Mobile Shopping Through Applications: Understanding Application Possession and Mobile Purchase

Smartphones have penetrated rapidly and mobile shopping provides promising market opportunities for retailers. However, little is known about mobile shopping patterns and inferring these patterns from online shopping may provide misleading insights. We combine mobile log data and a mobile panel survey, and examine two stages in mobile shopping: the possession of shopping applications (hereafter, apps) and the purchase via shopping apps. Our exploratory investigation of mobile data and its empirical analyses provide three substantive findings. First, online experience and mobile experience both positively relate to the possession of shopping apps. Second, browsing behavior for non-shopping apps helps understand the possession of shopping apps as it reflects user preferences for acquiring more apps. Third, purchasing decisions are explained by digital experience (i.e., online experience and mobile experience) and browsing information from shopping apps, with other factors being of little predictive value. The implications for mobile retailing research and practice are discussed.     

Online and offline retailing: What we know and directions for future research

The fast-paced growth of e-commerce is rapidly changing consumers’ shopping habits and shaping the future of the retail industry. While online retailing has allowed companies to overcome geographic barriers to selling and helped them achieve operational efficiencies, offline retailers have struggled to compete with online retailers, and many retailers have chosen to operate both online and offline. This paper presents a review of the literature on the interaction between e-commerce and offline retailing, highlighting empirical findings and generalizable insights, and discussing their managerial implications. Our review includes studies published in more than 50 different academic journals spanning various disciplines from the inception of the internet to present. We organize our paper around three main research questions. First, what is the relationship between online and offline retail channels including competition and complementarity between online and offline sellers as well as online and offline channels of an omnichannel retailer? Under this question we also try to understand the impact of e-commerce on market structure and what factors impact the intensity of competition /complementarity. Second, what is the impact of e-commerce on consumer behavior? We specifically investigate how e-commerce has impacted consumer search, its implications for price dispersion, and user generated content. Third, how has e-commerce impacted retailers’ key managerial decisions? The key research questions under this heading include: (i) What is the impact of big data on retailing? (ii) What is the impact of digitization on retailer outcomes? (iii) What is the impact of e-commerce on sales concentration? (iv) What is the impact of e-commerce and platforms on pricing? And (v) How should retailers manage product returns across online and offline channels? Under each section, we also develop detailed recommendations for future research which we hope will inspire continued interest in this domain.     

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.     

Uncovering consumers’ returning behaviour: a study of fashion e-commerce

Abstract

The increasing prominence of e-commerce is shaping the nature and dynamics of retailing. E-commerce offers consumers lower prices, wider product categories and a more convenient shopping experience. In addition, consumers seek ways to manage the risk that is often perceived when making purchases online, which is why retailers’ online return policies have become an increasingly important attribute through which companies compete. Lenient return policies fuel unnecessary ordering and increase return rates, which in turn has major implications both for consumer behaviour and for managing the increasingly complex ecological and economical issue of online returning. Despite its relevance, prior research has paid limited attention to this evolving phenomenon. Consequently, the purpose of this study is to explore and analyse online returning behaviour in the context of fashion merchandise. As a result, 10 categories of online returning behaviour are identified that capture the reasons why consumers actually return items they have ordered online. These categories are further linked with when the decision to return ordered items emerges. Based on the results, managerial implications are provided to give guidance in managing online returning behaviour.     

The evolving role of hit and niche products in brick-and-mortar retail category assortment planning: A large-scale empirical investigation of U.S. consumer packaged goods

Long tail theory, the notion that the future of retailing could involve shifting product assortments to offer more product variety to precisely serve the unique needs of individual customers, has largely been proven true in the context of online distribution. However, it has been implicitly assumed that this theory does not apply to brick-and-mortar selling situations due to higher supply side inventory costs and higher demand side consumer search costs. Academics and practitioners alike have thus advocated for the use of Pareto rules to make category assortment planning decisions about product inventory breadth and depth in the brick-and-mortar channel. This research directly challenges this received wisdom by noting that the widespread prevalence and use of mobile technology is causing information flows to speed up for consumers even while performing traditional shopping tasks. Such information flows should theoretically favor the strategic importance of niche products in the long tail of the sales distribution. A large-scale empirical analysis of consumer packaged goods brick-and-mortar retailing data indicates that this alternative prediction is indeed true. This research contributes to a larger body of research as well that has documented how major environmental forces are shifting the nature of retail strategy, particularly in the brick-and-mortar channel.     

