Searching offline and buying online – An analysis of showrooming forms and segments

Showrooming is behavior where customers search for information in brick-and-mortar stores and then purchase products online. While the literature conceptualizes showrooming as a one-dimensional variable, we argue that different forms of showrooming exist. We identify four showrooming segments that differ in retailer loyalty, usage of in-store information, devices, place and time of the online purchase. We show further that loyal vs. competitive showroomers differ in psychographic variables, such as price consciousness, desire for social contact and bad conscience during showrooming. The results have important implications for retailers aiming to keep customers in their own channels.     

How to create a realistic customer journey map

Although many articles discuss customer journey mapping (CJM), both academics and practitioners still question the best ways to model the consumer decision journey. We contend that most customer journey maps are critically flawed. They assume all customers of a particular organization experience the same organizational touchpoints and view these touchpoints as equally important. Furthermore, management lacks an understanding of how to use CJM as a cross-functional, strategic tool that promotes service innovation. This article proposes a solution to the unwieldy complexity of CJM by linking customer research to the CJM process and by showing managers how to develop a customer journey map that improves a customer's experience at each touchpoint. Using the case of an actual retail mall, we show that common CJM assumptions about the equal importance of all touchpoints are fundamentally wrong, and how easy it is for retail managers and strategic planners to make incorrect judgements about customer experience. This article demonstrates through a case study how customer research helped a mall's strategic management team understand which touchpoints were more or less critical to customer experience. It also shows key strategic initiatives at each touchpoint, resulting in cross-functional input aimed to advance service innovation at the mall.     

Here Today,Gone Tomorrow? Mapping and modeling the pop-up retail customer journey

Pop-up retail and customer journey mapping are widely adopted in the retail industry, yet they have received modest coverage within academic literature to date. Through a qualitative field study of five marketplace-based pop-ups (MBPUs), this research defines and identifies differences and similarities between marketplace-based pop-ups (MBPUs) and brand-based pop-ups (BBPUs), seeks to understand how marketplace-based pop-ups fit within the customer journey and experience, and explores how touchpoint ownership and influence illuminates the understanding of the marketplace-based pop-up customer journey. Further, this research extends an existing conceptual customer journey framework to visually map and model the purchase stages, touchpoint categories and types of marketplace-based pop-up customer journeys. As a result, this research presents and discusses three emerging themes (here today gone tomorrow; high-touch low-tech; and ownership and influence) to further the understanding of MBPUs. Pop-ups are more than a single encounter; they are a complex customer journey process, whereby the customer travels through pre-purchase, purchase and post-purchase stages, and across multiple touchpoints.     

E-retail factors for customer activation and retention: An empirical study from Indian e-commerce customers

Customer satisfaction has emerged as one of the most important factors that guarantee the success of online store; it has been posited as a key stimulant of purchase, repurchase intentions and customer loyalty. A comprehensive review of the literature, theories and models have been carried out to propose the models for customer activation and customer retention. Five major factors that contributed to the success of an e-commerce store have been identified as: service quality, system quality, information quality, trust and net benefit. The research furthermore investigated the factors that influence the online customers repeat purchase intention on the basis of the Means End Chain theory (MEC) and Prospect theory. By hypothesising that a combination of both utilitarian value and hedonistic values are needed to affect the repeat purchase intention (loyalty) positively, Structural equation model has been presented on the primary data collected from the Indian online shoppers. Results indicate the e-retail success factors, which are very much critical for customer satisfaction. By increasing the utilitarian value and hedonistic values derived by the customers, customer satisfaction and hence the customers repeat purchase intention can be increased significantly.     

Share of wallet in retailing: the effects of customer satisfaction, loyalty cards and shopper characteristics

In retailing, consumers typically patronize multiple outlets. Thus, an important issue is why consumers vary in how they divide their purchases across outlets and how outlets can get a greater share of consumer expenditures. Two potential avenues for increasing customer share are to raise customer satisfaction, and increase repeat purchase through loyalty cards. This study examines the effects of customer satisfaction and loyalty cards as well as consumer characteristics on customer share spent on the primary grocery store. The findings suggest that customer satisfaction has a positive, albeit modest, effect on share while consumer economic shopping orientation has a negative direct effect on share. The economic orientation of shoppers, their felt importance of a personal relationship with store personnel, and the level of their aggregate purchase volume moderate the effect of satisfaction on customer share. Finally, the results provide mixed support for the impact of loyalty cards on customer behavior.     

