CONSUMER DIRECT FULFILLMENT PERFORMANCE IN INTERNET RETAILING: EMERGENCY TRANSSHIPMENTS AND DEMAND DISPERSION

The collaborative fulfillment of consumer orders by Internet retailers and wholesalers has proven important in the realization of sustainable levels of online profitability. Concentrating on consumer direct fulfillment (or drop shipping), an empirical simulation model evaluates avenues for improving logistical performance. The empirical simulation model centers on the online music CD retailing industry. It evaluates the effects of emergency transshipments and demand dispersion on inventory and product‐release performance, as well as on transportation costs, in consumer direct fulfillment operations. Results show that emergency transshipments improve inventory and product‐release performance in these operations. Furthermore, the inventory‐performance improvements are maximized when inventory facilities fulfill demand that is uniformly balanced across markets primarily assigned to each facility. Finally, gains in inventory and release performance obtained from emergency transshipments outweigh additional transportation costs incurred from a greater reliance on emergency transshipments for consumer direct fulfillment.     

Increasing online sales by facilitating spillover shopping

The Internet can serve dual roles as a source of information and a shopping channel for consumers. As a source of information, it competes with traditional sources such as print and direct mail. As a shopping channel, it competes with traditional shopping formats such as brick-and-mortar retailing and catalogs. There is little research as yet, however, regarding how the use of the online channel for information can affect its use for purchasing products. Our research is aimed at filling this gap in the literature, i.e., of examining if and how the use of the Internet as a source of information can affect consumers’ willingness to shop online. We use an integrated modeling framework that simultaneously models consumers’ choice of a shopping channel from three options – brick and mortar, catalog and online – and a source of information from three options as well: newspapers and magazines, direct mail, and online.     

Measuring ease of use of mobile applications in e-commerce retailing from the perspective of consumer online shopping behaviour patterns

Scientifically judging and comparing different mobile e-commerce retailing applications (apps) are essential to increase online shopping efficiency and enhance design for system improvement. In this research, the use of mobile apps in e-commerce retailing is viewed as an information operation process, and distance of information-state transition (DIT) theory is introduced to measure the “convenience” of mobile apps to obtain service information. Thus, a novel DIT-based evaluation method for the ease of use of mobile apps in e-commerce retailing from the perspective of consumer online shopping behaviour patterns is proposed. Three representative Chinese enterprises, namely, Tianmao Mall, Jingdong Mall and Suning Easy-to-buy, are chosen as study objects. Moreover, the corresponding ease-of-use indicators of three mobile apps under typical online shopping behaviour patterns are evaluated quantitatively. Results show that this research has important implications not only for online consumers but also for designers of online shopping systems.     

The benefits and pitfalls of contemporary pop-up shops

As e-commerce growth continues to surpass that of brick-and-mortar retail, temporary retail spaces, also known as pop-up shops, are becoming an important promotional strategy, especially for online retailers and service providers. Success in today’s retail environment means being able to create and maintain brand communities, to generate instant and measurable hype, and to deliver personalized consumer experiences—all of which can be readily achieved through a strategically placed physical business presence. In this study, a survey of retailing organizations worldwide reveals that among those that had implemented at least one pop-up shop, more than 80% considered it a success. The results also show that the primary reasons for activating pop-up shops were to create connections with current and potential customers, to increase brand awareness, to introduce a new product or brand to the marketplace, and to stage a new product or brand. While the respondents deemed revenue generated at pop-up shops important, they considered improving market visibility (e.g., through social media, website traffic, or media coverage) a more significant objective. Given the economic potential of pop-up shops, this research provides retailing organizations with guiding principles for developing and operating successful pop-up shops in the current marketplace.     

Measuring retail performance in an omni-channel world

Abstract

Driven by global advances in technology and changes in consumer buying behavior, brick-and-mortar retailers are being forced to become omni-channel retailers. This calls for new metrics for evaluating retail performance. We examine the challenges facing the retail industry, the metrics that traditional brick-and-mortar stores have used as well as the new metrics that retail industry experts are suggesting for online retailing. A conceptual framework for omni-channel retailers is suggested.     

