THE EFFECT OF INTER-DEPARTMENTAL SYNERGY ON CONSUMER PURCHASING PATTERN IN AN OMNI-CHANNELRETAILING ENVIRONMENT IN THE GEORGIAN MARKET

Abstract

  This study aims to analyze the impact of the level of synergy in a multi-channel retailer and its end results on customer purchasing behavior. A deductive approach was adopted by reviewing past studies on the implementation and goals of synergy. It led to a quantitative research model for evaluating the effects of inter-departmental synergy in the market. In order to measure the effect of this strategy on Georgian customers, a questionnaire was distributed among 412 retail customers. The outcome indicated that the level of synergy positively relates to the frequency and monetary value spent by customers and negatively impacts the threat of pure online retailers as substitutes. The theoretical and managerial implications of the relationship are discussed.