Impact of movie-watching on cross-selling revenue in shopping malls: Implications for post-pandemic recovery

The COVID-19 pandemic has prompted consumers to postpone in-store purchases and shift to online shopping, decreasing overall retail spending. As the global lockdown eases and shoppers return to offline stores and malls, shopping malls seek to facilitate in-store consumer experiences at entertainment facilities. Given the importance of entertainment facilities to the cross-selling revenue of shopping malls, we investigate the relationship between consumers' movie-watching and subsequent (hedonistic) grocery purchases. Our analysis of a panel database that includes transaction details at the consumer level shows that movie-watching is negatively correlated with consumer spending. Furthermore, consumers’ psychological states induced by content and contextual factors moderate the negative effect of movie-watching; after watching a fantasy (as compared to thriller) genre or watching a movie in a less crowded theater, consumers are more likely to make hedonic purchases at the supermarket. These findings provide theoretical and managerial implications for retail operators exploring cross-selling opportunities post-pandemic.     

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.     

Does product involvement drive consumer flow state in the AR environment? A study on behavioural responses

Understanding consumers’ behavioural responses is crucial to improve the usage of augmented reality (AR) by retailers. Both in the online and offline retail market, AR enhances consumers’ shopping experiences by offering them enjoyable and immersive information about products and services. This paper explores consumers' behavioural responses by measuring the role played by product involvement in affecting the AR flow experience. To this end, the study employs a quantitative approach based on data collected from August to September 2022. Results show that consumers' involvement with products affects their AR flow experience, along with their behavioural intentions in terms of purchase intention and intention to visit the retailer’s website and recommend or share the experience. In addition, the latter two variables mediate the relationship between the AR flow experience and loyalty, showing interesting insights on high-body-involvement products. The paper ends by highlighting the main theoretical and managerial implications of these results, along with the scope for further research.     

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.     

Customer Experience Management in Retailing: An Organizing Framework

Survival in today's economic climate and competitive retail environment requires more than just low prices and innovative products. To compete effectively, businesses must focus on the customer's shopping experience. To manage a customer's experience, retailers should understand what “customer experience” actually means. Customer experience includes every point of contact at which the customer interacts with the business, product, or service. Customer experience management represents a business strategy designed to manage the customer experience. It represents a strategy that results in a win-win value exchange between the retailer and its customers. This paper focuses on the role of macro factors in the retail environment and how they can shape customer experiences and behaviors. Several ways (e.g., promotion, price, merchandise, supply chain and location) to deliver a superior customer experience are identified which should result in higher customer satisfaction, more frequent shopping visits, larger wallet shares, and higher profits.     

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.     

Antecedents of flow in retail store shopping

“Flow” has been established as a critical determinant of an online shopping experience. Online consumers with flow experience tend to be less price-sensitive and to have favorable attitudes and high re-patronage intention. As retail stores account for 90% of retail sales, it is important to advance our knowledge of flow theory in physical retail stores. However, the antecedents (navigational challenge, web skill) derived from the extant online flow literature are not applicable to in-store shopping. To fill the void, the two objectives here are (1) to provide a theoretical foundation to develop the antecedents (challenges and skills) associated with in-store shopping, and (2) to examine their impacts on consumer flow experience (concentration, control, and enjoyment) and subsequent future shopping intentions. The results will advance the literature of flow and offer helpful suggestions to retail marketing.     

Inclusive apparel shopping experiences for older consumers in China: product attributes and retail environment

