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.     

Was the economics of information approach wrong all the way? Evidence from German grocery r(E)tailing

The economics of information approach suggests that as online retailing matures, information asymmetry will enforce the reduction of price dispersion online as providers will operate in conditions close to perfect competition. The internet has already become a part of our life and shopping experience. In Germany, over 20% of all electronic, media and leisure-related products are bought online. The role of digital channels is expected to increase further, especially in the latecomer sectors. Grocery retailing is one of such sectors still in the making and the share of online players in retail revenues is expected to grow drastically by 2020. Since online food retailing has not been studied thoroughly and little is known about price levels and dispersion between online and offline markets, our study fills this gap by showing that despite the theoretical predictions price dispersion exist both between online and offline grocery providers as well as across online retailers.     

Marketing analytics using anonymized and fragmented tracking data

With the digitization of the retail industry, there is a growing abundance of event-based tracking data describing consumer behavior (e.g., online clickstreams and offline sensors tracking the movement of shoppers). However, stronger data privacy regulations and the growing privacy consciousness of consumers suggest that much of the data may increasingly only be available to retailers in an anonymized and fragmented form that does not identify individual consumers exactly. In response to the relative paucity of research on marketing analytics in retailing using anonymized and fragmented event-based (AFE) tracking data, this paper makes three interrelated contributions. First, we describe the relevance of AFE data in the future of retailing, contrasting it with other forms of aggregate and individual-level data. Second, we propose a methodology for analyzing AFE data, which allows us to approximately recover individual-level heterogeneity and derive meaningful variables from the raw data. Third, we validate the methodology using representative data collected by deploying sensor-enabled shelves in a field experiment within a store. We find that our approach to analyzing AFE data can help uncover interesting patterns of consumer behavior and could be applied across other online and offline retail settings in practice.     

Crafting Integrated Multichannel Retailing Strategies

Multichannel retailing is the set of activities involved in selling merchandise or services to consumers through more than one channel. Multichannel retailers dominate today's retail landscape. While there are many benefits of operating multiple channels, these retailers also face many challenges. In this article, we discuss the key issues concerning multichannel retailing, including the motivations and constraints of going multichannel, the challenges of crafting multichannel retailing strategies and opportunities for creating synergies across channels, key retail mix decisions facing multichannel retailers, and the dynamics of multichannel retailing. We synthesize current knowledge drawn from the academic literature and industry practice, and discuss potential directions for future research.     

Online and offline retailing: What we know and directions for future research

The fast-paced growth of e-commerce is rapidly changing consumers’ shopping habits and shaping the future of the retail industry. While online retailing has allowed companies to overcome geographic barriers to selling and helped them achieve operational efficiencies, offline retailers have struggled to compete with online retailers, and many retailers have chosen to operate both online and offline. This paper presents a review of the literature on the interaction between e-commerce and offline retailing, highlighting empirical findings and generalizable insights, and discussing their managerial implications. Our review includes studies published in more than 50 different academic journals spanning various disciplines from the inception of the internet to present. We organize our paper around three main research questions. First, what is the relationship between online and offline retail channels including competition and complementarity between online and offline sellers as well as online and offline channels of an omnichannel retailer? Under this question we also try to understand the impact of e-commerce on market structure and what factors impact the intensity of competition /complementarity. Second, what is the impact of e-commerce on consumer behavior? We specifically investigate how e-commerce has impacted consumer search, its implications for price dispersion, and user generated content. Third, how has e-commerce impacted retailers’ key managerial decisions? The key research questions under this heading include: (i) What is the impact of big data on retailing? (ii) What is the impact of digitization on retailer outcomes? (iii) What is the impact of e-commerce on sales concentration? (iv) What is the impact of e-commerce and platforms on pricing? And (v) How should retailers manage product returns across online and offline channels? Under each section, we also develop detailed recommendations for future research which we hope will inspire continued interest in this domain.     

