Optimizing marketer costs and consumer benefits across “clicks” and “bricks”

The Internet has revolutionized the retailing landscape and how goods and services are sold and distributed to consumers. One avenue of significant growth in online selling comes from multichannel retailers who offer products in stores as well as over the Web. These hybrids may leverage their “brick” locations by allowing customers to pick up or return orders purchased online at retail stores. This option lets Web-based buyers avoid added shipping costs and long package carrier lead times, albeit at a cost to retailers. To examine the viability of this strategy, we develop a mathematical model that examines the cost and value of providing in-store pickup and return. The model is used to determine the best subset of brick-and-mortar stores to handle in-store pickup and return demand. One of the principal takeaways is that not all retail stores should be offering in-store pickups and/or returns. Our computational results show optimizing the set of pickup and return locations may reduce system cost over baseline marketing policies where these services are set up at all or none of a retailer’s stores. In addition, we show that retailers can significantly improve some consumer benefits at little extra cost.     

Profitable positioning for retailers

This article has considered the nature and role of positioning among retailers. The positioning of retail stores was defined as the perceived image consumers have of one store in relation to competitive outlets within the same trading area. And profitable positioning for retailers was identified as a strategy for developing and projecting unique store images for increasing the retailer’s total profits.     

Social distance and shopping behavior

This research was designed to see whether a reconceptualization of social distance (as measured by social class variables) between shoppers and stores would provide a basis for understanding store avoidance behavior. A survey of shoppers classified into two distinct social classes investigated their images, including social class images, of two stores that had been selected as representatives of upscale and downscale retailers. A new measure of social distance was proposed and evaluated. Controlling for other functional aspects of store image such as price and personnel, the social distance measure was found to be influential in discriminating shopping frequency groups for the two stores, providing evidence that people tend to avoid stores that are perceived as being socially distant from themselves.     

A comment on patterns of store choice and customer gain/loss analysis

We explore patterns of store choice and shopping behavior in the domain of women’s specialty clothing stores. Based on previous research, four exploratory research propositions are examined to note patterns in customer loyalty to their “favorite” stores and the incidence of shopping at competing stores. We conduct a vulnerability analysis to note which stores have customer segments most vulnerable to marketing efforts of competitors. Our findings suggest customers in the women’s specialty clothing market do not exhibit 100 percent loyalty to the favored retailer, and the share of trips to the favored retailer is generally constant among stores. The primary implications to retail managers are that they should be most concerned withincreasing the customer franchise base (those naming the retailer’s store as “favorite”) rather than focusing on increasing thefrequency of shopping trips among those customers that comprise the current franchise base.     

Examining retail image before and after a repositioning strategy

This research examines changes in management's and consumers' perceptions of retail image during implementation of a major repositioning strategy. A prominent retail chain abandoned an older store in a strip shopping center of a southern SMSA, and built a larger one in a new regional shopping mall. Consumers and store management personnel provided image data for the old and new stores three months before and after the changeover. It was found that while consumers' and management's images significantly changed during the repositioning strategy, the magnitude of management's image change was significantly greater than consumers'. Management perceived greater changes than did consumers in parking, store classification, merchandise quality, style and assortment, return policy, and store layout and decor. Conversely, consumers experiented a greater image change on pricing and credit policy. The major implication for retailers is that problems can arise if management and consumers do not experience commensurate image shifts during repositioning. Fine tuning in advertising, personal selling, product strategy, and the physical environment (e.g., decor, parking) may be necessary to compensate for differential image shifts following a major repositioning strategy. *** DIRECT SUPPORT *** A00BV035 00002     

Understanding social media effects across seller, retailer, and consumer interactions

In this research, the authors propose a contagion effect of social media use across business suppliers, retailers, and consumers. After developing and validating social media usage measures at three levels—supplier, retailer, and customer—the authors test social media contagion effects and their ultimate impact on multiple performance measures. The conceptual framework and empirical results offer new insights into the contagion effects of social media usage across the channel of distribution as well as important social influence mechanisms that enhance these effects. Consistent with the predictions, social media use positively contributes to brand performance, retailer performance, and consumer–retailer loyalty. Also, the effect of supplier social media usage on retailer social media usage and in turn on customer social media usage is moderated by brand reputation and service ambidexterity. With the ever-increasing growth and adoption of social media applications and similar technologies, this research provides a framework to promote usage by supply channel partners which ultimately influences performance-related outcomes.     

The determinants of consumers’ online shopping cart abandonment

Despite placing items in virtual shopping carts, online shoppers frequently abandon them —an issue that perplexes online retailers and has yet to be explained by scholars. Here, we identify key drivers to online cart abandonment and suggest cognitive and behavioral reasons for this non-buyer behavior. We show that the factors influencing consumer online search, consideration, and evaluation play a larger role in cart abandonment than factors at the purchase decision stage. In particular, many customers use online carts for entertainment or as a shopping research and organizational tool, which may induce them to buy at a later session or via another channel. Our framework extends theories of online buyer and non-buyer behavior while revealing new inhibitors to buying in the Internet era. The findings offer scholars a broad explanation of consumer motivations for cart abandonment. For retailers, the authors provide suggestions to improve purchase conversion rates and multi-channel management.     