A conceptual framework of the antecedents of customer journey satisfaction in omnichannel retailing

In light of the complex customer behaviour and customer journeys in omnichannel retailing, this study aims to investigate customer co-creation behaviour, customer response and customer experiential values as critical aspects of the customer journey, and examine their impact on the level of customer journey satisfaction. The results confirmed the significance of all factors, except information seeking and arousal, in all phases and exploration in the post-purchase phase, on customer journey satisfaction. For a further examination, this study classified the participants into three different segments according to their journey pattern and scrutinised whether the impact of the three predictors of customer journey satisfaction varied across customer segments. The analysis showed that customer segments were fragmented. The impact of customer co-creation behaviour, customer response and customer experiential values on customer journey satisfaction varied across the three customer segments. A heatmap highlighted the most influential factors of each customer segment. The study yielded several theoretical contributions and insights into omnichannel customers for managers.     

Order effect of multi-touchpoints on Generation Z consumers

Abundant user-generated content has increasingly driven consumers to form or modify their purchasing decisions based on interactions with other consumers, although the extant research overlooks the customer-to-customer (C2C) interaction touchpoints. Based on the customer journey characteristics of cross-channel and multi-frequency interactions, this study explores the impact of interaction valence and interaction channel sequence on Generation Z consumers' purchase attitudes from the perspective of attitude modification process. Using a scenario-based experimental design in a restaurant setting, we sample 616 Generation Z students. Findings suggest that C2C interactions that have the same valence at each touchpoint strengthen Generation Z consumers' initial purchase attitude, whereas inconsistent valences modify purchase attitudes. Our results reveal that a negative-to-positive ordering is more conducive to the formation of a positive purchase attitude than a positive-to-negative ordering. Moreover, the cross-channel sequence of a customer journey moderates the inconsistent valence order such that the positive-to-negative order improves purchase attitude more than the negative-to-positive order. This study explains theoretically the difference of ambivalent experiences on Generation Z consumer attitudes. We provide practical suggestions for multi-channel restaurant enterprises to successfully employ customer journey touchpoint management.     

The influence of satisfaction on customer retention in mobile phone market

This study examines the determinants of customer satisfaction and customer loyalty in the Peruvian mobile phone market. Based in a survey to 1259 customers, Multinomial Logit and GSEM estimations show how determinants of customer satisfaction can be assessed when satisfaction is measured through ordered categorical data. The results confirm that in mobile phone market Customer Satisfaction influences strongly on Customer Loyalty, and in turn Loyalty is an important determinant of Customer Retention. In contrast with previous literature, this study identified the differentiated influence of diverse factors on positive and negative customer satisfaction categories. Indeed while results show that quality of service assessments made by customers had a significant impact on both negative and positive customer satisfaction categories; assessments of other service attributes like customer care, information on tariffs and plans and billing clarity, only showed a significant statistical influence on positive categories of customer satisfaction. Similar asymmetrical results were found with regard to other economic, socioeconomic and geographical determinants of customer decisions. As well, an analog effect is also observed in the relationship between customer satisfaction and loyalty, where only positive satisfaction assessments helps to explain the loyalty of users. Finally, results show that while satisfaction can be identified as a powerful cause of CR, switching barriers did not deter more demanding customers to switch to alternative carriers, suggesting that recent pro-competition regulatory reforms implemented in Peru contributed to reduce these barriers to competition in mobile markets.     

Customer happiness as a function of perceived loyalty program benefits - A quantile regression approach

Customers consider pursuit of happiness to be fundamental to their purchase experiences; thus, companies are increasingly looking for opportunities to bring happiness to customers especially in their consumption activity. The current study undertakes analysis of effect of perceived benefits of loyalty programs and customer satisfaction on customer happiness/purchase enjoyment if he/she has loyalty program membership. Empirical study with 407 participants found that Discovery and Entertainment Benefit (DEB) and Satisfaction Derived (SD) have an effect on customer happiness/purchase enjoyment while being a loyalty program member. Quantile regression analysis was used to analyze if independent variables have a differential effect on different levels of the dependent variable i.e. customer happiness/purchase enjoyment from use of loyalty programs. Since DEB and SD were found to be positively significant in influencing customer happiness/purchase enjoyment, companies should focus on balancing these aspects of customers’ consumption experience.     

