Channel Management Strategy in the eCommerce Environment - A Portfolio Management Approach.

This paper investigates channel choice, particularly, how channel benefits are evaluated and realized in the information search and purchasing stages of the customer decision making process. The research revealed that customers have a different preference for the channel choice in the information search stage and booking stage. The distribution of channels within the Channel Benefits Portfolio model showed that most of channels are located in either Strategic or Support quadrant. This result suggests that there are only a few Key Operational channels as far as customers are concerned, which tends to suggest customers do not value channels unless they are critical to their decision making needs and is a subject for further investigation. The management implications of this channel benefits portfolio approach is that Internet based electronic business in tourism and hospitality companies need to identify the current and future channel benefits portfolio of their existing and prospective customers in order to be successful in the multichannel electronic commerce environment.