Showrooming,Webrooming, and User-Generated Content Creation in the Omnichannel Era

Omnichannel retailing characterizes a seamless and integrated approach of diverse retail channels. Showrooming and webrooming are prominent shopping trends among consumers in omnichannel retail. The purpose of this study was to examine (1) whether omnichannel consumers’ psychographic characteristics (i.e., information attainment, price comparison, social interaction, assortment seeking, and convenience seeking) had an influence on showrooming and webrooming, which then had an influence on omnichannel consumers’ user-generated content creation intention on social media and (2) whether the social-local-mobile (SoLoMo) experience moderated the links between omnichannel consumers’ showrooming/webrooming and user-generated content creation intention. An online survey was administered to a total of 680 omnichannel consumers with showrooming and webrooming experience from a U.S. consumer panel. This study found that omnichannel consumers’ showrooming and webrooming positively affected user-generated content creation intention on social media. Omnichannel consumers’ information attainment, price comparison, and social interaction positively affected showrooming. Information attainment, social interaction, and assortment seeking positively affected webrooming. The SoLoMo experience moderated the link between webrooming and user-generated content creation intention on social media. Managerial implications were discussed.     

Developing a framework to improve virtual shopping in digital malls with intelligent self-service systems

Growing movements to urban places, increasing unemployment, decreasing buying power, rising real estate cost and demanding consumers for convenience and price are creating challenges for retailers. This paper reviews a sample list of retail channels, and proposes a systematic framework for conceptualizing the data-driven, and mobile- and cloud-enabled intelligent self-service systems to improve virtual shopping. With adoption of intelligent self-service systems, – more service oriented, more instrumented (from sensors to smart phones for monitoring consumers׳ behaviors), interconnected (patterns of interactions), and intelligent (algorithms help recognize patterns) – retail organizations can provide more cost effective quality retail service experiences to consumers.     

Understanding Money-Back Guarantees: Cognitive, Affective, and Behavioral Outcomes

Although money-back guarantees (MBGs) have a long tradition in marketing and retailing practice, a deeper understanding of how consumers value this instrument is still lacking. The results of two experimental studies show that in addition to cognitive effects, MBGs evoke a positive emotional response, thereby increasing consumers’ purchase intentions and willingness to pay a price premium. Moreover, MBGs positively affect consumers’ responses for search and experience goods, although for experience goods, MBGs should be designed with stricter return conditions as compared to MBGs for search goods. The results should help retail managers understand the consumer impact of MBGs, as well as assist them in pricing guaranteed items and designing effective MBGs according to the type of product.     

Competitive strategies in retailing—an investigation of the applicability of Porter's framework for food retailers

The objective of this research is to develop a framework for competitive strategies in food retailing. Managers of food retail channels were surveyed in order to derive the basic dimensions of competitive advantages that companies attempt to achieve in this industry sector. In a second study based on consumers, the central dimensions of retail store perception were investigated. Both studies reveal that three basic types of competitive advantage seem to prevail in food retailing: (1) price, (2) quality (with a comprehensive set of quality-orientated instruments, including customer service), (3) convenience. We find quality leadership and price leadership to be independent factors which can be achieved without conflicting with one another.     

Channel Choice in the 21st Century: The Hidden Role of Distribution Services

A fundamental distinction between goods and services is that in the retailing of goods and some services the costs of production and distribution are clearly separable in a non-arbitrary fashion, usually identified as costs of goods sold. They have type I separability. Distribution services, which are also known as attributes, marketing mix or output variables, are produced, distributed and consumed just as goods or physical products or core services sold directly to consumers at an explicit price. When online settings generate separability of production distribution and consumption of all these distribution services in space and time we have strong type II separability, which has not been identified in the literature. The latter plays an essential role in the emergence, sustainability and sometimes dominance of online channels. It has profound implications for both the demand side and the supply side of firms in online channels.We develop implications of this result with respect to potential maximum levels of these services in electronic channels and for a broad range of other important topics relevant for marketing and economics.     

Child socialization practices: Implications for retailers in emerging markets

Considering the unprecedented growth in the active role of children in the modern market place the present paper attempts to understand the potential of kids as consumers in an emerging retail market. The exploratory study uses a quota sample of 136 urban Indian parents to assess their attitude towards parenting and child socialization along with their preferences for retail formats while buying across select children׳s product categories. The empirical evidences of the research established the active and positive role of the urban Indian parents in the child׳s consumer socialization process and acknowledge the growing status of a child as an influencer and independent buyer with respect to select product categories in the market. The study reiterates on the positive correlation between the child׳s age and the strength of his influence on family purchase decisions. The paper significantly contributes with its insights on contemporary consumers to aid retailers with relevant marketing knowledge pertaining to the market of children and their parents in emerging India.     