Understanding Customer Engagement and Loyalty: A Case of Mobile Devices for Shopping

This study aims at developing and validating a measurement model for customer engagement with specific focus on mobile devices for shopping. Further, role of customer engagement in building customer loyalty is explored. The research in this investigation used three studies for developing customer engagement scale and validating the proposed model. The study involved data collection from experts and users through varied methods including in-depth interviews, and surveys. Further structural equation modeling was used to analyze the data. Findings of this study include development and validation of customer engagement as second order construct arising out of six different customer experiences - social-facilitation, self-connect, intrinsic enjoyment, time-filler, utilitarian and monetary evaluation experiences. Further, the study established significant role of customer engagement in predicting customer loyalty in addition to existing constructs of satisfaction and convenience. This study contributes to evolving scholarly research on customer engagement. This study further provides a framework to retailers for devising matrices to track experiences and engagement of customers on mobile devices for shopping. Further, retailers may be able to use customer engagement to differentiate themselves from competition in attracting merchants and advertisers.     

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 .     

A sequence analysis approach to segmenting credit card customers

This research examines the longitudinal relationships between patterns of customer loyalty behavior and firm financial outcomes in the context of credit card use. By examining credit card users' transactions with a focal bank and its competitors, this study creates a typology of loyalty behavior and employs a sequence analysis to segment customers on the basis of their behavioral patterns exhibited over time. The analysis results in six distinct customer segments: Loyalist, Switching Loyalist, Switching Defector, Defector, Dormant Loyalist, and Dormant Defector. We subsequently estimate the revenue, servicing costs, and profitability associated with each segment, and assess differences across segments. We discuss the implications for managing distinct credit card customer segments and optimizing the bank's marketing resource allocation.     

What drives Gen Y loyalty? Understanding the mediated moderating roles of switching costs and alternative attractiveness in the value-satisfaction-loyalty chain

Generational theory presumes that generational cohorts develop similar attitudes and beliefs with regard to their market behaviors. This study examined the attitudes and beliefs of the Gen Y members towards mobile Internet service providers (MISPs). Gen Yers have the highest adoption of mobile Internet. They are also the most value-conscious, least satisfied and loyal customers compared with all other generations. This study therefore proposed a research model to elucidate the relationship between perceived value, satisfaction, switching costs (SC), alternative attractiveness (AA) and loyalty, and tested it using empirical data collected from 417 Gen Y mobile Internet subscribers. The results indicated that perceived value significantly influenced the satisfaction of Gen Y customers and, in turn, their loyalty towards MISPs. The results also confirmed the existence of mediators and moderators in the relationship between customer satisfaction and loyalty. Both SC and AA proved to be partial mediators, whereas AA was a moderator. Further, it was found that the moderating effect of AA on the association between customer satisfaction and loyalty was contingent upon the mediating effect of SC. Finally, the implications of these findings are delineated.     

Assessing customers’ perceived value of the online channel of multichannel retailers: A two country examination

Given the constant and often dramatic technological advancements that facilitate retailing, especially online channel adoption by industry and customers, research focusing on customers perceived value of the online channel of multi-channel retailer’s requires conceptual and empirical elaboration. This study advances understanding of customer perceived online channel value and how customer perceptions of value effect online channel satisfaction and online channel loyalty. Using data from a multi-country study, we provide a deeper understanding for multi-channel retailers of how to balance investments in various value drivers to enhance online channel satisfaction and customer loyalty.     

An adaptive nonlinear approach for estimation of consumer satisfaction and loyalty in mobile phone sector of India

To facilitate business growth assessment of customer׳s, satisfaction and loyalty levels in mobile sector are two important issues which need in-depth investigation. These two levels of customers are nonlinearly related to their corresponding attributes. The past studies have mostly assumed linear relation and have mostly used regression based models for estimation of these levels and the results are not encouraging. To overcome this limitation, the present study has developed simple nonlinear models for accurate estimation of these two parameters using their related key factors and results obtained are shown to be much better. This paper has also observed the positive effect of satisfaction on the loyalty estimation of customers. Employing the proposed nonlinear adaptive models, the service provider can also predict the satisfaction and loyalty levels of each of its customers which help the organization to determine the number of possible future churners.     

