Information effects of warehouse automation on sales in omnichannel retailing

The recent development of an omnichannel business environment provides a seamless shopping experience throughout the customer journey. Although previous studies have identified the importance of rapid product delivery, consumers cannot evaluate delivery quality until it has arrived. This study argued that warehouse automation and retail channel brand characteristics lead to informative signals and to firms' higher sales in the omnichannel context. By analyzing panel data from the Japanese retail market, we tested the effects of warehouse automation and the moderating effects of omnichannel, online, and offline brand offerings on the effectiveness of the warehouse automation signal. Results showed that warehouse automation signaling positively affects firms’ sales and has a positive interaction effect with omnichannel offerings.     

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.     

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 .     

Reciprocal Effects Between Multichannel Retailers’ Offline and Online Brand Images

Two experiments were conducted to disentangle reciprocal relationships between multichannel retailers’ offline and online brand images. Results support the cross-channel effect of prior offline brand image on online brand beliefs (biased assimilation) and that of online performance on offline brand beliefs (impact). Consumers’ online and offline brand attitudes were influenced by not only brand beliefs from the respective channel but also by beliefs from the other channel. But, strong prior offline brand image was found to mitigate the impact of online performance on offline brand beliefs in the presence of negative online performance (impact minimization) as a way to eliminate cognitive dissonance.     

The impact of buy-online-and-return-in-store channel integration on online and offline behavioral intentions: The role of offline store

Retailers have treated the buy-online-and-return-in-store (BORS) policy as an important initiative to reduce return losses and provide a better customer experience. Studies on BORS policy have primarily focused on the retailer's strategic value, but not on how such a seamlessly integrated omnichannel operation affects customer behavior. Using Chinese customer data and the structural equation model (SEM), we investigate how BORS channel integration impacts customer behavioral intentions, with the consideration of the mediating effect of customer satisfaction and the moderating effect of offline store characteristics. Based on the stimulus-organism-response framework, our research found that two dimensions of BORS channel integration (integrated return fulfillment and integrated customer service) positively impact customer satisfaction and subsequently impact behavioral intentions in different channels. Furthermore, offline store convenience moderates the relationship between integrated customer service and customer satisfaction. Product variety in the offline store moderates the relationship between customer satisfaction and offline behavioral intentions, while it is not statistically significant in the relationship between customer satisfaction and online behavioral intentions. Compared to the younger group, the older group who is satisfied with BORS service is more likely to purchase offline. These findings generate important theoretical and practical implications for omnichannel return operations.     

Cross-channel effects of omnichannel retail marketing strategies: A review of extant data-driven research

The authors review 50 empirical retailing research papers that have appeared over the last 20 years to take stock of what we know, need to know better, and do not know yet about within-retailer cross-channel effects of omnichannel retail marketing strategies on (a) consumer responses over their purchase journeys, i.e., online and/or offline search, purchase intention, frequency, amount, returns, loyalty, and (b) the retail firm's aggregate outcomes (e.g., sales, costs, profits, product returns) by channel and overall. Specifically, the authors focus on five strategies: (1) the addition of online channel by an offline retailer; (2) the addition (or subtraction) of offline channels by an online retailer; (3) addition of mobile shopping channel (website and/or app) by offline and/or online retailer; (4) cross-channel integration strategies; and (5) retail marketing mix strategies. The author/s integrate findings from empirical research on these strategies into a number of ‘insights’ about ‘what we know’. Prominent among these are the following: Adding a transactional online channel to an offline channel improves the retailer's overall sales even though offline channel sales can be cannibalized to some degree. Adding an offline channel by an online retailer, however, boosts online channel sales as well as overall sales of the retailer. Similarly, adding a mobile shopping channel usually increases customer purchase frequency and amount and overall sales of the retailer in the long-term. Strategies for greater cross-channel integration generally have a positive effect on a retailer's overall performance while online advertising has positive effects on offline channel consideration and sales as well as overall sales of a multichannel retailer. Other insights or findings that need further study or open questions are also identified. The paper closes with managerial implications of the derived empirical insights, and suggestions for future research.     

