Matching Electronic Distribution Channels to Product Characteristics: The Role of Congruence in Consideration Set Formation

Abstract

This article studies the determinants of whether consumers will consider new delivery vehicles for banking services. Building on the brand equity literature, a model is developed that suggests that consideration will depend on consumers' preference for the banking service, their preference for the distribution method, and the perceived congruence or fit between the distribution method and the banking service. Preference for banking services and distribution methods can be further decomposed into the utility of their perceived attributes and the associated information uncertainty. In an application, we find support for the model. Although preference for the distribution method (or delivery vehicle) is important and statistically significant, its influence is secondary to consumers' perceptions of whether the method is appropriate to the service to which it is being applied. This suggests that managers should seek to build up consumers' perceptions that new shopping methods are appropriate vehicles for delivering their services rather than trying to boost preference for the distribution method itself.