By Andreas Pinterits
Since the net has turn into a typical instrument of way of life, many businesses have brought e-commerce channels as well as their conventional revenues channels. Such e-commerce channels usually percentage an identical markets with conventional channels which exposes them to a collection of percentages and demanding situations. with a view to enjoy the percentages and to grasp the demanding situations of e-commerce, a suitable functionality dimension is essential.
Andreas Pinterits develops a functionality size process to deal with the several requisites of offline and on-line revenues channels. the writer discusses various tools for measuring purchaser channel switching behaviour through the buying method. eventually, he demonstrates the sensible use of the version via a show off implementation.
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Additional info for Coordinating Internet Sales with Other Channels: A Performance Measurement Model
If it is beneﬁcial, the bricks and clicks company may also offer self-pickup as a delivery option. In this case, the customer can purchase a product in the online store, but in order to save delivery cost, he may pick up the goods in the nearest store [StAL02]. This option is also useful for services which cannot be consumed at home, like travels or concert tickets. For such products, an online purchase always results in the consummation of the service at a predeﬁned place. Another coordinating function of online channels is the provision of additional online services [StAL02].
The evolution of performance measurement systems 31 Return On Investment (ROI) is a well-known traditional performance measurement system. It was developed by Du Pont, a multi-national chemicals and health care company [Chan77]. Traditional frameworks usually covered solely ﬁnancial aspects of organizational performance. Return On Investment splits up one key measure, Return divided by Capital, into the sub-ratios Return on Proﬁt, Capital Turnover, Return, Turnover, etc. 1. The concept includes the monitoring of all determining factors, which differentiates the concept from simple performance measures.
2. Design of distribution channels 17 include better information of supplier and customers and a direct contact between those two. Since there is no second transaction channel in this model, channel conﬂict does not occur [LeSh05]. Cloning Cloning describes the situation when the distributor clones or duplicates his existing functions on the Internet. This is denoted as logical expansion of a distributor’s company, since it can utilize its existing processes and knowledge. The ﬁrm afterwards operates as multichannel distributor.