Return freight strategies and selling formats in e-commerce supply chain: The perspective of consumer fairness concerns and online shopping returns

Returns and consumer fairness concerns put a huge pressure on manufacturers who sell their products online. The optimal selling format and return freight strategy become particularly important for manufacturers in an e-commerce supply chain. Therefore, we build game models for the following scenarios under different selling formats: the seller bearing the return freight costs or the return-freight insurance premiums, consumers buying insurance for themselves, and no one buying insurance. By comparing the optimal solutions of the game models under reselling and agency formats, several conclusions are derived. In the agency format, if the return-freight insurance premium is higher than a particular threshold, then the optimal strategy of the manufacturer is to decrease the selling price to encourage consumers to purchase the insurance, otherwise, the manufacturer should purchase the insurance. As the level of consumer fairness concerns and platform commission rates increase, the manufacturer should gradually move from the agency to reselling format. In the reselling format, if the return-freight insurance premium is lower than a particular threshold, then consumers will purchase insurance and this will make the platform more profitable, and conversely, the platform should bear the return freight costs.     

The fluent online shopping experience

Consumers increasingly use various Internet-enabled devices for online shopping; thus, a critical topic for both research and practice is the visual characteristics of the information presented in this medium. This study builds on fluency theory within an environmental psychology framework. Specifically, this research examines how consumers' perceived fluency of the verbal online information affects their perceived cognitive effort and positive affect within a choice context. The experimental results show that (1) perceptual fluency affects both cognitive effort and positive affect experienced during online shopping and (2) cognitive effort and positive affect influence judgments about the perceived decision quality of the choice made. This research is notable in its simultaneous (as opposed to consecutive) examination of the relationship among the three dimensions of processing fluency (perceptual fluency, positive affect, and cognitive effort) and their impact on consumers' choice satisfaction with an online shopping task.     

Explicating the privacy paradox: A qualitative inquiry of online shopping consumers

Online consumers often voice discontent and concern over their privacy and yet fail to take adequate precautions. Nor do they abstain from disclosing information. This study aims to explore this phenomenon which is known as the privacy paradox. Based on semi-structured interviews with online shopping consumers and thematic analysis of data, this paper illuminates the privacy paradox using three themes: psychological distance of privacy, perceived social contracts of privacy, and learned helplessness and privacy empowerment. Our findings contribute to the privacy paradox discourse and provide several implications for consumers, online retailers, and policymakers.     

A model of adolescents' online consumer self-efficacy (OCSE)

This paper investigates adolescent online shopping and self-efficacy development in the virtual setting. The authors present and test a model of antecedents and mediators to two dimensions of online consumer self-efficacy. Additionally, a discriminant analysis finds that more involved adolescent online shoppers can be differentiated from less involved online shoppers on key variables of interest-shopping motivations, self-efficacies, shopping behaviors, and relative influence in household decision-making.     

Exploring the choice between in-store versus online grocery shopping through an application of Semi-Compensatory Independent Availability Logit (SCIAL) model with latent variables

This paper examines individuals' choice of in-store and online grocery shopping channels using stated preference (SP) choice experiments. The study uses 1,391 records from a stated preference choice experiment in the Greater Toronto Area (GTA), Canada. It applies a Semi-Compensatory Independent Availability Logit (SCIAL) Model with latent variables. The methodology accounts for semi-compensatory choice behaviour through probabilistic choice set formation considering effects from socioeconomic and psychological variables. This study demonstrates the advantage of considering probabilistic choice set formation and semi-compensatory behaviour in modelling the adoption of innovative products. Empirical results reveal that shoppers demonstrated similar myopic behaviours once they firmly considered in-store grocery and subscribed free delivery services in their choice sets. They are equally likely to choose both channels without careful comparison to alternative channels once they firmly consider both channels in the choice set. However, considering the latter in choice sets is much costlier than in-store shopping. Therefore, in-store grocery shopping will still dominate the grocery shopping channel unless all home delivery services become free. Moreover, grocery shoppers value same-day delivery service. For typical delivery services charged between $4 and $20 in the GTA, Canada, grocery shoppers are willing to pay between $3.91 and $8.44 for same-day delivery. The latent variable describing shoppers’ perceived pandemic fear significantly contributes to the choice set inclusion probability of in-store grocery pick-up services, but the effect is not significant for other home delivery channels. This highlights heterogeneity in grocery shoppers' choice behaviour within the online channel.     

