage for the retirement phase (M=3.91, SD=1.986) and acquirement phase (M=3.63, SD=2.034) conditions; t(103)=2.275, p =0.025 < 0.05. According to these results, there is a significant difference in the usage of the Mobile-channels between the retirement and
acquirement phase; specifically, people tend to use the Mobile-channel more in the retirement phase than the acquirement phase.
Lastly, the results in the insurance category also differed slightly. There was not a significant difference in the comparison scores for Mobile-channel usage for the retirement phase (M=3.57, SD=2.085) and ownership phase (M=3.43, SD=1.973) conditions;
t(101)=1.328, p =0.187 > 0.05. This means that there is not a significant difference in the usage of the Mobile-channels between the retirement and ownership phase. The remaining results were similar as those for the electronics category.
These results suggest that the Mobile-phone usage differs in different categories. In the electronics category, the usage rate is higher only in the retirement phase compared to in the ownership phase, whereas in the clothes category, there is also a higher usage rate in the retirement phase compared to in the acquisition phase. This implies that in the clothes category, consumers make most use of the Mobile-phone Internet in the retirement phase. Furthermore, the insurance category seems to be inconvenient of the use of Mobile Internet in the retirement phase.
35 Hypothesis 3: The customer use of the Telephone channel is higher in the ownership and retirement phase of the customer lifecycle in comparison to the other phases of the customer lifecycle.
There was a significant difference in the comparison scores for telephone channel usage for the ownership phase (M=3.17, SD=2.158) and requirement phase (M=1.21,
SD=0.628) conditions; t(105)=9.450, p =0.000 < 0.05. These findings suggests that there is a significant difference in the usage of the telephone channel between the ownership and requirement phase; specifically, people tend to use the telephone channel more in the ownership phase than in the requirement phase.
There was a significant difference in the comparison scores for telephone channel usage for the ownership phase (M=3.17, SD=2.158) and acquirement phase (M=1.25, SD=0.654) conditions; t(100)=9.026, p =0.000 < 0.05. This indicates there is a significant difference in the usage of the telephone channel between the ownership and acquirement phase; specifically, people tend to use the telephone channel more in the ownership phase than in the acquirement phase.
There was a significant difference in the comparison scores for telephone channel usage for the retirement phase (M=1.61, SD=1.189) and requirement phase (M=1.21, SD=0.631) conditions; t(104)=4.197, p =0.000 < 0.05. Thus it can be concluded there is a significant difference in the usage of the telephone channel between the retirement and requirement phase; specifically, people tend to use the telephone channel more in the retirement phase than in the requirement phase.
There was also a significant difference in the comparison scores for telephone channel usage for the retirement phase (M=1.64, SD=1.210) and acquirement phase (M=1.25,
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difference in the usage of the telephone channel between the retirement and acquirement phase; specifically, people tend to use the telephone channel more in the retirement phase than in the acquirement phase.
Table 3: means and significance hypothesis 3
Telephone (electronics) Mean 1 SD 1 Mean 2 SD 2 significance Ownership(1)-Requirement (2) 3.17 2.158 1.21 0.628 0.000 √ Ownership(1)-Acquirement (2) 3.17 2.164 1.25 0.654 0.000 √ Retirement(1)-Requirement (2) 1.61 1.189 1.21 0.631 0.000 √ Retirement(1)-Acquirement (2) 1.64 1.210 1.25 0.121 0.000 √
The clothes category showed very different results compared to the electronics category. There was no significant result for the telephone channel usage in any phase. The results for the insurance category, on the other hand, were in complete accordance with the results for the electronics category.
The obtained results imply that the telephone channel is important in the electronics and insurance category after customers have purchased the product/service or are finished using the product/service. In contrast, in the clothes category, the telephone channel usage is far less important in the final stages of a customer’s lifecycle.
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Hypothesis 4
Hypothesis 4: The customer use of the store channel is higher in the requirement and acquirement phase of the customer lifecycle in comparison to the other phases of the customer lifecycle.
There was a significant difference in the comparison scores for store channel usage for the requirement phase (M=4.30, SD=1.570) and ownership phase (M=5.45, SD=1.475) conditions; t(110)=-7.401, p =0.000 < 0.05. The findings suggests there is a significant difference in the usage of the shop channel between the requirement and ownership phase; specifically people tend to use the shop channel more in the ownership phase than in the requirement phase. This is opposite to our hypothesis.
There was no significant difference in the comparison scores for store channel usage for the requirement phase (M=4.28, SD=1.575) and retirement phase (M=4.25, SD=1.714) conditions; t(109)=0.260, p =0.795 < 0.05. This result suggests that there is no significant difference in the usage of the shop channel between the requirement and retirement phase.
