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.     

Evolution of retail formats: Past,present, and future

In this paper, the authors review current literature on retail formats and propose a new customer-centric framework for retailers to focus on as they continue to innovate and evolve. Specifically, they review the literature on how formats compare in their attributes and compete with each other; the role of customer behavior in format choice; and developments in multichannel and omnichannel retailing. They propose a framework for retail formats suggesting two paths – either reduce friction in the customer journey or enhance customer experience. They discuss the challenges faced by offline (physical store-first) and online (digital-first) retailers and elaborate on strategies each type of retailer is pursuing to address these challenges. Finally, they offer directions for future research in this domain. They conclude by calling for newer digital-first and physical-first players to continue coming up with different customer-centric formats, which they predict will slowly morph into integrated retailers, leaving space for newer players to enter the market and hence keep the wheel of retailing spinning.     

The strategic drivers of drop-shipping and retail store sales for seasonal products

Retailers that sell seasonal products face significant challenges when planning inventory assortment. The incorporation of drop-shipping into their operations, wherein suppliers own and ship products directly to consumers at retailers’ requests, has only complicated these challenges. This study investigates multichannel assortment planning of retailers that sell seasonal products. We first capture structural properties of multichannel retailing of seasonal products through a simple and parsimonious analytical model. The analytical model uncovers key seasonal product attributes that make it more attractive for retailers to allocate a product for sale in the drop-shipping channel than in the store channel. We then empirically assess the findings of the analytical model. Using a rich and unique dataset from the fashion retail industry, we test relationships between product attributes and retailers’ channel choice. The application of a generalized linear latent and mixed model controls for selection bias by jointly estimating retailers’ likelihood of allocating a product’s inventory to the drop-shipping channel and the allocated volume in each channel according to the product’s characteristics. The empirical findings suggest that retailers are less likely to drop-ship products that are colored, irregularly sized, and offered in more style variants. They also unveil cross-channel effects in terms of inventory amounts allocated for sale in each channel according to those characteristics. Our analytical and empirical assessments jointly demonstrate the complementary roles played by drop-shipping and store channels for seasonal products and offer important academic and practical implications.     

The role of the brand in driving online loyalty for multichannel retailers

Multichannel retailers offer shoppers the possibility to cross channels to complete their shopping process. Multichannel retailers, unlike pure online sellers, offer shoppers multiple contact points to experience the brand. Also, multichannel retailers can leverage the trust and attachment to their brands that has been built with their offline presence to drive customers to buy online. Our paper explores the role of the customer relationship with the brand, with variables such as brand trust, brand attachment and length of brand relationship, as drivers of loyal behaviours towards the online channel. We compare the impact of these variables with those of the technology acceptance model. Multiple linear regression analysis is applied to data collected through a survey answered by 1533 multichannel retail shoppers in two product categories (apparel and consumer electronics) in two countries (UK and Spain). Our findings show that both brand trust and brand attachment have a positive impact on loyal behaviours towards the online channel, and that different loyalty behaviours, i.e. purchase intentions, word of mouth and electronic word of mouth are explained by different variables.     

Retailing in the Transition Economies of Poland and Romania: A Comparative Analysis

This research compares and contrasts the current state of development in the retailing industry in the transition economies of Poland and Romania. Two issues examined in this research are (a) the process of market reforms and resulting developments in store-based and non-store retailing, including the competition among large multinational retail chains and small local retail stores, and (b) the structure of the retail industry in terms of market share of 17 different categories of retailers within their respective sectors, namely, grocery retailers, specialty retailers, and non-store retailers, and overall growth registered by these retailers in the last 5 years (2004–2009). Managerial implications of the findings in terms of the opportunities and challenges in different categories of retailing business in the two countries are discussed, and directions for future research are identified.     

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.     

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.     

Guest Editorial

Abstract

While some Internet-only retailers survive and prosper, for most, multichannel retailing provides a sustainable and attractive blend of new and existing retail formats. The complementary roles of stores and Internet are frequently noted, yet the renewed significance of catalogues is often ignored. This paper is based upon a survey of 2,341 shoppers across three product sectors and three shopping scenarios, identifying their relative utilization of, and attitudes towards, stores, catalogues and the Internet.

Principal component analysis and multi-attribute analysis (MAA) scores summarize attitudes across the three channels, sectors and motivational scenarios. Four major components in channel choice emerge consistently: risk reduction, product value, ease of shopping and experiential. K-Means clustering on preference and behavioural variables identifies the truly multichannel shopper segment. Key characteristics of these shoppers are summarized, demonstrating that the multichannel shopper comprises a large and mainstream segment. Implications are identified for retailers and researchers.     

The multichannel customer’s service experience: building satisfaction and trust

Multichannel retailers dominate today’s retail landscape. Practitioners and researchers are particularly interested in understanding how the multichannel strategy helps establishing and developing relationships with customers. Our findings, from 302 customers of multichannel financial services firms, show that frontline employees’ customer facilitation behaviors (traditional channel) have a stronger impact on satisfaction than e-psychological benefits (derived from the company’s Web site), while their positive influence on trust is not significantly different. Implications for theory and practice are discussed.     

