Searching online and buying offline: Understanding the role of channel-, consumer-, and product-related factors in determining webrooming intention

In recent times, the increasing accessibility of mobile technology has led to changes in consumers’ purchasing behavior. Despite the gloom and doom hearsay about how electronic commerce is threatening the existence of brick-and-mortar stores, by some indications, however, webrooming (i.e., the practice of researching items online, and then buying them offline) may be an even more common practice among shoppers. Against this background, this study proposes and empirically validates a comprehensive research model which incorporates consumer traits (i.e., need for touch, need for interaction, and price-comparison orientation), channel-related factors (i.e., online search convenience, perceived usefulness of online reviews, perceived helpfulness of in-store salespeople, and perceived risk of buying online), and smart shopping perception as antecedents of webrooming intention. Moreover, this study examines the moderating role of product category in predicting webrooming intention. A questionnaire-based survey was conducted. A total of 280 useable responses was collected and data was analyzed using partial least square structural equation modeling. The findings revealed significant direct and/or indirect effects (through smart shopping perception) of consumer traits and channel-related factors on webrooming intention. In addition, product category was found to moderate the relationship between price-comparison orientation, online search convenience, perceived risk, and webrooming intention. Theoretical and practical implications are discussed.     

What drives competitive webrooming? The roles of channel and retailer aspects

ABSTRACT

Competitive webrooming, the phenomenon in which consumers gather product information online but ultimately purchase the product in an offline store of a competing retailer, has gained traction and become a major threat for retailers. To gain a deeper understanding of its drivers, we surveyed 1081 retail customers about their most recent consumer electronic product purchase to examine the impact of channel-related aspects as well as retailer-related aspects – a dual approach that has not been applied previously. A channel’s anticipated after-sales service and price level are the strongest predictors for webrooming. Moreover, retailer aspects determine whether customers simultaneously switch retailer when webrooming. A retailer’s assurance of delivery, including payment modalities, return policies, and product obtainment, as well as competitive product prices motivate consumers to switch retailer when webrooming. These results suggest that customers have a fundamental need for certainty within and after the buying process, which can be satisfied by both channel and retailer. Additionally, this is the first study to empirically test for interactions between channel and retailer aspects, as they are likely to occur in real shopping situations. We identified two interactions: First, a retailer’s assurance of delivery can compensate for an anticipated lack of a channel’s after-sales service, dampening the impact of the latter on competitive webrooming. Second, retailer’s price attractiveness acts in a similar vein. Hence, to steer customers into channels and/or keep them with the company, retailers should emphasize their price attractiveness as well as assurance of delivery.     

The impact of channel integration on consumers’ channel preferences: Do showrooming and webrooming behaviors matter?

This study investigates the relationships among channel integration and consumers' online and offline patronage intentions. The theoretical framework proposes perceived empowerment, perceived assortment, and perceived benefits as mediating variables in the channel integration–patronage intention relationship, with consumer showrooming and webrooming behaviors as moderating variables. Data was collected by means of two studies; that is, for search and for experience products, respectively. The proposed conceptual model was tested by employing variance-based structural equation modeling. The results of both studies confirm that channel integration significantly affects consumers’ channel preferences. The mediating roles of empowerment, assortment, and benefits were confirmed for all of the relationships except for the mediating effect of empowerment on the relationship between channel integration and offline patronage intention. Further, showrooming and webrooming moderated the positive impact of channel integration on online/offline patronage intentions. The study contributes to the multi-channel retailing literature by providing useful implications for academicians and practitioners.     

Why is Price Dispersion Higher Online than Offline? The Impact of Retailer Type and Shopping Risk on Price Dispersion

When physically similar products, of similar quality, are offered by retailers both online and offline, we often observe that the dispersion in prices of these products online is greater than the price dispersion offline. This observation runs counter to early theories that suggested price dispersion online would be smaller than that offline due to the ease of search and information availability online. This paper investigates and provides an explanation for this puzzling phenomenon by examining the impact of two important drivers of price dispersion: retailer type and consumers’ shopping risk. Retailer type refers to whether a retailer is a pure offline, pure online, or dual channel retailer. Shopping risk is defined as the product of consumers’ perceived risk of shopping and the transaction uncertainty related to shopping at different types of retailers.A game-theoretic approach is adopted to model consumers’ price search and product purchase, as well as price competition within and across retailer types in online and offline markets. Equilibrium pricing strategies are derived for different retailer types competing for different consumer segments with different levels of perceived shopping risk. The impact of retailer type and shopping risk on online versus offline price dispersion are quantified, and conditions when price dispersion is greater online than offline are identified.Results indicate that price dispersion is greater online when the number of pure online retailers is sufficiently large and is increasing in the number of pure online retailers. In addition, a reduction in online shopping risk may actually increase online price dispersion. Results further suggest that even without any online sales, dual channel retailers should maintain their online presence for the purpose of information dissemination, which justifies the importance for pure offline retailer to incorporate webrooming strategies, where consumers can search for prices online but purchase offline.     