Modeling the effects of dynamic group influence on shopper zone choice,purchase conversion,and spending

In many retail contexts, social interaction plays an important role in the shopping process. We propose a three-stage dynamic linear model that captures the influence of group discussion on shopper behavior within a hierarchical Bayes framework. The model is tested using a video tracking and transaction dataset from a specialty apparel store. The research reveals that group conversations have a significant impact on the shopper’s department or “zone” choice, purchase likelihood, and spending over time. This group influence is magnified by the size of the group (particularly for zone penetration and purchase conversion), and is also moderated by group composition and cohesiveness. The conversations of mixed-age groups and groups who stay together while shopping have a significant influence on shopper behavior across all three stages, while discussions by adult groups exhibit a marginal carryover effect for purchase conversion. When shoppers have repeated discussions in a specific department, they are more likely to return to and buy from this department, while the cumulative number of discussions in the store drives higher spending levels. We also observe that group shoppers visit more departments than their solo counterparts; and mixed-age groups and solo shoppers are more likely to buy than adults-only or teen groups. This study has important implications for how retailers manage shopper engagement and group interaction in their stores.     

Consumer images of two types of competing financial service retailers

Service retailers sell an intangible product which is frequently difficult to evaluate. Therefore, the images consumers have of the service retailer are especially critical. This research measures consumer images of two types of financial service retailers to assess the similarity of retail image, crosssectionally, and the stability of these images, longitudinally.     

The impact of shopbots on electronic markets

Internet shopbots are automated tools that allow customers to easily search for prices and product characteristics from online retailers. Some market observers have predicted that shopbots will benefit consumers at the expense of retailers. In this view, shopbots will radically reduce consumer search costs and reduce retailer opportunities to differentiate their products; as a result, they will drive retailer margins toward zero. However, a review of the literature suggests that while shopbots may place pressure on retailer margins in some circumstances, retailers retain numerous opportunities to differentiate their products, leverage brand names, set strategic prices, and reduce the effectiveness of consumer search at shopbots. The article closes by identifying significant questions for future research. Michael D. Smith is an assistant professor of information systems and marketing at the H. John Heinz III School of Public Policy and Management and the Graduate School of Industrial Administration at Carnegie Mellon University. He received a B.S. in electrical engineering and an M.S. in telecommunications science from the University of Maryland and a Ph.D. in management science and information technology from Sloan School of Management at MIT. His research relates to the nature of structure and competition in electronic markets and addresses the efficiency of electronic markets, the uses of network effects and lock-in techniques for competitive advantage, and the measurement of consumer responses to retailer differentiation strategies. Prior to receiving his Ph.D., Dr. Smith worked extensively in the telecommunications and information systems industries, first GTE in their laboratories, telecommunications, and satellite business units and subsequently with Booz Allen and Hamilton as a member of their telecommunications client service team. While with GTE, he was awarded a patent for research for applying fuzzy logic and artificial intelligence techniques to the design and operation of telecommunications networks.     

零售寡头横向竞争对渠道纵向关系的影响

本文在一个拓展的豪特林模型基础上，结合家电行业案例，研究了零售寡头之间的横向竞争如何影响渠道纵向关系。结论表明：在由寡头零售商与垄断竞争供货商形成的渠道结构中，零售商纵向压价的动机可以在竞争对手的销售相对较小、且供货商不愿放弃销售机会的情况下变为现实；零售商都将不断扩张网点来抑制对手的低价购入与压价行为，并争夺供货商货源；随着零售商销售能力的提升，其对于供货商的谈判能力将不断增强，进而压低上游供货商的价格，影响渠道纵向关系。     

竞争环境与零售商竞争优势的有限扩展——以沃尔玛为例

在跨国扩张的过程中,零售商的竞争优势往往只能在非常有限的区域内进行有效扩展。以沃尔玛为例,在"竞争范式—竞争环境—竞争优势扩展"的框架下对该现象进行了系统分析。研究表明,竞争环境与母国的差异性是影响某种既定范式的竞争优势顺利实现跨国扩展的核心因素。     

取消限制后跨国零售企业在华扩张策略研究——基于23家跨国零售企业的比较研究

在华大型跨国零售企业在取消限制之后,逐步放弃合资方式而主要通过并购或独资的方式进入中国市场;扩张方式也从单店复制方式向并购、独资的方式转变;店铺布局更加深入内陆;业态组合也更加复杂。这些举动已对我国本土零售企业构成了较大的威胁。     

The dot.com retail failures of 2000: Were there any winners?