Consumer Behavior in a Multichannel,Multimedia Retailing Environment

Over the past decade, multichannel, multimedia retailing environments have grown in variety, scope, and sophistication. However, research regarding the implications of this trend for consumer behavior is rather scarce. We seek to address this need by providing a comprehensive yet flexible approach for formulating promising consumer behavior-related research questions based in multichannel, multimedia retailing environments. This approach adopts a consumer-centric view of multichannel, multimedia retailing and identifies a number of important dimensions of this environment. We then illustrate how this approach could be applied via specific examples involving consumer memory, product assortment, and information acquisition. We conclude by considering the managerial implications of our proposed approach.     

Strategic Online and Offline Retail Pricing: A Review and Research Agenda

In the increasingly complex retailing environment, more and more retailers operate in more than one channel, such as brick-and-mortar, catalogs, and online. Success in this dynamic environment relies on the strategic management and coordination of both online and offline pricing. This article provides an overview of findings from past research in both offline and online domains and presents an organizing framework, as well as an agenda to spur additional research.     

传统零售模式与网络零售模式的融合

互联网在商业上的广泛应用 ,已从根本上改变了零售业的运作 ,网上购买使顾客的购买活动不受时间的限制 ,而且可使顾客获得定制化的产品和服务。传统零售商们已认识到他们不能再忽视网上零售的重要性及其发展的潜力 ,应建立一个多渠道的包括传统零售和网上零售的商业模式 ,以便更好地为顾客提供增值服务。     

Can Brick-and-Mortar Retailers Successfully Become Multichannel Retailers?

ABSTRACT

The critical success factors required by brick-and-mortar retailers to successfully transform into multichannel retailers are analyzed in this study. We identify threshold resources and success factors required to survive in the online retailing industry. We suggest that by leveraging their already existing assets and augmenting certain resources and capabilities, brick-and-mortar retailers would be able to exploit gaps in online retailing and use opportunities arising from them, thus gaining a competitive edge over online retailers.     

Cross-channel free-riding consumer behavior in a multichannel environment: An investigation of shopping motives,sociodemographics and product categories

Cross-channel free-riding, in which consumers use one retailer′s channel to prepare a purchase and then switch to another retailer′s channel to purchase, can substantially erode profit margins. This research aims to understand such free-riding from a consumer empowerment perspective, investigating shopping motives and sociodemographic covariates, as well as how this behavior might differ across product categories. A survey study of decision-making behavior shows that cross-channel free-riders mainly seek to fulfill price comparison, convenience and flexibility needs. The likelihood of free-riding is higher when consumers adopt cross-channel rather than single-channel behavior, which highlights a negative outcome of multichannel retailing. The likelihood of cross-channel free-riding differs across products but not sociodemographic covariates. The findings can be used to develop recommendations for managing retention strategies.     

Distribution Channel Management in an Internet Age: Equilibrium and Social Welfare

This paper considers the conditions under which a monopoly manufacturer selling through independent retailers in a spatial market will add an Internet distribution channel (an e-channel), and analyzes the effect this would have on consumer surplus and social welfare. We find that an e-channel will be added only if consumer??s travel costs are high and the e-retailer??s delivery costs are low. Such double-channel operation will decrease consumer surplus if in the pre-entry case the market is fully covered by brick-and-mortar retailers. If instead the market is partially covered and delivery costs are sufficiently high, it will not decrease any consumer??s surplus. When delivery costs are low, social welfare will be improved by profitable double-channel operation even if consumer surplus is harmed by it. Finally, double-channel operation could be Pareto superior even if delivery costs are high.     

Is the system reliability profitable for retailing and consumer service of a dynamical system under cross-price elasticity of demand?

Retailing strategy is one of the most crucial factors for industries. A proper retailing strategy can help to enhance consumer service and increase the industry's profit. An improved approach to retailing is suggested in this research to deliver superior customer service while maximizing profits in a dynamic system. The study analyzes a retailing strategy for a demand with cross-price elasticity upon the retail price. A product's cross-price elasticity and the system reliability are critical factors in retailing. Understanding the cross-price elasticity of demand between products helps retailers to make pricing decisions that maximize profits by maintaining demand. Imperfect products are produced due to an imperfect production system. The imperfect ones must be adjusted with some costs to make them perfect for better retailing. The system failure rate is crucial for retailing under cross-price elasticity of demand patterns. Production system reliability, cross-price elasticity of demand, and consumer service are all essential factors that can impact a company's success in the market. The production rate is considered time- and system failure rate-dependent. Contradictory to the literature, a dynamical system is proposed for improved retail management, which is solved using the Euler-Lagrange theory. Finally, one can achieve the expected maximum profit for this retail system with optimum selling prices for different products by reducing the system failure rate. Some numerical illustrations with graphical representations are provided to validate the current study. Numerical examples show that applying cross-price elasticity of demand for more than two identical products provides 35% more profit for the retail industry than a single type of product.     