Shopping mall retailing: A bibliometric analysis and systematic assessment of Chebat's contributions

Shopping malls are unique retail environments offering individual consumption experiences within a holistic retail ecosystem. Drawing on a bibliometric analysis and a systematic review of 31 articles, this research synthetizes Jean-Charles Chebat's contributions to the shopping mall literature. Findings highlight four core clusters of the shopping mall literature, namely spatial wayfinding, atmospherics, consumer differences across shopping mall experiences, and shopping mall consequences. The newly developed Shopping Mall Experience Framework extends Chebat's research proposing additional elements of interest for current mall retailing research. Managerial implications offer practical guidance on successfully designing and maneuvering shopping malls of the future.     

The impact of digital transformation on the retailing value chain

Consumers have traditionally made purchase decisions at the store shelf, giving institutional brick-and-mortar retailers great power to learn about and influence behaviors and preferences. With the rise of e-commerce, mobile shopping, and most recently smart technologies, new competitors threaten this long-standing supremacy. Adopting a value-creation perspective, we analyze how digitization started the erosion of institutional retailing as the primary interface to the customer. We develop a framework that identifies five new sources of value creation and propose how these advance and transform competition for this interface. Depending on the importance of the new sources of value creation (in different purchase situations), stationary retailing may prevail as an important interaction point in a multichannel decision journey. However, increasing diffusion of branded-product platforms including connected devices and online retail platforms is shifting this authority to new players. For the parties involved in this multilayered competition, acknowledging the changes and actively managing their position in the evolving eco-systems is crucial.     

Text mining approach to explore determinants of grocery mobile app satisfaction using online customer reviews

In recent years, there has been proliferation of grocery mobile apps as grocery shopping on mobile has found increasing acceptance among customers accelerated by multiple factors. Maintaining high level of customer satisfaction is important for grocery mobile apps in the highly competitive app market. Online reviews have been a rich source of information to analyze customer satisfaction with a product or service. This paper explores the determinants of customer satisfaction for grocery mobile apps using online reviews. Latent Dirichlet Analysis (LDA), which is a text mining technique, is used to analyze online customer reviews of 27,337 customers to identify determinants of customer satisfaction. The determinants identified were further analyzed using a series of analysis to understand the importance of each determinant. Dominance analysis examined the relative importance of the determinants of customer satisfaction based on the overall rating. Correspondence analysis identified determinants which cause satisfaction separately from the determinants which cause dissatisfaction. The results from this study will provide insights to business managers of grocery mobile apps for decision-making on customer satisfaction management.     

Understanding the intention to use mobile shopping applications and its influence on price sensitivity

This study employs an extended technology acceptance model (TAM) and the theory of diffusion of innovations (DOI) to understand the intention to use mobile commerce applications for shopping purposes. The variables—perceived enjoyment, perceived risk and personal innovativeness—were added to the original model. The price sensitivity criterion was predicted using the variables—perceived risk, personal innovativeness, satisfaction and the intention to use. An online questionnaire was circulated nationwide through email to verified e-commerce users and a sample of 675 respondents was taken for analysis through structural equation modeling approach. Gender, experience and frequency of using mobile shopping applications were used as moderators for all relationships. Findings of this study reveal that personal innovativeness and perceived risk play a major role in deciding the intention to use mobile shopping applications. Users who are highly innovative and with a higher intention to use mobile shopping applications are less sensitive to price. Various managerial implications including applications to differential pricing, improving adoption pace and segmenting consumers to design marketing strategies are discussed.     

