Online and Offline Sales Channels for Enterprise Software: Cannibalization or Complementarity?

Abstract

Lured by the success of online sales channels in the consumer software market, enterprise software vendors have launched proprietary online channels alongside their traditional offline ones. However, it is disputable whether the online purchase of a software application is as compelling for an organizational buyer as it is for an individual consumer. Relying on a qualitative research strategy and a cross-sectional research design, we have explored the channel adoption decision made by organizational entities when they purchase business software applications. We have constructed a qualitative channel adoption model which takes into account the relevant drivers and barriers, their interdependences, and the buying process phases. Our findings suggest that offline channels will not be cannibalized unless some peculiar characteristics of enterprise software applications change. We have also derived recommendations for the design of multichannel sales systems according to the main classes of enterprise software products and services.

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