In-store music and aroma influences on shopper behavior and satisfaction

Retail markets are increasingly competitive and retailers continuously look to differentiate their retail offering. One way to differentiate is by providing a pleasant and exciting shopping ambience. This paper experimentally tests the effects of music (volume high or low) and aroma (vanilla scent present/absent) on young fashion shoppers in a real retail setting. Results show that volume of music and the presence of a vanilla aroma both have a significant impact on shoppers' emotions and satisfaction levels. Additional analysis reveals that the arousal induced by music and aroma results in increased pleasure levels, which in turn positively influences shopper behaviors, including time and money spend, approach behavior, and satisfaction with the shopping experience. Direct effects of arousal on behaviors as well as an interaction effect between music and aroma on pleasure and time spent in the store are also present. The paper contributes to the better understanding of shoppers' emotions and shopper behaviors in response to in-store atmospherics and offers retailers practical insights into how to create competitive advantage by customizing the atmosphere in their stores.     

Retail corporate groups: Challenges of omnichannel management in Japan

Abstract

The omnichannel varies across countries due to different retail environments and retailers’ growth strategies. The Japanese big retailers’ omnichannel can be characterized by having multiple retail formats, such as department stores, general merchandise stores, convenience stores, specialty stores, Internet stores, and so on. They have grown by multiplying retail formats to appeal to different customer segments, and they have unique challenges in managing an omnichannel with many retail formats. These are (1) extremely wide variety of merchandise, (2) enormous quantity of data from transaction, inventory, logistics, and customers, (3) different organization structures and management, and (4) unique organizational capabilities in each retail format. From these challenges, we could propose further research issues as follows: (1) theoretical consideration of boundary-spanning functions among retail formats, (2) international comparative analysis reflecting the different conditions in each country, and (3) clarifying the characteristics of the omnichannel shopper in the Japanese omnichannel environment.     

Innovations in Shopper Marketing: Current Insights and Future Research Issues

Shopper marketing refers to the planning and execution of all marketing activities that influence a shopper along, and beyond, the entire path-to-purchase, from the point at which the motivation to shop first emerges through to purchase, consumption, repurchase, and recommendation. The goal of shopper marketing is to enable a win–win–win solution for the shopper–retailer–manufacturer. Shopper marketing has emerged as a key managerial practice among manufacturers and retailers, who are eagerly embracing innovations in the different aspects of shopper marketing. We review current and potential innovations in shopper marketing. We identify the managerial challenges to achieving new win–win–win solutions among shoppers, manufacturers, and retailers in shopper marketing and outline future scenarios and research issues related to these challenges.     

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.     

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.     

Multichannel shopping: The effect of decision making style on shopper journey configuration and satisfaction

Prior research demonstrates links between the maximizing tendency in decision making and online shopping behaviour, with maximizers spending considerable time on their online shopping yet being somewhat dissatisfied with their shopping decisions. Our research extends prior knowledge to the multichannel shopping context. Multichannel shopper journeys are an important form of shopping, whereby the activities comprising a shopping event occur in more than one channel. Our quantitative study examines relationships between two dimensions of maximizing, maximization as a strategy and maximization as a goal, multichannel shopper journey configuration and subsequent affect. Maximization as a strategy directly and positively relates to the numbers of channel switches and of pauses in a shopper journey and to the use of product and retailer reviews. It is indirectly associated with increased counterfactual thinking and regret, and with decreased satisfaction. Maximization as a goal has no effect on multichannel shopper journey configuration or on affect. Our findings have managerial relevance for multichannel retailers. We demonstrate that product and retailer reviews are of particular importance to those employing maximization as a shopping strategy, as they mitigate against their increased tendency to engage in counterfactual thinking. As counterfactual thinking leads maximizers to increased regret and decreased satisfaction, multichannel retailers can improve shopper satisfaction by actively directing their customers to reviews. Shoppers using maximization as a strategy could be helped to configure their shopper journeys with fewer channel switches and fewer pauses, as these provide maximizers with opportunities to doubt their decisions.     

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.     

Mobile Shopper Marketing: Key Issues,Current Insights,and Future Research Avenues

The intersection of mobile marketing and shopper marketing, known as mobile shopper marketing, is a rapidly evolving area. We formally define mobile shopper marketing as the planning and execution of all mobile-based marketing activities that influence a shopper along and beyond the path-to-purchase: from the initial shopping trigger, to the purchase, consumption, repurchase, and recommendation stages. However, not much is known about mobile shopper marketing. We plug this gap by first discussing mobile shopper marketing and its scope in depth and then presenting a process model that connects the mobile shopping journey with four key entities, i.e., shopper, employee, organization, and mobile technology. For each of these themes, we identify the challenges that offer future research opportunities.     

