Exploring customer experience during channel switching in omnichannel retailing context: A qualitative assessment

Customer channel switching behaviour in the digital revolution is becoming more complicated and difficult to comprehend. This study follows the interpretative approach to examine customer intention behind channel switching behaviour and the customer experience during the channel switching journey in the omnichannel context. To explore the phenomenon, we conducted twenty-three in-depth interviews and four focus group discussions with millennial customers of electronic goods omnichannel retailers. We found two new reasons for channel switching—the influence of social groups and perceived self-efficacy of the switching behaviour. Key factors affecting channel choices during switching are product attributes, trust/perceived uncertainty, social influence, customer characteristics, review culture, and time constraints. Customers expressed mixed emotions during the journey, which affected their choices during channel switching. We further proposed a framework to explain channel switching behaviour under the social cognitive theory. The study furthered the reasons for channel switching and the customer experience during switching. To the best of our knowledge, this study is pioneering, in examining the phenomenon in the omnichannel retailing context. Based on the findings, the study provides suggestions to enhance customer experience optimisation and retention strategies for omnichannel retailers.     

An omnichannel approach to retailing: demystifying and identifying the factors influencing an omnichannel experience

ABSTRACT

The purpose of this research is to identify the factors that influence an omnichannel experience. Omnichannel is an emerging approach to retailing that responds to the changing nature of how customers shop in alternation between online and offline shops, and the increasing use of digital devices (e.g. smartphones and tablets), as a consequence retailers are focusing and establishing a seamless integrated approach to their services. Omnichannel is now a hot topic in retailing but there is a lack of empirical studies into the factors that influence an omnichannel experience. Using a mixed methods approach, we propose and empirically test a conceptual model that identifies four factors influencing an omnichannel experience: brand familiarity; customisation; perceived value, and technology readiness. We conceptualise omnichannel to include three key channels; in-store, online and mobile. Two hundred and forty-six questionnaires were collected and analysed using PLS-SEM and 11 interviews were carried out with marketing/ omnichannel professionals. Our results indicate that brand familiarity has a strong influence on omnichannel (in-store, online and mobile) while perceived value has a negative impact on the mobile experience. Our results show that retailers need to consider multiple factors, such as brand familiarity, customisation, perceived value and technology readiness as influencing factors of an omnichannel experience, and plan the use of multiple touchpoints simultaneously to enhance their overall customer’s experience. Although this study demonstrates the significant factors influencing an omnichannel experience, questions remain regarding the exact use of each touchpoint by customers and the extent of overlap between the touchpoints. which .     

How to retain customers in omnichannel retailing: Considering the roles of brand experience and purchase behavior

The opportunities and challenges of omnichannel in retail industry have been widely discussed, yet despite these benefits, the key elements that constitute an effective omnichannel and how customers respond to omnichannel retailing strategies remain unclear. This research conducted online surveys to test the effects of omnichannel elements on various brand experiences and customer retention, considering the moderating role of purchase behavior. The results indicate that omnichannel elements (integration, individualization, and interaction) are generally helpful in retaining customers, through omnichannel elements influence brand experiences differently. In addition, these omnichannel elements have different influences on customer retention due to different purchase behaviors. The findings suggest that retailers can use different omnichannel strategies to attract customers’ purchases and provide insights for practitioners who want to use omnichannel strategies to deliver superior experiences for customers.     

Service integration in omnichannel retailing and its impact on customer experience

Although omnichannel retailing has received considerable attention from scholars and practitioners in recent years, its impacts on customer experience and relationship outcomes remain unclear. Therefore, this study aims to examine the effects of two components of service integration in omnichannel retailing, namely service consistency and service transparency, on customer experience (i.e. flow and perceived privacy risk), and customer loyalty. Flow theory and hyperbolic discounting theory are employed to underpin these relationships. The data was collected using an online survey with 786 useable responses. Our findings indicate that service consistency has a direct and significant impact on flow and perceived risk while only the effect of service transparency on flow is significant. Moreover, both flow and perceived risk are related to customer loyalty to a retailer. Furthermore, it is found that showrooming behaviour and location-based service usage moderate the relationship between service consistency and privacy risk. The findings of the research provide important implications for a retailer regarding the development, implementation and management of omnichannel strategy.     

