Empirical investigation of customers’ channel extension behavior: Perceptions shift toward the online channel

An increasing number of traditional (offline) firms are opening up their online sales channels. However, a number of them are finding it difficult to increase the utilization of their online channels from their existing customers. The purpose of the current study is to identify factors that influence customers channel extension from the offline to online channel and to understand how these factors influence customers’ behavior towards online channel extension. Drawing on the theory of entitativity formulated by Campbell, we propose a research model of customers channel extension by focusing on the shift of perception from offline to the online channel. The data for the study is collected from a large bank in China. The structural equation modeling analysis results indicate that perceived offline service quality influences perceived online service quality both directly as well as indirectly through perceived entitativity. Perceived online service quality, in turn influences customers’ behavior towards the online channel extension. The results also demonstrate that self-efficacy for change directly influences behavior towards the online channel extension, and it also has an important moderating influence on relationship between perceived offline service quality and perceived online service quality. Theoretical and practical implications of the findings are discussed.

Research highlights
► The results validated the cross-channel synergies on customers’ channel extension evaluation.
► Offline channel service quality positively affects perceived online channel service quality.
► Perceived entitativity between channels enhances the effect of cross-channel synergies.
► Self-efficacy for change facilitates behavior towards the online channel extension.
► The results yield interesting implications for management of multiple-channel extension.