The Internet has drastically expanded the selling channels for enterprises from traditional brick-and-mortar locations to online or both. This paper analyzes the establishment decision regarding optimal selling mode choice. I argue that product attributes are the main factor by introducing a discount factor on perceived demand, whereby experienced-based products will favor an offline selling mode because of higher uncertainty while more commodity-based goods will favor an online selling mode since variability is low. The OLS fixed effect regression results support this argument, which holds managerial implications on the establishment of new locations.
Cheng, Xi, "A tip for Entrepreneurial Enterprises - The Determination of Selling Mode between Brick-and-Mortar and Online Store" (2021). Senior Independent Study Theses. Paper 9420.
Bachelor of Arts
Senior Independent Study Thesis
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