Channel dynamics strategy of music merchandise: the effect of offline consumer experience on online sales

Purpose This study investigates the impact of pop-up stores on online music merchandise sales within the context of concert tours. Design/methodology/approach Using customer-level transaction data from Best Band's (pseudonym) official online shop across more than 100 countries, we employ a difference-in-differences (DID) approach to compare online spending and purchase frequency before and after the introduction of pop-up stores. Findings Results show that the establishment of pop-up stores significantly reduced online purchases by customers in host cities, demonstrating a reverse cannibalization effect in which offline experiential opportunities substitute for digital consumption. Moreover, a spillover effect was observed in adjacent regions, suggesting that the influence of phygital interventions extends beyond direct participants. Originality/value By conceptualizing pop-up stores as experiential interventions within a phygital ecosystem, this study contributes to omnichannel and consumer experience literature, highlighting how offline contexts reshape digital behavior and offering strategic insights for managing integrated retail channels.