Segmenting multichannel consumers across search,purchase and after-sales

While bricks-and-mortar stores and the Internet are dominant retailing channels, mobile and social media have rapidly emerged and challenge traditional retail models and consumer behavior. However, researchers have yet to account for how consumers integrate mobile and social channels throughout the various stages of the buying process. Using Latent-Class Cluster Analysis segmentation, we examine consumer behavior in store, Internet, mobile, and social media channels across the search, purchase and after-sales buying stages in the aggregate and specific to the clothing, holiday travel and consumer electronics categories. We find five multichannel consumer segments on the basis of perceived channel importance across the buying process, as well as psychographic and demographic characteristics. Interestingly, we find a polarization in perceived importance of mobile and social media channels, with two consumer segments rating mobile and social media channels as unimportant in the buying process. Furthermore, and compared to prior segmentations of multichannel consumer behavior, we do not find an aggregate store-focused segment. However, a store-focused segment exists in the context of buying clothing and represents 28.6 per cent of consumers. The findings show multichannel consumer preferences and behavior continues to evolve in line with new and emerging retailing channels. Further, this study confirms that there is no ‘one-size fits all’ approach to multichannel retailing.     

消费失败后顾客情绪反应及其对投诉渠道选择的影响

顾客投诉作为企业与顾客的一种沟通,得到了很多学者和实践者的重视,但顾客在投诉过程中的心理及行为研究较少。文章将情绪引入顾客投诉行为中,把投诉看作一种特殊的沟通,以媒介丰度理论为基础,探索投诉者的情绪反应及其对投诉渠道选择的影响。旨在充实顾客投诉研究,为企业的投诉管理和渠道建设提供一定的指导和建议。     

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

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

The influence of familiarity and usability on loyalty to online journalistic services: The role of user experience

The spread of the use of the Internet has had a significant effect on the newspaper sector. Potential cannibalization between the digital and traditional channels, as well as growing competition have made it necessary to gain greater loyalty among consumers of Internet press services. This paper analyzes the effect of consumer familiarity with a website and the degree of perceived usability on levels of loyalty. The results show that familiarity only affects loyalty among consumers who have more experience in using the Internet. However, perceived usability of a website has a significant influence, irrespective of how experienced consumers are. Finally, the paper offers various recommendations for Internet press management and points out the main limitations of the study.     

Channels for search and purchase: Does mobile Internet matter?

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

Will Online Shopping Compete More with Traditional Retailing or Catalog Shopping?

This paper examines consumer substitution behavior among three distribution channels: online shopping, traditional retail and catalog shopping. A model of consumer transactions costs is presented in which consumer investments in shopping human capital determine distribution channel choice. This model predicts that consumers who make investments that spillover to multiple channels will tend to have lower transactions costs for those two channels and will tend to consider these two channels to be closer substitutes than other channels. The model implies that, even if these investments are not measured, they will represent a component of the regression models' residual terms, which will predict distribution channel choice. I test this implication using the GVU Center's survey data on channel selection for various product categories. The results strongly suggest that consumers consider online shopping and catalog shopping to be closer substitutes than any other pair of channels.     

Learned helplessness as an explanation of elderly consumer complaint behavior

Studies of consumer complaint behavior have shown that many elderly consumers are very reluctant to pursue their rights through the complaint process when they encounter problems with products or services. This passive complaint behavior may be very costly to the elderly, who often live on fixed incomes. This paper presents a theory developed in experimental psychology that may help explain why clderly consumers are more likely than other consumers to incur losses rather than engage in complaint activity. The theory, known as learned helplessness (LH), refers to a process whereby noncontingent reinforcement produces the expectation that events are uncontrollable.The theory of learned helplessness is presented and related to specific behaviors of dissatisfied elderly consumers that have been reported in the literature. Strategy implications of the theory are discussed for counselors, consumer affairs practitioners, and others interested in helping elderly consumers exercise their rights.Mary C. LaForge is currently Associate Professor of Marketing at Clemson University. She received her Ph.D. in Marketing from the University of Georgia. Her current research interest focuses on the behavior of the elderly as consumers.     

Thiscompanysucks.com: the use of the Internet in negative consumer‐to‐consumer articulations

The Internet has provided a forum through which consumers who are dissatisfied with various companies can vent their anger towards these corporations. A number of World Wide Web (WWW) sites have cropped up on the Internet, their specific aim being the fomenting of negative communication about companies: these are known as corporate complaint WWW sites. Little research has been conducted on negative on‐line consumer‐to‐consumer articulations and the possible impact that these might have on consumers' perceptions and attitudes. This paper attempts to foster discussion on the use of the Internet in facilitating consumer‐to‐consumer communication, particularly negative communication. First, background information on corporate complaint WWW sites is provided. Then, a survey that was conducted in order to glean information on consumer knowledge of and responses to these kinds of WWW sites is discussed. The results indicate that, among the population used in this study, the awareness of corporate complaint WWW sites was moderate. However, when respondents were aware of them, they were likely to visit them. Social influence plays a role in influencing awareness and prompting visits to corporate complaint WWW sites. In addition, an individual difference factor, attitudes towards complaining, influenced the kinds of activities in which the respondents engaged when they visit corporate complaint WWW sites. Future research directions are proposed.     

