Crafting Integrated Multichannel Retailing Strategies

Multichannel retailing is the set of activities involved in selling merchandise or services to consumers through more than one channel. Multichannel retailers dominate today's retail landscape. While there are many benefits of operating multiple channels, these retailers also face many challenges. In this article, we discuss the key issues concerning multichannel retailing, including the motivations and constraints of going multichannel, the challenges of crafting multichannel retailing strategies and opportunities for creating synergies across channels, key retail mix decisions facing multichannel retailers, and the dynamics of multichannel retailing. We synthesize current knowledge drawn from the academic literature and industry practice, and discuss potential directions for future research.     

Categorization of multiple channel retailing in Multi-, Cross-, and Omni‐Channel Retailing for retailers and retailing

Business experts have enthusiastically projected a seamless, retail world where customers can shop across channels, anywhere and at any time. This type of multiple channel retailing is often referred to as Omni-Channel Retailing. Within academia, by contrast, there have been proportionately fewer attempts to systematically categorize the diversity of multiple channel retailing that currently exists. Hence, the concepts Multi-, Cross-, and Omni-Channel are used indistinctly. This article proposes a categorization of Multi-, Cross-, and Omni-Channel Retailing for retailers and retailing by means of a literature review, a taxonomy of multiple channel retailing, a literature classification table, and by way of illustration, a mobile Click and Collect shop.     

Analyzing channel choice: Direct and indirect e-Tourism distribution

ABSTRACT

An increasing number of tourism service providers are involved in multichannel operations, combining online direct and indirect channels. Service providers and intermediaries need to know what drivers lead consumers to purchase on both channels in order to discover their own potential for differentiation and develop appropriate strategies. This research presents and tests a distribution channel choice model applied to data obtained by a survey aimed at online tourism purchasers. Not surprisingly, the results find that the Internet mitigates the differences between direct and indirect online channels from the demand perspective. Only one variable, information provided, has a positive effect on the choice of the direct channel, while two variables, assortment and basket size, have a positive effect on the choice of the indirect channel.     

Equilibrium in supply chain network with competition and service level between channels considering consumers' channel preferences

This paper considers a dual-channel supply chain network consisting of multiple competing manufacturers, multiple competing retailers and multiple demand markets. Each manufacturer produces and distributes his products via direct e-commerce channel along with traditional physical channel. The manufacturers also provide services for the consumers in both channels, while the retailers only offer offline services to the consumers. On this basis, a dual-channel supply chain network equilibrium model with pricing and service decisions are established based on variational inequality theory. Nash equilibrium solutions are obtained by modified projection and contraction method. Combined with numerical examples, we analyze the impact of three critical factors on the equilibrium states and profits. Some interesting managerial insights are derived. We find that the profits of the manufacturers decrease (increase) in the raw material conversion ratio under single channel case (dual-channel case), while the increase of the raw material conversion ratio always benefits the retailers and the whole dual-channel supply chain network; the service level in each channel is positively correlated with its transaction volume. There are significant inconsistencies among the best combinations of cross-channel price coefficients between two channels for the manufacturers, the retailers and the whole dual-channel supply chain network. The same equilibrium decision (service level, price) or profit may exhibit the opposite changing trend with respect to cross-channel price coefficients under two cases of active e-commerce transaction and inactive e-commerce transaction. When the introduction of e-commerce channel can bring more profits for the whole dual-channel supply chain network, the manufacturers should provide reasonable allocation schemes of profit increment for the retailers to satisfy their participation constraints.     

Mapping Out the Customer's Journey: Customer Search Strategy as a Basis for Channel Management

Many companies tailor their communication and interaction with customers by segmenting them into channel usage groups. This study argues that simply focusing on channels has limited effectiveness as increasingly customers today use multiple channels, the online channel contains many different forms, and channels are increasingly blended. We have identified several search strategies that reveal how customers find their way through a multichannel landscape during the various phases of a purchase. By explaining channel usage through these “search strategies,” we propose a clear and intuitive model that will support companies developing an effective multichannel strategy.     