Bridging the online offline gap: Assessing the impact of brands’ social network content quality on brand awareness and purchase intention

Social media is shaping the way companies and brands engage and interact with consumers, particularly Millennials. In light of this growing trend, this study aims to understand the influence of content quality and brand interactivity within social media on consumers' brand awareness and purchase intentions by proposing an empirical model which is tested using structural equation modeling. The study also explores whether the relation between social media stimuli and offline purchase intention is mediated by hedonic motivation, consumer engagement and brand awareness. Results reveal that the quality of content provided by brands on social media and company-users' interactivity are of major importance to Millennials. They increase the hedonic motive derived by these users from social media, strengthen their online engagement and intensify their brand awareness. This heightened online consumer engagement coupled with an increased online consumer brand awareness leads to an increase in the purchase intention of these brands offline. Consequently, companies are encouraged to invest in producing high-quality content on their social media pages, deploy all possible strategies to enhance brand users’ interactivity given the important role these variables play in entertaining, engaging users online, building brand awareness and influencing their offline purchase intentions.     

Determining Customer Satisfaction From Mobile Phones: A Neural Network Approach

Abstract

This research examines the effects of extension mode (online to online vs. online to offline), web-brand concept (function oriented vs. experience oriented) and extension similarity (high vs. low) on consumer web-brand extension evaluations, attitude, perceived quality, and purchase intention of the extension brands. The analysis reveals two significant interaction effects: (1) the positive effect of brand extension similarity on consumer evaluations is stronger when the parent brand is function oriented compared to the experience-orientated ones; (2) the positive effect of brand extension similarity on consumer evaluations is more pronounced when the web-brands extend to offline markets rather than to online markets. Implications for marketing theory and practice are discussed.     

More gain,more give? The impact of brand community value on users’ value co-creation

Users' value co-creation behaviors contribute to the prosperity of brand communities as well as brand performance. This article aims to answer a basic question: are brand community users who obtain more value from the brand community more willing to co-create value? If so, why and under what conditions? Drawing from reciprocity theory, this study proposes that information value and social value lead to value co-creation by evoking users' reciprocity norm, and this effect depends on their self-presentation in the community. Results based on structural equation modeling combining survey data and archival data largely validate this framework, revealing that the reciprocity norm mediates the influence of brand community value on value co-creation. Additionally, information value increases value co-creation only when the level of self-presentation is high, and the positive effect of social value is not altered by self-presentation. By uncovering the mechanism and boundary conditions of how brand community value affects users’ value co-creation behaviors, this study extends the current literature on value co-creation and provides important practical implications.     

Price,online coupon,and store service effort decisions under different omnichannel retailing models

This paper explores three omnichannel retailing models—that is, a Buy-Online, Pick-Up In-Store (BOPS) model, a Showroom model, and an Interactive model (a model that combines the characteristics of BOPS and Showroom)—under which the retailer offers coupons online and invests in service efforts offline. For each omnichannel retailing model, three coupon distribution scenarios (i.e. no coupon, coupon with a common value, and coupon with a different value) are discussed to investigate coupon promotion policies and omnichannel operation strategies. Profits in the omnichannel system and under each model are compared by deriving three decision values: price, coupon value, and service effort. The key findings show that the retailer achieves profit improvement when the incremental purchasing reaches a large value. In addition, a great service effort coefficient leads to a high price, service effort, and retailer profit. The service effort and coupon value in the Showroom model are the largest among the three omnichannel models, while its profit is the lowest. Conversely, although the retailer invests less in service effort, and the price and coupon value are not too large in the BOPS model, the retailer still gains the highest profit. Additionally, in the BOPS model, it is profitable for the retailer to distinguish the coupon value for the online-only and BOPS channels when consumers are less sensitive to the online-only channel’s coupon. However, in the Interactive model, the retailer derives increasing profit by providing coupons with a common value for the online-only and BOPS channels.     