Understanding the role of situational factors on online grocery shopping among older adults

This paper seeks to identify the situational factors that drive the adoption of online grocery shopping among older adults. A two-step research process is employed. First, exploratory qualitative research is carried out to identify situational factors that older adults take into account when deciding whether to buy groceries online. This is followed by a conjoint experiment to determine which situational factors are considered most important when making such a decision. The sample consisted of 9 participants in the in-depth individual interviews and 206 respondents in the conjoint experiment. The findings indicate that health, mobility issues, and distance to a store are the most important situational factors driving older adults to buy groceries online. Moreover, the findings confirm that the adoption of online grocery shopping among older adults is a result of a complex trade-off of situational variables. The findings contribute to managerial practice by providing online grocery retailers with insight that can be applied when designing promotional programs targeted at older adults.     

Pricing coordination of a dual-channel supply chain considering offline in-sale service

With the rapid development of e-commerce, the problem of pricing conflicts between online and offline channels has become increasingly prominent. And the in-sale service has become an important factor influencing consumers' purchase decisions. To study the impact of in-sale service, this paper establishes a dual-channel supply chain model considering offline in-sale service. Using Stackelberg's game theory and backward induction, it solves the optimal pricing of supply chain members and makes comparisons in both cooperative and non-cooperative situations. Finally, it coordinates the supply chain through a two-part tariff contract. The results show that (1) The optimal wholesale price and offline retail price are positively correlated with in-sale service quality. And the opposite of the optimal online direct selling price. (2) With the quality of in-sale service improving, the retailer's profit will increase and then decrease but the manufacturer's profit will always decrease under non-cooperation. The total profit of the supply chain will rise and then fall under cooperation. (3) The two-part tariff coordination maximizes profits with the manufacturer reducing the wholesale price and the retailer paying a transfer cost. (4) Cooperative decision is better than the non-cooperative decision in terms of the supply chain as a whole.     

基于委托——代理理论的供应链质量契约决策研究

有效的质量管理是确保供应链稳定运行重要前提,论文对供应链中企业所面临的质量风险进行了探讨,并基于委托—代理理论建立了供应链质量契约决策模型,在该模型中通过对不同情形下采购者所面临质量风险进行分析,确定了与之相适应的供应链质量契约类型。利用该决策模型,供应链管理者可根据自身的运营环境识别并分析供应链中的质量风险,并建立有效的供应链质量契约。     

Untangling the relationships between consumer characteristics,shopping values,and behavioral intention in online group buying

This study examines the link among consumer characteristics (price-sensitive behavior, variety-seeking behavior, and compulsive buying behavior), shopping values (utilitarian and hedonic shopping values), and behavioral intention in online group buying (OGB). This study tests usable responses collected by means of mall-intercept systematic sampling from consumers who previously participated in OGB. Structural equation modeling was used to analyze data and test the hypothesized relationships. Findings suggest that price-sensitive and variety-seeking behaviors are significantly related to utilitarian shopping value, whereas price-sensitive, variety-seeking, and compulsive buying behaviors are significantly related to hedonic shopping value. Both utilitarian and hedonic shopping values significantly influence consumers’ OGB intentions. For a successful OGB strategy, Internet marketers and site operators should emphasize the utilitarian shopping value of price saving and selection and introduce the hedonic shopping values of promotions and sensory experiences. This study provides a link between two streams of prior research – that is, consumer characteristics and shopping values. Furthermore, it validates an empirical model whose results can help business practitioners make better-informed marketing management decisions for OGB and help academics and consumers better understand OGB behavior.     

The influence of college students' shopping orientations and gender differences on online information searches and purchase behaviours

Using the data collected from a survey of 1277 US college students, this study investigated college students' shopping orientations, and examined the relationships between their shopping orientations and searches for information about and purchases of apparel products online and the differences between male and female students in their shopping orientations, online information searches and purchase experiences. Seven shopping orientation constructs were identified: shopping enjoyment, brand/fashion consciousness, price consciousness, shopping confidence, convenience/time consciousness, in‐home shopping tendency and brand/store loyalty. Results showed that participants' shopping orientations were significantly related to their searches for information about and purchases of apparel items online. In addition, male and female participants showed significant differences in their shopping orientations, online information searches and purchase experiences. This study provided suggestions for apparel e‐tailors to develop effective marketing strategies to reach their target market, for consumer educators and for educators in the retail merchandizing area to prepare their students for future careers.     