Managing International Distribution Channel Partners: A Cross-Cultural Approach

Although the topic of conflict has been extensively studied in the distribution channels literature from a domestic perspective, there is relatively little published research examining the construct within the international distribution channels context. This is of particular concern because cross-national channel partnerships are on the rise, and divergent cultures may engender heightened conflict, which has a deleterious effect on channel performance. This article explores the extent to which different channel leadership styles, predicated on Hofstede's dimensions of national culture, can be effective strategies to manage conflict in international distribution channels. Specifically, the article examines whether the relationship between leadership style and conflict in international distribution channels is moderated by national culture. Additionally, the impact of manifest conflict on international channel partner performance is investigated. A conceptual model and research propositions are developed. The use of leadership styles to manage disagreements among international channel partners is argued to be culturally specific. International channel management implications and directions for future research are suggested.     

Evaluating strategies for promoting retail mobile channel using a hidden Markov model

With the proliferation of mobile communication technology, many firms, including retailers and consumer banks, are making efforts to develop mobile platforms to better engage with their customers and reduce operational costs. However, the cost advantage of these mobile technologies will not yield fruition unless the mobile channel accounts for a significant share of total transactions. In this article, we explore potential options for firms to promote usage of the mobile channel. To achieve this, we propose a hidden Markov model to both model customers’ decisions and assess different managerial strategies through simulations. While we apply our proposed model to data from a leading financial institution, our approach is equally applicable to other retail settings. The results show that customers’ choices of services and channels are sensitive to process time by type of channel. A 10% increase in process time through non-mobile channels leads to a nearly 14% increase in utilization of mobile banking channel. Therefore, retailing firms could potentially influence customers’ choice of different channels by changing channel-specific process times. Motivated by these findings, we present and compare performances across five different policies, in promoting the usage of mobile channel. Drawing on our simulation results, we also make personalized policy recommendations to firms facing different levels of financial constraints. For those with financial constraints, we recommend a policy of increasing process time for a selected subset of service requests through non-mobile channels. Firms not constrained by the resources might be better off improving process time with the mobile channel by targeting customers identified as having a better relationship with the firm.     

Evaluating channel performance in multi-channel environments

Evaluating channel performance is crucial for actively managing multiple sales channels, and requires understanding the customers’ channel preferences. Two key components of channel performance are (i) the existing customers’ intrinsic loyalty to a particular channel and (ii) the channel's ability to attract switching customers. We apply the Colombo and Morrison (Colombo, R., Morrison, D., 1989. A brand switching model with implications for marketing strategies. Marketing Science 8, 89–99) model to assess channel performance along these dimensions. Using data from a large home-shopping company, we analyze the evolution in the performance of its main channels over time, and test for differences in channel performance among different product categories offered by the company, as well as between different customer segments. Based on the results, we derive implications for managers to operate a company's multiple sales channels more effectively.     

Consumer response to marketing channels: A demand-based approach

Abstract

Marketing channels have faced rapid structural and functional transformations during the last few decades. While a large body of research has been devoted to understanding the supply-side aspects of marketing channels, much less research has taken the demand-side perspective to study consumer perception of channel position and functions. This article extends the channel literature to a broader domain and develops a consumer-based theoretical framework reflecting factors that influence consumer perception of and reaction to channel strategies and decisions. The authors conceptualize that consumers’ perceived channel value is a critical factor in determining their loyalty behavior. Seven important channel features are identified that would positively influence the perceived channel value. The relationship between perceived channel value and channel preference is strongly dependent on the level of customer value co-creation. The article concludes with research implications and suggestions of avenues for future research.     