Orchestrating retail in small cities

The structural transformation of retail is challenging for many small cities. Rather than seeing the retailer as a sole player, this article considers retail in small cities to be shaped in a retail eco system consisting of many different actors besides retailers such as municipalities, landlords, business/city organisations, customers/citizens. The key contribution of the article is to provide new perspectives on the challenges and management of retail in small cities by applying a metaphor from the culture and fine arts sector, orchestration. The article is based on a combination of in-depth interviews and participant observation at three small cities in Sweden. In total, 38 interviews have been conducted with representatives of retailers, municipality, business/city associations and landlords.The general aspects of retail eco system as an orchestra are presented according to Klein and Kozlowski, (2000) multilevel constructs: compiled (bottom-up), composite (top-down) and emergent (culture, history). Thereafter, a number of orchestration techniques, structured around Pine and Gilmore, 1999 dimensions of experiences are presented. The article shows that the future of retailing in small cities is not merely dependent on the retailers, but on collaborations with other retailers, landlords and municipalities. An understanding of consumer culture and development of entrepreneurship culture and networks is crucial for survival and prosperity. Furthermore, rather than copying strategies developed both in and for metropolitan areas, there is a need to build on and strengthen the characteristics of the local retail eco system and the community brand identity.     

Potential of the Internet as a Retailing Channel in South Africa

Abstract

This study examines the factors affecting retailers perceptions of the Internet as a potential retail channel. It examines the environmental factors as well as the organizational factors impacting on the potential of Internet retailing. Results are reported from 102 South African retailing chain organizations across all categories. The authors discuss the results and provide some guiding points for retailers who intend to use the Internet as a retailing channel in the future.     

Brand experience anatomy in retailing: An interpretive structural modeling approach

In today's highly competitive retail environment, retailers have recognized and embraced the concept of offering experiences with the retail brand across various channels beyond new launches and lower prices. To manage the experiences associated with a retail brand, retailers need to understand the concept of brand experience in retailing and the factors that actually comprise it. Interestingly, very few studies have imparted an understanding of brand experience in retailing. This study seeks to understand the retail brand experience and model the interrelationships among retail brand experience variables using interpretive structural modeling (ISM). Retail brand experience variables used in this study have been identified from existing literature on ‘brand experience’ and from brainstorming sessions with academicians and retail industry experts. Our findings show that the variables, namely, packaging of own label brands, customer billings, order and application forms, point-of-sales (i.e., shelf talkers) and recommendation by a salesperson have a high degree of influence and exhibit low dependence. These variables require a great deal of consideration due to their strategic significance to retailers. The approach applied in this study will enhance the understanding of retailers for improving the performance through managed retail brand experience initiatives.     

Perceived usefulness of innovative technology in retailing: Consumers׳ and retailers׳ point of view

Technology has always played important role in retailing. On one hand, technology enables retailers to improve their services to customers, to improve their management operations and reduce their cost as well. On the other hand, technology brings some benefits to consumers related to short lines at checkouts, higher speed in providing services in the store, no pricing errors, loyalty card programmes, etc. The main purpose of the paper is to discuss the benefits and limitations of technology in retailing in general. For the purpose of getting better insight into the importance of new technological solutions for retailers and consumers, different areas of technology in retailing have been explored in the selected retail context of the Republic of Croatia. The findings of the two-phase study, including a qualitative and a quantitative approach, suggest that innovative technology help consumers to make their shopping decisions, while better understanding of consumer goals and related stored information in turn would help retailers to develop successful retail strategy.     

Segmenting multichannel consumers across search,purchase and after-sales

While bricks-and-mortar stores and the Internet are dominant retailing channels, mobile and social media have rapidly emerged and challenge traditional retail models and consumer behavior. However, researchers have yet to account for how consumers integrate mobile and social channels throughout the various stages of the buying process. Using Latent-Class Cluster Analysis segmentation, we examine consumer behavior in store, Internet, mobile, and social media channels across the search, purchase and after-sales buying stages in the aggregate and specific to the clothing, holiday travel and consumer electronics categories. We find five multichannel consumer segments on the basis of perceived channel importance across the buying process, as well as psychographic and demographic characteristics. Interestingly, we find a polarization in perceived importance of mobile and social media channels, with two consumer segments rating mobile and social media channels as unimportant in the buying process. Furthermore, and compared to prior segmentations of multichannel consumer behavior, we do not find an aggregate store-focused segment. However, a store-focused segment exists in the context of buying clothing and represents 28.6 per cent of consumers. The findings show multichannel consumer preferences and behavior continues to evolve in line with new and emerging retailing channels. Further, this study confirms that there is no ‘one-size fits all’ approach to multichannel retailing.     

