Channel Conflict When Adding Internet Channel on Existing Store Based Retailer

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Channel conflict when adding the Internet as a complementary marketing channel to an existing marketing channel system. A case study of a Greek mobile telecom retailer.


carried out in conjunction with WIND Hellas Telecommunications, Leicester

October 2009

Project submitted to Leicester University in partial fulfillment of the requirements for the degree of Master of Business Administration.

CONTENTS Page Acknowledgments Executive Summary Introduction Internet as a marketing channel Multi-channel system Research problem Research question one Research question two Research question three Research question four Delimitations Literature review Benefits from multi-channel retailing Challenges of a multi-channel system Channel conflict Causes of conflict Impact of channel conflict Approaches to minimize channel conflict Methodology Empirical evidence/ Discussion of findings Demographics Research question one Research question two Research question three Research question four MANN-WHITNEY test Conclusions Research question one Research question two Research question three Research question four Recommendations Reflections References Appendices Appendix A - Output SPSS – all respondents Appendix A1 -Output SPSS physical stores Appendix A2 -Output SPSS e-shop Appendix B -Cover letter Appendix C –Questionnaire Appendix D -Project Proposal Appendix E -Ethics Form -3-4-5-6-7-8-9-9-10-10-11-12-13-16-18-19-22-26-27-28-29-30-31-36-37-38-39-41-43-45-53-74-79-84-85-88-99-

1.1.1 1.2 1.3 1.3.1 1.3.2 1.3.3 1.3.4 1.3.5 1.4 2 2.1 2.2 2.3 2.3.1 2.3.2 2.3.3 3 4 4.1 4.2 4.3 4.4 4.5 4.6 5 5.1 5.2 5.3 5.4 6 7 8 9 9.1 9.1.1 9.1.2 9.2 9.3 9.4 9.5

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Acknowledgments I would like to thank my colleagues in WIND Hellas Telecommunications who despite their working pressure due to recent company’s unstable situation; they showed great concern in sending me their answers promptly. I especially thank Mr. Vaios Karantinos, Executive Sales Director of WIND, who gave me the inspiration to consider and analyze the specific topic of my dissertation and shared with him a new marketing era for WIND.

I also would like to thank, my professor in Athens, Yannis Megaloeconomou, because of his guidance and encouragement to finish my degree despite of the problems I faced the last three years (professional and health).

Finally, I wanted to thank my parents for their support and for their insistence in urging me to finish my studies despite of the extreme overloading I had to cope in my job the last years. Especially, I thank my father whom I admire on a great level and who unconditionally plays a significant role in my achievements.

October 2009 Georgia Efrossinidou

Executive Summary The retail market is changing and becoming even more competitive and complex. Retailers are facing a wider diversification of customer needs, fragmentation of values, global competition and empowered customers. As a result, transformation is imperative and multi-channel retailing provides a catalyst for many retailers that move from a product centric operation to a more customer centric organization, whilst delivering profitability and growth. Multi-channel retailing is an increasingly important phenomenon and the internal organizational dynamics associated with its operation are strategically critical. In this study we focus on internal conflict among the groups (and its coalitions) responsible for managing the various channels. The aim of this study is to identify the reasons that a Greek Telecommunication retailer is forced to adopt multichannel strategy, the benefits that may be obtained, the causes of conflict between the two internal retailing functions, the impact of conflict that may arise on the channel efficiency as well as supportive approaches that may facilitate internal procedures in reducing channel conflict.

The paper reports the findings of a case study in the Greek Telecommunication retailing, after...
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