Since the advent of the Information Technology such as the Internet, many consumers are shopping through a new channel called the on-line channel. Further information diffusion in the on-line channel is relatively faster than that of the off-line chan...
Since the advent of the Information Technology such as the Internet, many consumers are shopping through a new channel called the on-line channel. Further information diffusion in the on-line channel is relatively faster than that of the off-line channel. While dividing two channels(on-line and off-line) completely, we investigate the role of information diffusion under diverse conditions. We identify the information management strategy, which motivates consumers’ purchasing action through comparing the characteristics between two channels. Our analysis indicates that the optimal marketing effort to improve the information diffusion is required for making a larger demand base, which is related with the profit improvement.