The ‘online high street’ or the high street online? The implications for the urban retail hierarchy

The U.K. has the greatest proportion of online sales in Europe. This study seeks to explore the differential effects of online retailing on the (evolving) hierarchy of shopping centres by examining current trends and underlying forces. The overall objectives of the paper are to qualify and explore the influence of online retailing in the decision-making processes of leading retailers today; and to assess how virtual influences become manifest in the tangible built environment and have impacted the retail hierarchy? It differentiates online retail trends by sector and retailer size, and examines the consequences for different types of shopping centres. The empirical research is based on the changing location of stores of a major fashion retailer and interviews with three of Britain’s leading retailers that have seen the more substantial increase in online turnover in recent years. Major retailers are found to have integrated online offerings, such as click and collect, into a ‘multi-channel’ retailing approach. Online retailing has therefore become an inherent and central element within large retailers’ business and therefore real estate strategies, with considerations such as online marketplace penetration and possible ‘cannibalisation’ coming to the fore in decision-making about store location. Online retail sales are, to a degree, drawing sales away from shopping centres but its impact on the existing shopping hierarchy is largely to reinforce established long-term trends driven by the motor age and the shift to out of town retailing. This is symbolised by the largest ‘high street’ fashion retailer now having more branches in retail parks than town centres. Out of town shopping centres for example are benefitting because of the ease of goods collection offered by these locations.     

Investigating the impact of shopper personality on behaviour in immersive Virtual Reality store environments

The increasing availability of immersive Virtual Reality (VR) hardware in private households has opened up significant opportunities for innovations in online retailing. Online retailers can develop realistic, albeit simulated, three-dimensional retail environments that use immersive elements to create a more exciting online shopping experience. Nevertheless, to date, very little is known about how observed shopper behaviour in immersive VR store environments compares to existing knowledge in the physical or other online retail research literature. To that end, this paper focuses on human personality traits and whether these translate to familiar observations of in-store shopper behaviour. Specifically, the research examined the ‘Big Five’ personality traits – agreeableness, conscientiousness, extraversion, neuroticism, and openness to experience, and their impact on purchase behaviours such as product inspection time, proportion of private label purchases, and impulsive buying. It is further investigated how the purchase behaviours impact the outcomes of the shopping trip. The results revealed a variety of expected relationships between purchase metrics and the outcomes of the shopping trip; however, in stark contrast to the findings of extant studies, shopper personality did not show any impacts on the investigated purchase behaviours. Further research is needed to determine whether this failure to replicate past studies of shopper personality was, in fact, due to differences in the store environment or rather due to the moving from survey-based method of shopper data collection to naturalistic observation. Nonetheless, this finding has important implications for e-retailing strategies and market research practices.     

Sociodemographic and spatial disaggregation of e-commerce channel use in the grocery market in Great Britain

The UK Grocery e-commerce industry is amongst the most developed in the world with an estimated value of £11.4Billion in 2018. Assisted by technological developments, the market has experienced dramatic growth over the past two decades. Grocery retailers have invested in online infrastructure and home delivery networks. As a result, consumers have a range of options which enable them to shop interchangeably between in-store and online channels. The proliferation of new grocery shopping channels such as home delivery or ‘click and collect’ (collect in store or collection from a non-store collection point), coupled with changing consumer behaviour, provides new challenges for retailers in understanding consumer dynamics in this market. This paper explores consumer behaviour and preferences for e-commerce in the grocery retail industry in Great Britain (GB) using a survey of 19,033 respondents from the major market research company YouGov. Respondents were asked a range of questions around uptake and channel usage in the grocery e-commerce sector. The survey presents a novel opportunity to analyse self-reported consumer behaviour in GB, with survey responses attached to key sociodemographic and locational information. We find that sociodemographics are an important driver of groceries e-commerce usage and channel choice, with females, more affluent households and those in the 25–44 age group most likely to use home delivery, corroborating previous research. Contrasting previous research, we also find statistically significant evidence of relatively high values of home delivery use among over-55s. Whilst overall usage is lower, we find a particular affinity to collection facilities among males and skilled manual workers. Spatially, we find evidence of both the innovation-diffusion theory and the efficiency theory at both a national and local authority district level, using a brief case study of Yorkshire and the Humber. These insights can support grocery retailers as they further develop costly localised infrastructure to support e-commerce. It could also assist retailers in understanding the localised drivers of channel choice as they seek to shift demand from home delivery (with high costs faced by the retailer in relation to the ‘last mile’) to click and collect (in which the customer faces the costs associated with the last mile).     

