arXiv subjects

Shirsho Biswas

Publications and source records attributed to Shirsho Biswas.

2 recordsLinked to original sources

arXiv2025

How does online shopping affect offline price sensitivity?

The rapid rise of e-commerce has transformed consumer behavior, prompting questions about how online adoption influences offline shopping. We examine whether consumers who adopt a retailer's online shopping channels become more price-sensitive in their subsequent offline purchases with that retailer. Using transaction-level data from a large Brazilian pet supplies retailer operating both online and offline, we compare "adopters" -- customers who began shopping online after a period of offline-only purchasing -- with "non-adopters" who remained offline-only. We estimate a discrete choice logit model with individual-level heterogeneity, based on an algorithm that can handle both high-dimensional fixed effects and price endogeneity. We then apply a staggered difference-in-differences approach to the estimated price elasticities and obtain the Average Treatment Effect on the Treated (ATT). We find that offline price sensitivity increases significantly after online adoption in three out of four product categories, particularly in items with low switching costs, such as pet hygiene. These results underscore the importance of recognizing cross-channel effects in consumer behavior and contribute to the literature on pricing and multichannel retailing by identifying online adoption as a key driver of offline price sensitivity.

econ.GN↗

arXiv2025

Channel Adoption Pathways and Post-Adoption Behavior

The rapid growth of digital shopping channels has led many traditional retailers to invest in e-commerce websites and mobile apps. While prior research shows that multichannel customers are more valuable, it overlooks how the motive for adopting a new channel shapes post-adoption behavior. Using transaction-level data from a major Brazilian pet supplies retailer, we study offline-only consumers who adopt online shopping through four pathways: organic adoption, the COVID-19 pandemic, Black Friday promotions, and a loyalty program. Using consumer-level panel data and difference-in-differences estimates, we examine how these pathways are associated with post-adoption spending, profitability, and channel usage. We find that all adopters spend more than comparable offline-only consumers, but their post-adoption behavior differs systematically by adoption pathway. Promotion-driven adopters exhibit patterns consistent with forward buying and lower subsequent profitability, whereas COVID adopters display stronger offline persistence consistent with consumer inertia and habit persistence. These findings suggest that managers may benefit from accounting for adoption-pathway heterogeneity when forecasting customer lifetime value and assessing the breakeven and ROI of promotions designed to induce online adoption.

econ.GN↗