Internet Channel Entry: Retail Coverage and Entry Cost Advantage

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dc.contributor.authorNault, Barrie R
dc.contributor.authorCheng, Zhuo (June)
dc.date.accessioned2015-06-12T20:57:54Z
dc.date.available2015-06-12T20:57:54Z
dc.date.issued2007-06
dc.description*Springer: Author’s accepted manuscript can be posted 12 months after publication. Record requires: link to the published version (http://link.springer.com.ezproxy.lib.ucalgary.ca/article/10.1007%2Fs10799-007-0015-9), The final publication is available at Springer via http://dx.doi.org/[10.1007/s10799-007-0015-9]”."See policy: http://www.springer.com/gp/open-access/authors-rights/self-archiving-policy/2124. Article deposited according to publisher's policy 06/11/2015en_US
dc.description.abstractIn this research we study how existing market coverage affects the outcome of the Internet channel entry game between an existing retailer and a new entrant. A market is not covered when some consumers with low reservation prices are priced out by existing retailers and do not purchase. In a model with multiple existing retailers and a potential new entrant, we demonstrate that when entry costs are equal, one of the existing retailers enters the Internet channel first. However, if the market is covered by existing retailers before entry, then because of the threat of Internet channel entry by the potential new entrant, retailer entry cannibalizes existing retail profits—cannibalizing at a loss. In addition, if a potential new entrant has a slight advantage in Internet channel entry costs and the market is not covered by existing retailers, then the new entrant enters the Internet channel first. If the market is covered by existing retailers, then the new entrant must have a larger Internet channel entry cost advantage to be first to enter the Internet channel.en_US
dc.description.refereedYesen_US
dc.identifier.citationCheng, Z., and Nault, B.R., "Internet Channel Entry: Retail Coverage and Entry Cost Advantage," Information Technology Management, 8, 2 (June 2007), 111-133.en_US
dc.identifier.doihttp://dx.doi.org/10.11575/PRISM/34191
dc.identifier.issn1385-951X (print)
dc.identifier.issn1573-7667 (online)
dc.identifier.urihttp://hdl.handle.net/1880/50473
dc.language.isoenen_US
dc.publisherSpringeren_US
dc.publisher.corporateUniversity of Calgaryen_US
dc.publisher.departmentManagement Information Systemsen_US
dc.publisher.facultyHaskayne School of Businessen_US
dc.publisher.institutionUniversity of Calgaryen_US
dc.publisher.urlhttp://link.springer.com/en_US
dc.subjectBusiness Management/Scienceen_US
dc.subjectComputer Communication Newtworksen_US
dc.subjectOperations Research/Decision Theoryen_US
dc.subjectData Structuresen_US
dc.subjectCryptologyen_US
dc.subjectInformation Theoryen_US
dc.subjectBusiness Information Sysytemsen_US
dc.titleInternet Channel Entry: Retail Coverage and Entry Cost Advantageen_US
dc.typejournal article
thesis.degree.disciplineManagement Information Systemsen_US
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