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- W4380758741 abstract "The facilitation of information technology has led to the rapid development of online-to-offline commerce, and this mode is attracting increasing businesses to enter the market. Its unique on-demand features affect consumers' shopping behaviors. This study uses a difference-in-difference approach with propensity score matching and machine learning approaches to examine the impact of a new giant online-to-offline entrant on consumers' ordering and spending behavior. We find that overall, the new entrant has a negative impact on consumers' ordering and spending from the perspective of existing providers. This negative impact is amplified if the consumers are highly engaged on the platform. However, the new entrant effect is reduced if the providers use in-house rather than outsourced deliverymen or consumers have a relatively long distance from the new entrant. Furthermore, the new entrant effect is altered if the platform implements technological innovation. On a provider level, the new entrant has a direct negative impact on consumers' ordering and spending from homogenous providers; however, a positive spillover effect is observed in terms of increasing consumers' spending on heterogeneous providers. The direct effect occurs immediately, while the spillover effect appears in a time-lagged pattern. On a product level, we find that the new entrant negatively affects consumers' ordering and spending on substitute products also sold by the new entrant, but that their spending on non-substitute products is boosted. Our findings provide decision support for the new entrant and existing providers to expand the market to stimulate consumers' purchase from both, to enhance their financial performance." @default.
- W4380758741 created "2023-06-16" @default.
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- W4380758741 date "2023-06-01" @default.
- W4380758741 modified "2023-10-06" @default.
- W4380758741 title "Does the new entrant eat my pie or enlarge my pie? Market entry investigation in the online-to-offline on-demand context" @default.
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- W4380758741 doi "https://doi.org/10.1016/j.dss.2023.114036" @default.
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