The omnichannel continuum: Integrating online and offline channels along the customer journey

This paper provides a framework for conceptualizing omnichannel integration as a continuum, identifies phenomena that determine how firms should position along that continuum, and summarizes empirical research regarding these phenomena. The framework combines the customer journey (search to purchase to aftersales) and channel choice (online vs. offline). This generates a range of omnichannel strategies, anchored by “Unconnected” on one extreme and “Complete” on the other. In between, “Vertical” strategies integrate channels over the customer journey, while “Horizontal” strategies integrate across channels at a given stage in the customer journey. We draw on more than 200 articles to identify 10 consumer and marketing phenomena (“determinants”) that influence where a firm should position along the continuum. This however raises challenges. For example, empirical research surprisingly finds many customers belong to an offline-focused segment. This suggests a Vertical strategy linking offline channels. However, today's turbulent retail environment questions whether the offline-focused segment will endure. Should the retailer cater to offline-focused customers or facilitate their progression to “multichannelism”? Another finding is that consumers strongly prefer consistency across channels. This suggests a Horizontal strategy. However, consistency might create channel cannibalization. How can the retailer avoid this? We discuss these and several other findings regarding the impact of the 10 determinants on omnichannel continuum strategy. We identify issues researchers need to research and managers need to consider when developing omnichannel continuum strategy.     

Brand hate and non-repurchase intention: A service context perspective in a cross-channel setting

The purpose of this study is to investigate the brand hate phenomenon for service products in a cross-channel setting (offline/online environment). To reach this objective, structural equation modeling was employed on a sample of 265 consumers. Findings reveal that brand hate positively influences offline negative word-of-mouth (NWOM), online complaining, and non-repurchase intention. Furthermore, while offline NWOM has a positive effect on non-repurchase intention, online complaining has a negative one. Finally, a mediated path was identified, which starts from brand hate and ends with non-repurchase intention through online complaining and offline NWOM. The study provides implications for firms’ marketers and practitioners.     

Crosswise and reciprocal interdependencies within retailers’ multichannel structures

Understanding consumer behavior across channels is the fundamental basis for implementing successful multichannel retailing strategies. This study analyzes the crosswise and reciprocal relationships between offline and online brand beliefs, offline and online retail brand equity and consumers’ conative loyalty to a retailer in multichannel structures. The relationships are contextualized by investigating fashion and grocery retail sectors and different prior channel performances that are likely to affect the paths to loyalty across channels. To provide insight into these issues, two cross-sectional and two longitudinal models are employed. The results show that former brick-and-mortar retailers are able to significantly increase consumers’ loyalty to the firm by primarily designing offline (secondary online) attributes and beliefs. The results hold for retailers in both fashion and grocery retailing, however, with stronger effects in fashion, as well as for retailers with strong vs. weak prior channel performance. However, indirect effects indicate that online brand beliefs and offline retail brand equity are the central strategic levers for prior strong (vs. weak) retailers. Reciprocal relationships between online and offline retail brands underline important channel interdependencies. Managers thus need to take these crosswise and reciprocal interdependencies between channels into account when designing successful multichannel retailing systems. This study introduces the novel idea of simultaneous crosswise and reciprocal relationships within multichannel retail structures and shows that paths to loyalty vary for retailers in different retail sectors and retailers with strong vs. weak offline and online channel performances.     

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.     

What induces online loyalty? Online versus offline brand images

This study investigates the effect of the interplay between a multi-channel retailer's offline and online brand images on consumers' online perceived risk and online loyalty within the framework of a theory of cognitive dissonance. A sample of 671 female college students participated in an experiment using a 2 (prior offline brand image) × 2 (online performance) between-subjects design. Results reveal that offline brand image exerts significant effects on online brand image - which, in turn, significantly explains online perceived risk - and online customer loyalty. However, online perceived risk has no significant effect on online customer loyalty after controlling for the effects of online and offline brand images. These results provide implications for the direct and indirect halo effects of offline brand image and the direct effect of online performance that may influence consumers' perceptions, expectations, and loyalty regarding multi-channel retailers.     