Product Touch and Consumers’ Online and Offline Buying: The Role of Mental Representation

As offline retailers struggle to compete with online ones, the importance of a consumer’s ability to touch a product prior to purchase becomes important to study. Prior research has found inconsistent results on whether product touch facilitates consumers’ product-related decision making. Some studies report a positive effect, whereas others do not. The current research reconciles this inconsistency and draws retailing implications. Across three experiments, we show that the effect of product touch on consumers’ purchase intentions and willingness to pay for a product being evaluated is evident when consumers’ mental representation of the product is concrete, but not when abstract. We further show that perceived risk and perceived ownership simultaneously mediate this moderating effect of mental representation. Implications are drawn for both offline and online retailers.     

A comparison of online and offline gender and goal directed shopping online

The aim of this paper is to model the effect of the consumers’ perceptions of their offline and online gendered behaviour on online utilitarian shopping motivation and purchase intentions. We hypothesise that when consumers shop online, their behaviour is mediated by two gendered behaviours, namely offline and online. To test this hypothesis, 515 usable responses were collected in face-to-face interviews. The conceptual model was tested with confirmatory factors analysis (CFA) and structural equation modelling (SEM) across five product categories. Our findings show that the effect of a consumer's perception of their gendered behaviour offline vs. online on online utilitarian shopping motivation and purchase intentions is significantly different. In particular we found that utilitarian shopping motivation online has a significant effect on purchase intentions online mediated by gender (online) overall: strongly for females but not for males. Conversely, utilitarian shopping motivation online has a significant effect on purchase intentions online mediated by gender (offline) for males but not overall and for females.     

Combining channels to make smart purchases: The role of webrooming and showrooming

In this study, the authors analyse the influence of specific combinations of online and physical channels (webrooming and showrooming) on the customer experience, specifically, on smart shopping perceptions and feelings. Taking into account that cross-channel consumers are driven by different motivations, the influence of shopping motivations is controlled. The results of an experiment in the fashion industry show that webroomers have greater perceptions of time/effort savings and of making the right purchase, and greater smart shopping feelings, than showroomers. Furthermore, webrooming leads to higher personal attribution than showrooming, meaning that consumers feel responsible and in control of their purchase outcomes. Personal attribution then mediates the impact of webrooming on smart shopping feelings. Although companies may have difficulties in tracking consumers’ use of online and offline channels, their enhanced control over the process may improve their experience through smart shopping perceptions and feelings.     

Online customer service and retail type-product congruence

This study investigates how various elements of customer service affect the behavioral intention to shop at the online or the offline store for different product categories. We focus on the perceived value, trust, interface, empathy, and offline presence as the dimensions of the customer service for the retail store (online or offline). Using 317 respondents from the online stores’ users, this study finds that perceived value is the strongest predictor for future intention to shop at online stores, whereas offline presence of an online store did not enhance the future intention to shop at online stores. Other dimensions such as enhanced trust and ease of interface strengthen the intention to purchase at the offline stores. Finally, perceived value and empathy associated with online stores harm the offline stores. In synch with the Theory of Congruence, this study supports the notion that the perceived congruence between product type and retail store type affect their intention to purchase certain product categories at the online stores and to purchase other groups of product categories at offline stores. Further ramifications of these findings are discussed in the paper.     

When Do Online Consumers Shop in an Offline Store: The Moderating Effects of Product Characteristics

This study serves as an initial attempt to demonstrate empirically how online consumers react to the offline channel extensions (i.e., opening physical stores) of e-tailers. Specifically, we examine how the attributes of offline channels influence consumer intentions to switch to offline channels and how they also lead to incremental demands on online channels. We investigate how these effects vary across highly complex utilitarian and hedonic products. The results of the study indicate that although store openings encourage online consumers to shop there when purchasing highly complex utilitarian products, the addition of offline stores results counterintuitively in incremental patronage of the online channels when consumers shop for highly complex hedonic products. This study validates the guiding role of product characteristics in designing offline channels for e-tailers and suggests that incorporating product type and complexity into the design is likely to contribute to the development of stores tailored to specific consumer segments.     

