MARKETING CHANNEL STRATEGY AND THE EFFECT OF CANNIBALIZATION ON RETAILING: A CONCEPTUAL OVERVIEW FROM MARKETING AND SUPPLY CHAIN PERSPECTIVE

The impressive growth of internet, globalization and diffusion of technology have impacted every industry and business model. Multichannel strategy of retailers should provide competitive advantage to cope with changing dynamics of globalized world. However, multichannel strategies can lead to disadvantageous outcomes such as cannibalization. Cannibalization refers to a firm losing market share due to the introduction of multichannel. The existing literature on cannibalization which is caused by multichannel strategies is controversial and the concept needs to be examined from different perspectives. In this study, it is aimed to develop a conceptual framework in case cannibalization effect occurs. To overcome the disadvantages of cannibalization, a theoretical approach based on the integration of   marketing and supply chain perspectives, is proposed. Additionally, research propositions are provided for further research .