Gender differences in the linkage of online patronage behavior with TV-and-online shopping values

The main purpose of this study is to investigate gender differences in the linkage of online patronage behavior with multi-channel shopping values in context of TV-and-online retailing. Data collected from 226 respondents in Taiwan are tested against the research model using the partial least squares (PLS) approach. The empirical result shows that utilitarian and hedonic TV shopping values have indirect positive effects on consumer online patronage intention through their associated online counterparts. Additionally, both utilitarian and hedonic TV shopping values are found to influence their associated online counterparts more strongly for men than for women. The findings of this study provide several important implications for the research and practice of multi-channel retail service.     

基于信任的移动社交电子商务购买意愿影响因素

近年来,越来越多的个体、商家加入移动社交网络平台开展电子商务活动,对网络零售产生了重要影响。但由于缺乏监管和行业规范的引导,消费者感知风险存在,影响消费者交易行为,且理论研究较少,也不能为此类电子商务模式的发展提供理论指导。信任是电子商务活动的基础,信任对消费者购买意愿产生直接影响,平台可用性、消费者内在特征和行为以及商家会直接或间接影响非移动社交电子商务模式消费者的购买意愿。而在移动社交电子商务中,由于其模式的独特性,以往影响消费者信任的因素已难以有效反映移动社交电子商务消费者的购买意愿。此外,商家通过社群与若干消费者建立不同程度的连接,需要研究连接中强弱关系对消费者购买意愿的影响程度。因此,基于移动社交电子商务的特点假设影响消费者信任和购买意愿的因素,即除系统质量、信息质量、产品质量、服务质量四个影响非移动社交电子商务消费者信任的因素外,还包括社群关系和网购认知这两个影响移动社交电子商务消费者信任的新因素,接下来假设上述因素对消费者感知信任和感知风险两个中介变量存在影响,并进一步影响消费者购买意愿,继而再通过构建结构方程模型进行实证分析。实证结果显示,系统质量、信息质量、产品质量、服务质量均不同程度正向影响消费者感知信任,负向影响感知风险,而社群强弱关系对购买意愿的影响与弱关系理论结论相反,网购认知对增强消费者感知信任作用明显,消除消费者感知风险是增强消费者信任的重要途径。     

Effects of perceived interactivity of augmented reality on consumer responses: A mental imagery perspective

As the use of technological features is becoming more common in digital retailing, retailers have adopted augmented reality (AR) solutions to help consumers browse their products. This study examines dimensions of perceived interactivity after experiencing shopping with AR and investigates the relationships between perceived interactivity and mental imagery and between mental imagery and other consumer responses in a mobile shopping context. A total of 302 female online consumers in South Korea participated in a survey. After shopping cosmetic products with the AR function in a mobile app, participants completed the questionnaire. The findings reveal that the controllability and playfulness dimensions of perceived interactivity influence mental imagery, which, in turn, affects consumers' attitudes toward a product and their behavioral intentions. The relationship between perceived interactivity and mental imagery differs based on an individual's involvement level. These results provide practical insights for digital retailers in creating effective mobile shopping environments.     

The effect of COVID-19 on consumer shopping behaviour: Generational cohort perspective

The purpose of this research is to contribute to an understanding of the trends and impacts of the COVID-19 pandemic on consumer buying behaviour. The results document changes in consumer behaviour patterns that came to dominate at the start of the second wave of the COVID-19 pandemic in the context of the Czech Republic. The questionnaire survey using an online panel in a selected country was conducted to identify how consumers from the Baby Boomers, X and Y generations changed their shopping behaviour and which needs they gave preference to during the pandemic crisis in relation to their fears. Using a multiple regression analysis, we demonstrated that fear appeal (fears for health and economic fears) are associated with the changes in customer behaviour and influence traditional and online shopping related to COVID-19. The findings demonstrate significant differences as well as similarities in consumer behaviour between generations. Through empirical investigation, this research supports and expands generation cohort theory in relation to changes in consumer behaviour during the Covid-19 pandemic from a Central European perspective, and provides useful information for researchers and practitioners, particularly for retailers and marketers, to implement appropriate strategies.     

