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1、Withtherapidgrowthofe-commerce,moreandmoreconventionalretailershaveinitiatedsalesonline.SometraditionalretailershavegainedgroundontheWebwhilethepureInternetretailershavebeenencounteringeconomicdifficultiesandfailingwidely.Therearedifferentpricingbehaviorbetweenonline-onlyretai
2、lersandonlinebranchesofmultichannelretailers.(Tang&Xing,2001)Interestingly,itisnotthepureInternetoutletslike”www.amazon.com”thatareenjoyingtherealbenefitsoftheInternet.Thisisbecausetraditionalretailerswithawebsiteearn62percentofallrevenues.Onereasonforthissituationisthatitismu
3、chcheaperforamulti-channelretailertoattractWebcustomersthanforon-lineonlyoperation(organizationswithnopremisesforcustomerstovisit).(Chaston,2002)EndersandJelassi(2000)arguethatforthetimebeing,itissensibletodesignamulti-channelbusinessmodelthatincludesbothphysicalstoresandonlin
4、epresence.However,thisintegrationhasturnedouttobemoredifficultthanexpected.Havingbothonlineandofflinedistributiochannelscouldcontributetomajorchannelconflicts,differentchannelsmayrequiredifferentpricing,andtheInternetcouldcomposeathreattotheexistingbusinessmodel.Basedonthestud
5、yofHyokjinK.,booksarepositioninahigh-informationrequiredandapopularsegment.Therefore,advertisingpractitionermaywanttouseinternetandofflinemediaprintratherthanradioorTVtostimulateinterest(HyokjinK.etal,2002;p35).Onlineads,forinstance,provideinformation;whileofflineadvertisingca
6、mpaignsareusedtokeeppopularity.Theintegratedcampaignworksbothtobuildimageandsalesoverthelongterm.Amongthefindingsinlastyear'sreportisthatconsumersmakingpurchasesforreadersaged14-17aremorelikelytobemotivatedbyrecommendationsfrompeopletheyknowthanbyreviewsorprice.Coverart,review
7、s,andpriceplaythemostimportantrolesinmotivatingconsumerstomakepurchasedecisionsaboutadultbooks.Inordertosupportsalesactivitiesandpricingbookcompaniesneedtofindoutwhattheircustomerswouldvaluemost.Onlinebooksellers,tovariousdegrees,hadsuccessfullypursuedadifferentiatedstrategyon
8、dimensionsofbrand,priceandassortment.(Clayetal.,2001;Smithand
