This paper seeks to incorporate theories from commodity studies, functional studies, institutional studies, and transaction cost economics, to integrate product and process approaches and simultaneously examine the effects of product and process on consumer preferences for online and offline channels.
The study took a systemic approach. It reviewed the existing literature, proposed a theoretical framework, designed and administrated a measurement instrument, analyzed survey results, and provided implications and conclusions.
In addition to the type of product, the type of transaction process has a significant impact on consumer preferences for online and offline channels.
The sample representation was limited to college students. The analysis also assumed the independency of repeated measures on the subjects.
This paper will facilitate managers in designing and choosing transaction channels based on product type and process function type.
This is the first study which examines the impact of both factors – transaction product and transaction process – on channel preference. The transaction process is systemically defined into four sub‐functions and measured accordingly. An instrument is developed and administer to measure consumer preferences for online and offline channels in response to different types of products and different types of process functions. It is the first instrument of this kind.