The rise of smart consumers: role of smart servicescape and smart consumer experience co-creation

ABSTRACT

Rapid technological advancements have led to the emergence of smart services and smart consumers. This study focuses on smart consumers who voluntarily engage in value creation activities, in order to conceptualise smart experience co-creation (SEC) and the smart servicescape. Drawing on the Stimulus-Organism-Response (SOR) framework, a model is proposed and tested around the impacts of smart servicescape dimensions (aesthetics, superior functionality, social presence, perceived interactivity and perceived personalisation) on smart consumer experience co-creation. SEC is conceptualised as a second-order construct consisting of cognitive, hedonic, social/personal, and pragmatic/economic first-order dimensions. Results show that the technological environmental cues of the smart servicescape (S) collectively influence smart experience co-creation (O), and this co-created experience eventually influences consumers’ service brand equity and word-of-mouth (WOM) intentions (R). A major novelty of this study lies in uncovering the relationship between experience co-creation and service brand equity. Findings have theoretical and managerial implications for smart services.     

电商化转型零售商的品牌权益提升机制与路径研究——基于双渠道品牌形象驱动的视角

网络零售强烈冲击下的国内传统零售业面临行业生存危机,电商化转型已经成为行业的必然发展趋势。文章通过界定电商化转型零售商及其品牌形象、品牌权益的概念,提出其“实体-网络”双渠道品牌形象结构的概念模型,并进一步构建其“双渠道品牌形象——品牌权益”驱动机制模型,以结构方程结合信度分析、效度分析等方法进行了实证分析。研究发现：电商化转型零售商的实体品牌形象各维度变量对网络品牌形象的对应维度变量都具有非常强的直接积极影响（即支撑效应）,价值维度、价格维度、供应维度的支撑效应由强至弱;实体品牌形象各维度变量对品牌权益产生明显的总积极影响（即提升效应）,价格维度、价值维度、供应维度的提升效应由强至弱,但供应维度无直接影响;网络性品牌形象各维度变量对品牌权益产生明显的直接积极影响（即提升效应）,供应维度、价格维度、价值维度的提升效应由强至弱。     

Linking online niche sales to offline brand conditions

With the dramatic growth in the online marketplace, online retailers are keen to understand and leverage the interplay between offline environment and online sales. This study examines the influence of offline brand conditions on online sales of niche brands. Specifically, we investigate the proximity to the leading brand's headquarters, city of origin, and the extent of its offline distribution, offline brand availability. We also examine the moderating effect of offline affinity for niche attributes, offline niche affinity. Using sales data of niche brands, we find that brand share is higher in regions closer to the city of origin and where brand availability is limited. The category sales benefit from proximity to the city of origin and increased offline brand availability. This positive impact of favorable offline brand conditions on category sales is more prominent in regions with lower niche affinity. Finally we offer managerial insights for marketing practice.     

Influencer marketing: Homophily,customer value co-creation behaviour and purchase intention

Given the rise in influencer marketing on social media, this paper explores how homophily between influencers and their audiences affects customer value co-creation behaviour, resulting in increased expected brand value and purchase intention. A sample of 910 respondents from the United States completed an online investigation. The results indicate that homophily positively influences customer value co-creation behaviour as well as positively correlates with expected brand value and purchase intention. Customer value co-creation behaviour plays a multi-mediating role. Para-social relationship moderates the relationship between homophily and customer participation behaviour. Overall, this study encourages further research on value co-creation in influencer marketing and can constitute a valuable reference for marketing practitioners and influencers.     

Is the shopper always the king/queen? Study of omnichannel retail technology use and shopping orientations

Technology is transforming how retail services are delivered and the experience lived by consumers. Online and offline channels are converging to deliver a seamless omnichannel shopping experience. However, despite retailers’ significant technology investments, shoppers do not always adopt omnichannel usage. Understanding omnichannel retail technology (ORT) usage and how it interacts with shopping orientations is thus an important research challenge.The model is tested through a field study that targets real users of a 3D virtual reality application.The results first show that omnichannel use positively influences performance and effort expectancy perceptions. Second, the effect of ORT use on decision quality depends on task orientation. Third, task orientation moderates the effect of omnichannel use on performance expectancy. Fourth, recreational orientation positively influences shoppers’ perceived experience. Fifth, perceived value is an important predictor of retail patronage intentions.