Quality of channel integration and customer loyalty in omnichannel retailing: The mediating role of customer engagement and relationship program receptiveness

The aim of this study was to understand how omnichannel integration quality affects customer loyalty through customer engagement and relationship program receptiveness and to verify the relationship between customer engagement and relationship program receptiveness in omnichannel retailing. Data was collected through a questionnaire with 378 available respondents. PLS-SEM was exerted to examine the model. The results disclosed the positive influence of omnichannel integration quality on customer engagement and relationship program receptiveness, which consequently impacted customer loyalty. Also, the positive influence of customer engagement on relationship program receptiveness was proved. Further, the role as mediators of customer engagement and relationship program receptiveness was explored. This study contributed to the omnichannel literature by confirming that psychological and behavioral customer engagement plays a vital role in omnichannel retailing. This study also helped omnichannel retailers understand that providing a seamless, consistent and reassuring environment can facilitate customer engagement and thereby gain customer loyalty.     

A strategic framework for technological innovations in support of the customer experience: A focus on luxury retailers

Luxury organizations have traditionally resisted technology, as they perceived it to be antithetical to the values of luxury. Recently, however, competitive and market pressures, compounded by the global pandemic, have prompted luxury organizations to utilize significant technological innovations to enhance their customer experience, mostly on an ad hoc basis. Across four case studies in the luxury fashion retail sector, we conduct 12 interviews with managers. This paper advances a framework that encourages luxury organizations to consider technological innovation in retailing from a strategic point of view. Such a view involves contemplating questions regarding what technology type to adopt (radical vs. incremental) and when the best timing is to adopt the technology (pioneering vs. following technological leaps). The framework identifies four retailer roles that emerge from the innovation process: facilitator, enabler, explorer, and initiator. Each role comprises a different set of risks, resource implications, and expected returns.     

How customer experience incongruence affects omnichannel customer retention: The moderating role of channel characteristics

Although a positive customer experience is known to be an important source of competitive advantage, it is unclear how customer experience can be effectively managed in an omnichannel setting. Drawing on goal theory, this study explores the effect of incongruity between online customer experience and offline customer experience on customer retention in an omnichannel context. It also examines the moderating effects of three channel characteristics: transparency, convenience, and seamlessness. Our hypotheses are tested with online survey data, and the results indicate that in an omnichannel context, customer experience incongruence has a negative effect on customer retention, but channel transparency, convenience, and seamlessness can effectively mitigate this negative effect. The findings have both theoretical implications for research related to omnichannel business and customer experience and practical implications for managers of omnichannel services.     

Drivers of eWOM engagement on social media for luxury consumers: Analysis,implications, and future research directions

The rapid industrialization and growth across the world have fostered the consumption of luxury fashion brands. Electronic word-of- mouth on social media (eWOM) is fast becoming an effective and germane strategy to engage luxury consumers through posting pictures, sharing reviews, and communicating information on platforms like Facebook, Instagram, and TikTok. Extant research has not examined the antecedents and drivers that lead to eWOM behavior. We leverage self-congruity theory and through its focal lens, our study addresses this research gap through a survey conducted with 453 consumers in Mexico, Latin America's fastest growing market. Our results indicate that need for status, susceptibility to normative influence, and luxury brand involvement, moderated by authentic pride and social media influencers lead to eWOM behavior on social media. We also demonstrate that luxury brand involvement and susceptibility to normative influence mediate the relationship between need for status and eWOM behavior on social media. The study provides important implications to managers and researchers by suggesting long-term actionable strategies for growth that can help luxury firms develop a sustainable competitive advantage over rivals and competitors.     

An integrated model of customer social exchange relationship: the moderating role of customer experience

This article addresses how the customer social exchange relationship affects customer satisfaction and, in turn, repurchase intention. On the basis of the stimulus–organism–response model, this article argues that perceived organisational support, perceived customer support, and perceived service provider support influence customer satisfaction, which in turn affects repurchase intention. Furthermore, this study argues that perceived organisational support is the most important predictor of customer satisfaction for high-experience customers, whereas perceived customer support is the most important predictor of customer satisfaction for low-experience customers. A survey of 144 users of the foreign language institute on a university reveals that most of these hypotheses are supported.     

