Online Advertising in Online-to-Offline Retailing Environments: The Moderating Effects of Salesforce and Product Lines

Yunkun Zhao, National University of Singapore
Liwen Hou, Shanghai Jiaotong University

Description

The proliferation of online-to-offline (O2O) commerce in emerging markets has raised new questions for multi-brand multi-product companies. Prior literature did not address these issues: whether the demand effect of online advertising strategies is influenced by salesman skills (e.g., in terms of brand tenure and sales training) and product line management strategies in a multi-brand multi-product O2O context. This study examines the effectiveness of different advertising strategies, salesman skills and product line management strategies, as well as their interdependencies. Our results show that the target product’s product line length across different brands mitigates the positive impact of brand-oriented advertising exposures on customers’ demand but the product line length within the same brand strengthens this demand effect of brand-oriented advertising. This study provides several theoretical contributions and practical implications by addressing gaps in prior literature on O2O advertising strategies.

 

Online Advertising in Online-to-Offline Retailing Environments: The Moderating Effects of Salesforce and Product Lines

The proliferation of online-to-offline (O2O) commerce in emerging markets has raised new questions for multi-brand multi-product companies. Prior literature did not address these issues: whether the demand effect of online advertising strategies is influenced by salesman skills (e.g., in terms of brand tenure and sales training) and product line management strategies in a multi-brand multi-product O2O context. This study examines the effectiveness of different advertising strategies, salesman skills and product line management strategies, as well as their interdependencies. Our results show that the target product’s product line length across different brands mitigates the positive impact of brand-oriented advertising exposures on customers’ demand but the product line length within the same brand strengthens this demand effect of brand-oriented advertising. This study provides several theoretical contributions and practical implications by addressing gaps in prior literature on O2O advertising strategies.