Cross-channel free-riding consumer behavior in a multichannel environment: An investigation of shopping motives,sociodemographics and product categories

Cross-channel free-riding, in which consumers use one retailer′s channel to prepare a purchase and then switch to another retailer′s channel to purchase, can substantially erode profit margins. This research aims to understand such free-riding from a consumer empowerment perspective, investigating shopping motives and sociodemographic covariates, as well as how this behavior might differ across product categories. A survey study of decision-making behavior shows that cross-channel free-riders mainly seek to fulfill price comparison, convenience and flexibility needs. The likelihood of free-riding is higher when consumers adopt cross-channel rather than single-channel behavior, which highlights a negative outcome of multichannel retailing. The likelihood of cross-channel free-riding differs across products but not sociodemographic covariates. The findings can be used to develop recommendations for managing retention strategies.     

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.     

Search,purchase, and satisfaction in a multiple-channel environment: How have mobile devices changed consumer behaviors?

The rapid adoption of smartphones and increasing reliance on the mobile Internet is influencing consumers’ shopping behavior with traditional Internet devices (e.g., desktop and laptop computers) and in stores. This research examines the effects of consumer perceptions of channels (i.e., mobile devices, computers, and offline stores) on their choices of search channels, purchase channel, and satisfaction level with the purchase channel. Using survey data from a sample of U.S. consumers, we find supplemental effects of mobile devices on computers do not alter the traditional substitution relationship between computers and stores during the search. The cross-channel effects indicate that perceived purchase benefits and costs of stores affect the purchase channel selection of mobile devices and computers, respectively. Satisfaction levels were highest when purchases were made on mobile devices. The insights from this study can help managers increase the effectiveness of advertising in different media and target distinct segments of consumers who rely on multiple channels for search and purchase.     

Channels for search and purchase: Does mobile Internet matter?

Recent industry reports indicate that consumers own four digital devices on an average, and switching devices during shopping is the “new normal.” The addition of mobile Internet as a new channel of search and purchase has spurred the adoption of the digital medium, and easy accessibility of the Internet on multiple devices is influencing shopping patterns. A consumer may prefer some channels for search and others for purchase or use a combination of channels to search and purchase simultaneously. As a new channel, it is unclear 1) whether mobile Internet offers greater search or purchase benefits and 2) what type of products are more suitable for mobile Internet search and purchase. In this study, we develop a framework that describes the factors that drive the use of mobile Internet in a multi-channel environment. We test the framework using survey data from a sample of U.S consumers. The main findings from our study indicate that 1) the choice of channel combinations that include mobile relative to other channel combinations increases with an increase in perceived search convenience of mobile channel. 2) in the digital channel, mobile and desktop differ in their utility along search dimensions. The probability of choosing channel combinations that include mobile increases due to search convenience whereas desktop is attractive due to perceived gains of price comparison search; and 3) mobile Internet search increases for consumers searching for utilitarian products. The insights from this study deepen our understanding of how digital media is used in the search-purchase process and have important managerial implications.     

Creating a satisfying internet shopping experience via atmospheric variables

The purpose of this research was to identify the atmospheric variables that contributed to satisfaction for internet consumers with different orientations toward shopping. Atmospheric categories that were proposed for studying internet environments included external and internal variables, layout and design, point‐of‐purchase, and customer services. Some consumers had a convenience orientation toward shopping on the internet, while others were apprehensive, apathetic, and highly involved in internet shopping. A segment of internet consumers also exhibited positive orientations toward store shopping. Results showed that some atmospheric variables influenced satisfaction for all consumers, regardless of their shopping orientation; however, some variables were contributors of satisfaction for specific shopping segments.     

'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.     

“I Love the Value From Shopping at Mass Merchants!” Consequences of Multichannel Shopping Value

The importance of consumer value-driven strategies is highlighted in the marketplace, especially with economic stagnation. The aim of this study is to shed light on the mechanisms underlying consumers’ value perception of, satisfaction with, and loyalty intentions toward shopping at mass merchants in a multichannel retail environment by using their shopping orientations as predictors. Findings based on a national sample online survey of 1,411 U.S. consumers revealed that multidimensional consumers’ shopping value perceptions regarding shopping at multichannel mass merchants had significant and positive effects on their consumer satisfaction with and loyalty intentions toward shopping at the multichannel mass merchants.     