What is the Right Supply Chain for Your Shopper? Exploring the Shopper Service Ecosystem

The emergence of shopper marketing represents a major strategic force in consumer goods branding and retailing, and poses significant challenges to pre existing supply chain thought that most scholars have yet to address. In order to address the marketing and supply chain challenges presented by shopper marketing initiatives, scholars from both disciplines can find common ground by focusing on the shopper instead of consumers or products. The issue is no longer one of matching a supply chain to a product. Instead, marketers and supply chain managers need to ask, “What's the right supply chain for our shopper?” The shopper service ecosystem framework developed in this paper brings together the service dominant logic of marketing with the service ecosystem perspective in supply chain management. Future research frontiers suggest research directions that bridge the marketing and supply chain disciplines to create a multidisciplinary foundation for future research in the shopper marketing realm.     

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.     

Trauma's effects on shopper choice confusion: The role of psychological hardiness and retailer strategies as mitigating factors

Retailers must understand how trauma influences the consumer shopping journey and identify ways to mitigate any potential adverse effects. Two studies were conducted to explore trauma in the retail environment. First, a conceptual model was tested using structural equation modeling (SEM) based on survey data collected from 324 participants. Findings indicate that consumers who report previously experiencing traumatic events feel anxiety while shopping in retail environments, negatively influencing their ability to make purchase decisions. This outcome is due to challenges in adequately assessing stressful environmental stimuli and developing positive coping mechanisms. Consumer propensity for psychological hardiness was found to moderate this relationship. Next, a follow-up qualitative study from 110 consumers who reported experiencing instances of trauma identified potential ways for retailers to help consumers who have experienced trauma feel more comfortable in shopping environments. These findings extend research on trauma and consumer shopping behavior by identifying its impacts on choice confusion and stress appraisal and suggesting how retailers can support shoppers through a trauma-informed approach.     

The Greydollarfella: An endangered species or a market opportunity?

This paper identifies an ignored and endangered species: the mature male shopper, who we have named the Greydollarfella. Based on current research and interviews, we describe this fellow and attempt to differentiate him from other consumer segments. The Greydollarfella, unlike younger men, appears not to like shopping and so is often ignored by retailers or excluded from the retail environment. We argue that the Greydollarfella should be included in, not sidelined from, retail and marketing considerations. He is much wealthier and less time-poor than younger men, and deserves a retail environment that suits his preferences and consumer requirements. We present some examples of how retailers are attending (and not attending) to the Greydollarfella. We conclude that Greydollarfella is not very well understood, is undervalued, and is often marginalised by retail marketing strategies. We believe he offers great value for marketers and retailers (both niche and mass) willing to take the time to understand his psyche, product and service needs, and views on the retail experience. Finally, we call for more attention to be paid to this segment.     

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.     

Navigating contradictory logics in the field of luxury retailing

When designing luxury retail experiences, luxury managers are often encouraged to focus on a single logic: the logic of distinction. Evidence suggests, however, that multiple logics influence the field of luxury retailing. In this paper, we explore the implications of such multiplicity, focusing particularly on logics coming into tension with one another. Our research questions are: 1) What are the logics that come into conflict in luxury retail settings and 2) How can luxury retail managers navigate conflicts between logics to facilitate positive customer experiences in luxury retail settings? Based on extensive ethnographic fieldwork in the luxury field, we find conflicts mainly between three logics: distinction, pragmatism, and hedonism. We show that each logic is underpinned by different values, different linguistic practices, and different focal objects. We further find that conflicts between the logics tend to become acute during specific interactions during the customer journey. Our findings also suggest that since luxury boutiques are by and large designed to enforce the distinction logic, luxury retailers at times struggle to accommodate and navigate the conflicts that occur between these logics. We identify three interrelated sets of practices, collectively referred to as experiential hybridization, that effectively allow luxury retailers to address the challenge of logic complexity. Theoretically, our research helps illuminate institutional logics as a factor that informs customers’ experiences in contemporary retail fields such as luxury. Managerially, we suggest ways for luxury retailers to manage logic conflict and deliver superior customer experiences.     

Challenging the "integration imperative": A customer perspective on omnichannel journeys

Omnichannel literature largely assumes that retailers should integrate touchpoints across channels to promote seamless experiences. This paper challenges this assumption by exploring how perceived journey integration affects customer experience in omnichannel retailing. A qualitative study reveals that two dimensions of journey integration—consistency and connectivity—interact to form four patterns of omnichannel journeys, each prompting distinct experiences. When looking at this phenomenon through the customer’s perspective, we find that there are cases in which low consistency or connectivity can trigger positive experiences, contradicting extant literature. We then formulate research propositions that challenge the “integration imperative” in the omnichannel literature and provide managerial implications for retail firms that want to improve their customers’ experiences.     

