Investigating the Situated Culture of Multi-Channel Customer Management: A Case Study in Egypt

Investigating the Situated Culture of Multi-Channel Customer Management: A Case Study in Egypt

Maged Ali, Ali Tarhini, Laurence Brooks, Muhammad Mustafa Kamal
Copyright: © 2021 |Pages: 29
DOI: 10.4018/JGIM.2021050103
Article PDF Download
Open access articles are freely available for download

Abstract

This paper investigates the influence of national culture on customers' behavior and customers' choice of channel through the customer life cycle stages. An exploratory in-depth single case study in a multinational organization in Egypt was conducted. Specifically, 31 in-depth interviews were conducted with members of staff in marketing, IT, retail and customer services departments, and external prospects/customers. Based on an interpretive approach, the authors have articulated a situated cultural approach based on structuration theory to identify the cultural dimensions that have provided an understanding of the cultural influence on customers' channel choice. The results highlighted that verbal, human interaction, traditional shopping, and cash based were the themes for customers' channel choice through the four stages of customer life cycle. The results also show that the customers' channel choices were linked to the following Egyptian cultural dimensions: collectivism, market price relationship, emotional, power distance, low trust, uncertainty avoidance, and universalism.
Article Preview
Top

2. The Adoption Of New Channel

Direct marketing retailers have traditionally mailed catalogues and provided consumers with order channels such as mail order and call center (David Sheppard Associates, Lin et al., 2018; Li et al., 2019, Cheng et al, 2019; Xiao & Li, 2019). With the advent of the Internet channel, the direct marketing retailers have reported a ‘channel shift’ toward Internet-based orders (Rhee, 2010; Raguseo, 2018; Wollenburg et al., 2018). They have also perceived that maintaining a call center would be much costlier than the Internet channel, and encouraged their customers to use the Internet order channel (Rhee, 2010; Medichie, 2011; Beheshtian-Ardakani et al., 2018). Some scholars have thought that the Internet channel would dominate the direct marketing purchases owing to its availability, convenience and information source. However, we have observed over a decade of Internet usage that the Internet channel never eliminated the other channels in direct marketing (Rhee, 2010; Kim & Kumar, 2018).

Other marketing studies investigate the contribution of channel to the firm’s revenue and loyalty. Kumar & Venkatesan (2005) have showed that customers who shop across multiple channels provide higher revenues and higher share of wallet and are more active than those who shop through one channel. However, their study does not investigate the channel usage behavior that will make the customer a multi-channel shopper. Shankar, Smith, & Rangaswamy (2003) have found that loyalty to a service provider is higher when it is chosen online versus offline.

Also, some other studies explore channel cannibalization. Biyalogorsky & Naik (2003) have found that online sales do not significantly cannibalize retail sales and that the firm’s online activities build long-term online equity. Dleersnyder, Inge, Gielens, & Dekimpe, (2002) have stated there is little evidence that the introduction of a newspaper website cannibalizes circulation of the print version. However, these studies do not consider under what conditions the Internet channel will not cannibalize the sales of other channels (Rhee, 2010).

Complete Article List

Search this Journal:
Reset
Volume 32: 1 Issue (2024)
Volume 31: 9 Issues (2023)
Volume 30: 12 Issues (2022)
Volume 29: 6 Issues (2021)
Volume 28: 4 Issues (2020)
Volume 27: 4 Issues (2019)
Volume 26: 4 Issues (2018)
Volume 25: 4 Issues (2017)
Volume 24: 4 Issues (2016)
Volume 23: 4 Issues (2015)
Volume 22: 4 Issues (2014)
Volume 21: 4 Issues (2013)
Volume 20: 4 Issues (2012)
Volume 19: 4 Issues (2011)
Volume 18: 4 Issues (2010)
Volume 17: 4 Issues (2009)
Volume 16: 4 Issues (2008)
Volume 15: 4 Issues (2007)
Volume 14: 4 Issues (2006)
Volume 13: 4 Issues (2005)
Volume 12: 4 Issues (2004)
Volume 11: 4 Issues (2003)
Volume 10: 4 Issues (2002)
Volume 9: 4 Issues (2001)
Volume 8: 4 Issues (2000)
Volume 7: 4 Issues (1999)
Volume 6: 4 Issues (1998)
Volume 5: 4 Issues (1997)
Volume 4: 4 Issues (1996)
Volume 3: 4 Issues (1995)
Volume 2: 4 Issues (1994)
Volume 1: 4 Issues (1993)
View Complete Journal Contents Listing