Rethinking Catalogue and Online B2B Buyer Channel Preferences in the Education Supplies Market

The purpose of this study is to better understand B2B paper-based catalogue and online buying channel determinants in the education supplies sector by identifying factors that are critical in determining buyer channel preferences. A conceptual model was developed and empirically tested using self-report survey data from 316 B2B New Zealand educational institutions and analyzed with Hayes PROCESS macro (SPSS). The findings indicate that catalogue is the preferred channel for B2B educational buyers. The most important determinant of channel preference is channel experience. The catalogue and online channels appear to be less substitutable in B2B markets then proposed by B2C market studies. Structural assurance (trust, security, safeguards, and robustness) is a significant predictor of general channel satisfaction, and online channel preference, but not catalogue channel preference. The study results benefit practitioners in the development and implementation of channel strategies by providing a better understanding of the factors that determine online and catalogue channel preference in B2B markets. This study is the first to empirically demonstrate the influence and importance of structural assurance in catalogue channels, while channel experience supported by structural assurance significantly influences online channel choice. These findings indicate that determinants of channel preference found in B2C studies cannot be uncritically transferred to the B2B domain. The research also suggests that existing B2B channel adoption and preference drivers are different from B2C, and B2C research is not necessarily applicable in the B2B context.     

Multi-channel store image and the effects on purchase intention

Consumer practices of purchasing goods and services through multiple channels versus a single channel have become common and reflect a change in purchase behaviours. This study identifies six dimensions of the multi-channel store image and proposes that they have positive effects on purchase intention and consumer characteristics moderate the relationship. A survey questionnaire was developed and administered to shoppers of two bookstores in Taiwan. A structural model tested the direct effects of the multi-channel store image on purchase intention, and that the moderating effects of consumer characteristics. The results suggest that four of the six dimensions – financial concern, psychosocial concern, time and convenience, and usefulness influence purchase intention. Consumer characteristics (age, gender, education, occupation) did not moderate the relationship.     

Linking multi-channel customer behavior with shopping motives: An empirical investigation of a German retailer

Operating multiple channels, in store as well as non-store, allows a retailer to cater to the different shopping motives of its customers. This research into the buying behavior of 525 customers of a multi-channel retailer that operates five channels in Germany shows that most customers use only one channel within a buying process, selecting the channel that best satisfies their shopping motives in each situation. Based on exploratory qualitative and quantitative research, this study identifies five shopping motives: “recreational orientation”, “convenience orientation”, “independence orientation”, “delivery-related risk aversion” and “product- and payment-related risk aversion”. In the majority of the store channels examined in this study (chain stores and bakeries), single-channel users primarily look to satisfy emotional and social needs. Single-channel users of non-store channels (catalogue and online-shop) look for convenience and strive for independence. Multi-channel users, who obtain their information from the online-shop and then make their purchase in the chain store, are combining the independence of online-shop information with the reduction of risks associated with buying products in the chain store. These findings can be used to develop recommendations for managing the individual channels.     

'One brand,three ways to shop': situational variables and multichannel consumer behaviour

To counter the growth in online retailing, high street retailers are increasingly adopting multichannel distribution strategies, seeking to target individual consumers via both physical and electronic channels as multiple routes to purchase. In order to develop successful marketing strategies within this environment, however, an understanding of consumer selection between available purchase channels is clearly needed. This paper explores the issue of shopping mode selection from an environmental psychology perspective, applying a traditional Belkian analysis of situational variables in a longitudinal study of consumer channel selection decisions. Preliminary findings from an empirical study of consumers of a leading UK fashion retailer are reported which reveal significant differences in the prevalence of different Belkian variables between shopping modes, suggesting a major role for situational influence during the channel selection process.     

服务企业全球营销战略内部驱动因素实证研究——以我国高端服务企业的实证检验为例

文章通过对全球服务营销战略表现及其内部驱动因素测度指标的设定,检验了它们之间的关系,发掘了对全球服务营销战略表现起重要作用的各个内部驱动因素及其在重要性上的差异度,为我国服务企业在全球化进程中,应抓住哪些关键性的全球营销战略内部驱动因素,更好地发挥各个内部驱动因素的作用提供了理论依据。文章还提出了一些培育、构建这些内部驱动因素的理论建议。     

Why Do We Buy Traditional Foods?