Understanding consumers’ paths to webrooming: A complexity approach

Webrooming (practice whereby products are researched online before making an offline purchase) has been recognized as a prevalent form of cross-channel shopping behavior. Grounded in complexity and configuration theories, this study examines how different causal conditions determine webrooming intention. Required data was obtained from a purposive sample through paper surveys, and was analyzed using fuzzy-set qualitative comparative analysis (fsQCA). The findings reveal three configurations in which different combinations of product, consumer, and channel factors may interact in different ways to explain high webrooming intention. Notably, product involvement was identified as the core condition in all configuration paths. This study enriches the theoretical foundations of webrooming behavior, and the findings yielded are expected to assist retailers in developing better-targeted strategies in dealing with this increasingly prevalent cross-channel behavior.     

In God we hope,in ads we believe: the influence of religion on hope,perceived ad credibility,and purchase behavior

This research proposes and demonstrates that religiosity positively affects consumers’ hope for advertised benefits, leading to greater perceived advertisement credibility and, consequently, a greater likelihood of purchasing the advertised products. A multiple-step mediation analysis revealed that both hope for advertised benefits and perceived ad credibility play pivotal roles in explicating the effect of religiosity, whether measured (study 1) or manipulated (study 2), on purchase intentions of advertised products. The authors also investigated the interactive effect between religiosity and perceived product materialism on the observed effects (study 3). The effect of religiosity on hope for advertised benefits, perceived ad credibility, and purchase intentions was moderated by perceived product materialism, such that the positive effects of religiosity on hope, perceived ad credibility, and purchase intentions were observed only for non-materialistic (vs. materialistic) products. Theoretical and managerial implications are discussed.     

Factors influencing generation Y’s purchase intentions of prototypical versus me-too brands

The current study examines self-confidence, perceived quality, extrinsic attributes and perceived risk as drivers and inhibitors of Generation Y’s purchase intentions of prototypical and me-too brands. A survey of 348 respondents demonstrated that self-confidence and perceived quality produced significant positive effects on purchase intentions for the me-too brands. Extrinsic attributes produced a significant positive effect on purchase intentions for the prototypical brand. Perceived financial/performance risk produced a significant negative effect on purchase intentions for both the prototypical and me-too brands, while perceived psychological risk produced a significant negative effect on purchase intentions for the prototypical brand. Understanding the factors underlying Gen Y’s consumer behaviour is crucial, particularly due to their considerable consumption potential and the increasing sophistication of brand marketing in the marketplace.     

The determinants of foreign product preference amongst elite consumers in an emerging market

By integrating the Theory of Reasoned Action (TRA) and self-image congruence, this study seeks to investigate elite consumers’ purchase intentions towards products made in foreign countries. The data were gathered via a survey conducted amongst 316 Sri Lankan elite consumers across two product categories. The findings demonstrate that consumers’ attitudes towards products made in foreign countries are driven by subjective norms and self-image congruence. The study shows that self-image congruence is the stronger predictor of consumers’ attitudes towards products made in foreign countries. Also, the effect of self-image congruence on consumers’ purchase intentions is partially mediated by their attitudes towards products made in foreign countries.     

Appreciating Anonymity: An Exploration of Embarrassing Products and the Power of Blending In

While most research suggests using ostentatious packaging as a strategy to increase sales, using such packaging for embarrassing products can actually decrease purchase intentions. Five studies explore two components of packaging that influence product anonymity and the relationship between anonymity, embarrassment, and purchase intentions. The studies use a variety of methods including one field study, three scenario-based experiments, and one virtual reality video study with a behavioral component. This research contributes to retailing literature by examining the effect of packaging dimensions on product anonymity and the subsequent impact on embarrassment and purchase intentions. We consistently show more anonymously packaged products are perceived as less embarrassing and are more likely to be purchased than less anonymously packaged products. Consumers are able to circumvent undesirable stigmas associated with embarrassing products by selecting products that are more anonymously packaged and positioned in the store. Additionally, increased sales due to product packaging differences are more likely when an embarrassing product is positioned in an aisle versus on an endcap. Promotional incentives, such as coupons, in-store discounts, or bonus buys, can mitigate the negative effect of embarrassment onto purchase intentions. These findings have important implications to our understanding of shopper behavior when threatened with embarrassment.     