Consumer socialization process: The role of age in children's online shopping behavior

The aims of this research are to develop an understanding of children perception of online shopping and to explore the extent of its adoption within the retail sector. This study also endeavors to investigate the role of age in the development of children's perceptions of online purchase. Semi-structured interviews were conducted with 35 children aged 8–15 years old, and 28 parents in Australia. Template analysis was carried out to analyse the data. The results show that children aged 8–11 and aged 12–15 were different in their behavior and perceptions of online shopping. The results from the interviews suggest that the level of children's online shopping varies and is influenced by many factors, such as age, parental guidance, social networks, and peer influence. The gap in the knowledge of cyberspace also resulted in the reverse-socialization and granted more power for children. In addition, social media have become an emerging influential socialization agent strengthened by early use of the Internet. In terms of the originality, the study provides empirical evidence relating to children's perceptions and behavior in the online environment as consumers, which remain under-researched in the marketing literature. Moreover, the role of children’s age was incorporated in the study, allowing more insights to be obtained.     

Integrated consumer shopping decision model: A Japanese online supermarket context

Abstract

Online shopping is not a new marketing channel but has been growing tremendously throughout Japan. The rapid growth of Internet technology has enabled the Japanese to break away from their conservative culture and embark on different shopping experiences by shopping online. With the growing importance of online reviews to promote one’s business, Japanese online supermarkets are looking for ways to increase consumer-generated content. The purpose of this study is to investigate Japanese repeat online consumers and the antecedents that encourage them to review their shopping experiences, including the supermarket website they used and product availability in the online supermarket. It was found that online supermarkets must focus on establishing confidence with their repeat online consumers if they desire to increase the electronic word of mouth (e-WOM) of their online supermarket. Implications are discussed in relation to online supermarkets and repeat consumers’ intentions to review their online shopping experiences.     

Toward a conceptualization of the online shopping experience

This research article explores the content of consumers′ experience when they shop online and proposes a first step in conceptualizing the ‘online shopping experience′ (OSE). First, we carried out an extended literature review and proposed an integrative conceptual framework. Then, we relied on a consumers discourse analysis with four focus groups with consumers who differ in terms of age, gender and online shopping experience.We define the OSE and propose a conceptualization through four core dimensions: the physical, ideological, pragmatic and social dimensions. Connections are established between the flow concept and the ‘traditional’ dimensions of experience, and specific shopping values are identified. Moreover, an appropriation process of commercial websites is revealed; beyond purchase intentions and rituals, the OSE is embodied by the use of online tools and patronage routines. Finally, social interactions with Facebook friends are one of the new practices considered.     

Conflicting attitudes and scepticism towards online shopping: the role of experience

Researchers typically study how levels of risk perception about online shopping affect whether and how consumers use the channel to buy products. In this paper, we propose to study how different types of attitudes towards online shopping are formed when consumers consider both the benefit and the risk of using the Internet to do their shopping. We consider the possibility that general types of attitudes are formed when consumers' perception of the risk and the benefit of using online shopping conflict. We pay particular attention to the concept of online shopping scepticism where consumers may fully realize the benefit of using the Internet to do their shopping, but also express a certain level of concern about the risk of using that channel. In the risk literature, researchers have shown that experience and increased exposure to a particular technology usually involves the accumulation of more and better knowledge that in turn may lead to a reduction in the perception of the risks involved. In this research, we also explore the role of experience in the context of consumers' intention to use online shopping. More specifically, we postulate that online shopping experience has a direct effect as well as an indirect effect on the intention to use online shopping. Experience with online shopping directly increases the consumer's intention to use the Internet to buy products but it also reduces the degree of scepticism and risk aversion, and that in turn, also increases the intention to use online shopping.     