An Examination of the Relationship Between a Firm's Offerings and Different Customer Loyalty Segments

Purpose: Loyalty reflects the highest state in the buyer–seller relationship and occurs when repeat patronage and commitment are both high. One generally accepted model of segmenting the customers by degree of loyalty includes 4 categories of loyalty: no loyalty, latent loyalty, spurious loyalty, and loyalty. This study examines the relationship between these 4 customer segments and their evaluation of the firm's offerings.

Methodology/approach: This study uses self-reported purchase behaviors and attitude toward the seller for segmentation. Buyers report the importance of and satisfaction with 15 different offerings or processes. The mean scores for the 4 different groups are compared and tested for statistical significance.

Findings: The loyalty segments differed in the importance placed on customized products. The loyalty and spurious loyalty groups placed a higher importance on receiving customized products from the seller. The loyalty segments also differed in their levels of satisfaction, but these differences did not fully explain repeat patronage behavior. The latent loyalty group, despite their higher levels of satisfaction with standardized offerings, purchased less than the spurious loyalty group.

Originality/value/contribution: The implication for managers is that, if properly identified and managed, understanding these differences could lead to a sustainable competitive advantage. Managers can build loyalty by applying specific tactics tailored to the customer segment.     

Visual cues during shoppers’ journeys: An exploratory paper

The visual cues shoppers view at the point of purchase during the shopping process is vital to product selection and sales. We aimed to identify the intrinsic and extrinsic visual cues or touchpoints customers use to select a product (live plant) in retail stores. Eye-tracking technology (ETT) has enabled market researchers to conduct cost- and time-efficient studies. Few studies have been conducted in a retail setting to pinpoint how shoppers attend to visual cues in situ. Using ETT gave researchers insight into the cognitive processes leading to purchase. We recruited four retail greenhouses in Michigan to collaborate on the study, and researchers invited customers from the store’s email list to participate. Researchers used eye-tracking glasses to record eye movement during a <12-min shopping trip to purchase a $10 plant. We analyzed 150 useful videos to identify attention to marketing and non-marketing cues at the point of purchase (e.g., reading a sign, product interaction, cell phone use). Time spent in specific store areas (e.g., annuals, perennials, shrubs, etc.) was measured. For 67 shoppers who purchased an annual plant, we analyzed which cues and touchpoints influenced the shopping time spent. Results showed that the most frequently accessed cue/touchpoint was intrinsic: product interaction (looking at or touching a plant). Participants read, on average, 6.7 signs with price and 4.5 signs without price. Conversely, only 34% interacted with employees, and 19.4% used their cell phones. Building on this exploratory study, future research could investigate signage elements attracting attention and motivations for employee interaction and cell phone use.     

A Bayesian examination of the relationship of internal and external touchpoints in the customer experience process across various service environments

Customer experience (CX) is an aggregate of consumer touch points that can be brand-owned (completely controlled by the firm), partner-owned (collectively controlled by the firm and one or more of its partners), customer-owned (where the firm or its partner cannot exert any control or influence) or represented by social/external touch points that account for the importance of the roles of others in the customer experience process. Although the concept of CX is widely used, not much has been examined about how external touch points impact customer perception of experience. Therefore, the main purpose of this study is to examine the role and impact of internal and external touchpoints as dimensions of customer experience and how CX can impact consumer word-of-mouth intention. Service outcome and peace of mind were used to represent internal experience touchpoints and peer to peer quality (PTP) was used to represent an external experience touchpoint. A total of 293 usable surveys were used for analysis using a Bayesian model developed for this study instead of the more traditional SEM approaches. Results showed that an external experience touchpoint has a similar impact to those of internal experience touchpoints in the experience process. CX was also found to have a strong effect on customer word of mouth intention. These findings make various contributions to the literature on CX, especially to research differentiating internal from external experience touchpoints. On the practical side, this study provides recommendations to retailers about how to manage an external touchpoint.