Consumer complaints and redress: an important mechanism for protecting and empowering consumers1

This paper explores a consumer complaint programme as a tool for empowering consumers, using the consumer complaint programme of a United States federal agency as a case study. After describing the structure and role of the Federal Reserve System (the central bank of the United States) in handling complaints, the paper follows a complaint through the System, looks at trends in complaints and provides a profile of consumers who complain. The paper concludes with information on the economic impact of complaint resolution and consumer satisfaction with third‐party complaint investigation.     

The roles of multiple channels in predicting website visits and purchases: Engagers versus closers

In today’s online environment, consumers and sellers interact through multiple channels such as email, search engines, banner ads, affiliate websites and comparison-shopping websites. In this paper, we investigate whether knowing the history of channels the consumer has used until a point of time is predictive of their future visit patterns and purchase conversions. We propose a model in which future visits and conversions are stochastically dependent on the channels a consumer used on their path up to a point. Salient features of our model are: (1) visits by consumers are allowed to be clustered, which enables separation of their visits into intra- and inter-session components, (2) interaction effects between channels where prior visits and conversions from channels impact future inter-session visits, intra-session visits and conversions through a latent variable reflecting the cumulative weighted inventory of prior visits, (3) each channel attracts inter-session and intra-session visits differently, (4) each channel has different association with conversion conditional on a customer’s arrival to the website through that channel, (5) each channel engages customers differently (i.e., keeps the customer alive for a next session or for a next visit within a session), (6) the channel from which there was an arrival in the previous session can have an enhanced ability to generate an arrival for the same channel in the current session (channel persistence), and (7) parsimonious specification for high dimensionality in a low-velocity, sparse-data environment. We estimate the model on easy-to-collect first-party data obtained from an online retailer selling a durable good and find that information on the identities of channels and incorporation of inter- and intra-session visits have significant predictive power for future visitation and conversion behavior. We find that some channels act as “closers” and others as “engagers”—consumers arriving through the former are more likely to make a purchase, while consumers arriving through the latter, even if they do not make a purchase, are more likely to visit again in the future or extend the current session. We also find that some channels engage customers more than others, and that there are interaction effects between the channels visited. Our estimates show that the effect of prior inventory of visits is different from the immediate prior visit, and that visit and purchase probabilities can increase or decrease based on the history of channels used. We discuss several managerial implications of the model including using the predictions of the model to aid in selecting customers for marketing actions and using the model to evaluate a policy change regarding the obscuring of channel information.     

Consumer vulnerability and complaint handling: Challenges,opportunities and dispute system design

Effectively designed complaint handling systems play a key role in enabling vulnerable consumers to complain and obtain redress. This article examines current research into consumer vulnerability, highlighting its multidimensional and expansive nature. Contemporary understandings of consumer vulnerability recognize that the interaction between a wide range of market and consumer characteristics can combine to place any individual at risk of vulnerability. While this broad definition of consumer vulnerability reflects the complex reality of consumers’ experiences, it poses a key challenge for designers of complaint handling systems: how can they identify and respond to an issue which can potentially affect everyone? Drawing on current research and practice in the United Kingdom and Australia, the article analyses the impact of consumer vulnerability on third party dispute resolution schemes and considers the role these complaint handling organizations can play in supporting their complainants. Third party complaint handling organizations, including a range of Alternative Dispute Resolution services such as ombudsman organizations, can play a key role in increasing access to justice for vulnerable consumer groups and provide specific assistance for individual complainants during the process. It is an opportune time to review whether the needs of consumers at risk of vulnerability are being met within complaint processes and the extent to which third party complaint handlers support those who are most vulnerable to seek redress. Empowering vulnerable consumers to complain presents specific challenges. The article discusses the application of a new model of consumer dispute system design to show how complaint handling organizations can meet the needs of the most vulnerable consumers throughout the process.     

Demographic Characteristics of Canadian Consumer Complainers

A survey of over 17,000 Canadian consumers who had written a letter of complaint to one of several government or consumer service agencies in 1972 found that the average consumer complainer is a middle aged, well educated, affluent, managerial-professional man or woman. The study also found that 49 percent of complaint letters are written by only 24 percent consumer of complainers and that consumers who write several letters of complaint are also well educated, affluent, and have managerial/professional occupations. These findings suggest that care must be taken in using consumer complaint data to identify the nature and severity of consumer problems in the marketplace or as a foundation for government policy and programs.     