Exploring the core factors of online purchase decisions by building an E-Commerce network evolution model

With the continuous development of the Internet and information technology, online shopping has become a popular purchase mode. The in-depth analysis of consumer decision-making in online shopping is an important issue. Our purpose is to study how the factors of the shopping web pages corporately affect online purchase decisions and determine which are the core factors that affect consumer purchase decisions. We screen the influencing factors on the shopping webpage and deploy e-commerce network evolution based on various weight combinations of these factors to generate sales distributions of online products. By comparing these simulated sales distributions to the real data, the optimal weight of each factor is obtained. The results show that sales volume and the number of high-quality negative comments are the most important factors influencing consumers' decision-making, the number of comments and the number of comments with pictures are relatively minor factors, store type and video presentation of the products have the least impact. The optimal simulated sales distribution is very close to the real case and verifies that the introduced network evolution technology is applicable. The proposed model can be used as a uniform evaluation platform for correlational study, which is an important link in the purchase research chain.     

Revenue management in a multi-level multi-channel supply chain considering pricing,greening, and advertising decisions

This paper explores coordinated decisions regarding a multi-level multi-channel supply chain considering the price of sale channels, the advertisement level, and the green policy of the products. The main objective is to maximize the total profit of the Supply Chain (SC) by considering the profitability of entities. In this regard, two kinds of selling channels (i.e. online and in-person) are extended to enable all the entities to sell the product through their own channels. Demands in both types of channels depend on price, greenness, and advertisement. In the studied SC, the manufacturer not only produces the products and sells them to the distributor and the customer but it also decides on the greening and advertising levels. As a contribution, the demand functions simultaneously consider environmental and financial issues. Besides, since each member has its own selling channel, it should determine the price based on three criteria: advertising costs, greening costs, and other members' pricing decisions. For this purpose, three models including Centralized Supply Chain (CSC), Decentralized Supply Chain (DCSC), and Modified Centralized Supply Chain (MCSC) are developed and then solved to cope with various real-world situations. Based on the findings, although the SC gains the most profitability under the CSC model, the manufacturer faces a considerable loss. To overcome this issue, the MCSC model ensures the manufacturer's profit while keeping the price, greenness, and advertisement competitive. Also, the profitability of the MCSC model is more than that of under the DCSC model. The proposed models' performance for different situations is corroborated using several examples and various analyses, along with a real case study. The results acknowledge the applicability of the models and give practical insights for experts.     

The building blocks of a supply chain management theory: Using factor market rivalry for supply chain theorizing

As the supply chain discipline matures, opportunities emerge to develop or define theories that are specific to supply chain phenomenon. The current research specifies characteristics that we offer which comprise the building blocks of supply chain theory. These characteristics include the flows of material through a supply chain network, the temporal management of these material flows, the dyadic and triadic interactions of firms within the supply chain network, and the outward focus on supply chain management (SCM), in other words a supply chain orientation, of firms in a supply chain. Further, recognizing that supply chain theories must contain the previously identified characteristics, we offer Factor Market Rivalry (FMR) as a theory of SCM. FMR refers to intense battles for resource positions that are needed to manufacture, provide, or deliver firm products or services. We argue that FMR only occurs within supply chain phenomena. The piece concludes with a future research agenda based upon the practical implications of further developing FMR as a theory of SCM.     

Online shopping adoption during COVID-19 and social isolation: Extending the UTAUT model with herd behavior

The COVID-19 pandemic has created a new reality for consumers all around the globe. To cope, users of digital technologies have faced the necessity of adopting and using specific technologies practically overnight. They are doing this under the condition of social isolation, all while facing the fear of catching the disease. The purpose of the paper is to study the way unexpected circumstances cause disruptions in existing theoretical models and their implications for the post-COVID-19 era. Therefore, the paper examines the unified theory of acceptance and use of technology (UTAUT) model under the circumstances of the COVID-19 pandemic and social isolation, and it identifies herd behavior as a possible new mechanism affecting behavioral intention under these unique decision-making circumstances. Behavioral intention toward online shopping was analyzed using data from 420 individuals aged 60 and older who present an increasingly important potential market for electronic commerce and who are particularly affected by COVID-19. The main results show that performance expectancy still has the most important influence on behavioral intention, whereas the impact of social influence was not supported under these conditions. Rather, herd behavior was identified as particularly influential for behavioral intention. Based on the study results, the option to reconsider the social influence factor in the UTAUT model and its possible complementary mechanisms are discussed.