When luxury brands meet China: The effect of localized celebrity endorsements in social media marketing

In social media marketing, celebrity endorsement is a widely used strategy. Luxury brands use their social media accounts to post pictures of celebrities using their products. However, they would be confronted with the dilemma of whether to standardize or localize their celebrity endorsers for different markets. This dilemma of whether to standardize or adapt their advertisements to the local market has been haunting luxury brands for a long time. This paper examines the effectiveness of localized celebrity endorsements for luxury brands on Chinese social media. We analyze whether Chinese celebrity endorsers could trigger more social media interactions and enhance perceived brand luxury than Western celebrity endorsers, based on an analysis of online big data and two experiments. We also explore when localized celebrity endorsement is most effective, focusing on the moderating role of patriotism. The results suggest that localized (vs. standardized) celebrity endorsements lead to more social media interactions. Using localized (standardized) celebrity endorsements enhance the perceived brand luxury for people with high (low) patriotism.     

The customer retail app experience: Implications for customer loyalty

Retailer mobile applications are one of the principal retail purchase and information search channels. Customer experience is key to retail app success. However, its dimensions and impact on retailer performance have been the subject of only a limited number of studies. This research builds on existing customer retail app experience literature by considering four dimensions as precursors of satisfaction with the retailers’ app and customer loyalty (cognitive, affective, relational and sensorial). Data were collected from a sample of 545 retailer app users and analysed using PLS-SEM. The results demonstrate that the affective dimension has the most influence and they highlight the importance of the sensory experience, which even surpasses the cognitive experience. The effect of the relational dimension on customer satisfaction, meanwhile, could not be positively confirmed. Analysis of the moderating effect of gender, age and device type used identifies effects that have not, until now, been demonstrated in current literature.     

Social interaction,convenience and customer satisfaction: The mediating effect of customer experience

The present study is an effort to investigate the impact of both convenience and social interaction on customer satisfaction and the mediating role of customer experience. A structured questionnaire was used to collect data (n=840) using systematic sampling from department store shoppers of age 18 years and above in India. Multivariate data analysis techniques like Exploratory Factor Analysis and Structural Equation Modeling were used to analyze the data. Results revealed that convenience and social interaction affect both customer experience and customer satisfaction. Arguably, this paper is the first to examine the four constructs namely, social interaction, convenience, customer satisfaction and customer experience using them together in the same model. Academic and managerial implications are further discussed.     

Exploring online customer experience: A systematic literature review and research agenda

This review aims to examine the latest research on online customer experience (OCE), which can be defined as consumer's cognitive, emotional, and behavioral response to interactions between customer and company occurring through digital channels (e.g., websites, social media, mobile apps). To achieve this, we utilized a hybrid review approach that incorporates quantitative bibliometric analysis and qualitative systematic literature review techniques. We identified publication trends, prominent authors and outlets, and the evolution of research themes based on 141 articles published since the last systematic review 11 years ago. Our framework-based review identified frequently studied antecedents, dimensions, and outcomes of OCE, and identified new themes related to m-commerce and augmented/virtual reality. We also identified gaps in the current literature and proposed 14 areas of future research using the TCM framework.     

The harmonious role of channel integration and logistics service in Omnichannel retailing: The case of IKEA

Grounded on the stimulus–organism–response framework, this study investigated the mechanism by which channel integration and logistics service influence satisfaction and repurchase intention from customers’ perspectives. An online survey was conducted to collect data and partial least squares structural equation modeling was employed for model assessment. The results disclosed that perceived logistics service quality is an antecedent of perceived channel integration quality and that the two variables harmoniously influence customer satisfaction (transaction-specific and cumulative) which subsequently generates repurchase intention. Particularly, the results demonstrated that the respective contributions of perceived channel integration quality and perceived logistics service quality in enhancing transaction-specific satisfaction differ through the distinct hybrid experiences. This study had theoretical implications for the literature on omnichannel retailing and practical implications for managers of omnichannel retailers.     