ABSTRACT

The study explored apparel shopping experiences of older Chinese consumers, which integrate apparel product and retail environment aspects from an inclusive strategy perspective. Research questions include: What factors contribute to older Chinese consumers’ satisfaction and dissatisfaction? What are the major implications of older consumers’ (dis)satisfying shopping experience? What role can fashion practitioners play to make the retail environment and apparel products more accessible to the aging segment? Critical Incident techniques were used for data collection at a community park in Beijing. A total of 151 usable critical incidents from 84 older Chinese informants (55 years and older) were included in the data analysis. Content analysis with deductive qualitative data analysis method was used. Findings suggest that the older Chinese consumers assess their shopping experiences largely based on shopping outcome achieved (product purchased). This is in contrast to the movement toward more experiential focus in the developed markets in the recent decades. A significant number of tangible product attributes (including design/styling, comfortability/fit, and material) and intangible attributes (such as price and product assortment) contributed to the older Chinese informants’ satisfying or dissatisfying shopping experience. Aspects related to retail environment, including retail atmospherics and service quality were also important, but to a lesser extent than product attributes. This study represents an early attempt to explore how the tangible and intangible aspects of product attributes and retail environment contribute to the aging Chinese consumer’s shopping experience. Findings of the Chinese older consumers’ utilitarian, rather than experiential focus in their shopping experience evaluation provide insights on this market segment and valuable implications are developed.     

Comfort in brick and mortar shopping experiences: Examining antecedents and consequences of comfortable retail experiences

This paper explores the comfort construct in brick and mortar retail settings. As a psychological construct, consumer comfort reflects a sense of ease and peace of mind during a shopping experience. Previous research suggests comfort carries a number of positive consequences for managers, such as strengthening customer relationships and increasing customer satisfaction (Gaur and Xu, 2009). However, these studies take a more interpersonal relationship theory approach and have not considered the impact of non-social aspects of retail environments on consumers' comfort. Moreover, these extant studies have not considered how comfortable environments create value for consumers. Consequently, this study examines how atmospheric elements contribute to creating consumer comfort, and how comfort impacts consumers' perceptions of shopping value. Findings from survey data demonstrate that not all atmospheric elements influence consumers' comfort levels. Moreover, comfortable environments were found to increase both utilitarian value and hedonic value. The implications of the findings for academics and managers are discussed.     

The interaction of retail density and music tempo: Effects on shopper responses

Research examining the effects of store environment on shoppers has found that a number of atmospheric cues have significant effects on shoppers' cognitive, affective, and behavioral responses. To date, retail atmospheric cues have been studied in isolation, instead of simultaneously, like they occur in the retail setting. This study examines the interactive effects of two atmospheric cues—retail density and music tempo—and their impact on shopper responses within a real shopping environment. Based on the schema incongruity model, it is found that shopper hedonic and utilitarian evaluations of the shopping experience are highest under conditions of slow music/high density and fast music/low density. Significant main effects of music tempo are found for behavioral responses such as approach/avoidance tendency and extent of browsing behavior. The results underscore the need to examine interactive effects of atmospheric cues to better understand the impact of the store environment on shoppers. © 2005 Wiley Periodicals, Inc.     

Online Shopper Motivations, and e-Store Attributes: An Examination of Online Patronage Behavior and Shopper Typologies

e-Stores and online shopping have become important aspects of a retailer's strategy. Previous research suggests that online shoppers are fundamentally different from traditional offline shoppers. However, based on the Big Middle Theory (Levy et al. 2005), the authors believe that there are segments of online shoppers that are very similar to regular shopper groups. To determine this, online shopping motivations and e-store attribute importance measures are separately used as the basis to develop online shopper typologies. Results reveal that there are more similarities than differences among traditional and online store shoppers. However, there are a few unique shopper types present at online stores, attracted by the distinctive characteristics and attributes of the online retail environment. The findings offer interesting implications for online retail strategy.     

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.     

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.     

Female consumers: Decision-making in brand-driven retail

This article is a theory-building exploratory study conducted to investigate how female shoppers make meaning in a branded-retail store shopping experience. This study extends research on retail consumers' decision-making and the retail shopping experience using hermeneutic phenomenology. The authors conducted in-depth interviews with respondents, who were self-identified customers of a leading intimate apparel retailer. The results suggest that consumers' retail shopping decision-making incorporates a complex set of interactive components that are brand-driven and simultaneously affect and are affected by the interaction of in-store shopping and retail setting. The findings show a rich understanding of the consumer decision-making process is achievable by including the actual in-store experience, consumers' prior contextual experiences and expectations regarding retail visits.     

