Modelling consumer choice of distribution channels: an illustration from financial services

Abstract

With channels of distribution changing rapidly and multi‐channeling becoming increasingly widespread, studies of consumers will need to focus not just on understanding product choice, but also on understanding the reasons for channel choice. Although the choice of individual channels and the adoption of new channels has been researched, there is little to suggest that we have a more general understanding of why consumers, although purchasing essentially similar products, use some channels rather than others. Using the example of financial services, where multi‐channeling has been the norm for some time, this paper reports on an exploratory study to identify those factors which influence channel choice. Based on the results of focus group discussions, the paper argues that channel choice in financial service can usefully be conceptualised as being determined by consumer, product channel and organisational characteristics, with product‐channel interactions and consumer‐channel interactions being particularly important.