Consumer behavior toward traditional specialties varies according to the cultural context of consumption. It thus becomes crucial to develop marketing strategies that target segments with different levels of familiarity with food. Our article purposes to analyze the purchase drivers of traditional foods known to consumers because of their reiterated consumption. The importance of the product’s attributes, the purchasing motivations, and the information channels are studied by applying the CUB model, which utilizes a probabilistic structure that simulates the individual’s psychological mechanism in adopting a choice of preference. The case study is that of extra-virgin olive oil in Italy, where this product is a fundamental element of the culinary tradition. The results show that in the ambit of traditional specialties, in contexts of elevated familiarity, the traditional information channels of marketing are less effective and call for strategies based on a more direct connection between consumer and producer.     

Group Consensus: The Impact of Multiple Dialogues

The research results on group consensus have been ambiguous within the field of Group Support Systems (GSSs). Some research studies have shown that groups using multiple communication channels produce more ideas, and more unique ideas than groups using a single communication channel. In addition, a second set of research findings have shown that groups using GSSs report group members hold less consensus with the group's decision. This research studies more closely how these two characteristics; communication channel and consensus, interact. Specifically, can less consensus be a function of the choice of channels used in problem solving. The results show that groups using a single communication channel generate more actual consensus than groups using multiple communication channels. Furthermore, the single channel discussions provide more integrative comments and these integrative comments may help explain the difference in consensus. These results suggest that those striving for consensus from group members should consider production methods used to create the information that is to be used in the decision.     

Channel design,coordination, and performance: Future research directions

The marketing literature has made significant progress toward a better understanding of how firms can effectively design and manage their channels of distribution. However, the complexity of today’s channel systems raises additional issues that remain unaddressed. The purpose of this article is to suggest promising research directions in this domain. We suggest several possible avenues to relate multiple channel design and management to channel-system, channel-relationship, and customer-level outcomes. In particular, we see a great opportunity to integrate multichannel customer management and traditional channel design research. We argue that future research should account for cross-level effects and incorporate variables at more than one relationship level.     

Evaluating single sign-on security failure in cloud services

Business use of cloud computing services is motivated by ease of use and potential financial cost reductions. Service failure may occur when the service provider does not protect information or when the use of the services becomes overly complex and difficult. The benefits of cloud computing also bring optimization challenges for the information owners who must assess service security risks and the degree to which new human behaviors are required. In this research, we look at the risk of identity theft when ease of service access is provided through a single sign-on (SSO) authorization, asking: What are the optimal behavioral expectations for a cloud service information owner? Federated identity management provides well-developed design literature on strategies for optimizing human behaviors in relation to the new technologies. We briefly review the literature and then propose a working solution that optimizes the trade-off between disclosure risk, human user risk, and service security.     

The Evolution of Marketing Channels: Trends and Research Directions

Despite the vast increase in marketing channels research published in the past decade, few contemporary analyses review or synthesize the domain. This article provides a comprehensive review of marketing channels research from 1980 to 2014. To present a multidimensional view of marketing channels, the authors evaluate extant literature from four perspectives: (1) key theories and constructs, (2) marketing channel strategies, (3) units of analyses, and (4) substantive topics in channels research. A content analysis of the relevant topics within each perspective that have had the greatest impact on channel research provides insights into research trends. This multidimensional analysis offers an integrated guide to extant literature, as well as an outline of promising directions for research, in light of the most significant trends.     

Multi-channel service retailing: The effects of channel performance satisfaction on behavioral intentions

The number of channels that retailers can use interchangeably to provide customer service has increased. We report on a study of clients of a large retail bank that investigates the channel performance satisfaction-behavioral intentions relationship when the traditional service channel (i.e., branch office) is extended with technology-mediated channels (i.e., internet banking and telephone banking). For routine services, our findings suggest that behavioral intentions are most strongly influenced by satisfaction with office-related performance factors. For nonroutine services, satisfaction with service employee performance is the most significant driver of intentions. Our analysis also reveals interaction effects between traditional and technology-mediated channel performance satisfaction levels. These effects vary across service types, indicating contingencies in channel substitution and complementarity.