The development of the world wide web created a new sales channel for retailers, and many thousands of companies have attempted to take advantage of this new method for reaching customers. Analysis of the 2000 stock market collapse suggests that business models relying on both internet ('clicks') and physical ('bricks') presences may be the most successful. Internet business problems include the need to structure internal and external business processes to serve customers appropriately, the need to provide adequate technological and physical infrastructures, and the need to understand customer consumption processes in 'virtual' and physical environments. The purpose of this research is to provide insight into these problems by investigating consumer beliefs and preferences about shopping on-line and in physical stores. We developed a research model and then performed an empirical investigation using two studies. Results and implications of the findings for business strategy are discussed.