Examining shopping mall consumer decision-making styles,satisfaction and purchase intention

Understanding consumer decision-making (CDM) styles is essential for market segmentation, positioning and crafting marketing strategies within a market. Few studies have examined the structural relationship among decision-making styles that consumers exhibit during mall shopping, level of satisfaction and purchase intention. The purpose of this study was to examine CDM styles as the antecedents and predictors of level of satisfaction and purchase intention. Based on the Consumer Styles Inventory, eight CDM styles that individual exhibit during shopping mall activities are proposed in terms of utilitarian and hedonic perspectives. We hypothesize these eight CDM styles as a set of predictors of customer satisfaction and purchase intention. A total of 327 valid paper-and-pencil questionnaires were collected from several shopping malls in Kuala Lumpur, Malaysia. Partial least squares (PLS) path modelling approach, a structural equation modelling (PLS-SEM) technique was performed to test the proposed structural relationships. The empirical assessment supports that hedonic shopping styles consumers that exhibit high level of habitual, brand consciousness, fashion consciosness, recreational conscious style have lower levels of satisfaction and purchase intention during mall shopping while novelty and fashion conscious style consumers have lower level of satisfaction but do not unveil lower purchase intention. Utilitarian shopping styles consumers that exhibit high level of price conscious, confused by overchoice and high-quality conscious style have higher levels of satisfaction while impulsive/careless shoppers do not; and while price conscious, impulsive/careless, confused by overchoice consumers have higher levels of purchase intention but the high-quality conscious consumers do not unveil higher purchase intention. Further, there is a positive relationship between satisfaction and purchase intention. The practical and managerial implications are discussed.     

Coping strategies and intended change of shopping habits after the Corona pandemic – Insights from two countries in Western and Eastern Europe

The Corona pandemic forced customers to develop strategies to cope with the situation and switch to alternative channels during lockdowns. This raises the question if such behavioral changes are only short-term or if consumers’ shopping habits change in the long run and thus cause or accelerate structural change in retailing. We analyze such immediate reactions and intended changes in habits using qualitative interviews conducted in Germany and Poland. Results show that German respondents had stronger intentions to support physical stores after the pandemic, while Polish respondents had stronger intentions to continue increased online shopping. Different retail structures explain these findings.     

“Showrooming” in Consumer Electronics Retailing: An Empirical Study

The present study focuses on multichannel retailing strategies and describes the state of consumer behavior regarding “showrooming” (the practice of examining merchandise or products in a retail store and then buying it online). Founded on the theory of planned behavior (TPB), the authors examine the antecedents of showrooming using data collected from a sample of 176 retail consumers. Based on their results, they define perceived control, website compatibility, and subjective norms as the main antecedents of consumer attitudes toward online purchases. Additionally, they state that previous experience and reasons against purchasing online are directly associated with consumers’ intention to purchase on the retailer’s website. Finally, some theoretical conclusions and practical implications for retailers are discussed.     

Should new online stores invest in social presence elements? The effect of social presence on initial trust formation

Online shopping has become increasingly popular in business development and the number of new online stores is ever increasing. Many of these online stores, however, fail. Research has indicated that one of the biggest reasons why these online stores fail is because of consumers׳ lack of trust. One solution that has been proposed is for online retailers to increase their level of social presence.This study investigates the impact of social presence, in its extreme form of online chat boxes, on initial trust formation for an online retailer. An experimental design was used and a structural equation model is tested using PLS-SEM (partial least square based structural equation modeling). Social presence was found to not only influence initial trust in the website, but also participants׳ enjoyment and perceived usefulness of the site. Therefore even though managers might think that there is no ROI in their investment in social presence, it still has a notable impact on consumers׳ perception of an online retailer they have not seen or used before. This is especially relevant to new online stores.     