The Impact of Cause-Related Marketing on Millennials’ Product Attitudes and Purchase Intentions

This study, using scenarios, examined the impact of two kinds of cause-related marketing (CRM) efforts (a traditional donation of a portion of sales to a related cause and a more strategic one-for-one donation of donating a product to a related cause when that product was purchased) on millennials’ (those born between 1982 and 2000) attitudes and purchase intentions for four different consumer product categories. The four different consumer product categories selected included a specialty good (laptop), a shopping good (hat), a convenience good (bottled water), and a service (food restaurant). Given the importance of social media to millennials, this research also examined the role of social media on CRM awareness. While millennials had relatively low awareness of CRM campaigns, there was a positive correlation between social media use and CRM awareness. Additionally, CRM efforts may not work for all products as there was no impact on attitude or purchase intention for the product category of laptops. Additionally, the positive attitudes created by marketers’ CRM efforts will not always translate to increased purchase intentions. The use of a strategic one-for-one CRM effort though had a greater impact, specifically for products that deal with needed fundamentals, such as food and water.     

Gender Differences in Psychosocial Determinants of University Students’ Intentions to Buy Fair Trade Products

This study examined gender differences in university students’ intentions to buy fair trade (FT) products through the lens of the moral norm extended theory of planned behaviour (TPB). Data were obtained from 782 students at the University of Luxemburg. Results of structural equation analysis indicated that the inclusion of moral norms increased the explained variance in behavioural intentions from 62 to 69.4%. Compared to men, women reported more favourable attitude, higher moral obligation, and stronger intentions toward buying FT products. Moderating analyses showed that the attitude–intentions relationship was stronger for men, whereas the perceived behavioural control–intentions relationship was stronger for women. The implications of the moderation analysis are that sustainability professionals seeking to encourage university students’ intentions to buy FT products should develop gender-targeted interventions: for men, more emphasis should be placed on attitude toward buying FT products (i.e., the advantages of adopting this behaviour), and for women, more emphasis should be placed on perceived behavioural control (e.g., factors that facilitate the purchase of FT products).     

Price Consciousness and Purchase Intentions for New Food Products: The Moderating Effect of Product Category Knowledge when Price Is Unknown

This study examines the degree to which consumers' price consciousness affects their purchase intentions for a newly introduced product when the price of the product is unknown. Based on data from 186 consumers exposed to a new product offering, the results show that price consciousness indeed has a negative effect on purchase intentions, but only for consumers with a high level of product category knowledge. Although perceived risk and perceived value are significantly related to purchase intentions in general, price consciousness seems to affect only those consumers who make inferences about price based on their knowledge of the product category. Both theoretical and managerial implications of the findings are offered.     

Factors affecting luxury consumers’ webrooming intention: A moderated-mediation approach

The aim of this study to investigate factors affecting luxury consumers’ webrooming intention using a moderated mediation framework. The study also investigates the mediating effects of perceived hedonic value and perceived utilitarian value and how these mediating effects are moderated by online risk perceptions. Data were collected using offline survey from 374 luxury consumers in India, using systematic sampling. The results indicated that perceived usefulness of online search, need for touch and socialization have significant impact on webrooming intention. Perceived hedonic value and perceived utilitarian value mediate the effect of variables on webrooming intention and mediation effect of perceived utilitarian value varied between high and low levels of online risk perceptions. Findings of this study will help luxury retailers in managing consumer channel switching behaviour. The study enriches luxury marketing literature by examining emerging webrooming, channel switching phenomenon.     

The role of product brand image and online store image on perceived risks and online purchase intentions for apparel

Purchase intentions for apparel products often require physical examination prior to purchase. Hence, greater risk is associated with shopping online for apparel products, making it important to examine factors that reduce various risks influencing online purchase intentions. This study examines and compares the impact of two of the most important risk reducers for online apparel shopping – product brand image and online store image – on specific types of perceived risks and online purchase intentions for apparel. The results show that product brand image influences consumers' online purchase intentions both directly and indirectly by reducing various risk perceptions. Online store image impacts purchase intentions indirectly by decreasing risk perceptions. The results of this study provide fresh insight into understanding the impact of product brand image and online store image on each type of perceived risk associated with online shopping.     

The process by which product availability triggers purchase

Both product availability and lack of availability have the potential to trigger the intention to buy. The present research aims to identify the specific processes by which the latter situation of lack of availability drives purchase intention. The research demonstrates that, when lack of product availability is perceived positively, it influences purchase intentions via consumer involvement. However, when lack of product availability is perceived negatively, it influences purchase intentions via perceived feasibility, irrespective of consumer involvement. Two studies confirm the dual indirect effect of product availability on purchase intentions and its underlying processes.