Examining effectiveness of online and offline channel integration

Abstract

Purpose Channel conflicts between initial providers (IPs) and independent middlemen (IMM) can hinder the market penetration of IPs, especially for small- and medium-sized enterprises with low brand awareness. Design/methodology/approach A case study is used to describe the introduction of an agent-friendly graphic user interface (AFGUI) as a compromise for the basic needs of the IP and IMM, both for the successful market entry of IPs and to encourage the IMM to accept original brand manufacturing (OBM), which can maximize the benefits of IPs after a successful product/service launch. Findings This case study shows that the AFGUI significantly contributes to increasing the IMM’s OBM selection. Comparing the “before AFGUI introduction” group to the group of IMMs who have been SeaHerb’s – a manufacturer of brown seaweed extract – IMM for fewer than three years shows that the latter group’s OBM selection can positively affect the order amount. Originality/value The AFGUI can integrate traditional offline distribution channel systems into online distribution systems. Regarding the AFGUI’s functional effectiveness for preventing fake sellers and fake products, further research on its adoption by online platform providers (e.g. Amazon and eBay) is recommended.