In the year 2000, several dot.com retailers filed for bankruptcy, shut down their operations, or faced the risk of their stock being delisted on the stock market. But did any dot.com retailer do it right? Were there any winners? If yes, who are these winners? What is the product and firm profile of these winners? What lesson, if any, can be learned from these winners and losers? This article addresses these questions based on a study of 48 dot.com retailers, conducted in December 2000. The study identified 1–800contacts.com as the sole winner, using two performance indicators: percentage change in stock price since the initial public offering and stock options underwater. Based on a proposed conceptual framework of product and firm characteristics, the profile of 1–800contacts.com is compared with the hypothesized winner, Amazon.com, and other dot.com retailers. Implications of the study and limitations and opportunities for future research are discussed.     

消费者网上购物的信任模型及实证分析

随着网民的增加,进行网上购物的人数与日俱增,消费者对网上商店的信任备受关注。通过对以往研究文献的分析,本文提出消费者对网上商店的信任模型和9个假设,通过调查并对230个有效样本基于AMOS进行分析后,发现除法律约束力作用不显著外,商家声誉、商家规模、商家网站质量、环境趋同性、结构性保障、合作规范、交互作用都会影响消费者信任,消费者信任进而促进信任倾向的形成。此结论说明,商家可通过提高其个体能力、网站能力、系统信任机制和交互水平促进消费者的信任和积极交易。     

Why do suppliers choose wholesale price contracts? End-of-season payments disincentivize retailer marketing effort

Although theoretical work has shown that end-of-season payment contracts, which allow suppliers and retailers to share the cost of unsold inventory, increase total profit, most suppliers and retailers today still use simple wholesale price contracts. In a series of experimental studies, we show that supplier preferences for wholesale price contracts can be explained by their concern that end-of-season payments contracts will disincentivize retailer marketing effort. Moreover, suppliers’ pessimistic predictions regarding reduced retailer effort are confirmed by retailers’ reduced investment in marketing effort in our experiments. Our results suggest that for suppliers and retailers to benefit from end-of-season payments contracts, retailers should publicize their demand-enhancing marketing practices.     

Creating commitment and loyalty behavior among retailers: what are the roles of service quality and satisfaction?

As a result of weakening brand image/loyalty, little differentiation, and intense price competition, manufacturers are now increasingly pressed to ensure retailers’ shelf space and/or salesperson attention. This research contributes to the literature by empirically examining an underrepresented body of literature in the B2B context—retailer loyalty. Specifically, this study fills a gap by investigating retailer evaluations of the technical and relational dimensions of a manufacturer’s order fulfillment service quality as predictors of retailer satisfaction, affective versus calculative commitment, and ultimately loyalty behavior. Results suggest that both technical and relational order fulfillment service quality influence satisfaction, which in turn positively affects both affective and calculative commitment. By separating the affective and calculative dimensions, loyalty behavior is associated directly only with affective commitment. Further examination reveals that relational order fulfillment service quality has a direct impact on affective commitment. When the sample was split based on “share of wallet,” results suggest that satisfaction impacts both affective and calculative commitment, regardless of “share of wallet.” For “high share” retailers, the positive relationship of calculative to affective commitment creates an indirect route (through affective commitment) by which calculative commitment affects behavioral loyalty.     

浅议《零售商供应商公平交易管理办法》的症结

零售商与供应商的关系是当前最为重要的商业关系之一,在零供关系日趋紧张的情况下,维护和谐的零供关系是稳定商业秩序的当务之急。2006年《零售商供应商公平交易管理办法》旨在构建和谐的零供关系,但因其自身症结导致该规定未能很好地发挥作用。在零强供弱市场格局下,零售商与供应商之间的合作关系缺乏自觉的自我克制,正常的零供关系需要法律和政府的约束。     

零售商差价返还策略实施中竞争对手低价格的影响

差价返还策略是零售商的一种整体价格宣传策略，是零售商塑造低价格形象以吸引消费者惠顾的重要手段。通过检验零售商实施差价返还策略过程中竞争对手低价格的影响，可发现竞争对手所在范围、差价幅度及低衙潞的次教会对零售商价格形象和消费者惠顾意愿产生影响。     

网络零售商与实体零售商的价格竞争及其对市场绩效的影响研究

网络零售的迅猛发展使零售业发生了深刻变革,从而也引起了学术界的广泛关注。本文通过构建横向差异化模型,考察了网络零售商与实体零售商之间的价格竞争策略及其对市场绩效的影响。研究发现：网络零售商的服务质量、诚信水平以及网民规模,对两类零售商的价格策略选择和市场绩效的变动具有重要影响。接着,文章结合我国网络零售业的发展现实,通过典型案例分析对模型进行了检验。最后,针对我国网络零售业的发展提出了几点政策建议。