Abstract

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.

Advisor

Histen, Joe

Department

Business Economics

Publication Date

2021

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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