Consumer response to marketing channels: A demand-based approach

Abstract

Marketing channels have faced rapid structural and functional transformations during the last few decades. While a large body of research has been devoted to understanding the supply-side aspects of marketing channels, much less research has taken the demand-side perspective to study consumer perception of channel position and functions. This article extends the channel literature to a broader domain and develops a consumer-based theoretical framework reflecting factors that influence consumer perception of and reaction to channel strategies and decisions. The authors conceptualize that consumers’ perceived channel value is a critical factor in determining their loyalty behavior. Seven important channel features are identified that would positively influence the perceived channel value. The relationship between perceived channel value and channel preference is strongly dependent on the level of customer value co-creation. The article concludes with research implications and suggestions of avenues for future research.     

Measuring Consumer Perceptions of Procedural Justice in a Complaint Context

The idea of procedural justice as perceived by consumers has not been explored in the consumer behavior literature, although there has been some mention of consumer perceptions of fair treatment. This article describes the development of a scale using procedural justice as its theoretic base to measure consumers' perceptions of fair treatment when they complain. Results indicate that consumers make a distinction between the complaint process and the outcome of their complaint, indicating that procedural justice has further research potential. In addition, the proposed scale possesses the psychometric properties of an acceptable scale.     

Antecedents and consequences of Internet channel performance

Internet distribution channels may be either advantageous or detrimental for a company. Therefore, this study analyzes their performance, antecedents, and effect on company performance. Using survey data from multichannel retailers and structural equation model methodology, the authors show that Internet channel performance contributes to both financial and strategic company performance, with a greater effect on the latter. Similar and uncoordinated channels hinder Internet channel performance, but experience with direct channels and channel power are not required to pursue an Internet channel successfully. Customer migration and managerial commitment to the Internet channel have strong positive influences on financial performance. Overall, the results encourage the adoption and development of Internet channels.     

Information technology and consumer behavior in travel and tourism: Insights from travel planning using the internet

Sustaining business success hinges upon a firm׳s ability to understand and capitalize on consumer behavior trends. Synthesizing information from a variety of sources, this paper discusses the nature of use of the Internet by American travelers. In general, the adoption of the Internet has reached a level of saturation and some traditional channels such as online travel agencies (OTAs) continue to dominate travel planning. While traditional means of Internet use for travel planning appears to be widespread across all customer segments, higher-order Internet uses (i.e., social media) are now prevalent among some segments, particularly among travelers of Generation Y. Also, there seems to be an important bifurcation in the traveler population in that the traditional online consumers remain unchanged with their pattern of use of online tools while sizable groups are adopting emergent information sources and transaction channels. This article details the particulars of these trends and offers managerial implications and future research directions.     

Experimental analysis of consumer channel-mix use

Today's consumers have access to multiple consumer distribution channels. To remain competitive, retailers must offer different contact points to consumers. This empirical study examines channel-mix use decisions for 352 online customers' holiday booking preparations. A scenario based experimental approach studies consumer channel-mix use by channel and decision context attributes. The study models effects of time pressure, expected expenditure, channel quality, and access costs on the use of eight channel options, including traditional and online options. Over one-half of respondents use multiple channels to decide trip booking; however, most travelers book trips using the channel they initially investigated for information. Results show expected expenditure does not influence channel use; however, overall cost affects the booking's timing. Time pressures force respondents to visit a travel agent or collect additional brochures to quickly complete the purchase. Results suggest brochures fulfill an important support role.     

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.     

South African Complaint Forums in the Retail Industry: a Survey of Literature and Some Lessons from the EU

South African consumers receiving poor service in the retail industry want to complain, but have limited or no knowledge of the available consumer complaint forums. The consumer complaint forums in the retail industry can generally be divided into those established in terms of the Consumer Protection Act 68 of 2008 and other complaint forums. Before consumers can decide which forum they want to lodge their complaint with, they first need to identify possible complaint forums and then measure each forum according to certain factors. This study made a unique contribution by identifying possible factors which a consumer can refer to in this regard. In developing these factors, guidance was taken from the EU Consumer ADR Directive and the ODR Regulation. The factors suggested in this study included the following: the cost of and time spent on lodging a complaint, the effective functioning of the complaint forum, transparency in the operation of the complaint forum, the relief that a consumer may obtain from the complaint forum, and the user-friendliness of the complaint process. The National Consumer Tribunal, the National Consumer Commission, the Consumer Goods and Services Ombud, and ordinary civil courts were assessed using the above factors. A limitation of this study was that not all complaint forums could be assessed in terms of these factors, due to the lack of publicly available information. This study found that even though South Africans now have more complaint forums at their disposal, this does not translate into positive outcomes for aggrieved consumers. The strength of these forums lies in the buy-in received from both consumers and retailers. True consumer power arises through collective action after careful investigation, and resolving individual complaints may not result in the change of consumer policy which is actually what is required in the long run.