Importance of offline service quality in building loyalty of OC service brand

Customer management becomes increasingly important as consumers have more flexible shopping process and options and competition become intensified in omni-channel (OC) retail environment. OC retailer can facilitate customer communication of OC service with OC service brand. This study evaluates an OC service brand (i.e. SSG OC service brand) to explore the effectiveness of integrated OC service platform which has a standing brand identity, and to determine the importance of selected offline characteristics of OC service on loyalty of OC service brand. Survey of 127 respondents was collected to test Partial Least Squares-Structural Equation Modeling (PLS-SEM). Findings show that tangibility and empathy of offline OC service directly affect customer satisfaction and attitude toward overall OC service brand, confirming the importance of offline service quality of OC in the OC service brand management.     

Equity ownership and control of international joint ventures in the retail sector

Abstract

This study examines the relationships that exist between consumers' perceptions of a retail environment and their emotions, satisfaction and behavioural intentions with respect to that shopping setting. A model of these relationships is developed and then tested in two distinct retail settings—shopping centres and traditional retailing areas. The results show that, in general, positive perceptions of a retail environment have a positive influence on positive emotions, on repatronage intentions, and on the desire to remain longer in the shopping area in both retail settings. However, some interesting differences emerge between shopping centres and traditional retailing areas: (i) the internal environment has a stronger effect on emotions in shopping centres than in traditional retailing areas; and (ii) the internal environment has a negative effect in shopping centres on the disposition to pay more.     

Why shopping pals make malls different?

The present study examines the effects of the specific type of ompanion a shopper shops with (i.e., friend versus family member) on the emotional attachment to malls. The study aims to explain this influence through two potential mediators, that is, shopping arousal, and shopping apprehension, the relevance of which has been shown in the extant reviewed psychosocial literature. The emotional attachment of shoppers to their mall depends on whom they are shopping with: shopping with friends affects both shoppers' arousal and apprehension. Only arousal mediates the relationship between shopping pal and mall attachment. Our findings provide new insight on the psychological processes explaining the relation shoppers develop with their shopping environment and give retail managers guidelines for increasing shoppers' attachment to their malls.     

The Showrooming Phenomenon: It's More than Just About Price

This paper examines the factors that influence competitive showrooming, whereby consumers visit an offline retail store to gather information but make their purchase online at a competing retailer. We survey 556 respondents to study how the benefits and costs of showrooming influence the consumer's decision to showroom. Not surprisingly, we find that expected average price savings from showrooming are positively associated with showrooming. In addition, however, the perceived dispersion in online prices is also positively related to showrooming. Moreover, we find that non-price factors play a key role in consumers' showrooming decisions: perceived gains in the quality of the product purchased when showrooming (measured as the fit with a consumer's need) and waiting time for service in the brick-and-mortar store are positively associated with showrooming. Online search costs are negatively related to showrooming. Time pressure that consumers face when shopping is negatively associated with their propensity to showroom. We discuss implications for researchers and retail managers. For example, managers of offline retail stores can curtail showrooming by increasing the number of sales personnel available in-store instead of providing currently employed personnel with more training. To encourage showrooming, managers of online retailers should make it easier for the customer to search online.     

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.     

Retail atmospherics: The impact of a brand dictated theme

Although retail atmospherics has been an active area of study, a glance around a typical mall indicates many retailers still do not actively differentiate their retail environment from competitors. This is likely due to retailers considering the atmospheric elements (lighting, music, etc.) individually and making decisions regarding the elements based on what is “standard” for their customers, merchandise, and format. This approach leads to very little differentiation and fails to consider that today’s consumer is often expecting a more multi-sensory, interactive, and holistic shopping experience. This paper considers an alternative approach, where a brand dictated “theme” is used to guide the manipulation of the atmospheric elements. This allows retail brands to break free from standard design to create a more interactive, immersive, and authentic environment. Outcomes include increases in shopping enjoyment, positive brand attitudes, and brand loyalty. T-tests are utilized to compare the two approaches within both the apparel (Study 1) and restaurant (Study 2) industries.