Mobile-assisted showroomers: Understanding their purchase journey and personalities

Over the last decade, the retail sector has undergone a dramatic transformation, driven by rapid advances in consumer and retail technologies, an evolution of omnichannel environments, and changing consumers who increasingly use their smartphones inside brick-and-mortar retail stores as personal shopping assistants. In this context, showrooming has become a common practice for omnichannel mobile consumers (Flavián et al., 2020). The present study investigates the under-researched phenomenon of mobile-assisted showrooming behavior. Adopting an exploratory qualitative research approach, 31 semi-structured individual interviews were conducted with consumers in a metropolitan city in Queensland, Australia. The authors propose a shopper journey framework that challenges the sequential consumer decision-making process. Influenced by showrooming predispositions, mobile-assisted showroomers pursue a hybrid product evaluation phase that encapsulates both physical and mobile activities during the brick-and-mortar retail visit. In addition, the research identifies four unique personas of mobile-assisted showroomers. The results contribute to extant literature on omnichannel and showrooming behavior by identifying predispositions, behaviors, and segments of mobile-assisted showroomers. The study provides retailers with new strategies to segment mobile-assisted shoppers more effectively and understand their needs and shopping motivations.     

The impact of adopting customization policy and sustainability for improving consumer service in a dual-channel retailing

In recent decades sustainability and dual-route retailing have been adopted by many big industries. Companies are now bound to maintain such strategies that fulfill the sustainable goals developed by the United Nations. Industries face a huge penalty if carbon emissions exceed a certain boundary. Moreover, factories should maintain sufficient flow in retail chains and product quality. This paper demonstrates 3-pillar sustainability in dual channel retailing, empowering firms to integrate the financial-economic pillar with the non-financial (environmental, social, and ethical) pillar. The core product is made available through the traditional channel and customized products are through online channels. The model is enabling the customers with customization provisions where they can influence the products. Thus, as a novel approach, the article incorporates a presumed threshold limit on the product's (standard and customized) selling price difference. Due to customization, a new product is developed which needs extensive quality checks. The study introduces an investment in checking the quality of the customized product which reduces the probability of customization defects exponentially. Additionally, current research adapts the carbon emission cost, penalties charged to a firm for overshooting the limit, and social costs in a smart supply chain. It also exemplifies that production is directly proportional to financial investments in meeting sustainability objectives. The numerical analysis reflects that as production increases, penalty costs decrease at a significant rate but after reaching optimal production penalty cost again starts to increase. It is observed that the downfall of penalty is 20% more for the single-channel than dual. Adaptation of the customization policy makes the retailing strategy more cost-effective. The model exemplifies that it is more economical to adopt dual-channel retailing compared to single-channel as there is approximately a 14.0625% reduction in total cost in dual-channel retailing. Moreover, an 80% improved quality is observed with a financial investment, which improves consumer satisfaction.     

Crosswise and reciprocal interdependencies within retailers’ multichannel structures

Understanding consumer behavior across channels is the fundamental basis for implementing successful multichannel retailing strategies. This study analyzes the crosswise and reciprocal relationships between offline and online brand beliefs, offline and online retail brand equity and consumers’ conative loyalty to a retailer in multichannel structures. The relationships are contextualized by investigating fashion and grocery retail sectors and different prior channel performances that are likely to affect the paths to loyalty across channels. To provide insight into these issues, two cross-sectional and two longitudinal models are employed. The results show that former brick-and-mortar retailers are able to significantly increase consumers’ loyalty to the firm by primarily designing offline (secondary online) attributes and beliefs. The results hold for retailers in both fashion and grocery retailing, however, with stronger effects in fashion, as well as for retailers with strong vs. weak prior channel performance. However, indirect effects indicate that online brand beliefs and offline retail brand equity are the central strategic levers for prior strong (vs. weak) retailers. Reciprocal relationships between online and offline retail brands underline important channel interdependencies. Managers thus need to take these crosswise and reciprocal interdependencies between channels into account when designing successful multichannel retailing systems. This study introduces the novel idea of simultaneous crosswise and reciprocal relationships within multichannel retail structures and shows that paths to loyalty vary for retailers in different retail sectors and retailers with strong vs. weak offline and online channel performances.     