To smile or not to smile: The role of facial expression valence on mundane and luxury products premiumness

A smile is an essential professional requirement for sales assistant and endorser as a means to give a stunning impression and to please customers. However, luxury brands, engrained as consumption symbols to create social distance, tend to act oppositely: they prefer endorsers and sales assistants in a neutral face rather than a smiley face. The purpose of this study is to investigate how and why facial expressions valence impact luxury product price estimation. A pilot study and three studies were conducted to test the hypotheses. We first test whether neutral faces combined with luxury goods can make the customer feel distant. Then we conducted an imagination task to assess whether the interaction between the facial expressions of sales assistants and product type affects product valuations. Further, we adopted an experiment to explore the proposed mechanism, social distance. The results show that commercial models and sales assistants' neutral facial expressions increase perceived social distance, further enhancing the valuations of luxury goods. In contrast, they estimated mundane products higher when they saw a smiley face than a neutral or a negative face. These findings contribute to the literature on the impact of facial expressions in advertising and services for luxury and mundane products. Our findings have potential implications for brands to manage their images and convey their value through employees’ facial expressions according to brand positioning.     

The influence of customer experience with automated games and social interaction on customer engagement and loyalty in casinos

Drawing on experiential marketing theory, This study examines the relationship between casino customers’ experience with automated games and their engagement and loyalty responses to casinos. Social interaction as a proxy of visiting motivation is modelled as a moderator in the relationship. Customer behaviours include word-of-mouth, visiting frequency, and average spending. The study focuses on Australian land-based casino members with automated game experience. The results show that customer experience with some features of automated games had a positive and significant impact on customer engagement with the casino, which led to positive loyalty. Automated game experience also had an indirect effect on customer loyalty. Social interaction exhibited a significant moderating effect on the relationship between customer engagement and visiting frequency. Discussion and implications of these findings for the literature and practitioners conclude the paper.     

Additive omnichannel atmospheric cues: The mediating effects of cognitive and affective responses on purchase intention

In today's channel-centric retail ecosystem the right mix and orchestration of online and offline stimulus is paramount towards providing an optimal store atmosphere and shopping experience. Applying the S-O-R framework, this research explores additive omnichannel atmospheric cues stimuli, in order to discover their impact on affective (i.e., pleasure, arousal and dominance) and cognitive (i.e., store environmental quality perception) states and their consequential effect on consumer responses in the form of purchase intention. Employing a four-condition repeated measures experimental design in a physical store, utilizing mobile, IoT and social media channels (Study 1), as well as a between-subjects online lab experiment (Study 2), this research sheds light into the affective and cognition-mediated causal mechanisms that influence shopping outcomes. This work reveals that combining stimulus from all retail channels within the physical store (i.e., omnichannel atmospheric cues) increases consumers' pleasure, arousal and the quality of the environment as a whole, which in turn positively influences purchase intention. However, the impact of dominance is only prominent at the more controlled, laboratory setting, in which purchase intention increases while dominance attenuates.     

The social significance of AI in retail on customer experience and shopping practices

This paper draws on practice-informed, ethnographic research to develop an understanding of the novel social consequences and opportunities afforded from consumers' interactions with AI digital humans as part of the in-store shopping experience. We reveal and interrogate consumers’ experiences with AI digital humans in an exploratory study undertaken during the launch phase of an in-store kiosk digital store greeter in a flagship store of a large national technology and appliance chain. Our findings contribute to understanding the social significance of AI in retail on customer experience (CX) and the managerial implications of consumers interactions with AI digital humans are described and discussed.     

Online retail experience and customer satisfaction: the mediating role of last mile delivery

ABSTRACT

For various industries worldwide, recent years have been defined by the remarkable growth of e-commerce. Enabled by the Internet, retailers can reach more customers, spread much further in the distribution chain, and optimize their resources. In the new market environment, customer experience has become a source of competitive advantage. This study investigates the role of last mile delivery in the customer’s e-retail experience. A quantitative methodology was used, which incorporated a survey that was conducted in Sweden and measured participants’ most recent e-retail experience. The results indicate that the last mile delivery experience mediates the relationship between the customer’s perception of the online shopping experience and customer satisfaction. These conclusions provide ground for further thorough investigations of the role of last mile delivery in the e-retail context and support e-retailers in increasing their customers’ satisfaction.