Perceived customer showrooming behavior and the effect on retail salesperson self-efficacy and performance

The increasing product commoditization and price transparency afforded by online retail channels have left many brick and mortar stores bearing the costs associated with being used as a physical showroom without reaping the rewards of the final sale. As customers continue to take advantage of retail stores to gather information and turn to competing channels for purchasing, the role of the retail salesperson has shifted and retailers have been left without a clear understanding of how to manage this change in the retailing landscape. In this research, we first define “showrooming” – and investigate individual (i.e., salesperson)-level experiential consequences of perceived showrooming. We find negative relationships between perceived showrooming and salesperson self-efficacy and salesperson performance, which are positively moderated by salesperson coping strategies and cross-selling strategies. Our findings suggest that the negative effects of showrooming can be combated though specific salesperson behaviors and strategies. Further, exploratory findings at the store level reaffirm a negative relationship between perceived showrooming behaviors and performance. Finally, we discuss the theoretical and practical implications of our findings and offer specific managerial actions to address showrooming.     

From Multi-Channel Retailing to Omni-Channel Retailing: Introduction to the Special Issue on Multi-Channel Retailing

The world of retailing has changed dramatically in the past decade. The advent of the online channel and new additional digital channels such as mobile channels and social media have changed retail business models, the execution of the retail mix, and shopper behavior. Whereas multi-channel was in vogue in the last decade in retailing, we now observe a move to so-called omni-channel retailing. Omni-channel retailing is taking a broader perspective on channels and how shoppers are influenced and move through channels in their search and buying process. We discuss this development conceptually and subsequently discuss existing research in this multi-channel retailing. We also introduce the articles in this special issue on multi-channel retailing and position these articles in the new omni-channel movement. We end with putting forward a research agenda to further guide future research in this area.     

Strategic supply chain choices for multi-channel Internet retailers

Multi-channel retailing—selling through multiple, distinct channels—has been a part of the retail industry as long as there have been main street merchants selling through catalogs. Since the mid-1990s, however, multi-channel retailing has increased dramatically due to traditional retailers selling over the Internet. This trend presents considerable operational challenges because Internet and traditional retail have vastly different demand drivers, product variety issues, optimal inventory configurations, cost structures, supply chain structures, and delivery mechanisms. Consequently, the optimal supply chain configuration for Internet delivery differs considerably from the optimal supply chain configuration for a retail store structure, so designing a supply chain system to serve both channels well is difficult. Accordingly, a set of strategic choices and trade-offs must be made. Here, we present some strategic alternatives.     

“互联网+”还是“回归实体”？——消费模式与零售企业战略选择

互联网与移动互联网技术迅速发展，带动了许多实体零售企业投身于电子商务的创新实践，但也不乏亚马逊、阿里巴巴等网络零售企业通过投资、并购等方式积极涉足实体零售企业。文章试图解释企业进行不同战略选择的原因，采取“互联网+”或是“回归实体”的依据。在分析互联网对零售企业影响的基础上，文章建立了包括消费者与零售企业在内的一般均衡模型，分析了消费者选择不同零售企业的依据，以及零售企业的应对之策。分析结果表明，消费者在不同零售商店的相对支出比例取决于零售商店提供服务组合的相对效率。因此，基于“有限商圈”与“有限品类”的经营战略成为企业扩大销售收入的关键，现网络零售与实体零售战略选择本质上可以归纳为品类专业化与区域专业化之间的收益比较。     

互联网对零售企业经营能力的影响

在电商零售发展的背景下,越来越多的实体零售企业增加了电商销售渠道。基于2001-2017年47个零售上市公司的数据,文章运用双重差分模型（DID）,选取了存货收入比与固定资产收入比作为衡量零售企业经营能力的指标,估计了增加电商零售渠道对二者的影响。研究发现：（1）增加电商渠道能够显著降低12%的零售企业库存收入比,提高零售企业的经营能力,该影响具有持续性与递增趋势,且商超类企业改善程度更高;（2）互联网并没有显著影响零售企业的固定资产收入比,说明大型实体零售企业大多采用的是商店与电商渠道共同发展的双渠道策略。研究结果说明互联网有利于零售效率提升,且应该注重电商-商店融合的双渠道新零售业态-构建。     

Going liquid: French food retail industry experiencing an interregnum

ABSTRACT

By calling the present condition of the French food retail industry an interregnum, this research considers the impact of liquid modernity on this sector and looks for signs of a new order at a designing stage. Nine experts representing large retailers and entrepreneurs using alternative modes of food retailing were interviewed. An interpretive analysis reveals a wide diversity of changes. Following Bauman’s liquid metaphor, we identify shock, transformations, and crisis in food retailing, which we describe as phases that mark the dynamics in the shift from solid to liquid retailing. We discuss how retailers are adapting and deploying tactics both to respond and belong to these liquid times and how retailers can regain some legitimacy by claiming a role in territorial sovereignty.