There was a significant difference in the comparison scores for store channel usage for the acquirement phase (M=4.41, SD=1.745) and ownership phase (M=5.45, SD=1.475) conditions; t(110)=-6.504, p =0.000 < 0.05. According to this result, there is a significant difference in the usage of the shop channel between the acquirement and ownership phase; specifically, people tend to use the shop channel more in the ownership phase than in the acquirement phase. This is opposite to our hypothesis.
There was no significant difference in the comparison scores for store channel usage for the acquirement phase (M=4.38, SD=1.735) and retirement phase (M=4.25, SD=1.714) conditions; t(109)=0.970, p =0.334 > 0.05. As can be seen, there is not a significant difference is the usage of the shop channel between the acquirement and retirement phase
38 Table 4: means and significance hypothesis 3
Store channel (electronics)
Mean 1 SD 1 Mean 2 SD 2 significance
Requirement(1)-ownership (2) 4.30 1.570 5.45 1.475 0.000 √ Requirement(1)-Retirement (2) 4.38 1.575 4.25 1.714 0.795 X Acquirement(1)-Ownership (2) 4.41 1.745 5.45 1.475 0.000 √ Acquirement(1)-Retirement (2) 4.38 1.735 4.25 1.714 0.334 X
The insurance category yielded exactly the same results. The difference in results came from the clothes category, where every pair was significant supported.
In the electronics and insurance categories, the results thus refute the hypothesis; specifically, in two of the four pairs examined, the store channel usage was higher in the ownership phase than in the requirement or acquirement phase. This result supports the trend that the store channel is no longer very popular in these categories. On the other hand, in the clothes category, the store channel still appears popular; especially in the first stages of the customer lifecycle, customers are willing to visit the shop to find nice clothes.
Hypothesis 5:
Hypothesis 5: In all four phases of a customer lifecycle, male customers have a higher usage rate of online channels in comparison to female customers.
An independent-samples t-test was conducted to compare online channel usage for male and female customers.
In the requirement phase, there was no significant difference in the scores for male (M=5.514, SD=1.032) and female (M=5.315, SD=1.150) conditions; t(106)=0.870, p = 0.386
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> 0.05. It appears that gender does not have an effect on online channel usage in the requirement phase.
In the acquirement phase, there was no significant difference in the scores for male (M=5.471, SD=1.124) and female (M=5.264, SD=1.058) conditions; t(105)=0.933, p = 0.353 > 0.05. This means that gender does not have an effect on online channel usage in the
acquirement phase.
In the ownership phase, there was no significant difference in the scores for male (M=4.847, SD=1.335) and female (M=4.590, SD=1.296) conditions; t(106)=0.962, p = 0.338 > 0.05. These results suggest that gender does not have an effect on online channel usage in the ownership phase.
In the retirement phase, there was no significant difference in the scores for male (M=5.324, SD=1.065) and female (M=5.257, SD=1.091) conditions; t(104)=0.296, p = 0.768 > 0.05. This implies that gender does not have an effect on online channel usage in the retirement phase.
Table 5: means and significance hypothesis 5 Online channels (electronics) Mean Male SD Male Mean Female SD Female significance Requirement 5.514 1.032 5.315 1.150 0.386 X Acquirement 5,471 1.124 5.264 1.058 0.353 X Ownership 4.847 1.335 4.590 1.296 0.338 X Retirement 5.324 1.065 5.257 1.091 0.768 X
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In the clothes and insurance categories the results were the same, except that in the requirement phase for clothes, there is a significant result that female customers use the online channel more than do male customers.
The expected higher online channel usage for men in comparison to women appears to be refuted. In all categories, gender does not seem to affect the use of online channels. The only exception is that female customers use the online channel more than male customers do when searching for clothes.
Hypothesis 6
Hypothesis 6: Highly occupied customers have a lower usage rate of offline channel in comparison to online channels.
For hypothesis 6, an independent T-test was conducted. The difference between the scores for online channels and offline channels was used as the variable. A higher score suggests that there is more use of online channels in that phase.
In the requirement phase, there was a significant difference in the scores for ‘low time pressure’ (M=2.347, SD=1.511) and ‘high time pressure’ (M=2.956, SD=1.452) conditions; t(104)=-2.113, p = 0.037 < 0.05. These results suggest that time pressure does have an effect on online channel usage in the requirement phase. In this phase, customers with less time make more use of online channels than offline channels.
In the acquirement phase, there was no significant difference in the scores for ‘low time pressure’ (M=2.239, SD=1.649) and ‘high time pressure’ (M=2.843, SD=1.532) conditions; t(98)=-1.895, p = 0.061 > 0.05. Our findings suggest that time pressure does not affect online channel usage in the acquirement phase.