Retail store formats,competition and shopper behavior: A Systematic review

This study presents a systematic review of literature covering 178 articles relating to physical store-based grocery retail formats. The research questions for the review were based on drivers of consumer choice and response to marketing activities across store formats, competitive effects and conduct in the context of format evolution, and the interplay of retail formats with societal stakeholders and environmental context over time. The review reveals substantial evidence on drivers of shopper choice among formats including intrinsic household characteristics, time value factors, shopping goals and motivations, and actionable retailer factors such as location, assortment, pricing, promotion. The evidence is scarcer where such marketing activities are difficult to vary. There is limited consensus that inter-format competition is more intense than intra-format. The modernization of formats globally was found to change the way they compete and how consumers behave toward them. There is evidence of substantial impact of entry of new formats, but less guidance for incumbent retailers on how they should respond. Several gaps were identified, and research directions included a typology for format types, the role of technology, a call for more causal evidence, and deepening the empirical base for intra- versus inter-format competition and drivers of format choice.     

Black middle class township shoppers: a shopper typology

Due to an increase in spending power amongst Black middle class, this growing segment has become a lucrative investment opportunity for many retailers in South Africa and most emerging markets. The purpose of this study is to segment township consumers according to their demographics, life stage, attitudes towards township shopping centres and Living Standards Measure, to understand shopping patterns of township consumers. A survey among Soweto Black middle class township respondents was conducted, and maximum likelihood factor analysis was used to identify attitudes towards township mall factors. The study revealed five factors namely entertainment, convenience, mall essence, staff and mall basics, which were all consistent with previous studies, with the exception of staff and mall basics, which was revealed in this study. A K-means cluster analysis was then used to segment township shoppers according to their attitudes. Four shopper segments were discovered, namely disappointed crusaders, upcoming loyals, social seekers and local loyals, which, despite investigating shopper attitudes in place of shopper behaviour alone, were similar to well-establish shopper typologies. Each segment was profiled according to demographic variables, attitudes as well as shopping patterns. Results, therefore, suggest that retailers and developers need to consider the unique needs and differences among Black middle class consumers when developing retail strategies as they reveal unique characteristics from typical shopper typologies. Given similarities in some emerging countries such as India, the findings of this study could be generalized to other middle class consumers from emerging markets. Similar shopper segments may arise, which may be consistent with previous shopper typology studies and new segments unique to emerging market middle class consumer may be unveiled.     

Combining sell-out data with shopper behaviour data for category performance measurement: The role of category conversion power

Retailers need to manage a series of complex decisions relating to numerous products. To reduce this complexity, they have introduced category management practices, which consider groups of similar products (categories) that can be managed separately as single business units (SBUs). Although the concept that the store offer should be organised as a category mix and that this strategy allows for better overall store management is already consolidated, retailers still struggle to adopt an approach to the store performance measurement starting from a category level perspective. Nowadays, the available methods for measuring categories’ performance are quite limited. The current trend sees the measurement of category performance mainly based on sell-out data that are ill-equipped to fully address category management issues. Retailers should broaden their field of analysis not only by focusing on the product/sales perspective but also by including other methodologies such as shopper behaviour analysis. In this regard, the use of technology offers the retail sector new perspectives for those analysis. Therefore, we intend to contribute to the ongoing debate on the retail analytics topic by presenting a shopper behaviour analytics system for category management performance monitoring. More in detail, we could derive a new key performance indicator, category conversion power (CCP), aimed at analysing and comparing the single categories organised within the store. The research is based on a unique dataset obtained from a real-time locating system (RTLS), which allowed us to collect behavioural data togheter with sell-out data (from POS scanner). We argue that retailers could exploit this new analytical method to gain more understanding at the category level and therefore make data-driven decisions aimed at improving performance at the store level.     

Retailers’ Price Positioning and the Motivational Profiling of Store‐Brand Shoppers: The Case of Spain

In recent years, retailers have worked to advance store‐brand strategies, leading to greater success and higher congruence with the retailer's positioning. In this new competitive context, this research aims to characterize store‐brand shoppers in terms of motivation and benefits sought, as well as analyze, on the basis of congruence theory, the moderating role of a retailer's price positioning on store‐brand shopper characterizations. The empirical study combines survey and household panel information related to leading retailers in Spain; the findings reveal that store‐brand shoppers are motivated by their price sensitivity, whereas they are less sensitive to service quality and name brands. However, the retailer's price positioning exerts a moderating effect on shopper profiles: In less price‐oriented retail chains, store‐brand purchases seem motivated less by price and more by quality, brand awareness, and brand reputation.     

How Technology is Changing Retail

Retailing is undergoing a remarkable transformation brought by recent advances in technology. In this paper, we provide a deep discussion of and look ahead on how technology is changing retail, starting with a classification of technologies that impact retailing, in particular, in the COVID-19 and beyond world. We discuss different theoretical frameworks or lenses to better understand the role of technology in retailing. We identify and elaborate on the drivers and outcomes of technology adoption by shoppers, retailers, employees, and suppliers. We speculate on future retail scenarios and outline future research avenues on technology and retailing. We close by concluding that technology is not only reshaping retailing, but also allowing retailing to pivot in the face of new and unforeseen circumstances.