Consumer responses to characteristics of price-matching guarantees: The moderating role of price consciousness

The present study develops and tests a conceptual model of consumer response to different types of price-matching characteristics (i.e., refund depth, length, and scope) across consumer segments with varying levels of price consciousness. A computer shopping simulation results show that a deep refund is interpreted as a signal of low prices by nonprice conscious consumers. However, price conscious consumers are found to associate deep refunds with increased prices, an unintended outcome for the retailer. The effects of price-matching characteristics on search and purchase behavior were also found to vary across more and less price conscious consumer segments.     

Omnichannel-based promotions’ effects on purchase behavior and brand image

This paper examines the effects of utilizing consumers’ digital shopping traces when designing in-store promotions on purchase behavior and brand image. In two experimental studies with 526 and 550 espondents, the authors examine the effects of omnichannel-based promotions (e.g. using digital shopping trace to offer a promotion when the consumer enters the physical store) in two different product categories (utilitarian vs. hedonic), spontaneous/planned purchases and two different retail industries (durable good vs. travel). The results show that retailers benefit from using digital shopping traces as it increases purchases and enhances brand imagery. The effects are moderated by product category and type of purchase.     

Hedonic and utilitarian use of user-generated content on online shopping websites

The Internet has made it possible for consumers to share reviews, opinions, and thoughts about products and services on online shopping websites. This user-generated content (UGC), which can be considered to be part of social commerce, is likely to influence other consumers’ attitudes toward a product and subsequent purchase intentions. The purpose of this study was to investigate two major uses of UGC: hedonic and utilitarian, and how they impact purchase intentions, along with users’ trust for different types of comments and reviews. Also investigated are associations between hedonic use, utilitarian use, and trust, with purchase behavior at online shopping websites. Results of this study will add to the domain knowledge related to marketing and how it impacts consumer psychology and behavior. From a practitioner perspective, marketers need to understand the impact of UGC so they can monitor this method of marketing communication as it can impact trust and purchase intentions.     

Buying Groceries in Brick and Click Stores: Category Allocation Decisions and the Moderating Effect of Online Buying Experience

The large majority of online grocery shoppers are multichannel shoppers who keep visiting offline grocery stores to combine convenience advantages of online shopping with self-service advantages of offline stores. An important retail management question, therefore, is how these consumers divide grocery purchases across the retailer's online and offline channel. We provide a comprehensive analysis of the impact of category characteristics on the allocation pattern of multichannel grocery shoppers and find that category allocation decisions are affected not only by marketing mix differences between the online and offline channel, but also by intrinsic category characteristics like perceived purchase risk and shopping convenience. In addition, we examine the effect of online buying experience. In line with expectations, we find that it can affect allocation patterns in different ways: (i) it attenuates the perceived risk of buying sensory categories online, thereby reducing differences in online category share, (ii) it reinforces marketing mix (assortment) effects, thereby making online category share differences more pronounced, and (iii) it has no effect for factors such as promotions that are easy to evaluate without experience, thereby leaving the online category share stable. In addition to different experience effects across allocation factors, we also observe variations in experience effects across consumer segments.     

Consumer choice of retail shopping aids

This research investigates how consumer and product category attributes affect consumer interest in using various shopping aids. Research hypotheses were proposed based on a contingency framework of the relationship between consumer characteristics (i.e., purchase need, product knowledge, and brand preference heterogeneity) and shopping aid solutions (expanded selection, additional product information, personalization, and evaluative information). The findings demonstrated the importance of considering consumer characteristics when retailers design and provide shopping aids for consumers to facilitate purchase completion.     

Toward Consumer Efficiency: A Model for Improved Buymanship

This paper suggests that changes in the economic, marketing, and social environments call for alternative approaches to the traditional models of buymanship. The authors propose a shopping model that incorporates four main tenets: (1) search is conceived as a continuous process; (2) consumers take advantage of retail price competition at one point in time and over time; (3) an acceptable set of brands and stores is integral to purchase decisions; and (4) low price on an acceptable brand triggers purchase. Implications for consumer buying, research, and consumer education are identified.     

“Showrooming” in Consumer Electronics Retailing: An Empirical Study

The present study focuses on multichannel retailing strategies and describes the state of consumer behavior regarding “showrooming” (the practice of examining merchandise or products in a retail store and then buying it online). Founded on the theory of planned behavior (TPB), the authors examine the antecedents of showrooming using data collected from a sample of 176 retail consumers. Based on their results, they define perceived control, website compatibility, and subjective norms as the main antecedents of consumer attitudes toward online purchases. Additionally, they state that previous experience and reasons against purchasing online are directly associated with consumers’ intention to purchase on the retailer’s website. Finally, some theoretical conclusions and practical implications for retailers are discussed.     