INDIVIDUAL AND ENVIRONMENTAL IMPACTS ON SUPPLY CHAIN INVENTORY MANAGEMENT: AN EXPERIMENTAL INVESTIGATION OF INFORMATION AVAILABILITY AND PROCEDURAL RATIONALITY

Some strategies for mitigating ordering inefficiencies in supply chains advise sharing information among decision‐makers. However, there has been little consideration of how individual perceptions intervene in the use of available information in decision‐making processes. This article reports the results of an experiment in which participants were instructed to minimize inventory holding and backlog costs for their supply chains as a whole. The analysis suggests that additional information affects supply chain inventory management costs only when rational decision‐making processes are followed. Decreased costs are observed when rational decision‐making is applied with backlog information. In contrast, increased costs are observed when consumer demand information is available.     

Perceived Product Sizes in Visually Complex Environments

Although prior scholarship has demonstrated important effects of visual complexity on product perceptions, the relationship between the visual complexity of a product’s environment and that product’s perceived size remains unexplored. Because size is such an important product characteristic in many consumer contexts, the lack of exploration of this relationship leaves a significant gap in the literature on size perceptions, especially in relation to the retailing domain. The present investigation seeks to document the relationship between environmental visual complexity and the perceived size of a product. Namely, five studies show that high visual complexity decreases consumer size perceptions of a focal product through a serial mediation process in which high complexity pulls consumer attention away from the focal product. This shifted attention decreases processing fluency and leads consumers to perceptually minimize size to avoid information overload in the processing of a display. Even after ruling out potential influences of referent information (study 5) and alternative explanations of affective processing and perceived depth (study 4), these effects hold. The findings have implications for both theory and practice, shedding light on the relationship between size perceptions of a focal object and its environment.     

Running for pleasure or performance? How store attributes and hedonic product value influence consumer satisfaction

Previous retailing studies have linked consumer satisfaction to perceived hedonic or utilitarian product value. This research extends previous studies by examining how the context in which the product is purchased (store attributes) and product value influence consumer satisfaction. We conducted a field study with 213 consumers attending two major running events. The findings from structural equation modelling suggest that a specific combination of store attributes (tangible and intangible) and hedonic product value has a positive influence on satisfaction. Results also show that tangible store attributes have a stronger positive impact on utilitarian (vs. hedonic) product value, and that intangible store attributes have a positive impact on hedonic product value. However, we found that only hedonic product value has a positive impact on satisfaction. This research contributes to theory by showing that a match between store attributes (tangible and intangible) and hedonic product value can positively influence satisfaction. In managerial terms, the findings provide insights on how to improve consumer satisfaction in retail environments through store attributes and hedonic product value.     

Why Country of Origin Still Matters in Food Retailing: Implications for Promotion Management Research

ABSTRACT

Despite considerable focus on the role of country image (CI) and country of origin (COO) in international marketing and consumer behavior research over the past fifty years, several meta-analyses suggest that knowledge of the impact on consumer decision-making is limited. Even though they are among the most commonly traded items, food products (have not received as much attention from researchers as other product categories (i.e. consumer electronics, cars, apparel and footwear). Further, most of the research that focuses on food was conducted prior to the introduction of mandatory labelling requirements in many major retail markets. This critical review contributes to the literature examining the role that this information plays in food retailing within the context of international trade in food. From this critical review, a research agenda is developed, highlighting several major avenues and methodological approaches with the aim of enhancing the relevance and validity of COO research in food retailing and promotion management.     

Mobile Marketing in the Retailing Environment: Current Insights and Future Research Avenues

Mobile marketing, which involves two- or multi-way communication and promotion of an offer between a firm and its customers using the mobile, a term that refers to the mobile medium, device, channel, or technology, is growing in importance in the retailing environment. It has the potential to change the paradigm of retailing from one based on consumers entering the retailing environment to retailers entering the consumer's environment through anytime, anywhere mobile devices. We propose a conceptual framework that comprises three key entities: the consumer, the mobile, and the retailer. The framework addresses key related issues such as mobile consumer activities, mobile consumer segments, mobile adoption enablers and inhibitors, key mobile properties, key retailer mobile marketing activities and competition. We also address successful retailer mobile marketing strategies, identify the customer-related and organizational challenges on this topic, and outline future research scenarios and avenues related to these issues.