Virtual store layout: an experimental comparison in the context of grocery retail

Interface design and the interaction between customer and computer are factors critical to business effectiveness over the Web. A key aspect of conventional retailing is store layout; an analogous aspect in virtual retail is virtual store layout. This paper reports on an experimental investigation into the use of three different layouts in online grocery retailing: freeform, grid, and racetrack. These three most common conventional retailing layout types were transformed into virtual layouts for computer-mediated interfaces. Subjects in Greece and the UK participated in a laboratory experiment: they were given a planned shopping task with money to spend, and performed their shopping through a virtual store with layout as the manipulated variable. The results show that layout significantly affects online consumer behavior, but that predictions generated from the literature of conventional retailing about differences in the outcome of layouts do not generally hold in a virtual setting. Some of the findings can be explained by reference to research in Human Computer Interaction (HCI).     

Examining consumers' continuous usage of multichannel retailers' mobile applications

This paper examines the variables influencing a consumer's satisfaction and continuous use of a multichannel retailer's mobile application. Drawing upon the Expectation Confirmation Model for Information Technologies, post-adoption literature, and consumer behavior literature, we assess pertinent factors on the continuous usage of multichannel retailers' mobile apps. Through a sample of 1009 consumers who retained a retailer's mobile app for more than 6 months and conducting Structural Equation Modelling, the findings illustrate that utilitarian variables (perceived usefulness, ease of use, and personalization), hedonic variables (perceived enjoyment), and a brand-related variable (consumer loyalty intention toward the retailer's brand), play a significant role in influencing continuous usage of multichannel retailers' mobile apps. In contrast to e-commerce research, the study outlines that escapism plays a negative role in both consumer satisfaction and intention to continue to use a multichannel retailer's mobile app. Previous research points to the fact that consumers' retention of retailers' apps is low. This paper contributes to the emerging literature on consumers' continuous use of retailers' mobile apps through enhancing our understanding of technology and non-technology-related variables.     

网商发展策略研究

随着网络零售逐步大众化、消费者越来越习惯于网络购物,从而形成强大的购买力和依赖性,极大促进了区域内网商数量的迅猛增长,同时,网商群体中已经涌现出大量成功的明星网商。分析网商发展过程中存在的问题,研究网商的发展策略,有助于网商选择正确的发展方向,从而实现网商规模从个人发展到企业,从单个企业发展到电子商务集群产业,再从电子商务集群产业上升到到国家竞争力的提升。     

Online shoppers in Australia: dealing with problems

Although the Internet is a convenient platform to conduct commercial transactions, consumers are disadvantaged in the online marketplace due to insufficient information about goods and services as well as business and transaction process, lack of access to redress and several other problems. The number of complaints regarding online transactions increased in Australia from 2001 to 2005, and the number of Internet‐fraud related complaints reported to Consumer Sentinel (USA ) also increased from 2003 to 2006. This, in turn, has undermined consumer trust and impeded the growth of e‐retailing as well as added to the fear among e‐consumers of falling prey to online fraud. In spite of this, the nature and effectiveness of e‐consumer protection has not been adequately studied, notwithstanding extensive research into other aspects of e‐retailing. This article examines (i) the level of awareness of the respondents in the survey in Australia of the current policy framework for addressing consumer protection about online shopping in terms of redress; and (ii) the behaviour of the two groups of respondents in this survey who have and have not encountered problems with online purchases. The findings suggest that most respondents are not aware of the following issues, namely (i) which organizations are involved in e‐consumer protection; (ii) government regulations and guidelines; (iii) industry codes of conduct; (iv) self‐regulatory approaches adopted by business; and (v) the activities of consumer associations to protect consumers in the online marketplace. The findings also show that most respondents would seek redress if they were unhappy with their online purchases and if they knew how to proceed, and that most of them would settle disputes directly with e‐retailers. Also, online shoppers who had encountered problems were more likely to continue purchasing via the Internet than online shoppers who had not encountered any problems. This suggests that respondents find that the benefits offered by e‐retailing outweigh the risks associated with it.