Brand experience anatomy in retailing: An interpretive structural modeling approach

In today's highly competitive retail environment, retailers have recognized and embraced the concept of offering experiences with the retail brand across various channels beyond new launches and lower prices. To manage the experiences associated with a retail brand, retailers need to understand the concept of brand experience in retailing and the factors that actually comprise it. Interestingly, very few studies have imparted an understanding of brand experience in retailing. This study seeks to understand the retail brand experience and model the interrelationships among retail brand experience variables using interpretive structural modeling (ISM). Retail brand experience variables used in this study have been identified from existing literature on ‘brand experience’ and from brainstorming sessions with academicians and retail industry experts. Our findings show that the variables, namely, packaging of own label brands, customer billings, order and application forms, point-of-sales (i.e., shelf talkers) and recommendation by a salesperson have a high degree of influence and exhibit low dependence. These variables require a great deal of consideration due to their strategic significance to retailers. The approach applied in this study will enhance the understanding of retailers for improving the performance through managed retail brand experience initiatives.     

A Model of Factors Affecting the Growth of Retailing on the Internet

We propose a model that links factors affecting the growth of retailing on the Internet (the Net). Specifically, we examine the roles of the following factors: product-related (risk, efforts, and information intensity); medium-related (interactivity, variety of channels, logical capability, and underlying communication model); consumer-related (preference for home-based shopping, technical orientation, and access to the Net); firm-related (information intensity and expertise in direct marketing), and environment-related (critical mass of consumers and retailers online). We examine how at each stage of the consumption process, Net-based retailing affects value delivery to consumers. Managerial implications of the model are discussed.     

Exploring Point of Sale Strategies for Improving Seafood Retailing: The Case of the Australian Oyster Industry

The commodification of many food products, combined with increasing market share of supermarkets, has increased the importance of point of sale (POS) strategies in specialty food retailers such as fishmongers. This study seeks to develop strategies to improve the retailing of seafood in fishmongers, specifically oysters, an underutilized species; although they are eaten by many consumers, purchase frequency is low. A literature review identifies the key drivers and barriers to oyster consumption and the information consumers want at POS. Based on these findings, a retailing strategy is developed and tested in two consumer focus groups with results informing revisions to the recommended retail strategy, importantly including a change in collateral from a production focus to a consumption focus. This study contributes to theory and practice by bringing together the existing literature on drivers and barriers and consumer information requirements about oysters to develop and to test practical retail strategy concepts.     

Shopping in the omnichannel supply chain under price competition and product return

In recent years, omnichannel retailing has created value for prospective consumers. The rise of omnichannel retailing has changed consumers' buying habits, and manufacturers are facing stiff competition from retailers. To reduce this competition effect, manufacturers and retailers often work together to reduce showroom display costs. Despite this practice, there is little understanding of how omnichannel retailing impacts supply chain (SC) profit under competitive conditions. We investigate the test-in-store-and-buy-online (TSBO) retailing strategy and its impact on SC profit and price competition between manufacturers. The retailer sells products of both manufacturers through its website but displays products of only one manufacturer in the showroom, which bears the displaying cost. The retailer adopts a return policy for the other manufacturer. Stackelberg game was used to examine how members of the chain interact, and Nash equilibrium was used to find optimal strategies for players under decentralized and integrated channels. The results show that the TSBO strategy in retailing benefits all supply chain players under the integrated channel. A further interesting finding is that omnichannel SC profits are highest when retailers adopt a return policy. When two manufacturers compete and adopt different sales models, the manufacturer who uses the TSBO retail model reaps the most profit. Several other managerial insights are drawn from sensitivity analyses.     

Consumer experiences,attitude and behavioral intention toward online food delivery (OFD) services

Prior research has mostly examined consumer attitudes toward online services/retailing in general and a few researchers have addressed consumer experiences with online food delivery (OFD) services. The purpose of this study is to examine the structural relationship between convenience motivation, post-usage usefulness, hedonic motivation, price saving orientation, time saving orientation, prior online purchase experience, consumer attitude and behavioral intention towards OFD services. The study proposes an integrative theoretical research model based on the Contingency Framework and Extended Model of IT Continuance. 224 valid questionnaires were collected to empirically test the research model using the partial least square (PLS) path modeling approach. The results imply that the proposed hypotheses were supported, except for the relationship between prior online purchase experience and post-usage usefulness. Practical implications and limitations are discussed.