Distribution Channels and Consumer Adoption - 689 Words

3. THEORY AND LITERATURE REVIEW This chapter will present the theoretical framework used in this master ´s thesis. This chapter gives an overview of theories explaining distribution channels and consumer adoption. Ending with a literature review in financial service research, a research area closely related to digital receipts. 3.1. Distribution channels A distribution chain also known as value chain can be described as a set of interdependent organizations or businesses involved in making a product or service available, from producer to end customer (Kotler, et al., 2012). The function of the value chain is to contribute with cost- efficient activities and simplify the purchase process (Coughlan et al., 2006). But if the chain consists of many actors the ones far back could have limited or no contact with customers resulting in lost of valuable information (REF). According to Bucklin (1966) it’s important to understand customer preferences when designing the value chain. This because the value chain will only be viable over time if customers feel that it provides a form of value. This value is created if the actors of the chain provide activities that result in cost- efficiency and/ or better service. There are five service performance areas where actors can create this value: unit size, availability, waiting time, variation in production and information (REF). When designing value chains one must take into account three important dimensions. These are: 1) the lengthShow MoreRelatedThe Digital Revolution Is Responsible For The Largest Societal Shift Essay1671 Words   |  7 Pagesstrategy. Each of these themes is discussed below. Context The digital revolution is responsible for the largest societal shift in history- the rapid rate of consumer uptake in the use of internet as a new technology beats the adoption of other technological developments significantly. 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