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In the ownership phase, there was a significant difference in the scores for ‘low time pressure’ (M=-0.816, SD=2.139) and ‘high time pressure’ (M=0.736, SD=1.787) conditions; t(102)=-2.124, p = 0.036 < 0.05. This reveals that time pressure does have an effect on online channel usage in the ownership phase. Customers with less time make more use of online channels than offline channels.
In the retirement phase, there was no significant difference in the scores for ‘low time pressure’ (M=2.396, SD=1.433) and ‘high time pressure’ (M=2.402, SD=1.524) conditions; t(102)=-0.020, p = 0.984 > 0.05. According to these findings, time pressure does not have an effect on online channel usage in the retirement phase.
Table 6: means and significance hypothesis 6 Online channels (electronics) Mean Low time pressure SD Low time pressure Mean High time pressure SD High time pressure significance Requirement 2.347 1.511 1.511 1.452 0.037 √ Acquirement 2.239 1.649 2.843 1.532 0.061 X Ownership -0.082 2.139 0.736 1.787 0.036 √ Retirement 2.396 1.433 2.402 1.524 0.984 X
In the electronics category, the results thus only partly supported the hypothesis: in the requirement and ownership phase, customers with less time make more use of online channels in comparison to offline channels. In the other categories—clothes and insurances—the
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results refuted the hypothesis in all phases. In other words, in these categories, time pressure has no significant effect on online or offline channel usage in any of the phases of the
customer lifecycle.
Hypothesis 7:
Hypothesis 7: Customers who spend more time on the Internet have a higher usage rate of the online channels in comparison to offline channels.
In the requirement phase, there was a significant difference in the scores for low internet usage (M=1,380, SD=1.244) and high internet usage (M=3.034, SD=1.383) conditions; t(105)=-5.362, p = 0.000 < 0.05. This means that degree of internet usage does have an effect on online channel usage in the requirement phase. In the requirement phase, customers who spent more time on the Internet use online channels more than offline channels.
In the acquirement phase, there was a significant difference in the scores for low internet usage (M=1,761, SD=1.260) and high internet usage (M=2.776, SD=1.639)
conditions; t(99)=-2.737, p = 0.007 < 0.05. These results reveal that degree of internet usage affects online channel usage in the acquirement phase. Customers use online channels more than offline channels in the acquirement phase when they spent more time on the Internet.
In the ownership phase, there was no significant difference in the scores for low internet usage (M=0,1250, SD=1.534) and high internet usage (M=0.420, SD=2.103) conditions; t(103)=-0.637, p = 0.525 > 0.05. These results suggest that degree of internet usage does not have an effect on online channel usage in the ownership phase.
In the retirement phase, there was a significant difference in the scores for low internet usage (M=1,542, SD=1.390) and high internet usage (M=2.630, SD=1.420) conditions;
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t(103)=-3.311, p = 0.001 < 0.05. This shows that degree of internet usage does have an effect on online channel usage in the retirement phase. Customers who spend more time on the Internet use online channels more than offline channels in the retirement phase.
Table 7: means and significance hypothesis 7 Online channels (electronics) Mean Low internet usage SD Low internet usage Mean High internet usage SD High internet usage significance Requirement 1.380 1.244 3.037 1.383 0.000 √ Acquirement 1.761 1.260 2.776 1.639 0.007 √ Ownership 0.125 1.534 0.420 2.103 0.525 X Retirement 1.542 1.390 2.630 1.420 0.001 √
In the clothes category, the findings were similar to those in the electronics category in the acquirement and ownership phases. The results for the other two phases—requirement and retirement—differed from those in the electronics category, showing no significant difference. In the insurances category, degree of Internet usage appears to have no effect in any of the phases.
It appears that the time customers spend on Internet can affect online channel usage, but that this depends on the category of sales. Of the examined categories, the electronics category appears to be the only category in which the degree of Internet usage significantly affects the online channel usage.
44 Table 8: summarizing the findings
Rejected Supported Partially supported (different pairs) Hypothesis 1 Electronics
Insurance
Clothes: Requirement-retirement
Hypothesis 2 Insurance Electronics: Retirement-ownership
Clothes: Retirement-ownership Retirement-acquisition Hypothesis 3 Clothes Electronics
Insurance
Hypothesis 4 Clothes Electronics: Requirement-ownership
Acquirement-ownership Insurance: Requirement-ownership Acquirement-ownership Hypothesis 5 Electronics Insurance Clothes: Requirement Hypothesis 6 Clothes Insurance Electronics: Requirement Ownership
Hypothesis 7 Insurance Electronics: Requirement
Acquirement Retirement Clothes: Acquirement
Discussion
This section will discuss the findings of the results, the support or rejection of the hypotheses, and additional findings. The results will be related to the existing literature by comparing the findings in this paper to the findings in the literature.
Online channels
The online channels we measured in this research project were the conventional PC-based channel en the Mobile-phone channel. For the PC-based channel, there was a limited