Loyalty Formation for Different Customer Journey Segments

The proliferation of new touchpoints empowers today’s customers to design their own journey from search to purchase. To address this new complexity, we segment customers by their use of specific touchpoints in the customer journey, investigate the association of several covariates with segment membership, consider the rise of mobile devices as potential “game changers” of existing segments, and explore how the relationships among product satisfaction, journey satisfaction, customer inspiration, and customer loyalty differ across segments. Based on anticipated utility theory and using latent class analyses on large-scale data from two samples of 2,443 and 2,649 journeys, we identify five time-consistent segments―store-focused shoppers, pragmatic online shoppers, extensive online shoppers, multiple touchpoint shoppers, and online-to-offline shoppers―that differ considerably in their touchpoint and mobile device usage, their segment-specific covariates, and their search and purchase patterns. The five segments remain unchanged in the two data sets even though the usage of mobile devices has increased substantially. Furthermore, we find that the relationships between various loyalty antecedents and customer loyalty differ between the segments. The insights from this paper help retailers develop segment-specific customer journey strategies.     

Share of wallet in retailing: the effects of customer satisfaction, loyalty cards and shopper characteristics

In retailing, consumers typically patronize multiple outlets. Thus, an important issue is why consumers vary in how they divide their purchases across outlets and how outlets can get a greater share of consumer expenditures. Two potential avenues for increasing customer share are to raise customer satisfaction, and increase repeat purchase through loyalty cards. This study examines the effects of customer satisfaction and loyalty cards as well as consumer characteristics on customer share spent on the primary grocery store. The findings suggest that customer satisfaction has a positive, albeit modest, effect on share while consumer economic shopping orientation has a negative direct effect on share. The economic orientation of shoppers, their felt importance of a personal relationship with store personnel, and the level of their aggregate purchase volume moderate the effect of satisfaction on customer share. Finally, the results provide mixed support for the impact of loyalty cards on customer behavior.     

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 impact of membership fees on consumer attitude and choice

This study examined the impact of membership fees on consumer attitude and purchase behavior. Subjects participated in a computerized simulated shopping experiment, and chose between three competing videotape rental stores, receiving feedback about purchase utility on each occasion. Manipulations included the presence or absence of an initial membership-fee requirement at the dominant store and the timing of a lowering of that store's utility to the same level as that offered by a competing establishment. Store loyalty is shown to vary as a function of membership fees and utility changes in a manner consistent with hypotheses generated from prospect, escalation-of-commitment, cognitive-dissonance, and self-perception theories. © 1998 John Wiley & Sons, Inc.     

Communicating nutrition information at the point of purchase: An eye‐tracking study of shoppers at two grocery stores in the United States

Providing nutrition information at the point of purchase is one approach that can be used to help consumers adopt and maintain a healthy diet. Previous research has examined consumer self‐reported notice and use of the information as well as how the design of the information affects its attention and use in a laboratory environment using eye‐tracking methodology. This study advances the literature by applying eye‐tracking methodology to explore consumer visual and choice behavior in a real shopping environment, and by recognizing that nutrition information competes with other visual stimuli in the store and consumers are vulnerable to a “limited attention span” for nutrition information in a shopping setting. Data came from a cross‐sectional survey conducted in two grocery stores in the United States in July 2014 with a convenience sample of 60 grocery shoppers while they were selecting and buying items from one of three product categories (ready‐to‐eat cereal, snacks, and soup). The study finds that point‐of‐purchase nutrition information faced strong competition for participants’ attention from other visual elements in a real shopping environment and the attention is dominated by nonnutrition elements, particularly brand/product name, product imagery, and product pricing. Nutrition‐related information, on the other hand, received much less attention, with claims and front‐of‐package nutrition symbols seen by more participants than the Nutrition Facts label. The study suggests that to more effectively enable nutrition information to “catch the eyes” of shoppers at the point of purchase, increasing consumer exposure to the information and enhancing shopper education may merit further investigation.     

Multichannel Shopping Through Nontraditional Retail Formats: Variety-Seeking Behavior With Hedonic and Utilitarian Motivations

Understanding motivations of multichannel shoppers is critical for retailers, especially in terms of how retailers can best attract shoppers to and orient shoppers across different channel options. Our study thus seeks to understand multichannel shopping through nontraditional retail formats by studying the effects of shoppers' hedonic and utilitarian motives. We used the theory of variety-seeking behavior for conceptualization, and analyzed data from a large-scale U.S. consumer survey. Our findings suggest that both hedonic and utilitarian factors are important predictors of multichannel shopping. Hedonic motivations have more explanatory power for high-level multichannel shopping than for moderate-level multichannel shopping, as compared to non-multichannel shopping.