Abstract
This paper develops a multi-attribute economic model to analyze consumer behavior for traditional and electronic channels based on consumers? risk profiles — risk-neutral or risk-averse. We then conduct comparative analyses of consumer purchase decisions to derive strategies for different channels. We study the attitudinal and economic factors that lead to specific purchase decisions under different combinations of price, delivery time, and product customization. We develop theoretical propositions concerning consumer channel switching behavior, incentives to consumers, and pricing strategies for different channels. We also use simulations to gain insights for cases where analytical model becomes intractable.