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.     

Determining Customer Satisfaction From Mobile Phones: A Neural Network Approach

Abstract

This research examines the effects of extension mode (online to online vs. online to offline), web-brand concept (function oriented vs. experience oriented) and extension similarity (high vs. low) on consumer web-brand extension evaluations, attitude, perceived quality, and purchase intention of the extension brands. The analysis reveals two significant interaction effects: (1) the positive effect of brand extension similarity on consumer evaluations is stronger when the parent brand is function oriented compared to the experience-orientated ones; (2) the positive effect of brand extension similarity on consumer evaluations is more pronounced when the web-brands extend to offline markets rather than to online markets. Implications for marketing theory and practice are discussed.     

Mobile payment and online to offline retail business models

Mobile payments are services that use mobile devices to make payments. When digitalization moves across channel boundaries, online to offline channel retail will expand. Online to offline retailing will become the future retail owner stream and retail operators will move from cross-channel or multi-channel to omni-channel. This study investigates a market survey in Taiwan developing a data mining analytics including clustering analysis and association rules based on a snowflake schema database design. The role of mobile payment is determined in terms of new retail payment mechanism that promotes a better consumer purchase experience in an online to offline business environment.     

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。     

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.     

Consumers' Perceptions of Online and Offline Retailer Deception: A Moderated Mediation Analysis

This research examines the effects of consumers' perceptions of retailers' deceptive practices on their evaluations of online and offline retailers. Results from two samples of consumers (shopping in online versus offline channels) show the direct and indirect influence of consumers' perceptions of retailers' deceptive practices on consumers' evaluations, including product satisfaction, retailer satisfaction and word-of-mouth. Perceptions of deception influence retailer satisfaction through product satisfaction, and word-of-mouth through retailer satisfaction. These mediated effects are further moderated by the online vs. offline purchase channel. Implications for theory and management are discussed.     

“Speaking of Purchases”: How Conversational Potential Determines Consumers' Willingness to Exert Effort for Experiential Versus Material Purchases

Consumers spend much of their incomes on two types of purchases: experiences and material objects. Recent research has successfully used this purchase type categorization to predict various types of social and psychological consumer outcomes. The present investigation extends this research to a novel domain of primary relevance to firms—that of consumer effort. Specifically, this work advances and tests the prediction that consumers are more willing to exert effort to acquire experiential versus material purchases. Further, drawing on literature on online and offline consumer interactions, it proposes that the greater conversational potential of experiences (vs. objects) explains this effect. Five studies employing mediation, moderation, and actual-choice approaches, applying different methodologies to purchases (past, future, and framed purchases) and testing different types of acquisition effort (e.g., to save money, to wait in a line to make the purchase) offer converging evidence in support of the predicted model. Theoretical and practical implications are discussed.     

Financial consequences of adding bricks to clicks

Many e-commerce retailers are adding “bricks to clicks” – that is, opening an offline channel in addition to their digital sales channel(s). Taking the perspective of such an online pure player, this research assesses the effects of offline channel additions on the financial performance (e.g., sales, profits) and customer behavior (e.g., basket size, return rate) in the extended channel network as well as the initial online channel of the retailer. Across two studies, one at the zip code level and the other at the customer level, we find that the channel addition of a fashion and lifestyle retailer is synergistic in terms of increasing not only overall sales but also profits. At the same time, the new offline channel does not significantly cannibalize the existing online shop, as new customers are attracted through the channel addition. The effects of channel additions, however, are influenced by characteristics of customers gained before the channel addition and of the trade area around the newly opened stores: among existing customers, those who bought more in the online channel do not react as positively to the addition of an offline channel, and trade areas with socioeconomic characteristics that are often viewed as disadvantageous for digital retailing (e.g., an older population, lower average income) show a stronger positive sales effect of a brick-and-mortar addition. The attractiveness of the offline channel for these customer segments highlights that adding bricks to clicks might be most attractive for those customers who were previously unwilling to purchase from an online-only retailer.     

在线促销限制对消费者购买决策的影响研究——基于精细加工可能性视角

文章基于精细加工可能性理论探究了在线购物情景中不同促销限制类型（时间限制和数量限制）对消费者购买决策行为的影响。通过2（产品涉入度：高vs低）×2（限制类型：限时vs限量）的组间因子实验设计进行了实证研究,结果发现：在线促销情境下,促销限制对消费者购买决策的影响受到消费者产品涉入度的调节。当产品涉入度高时,消费者偏好时间限制促销,购买意向更高,感知控制感起了中介作用。当产品涉入度低时,偏好数量限制促销,购买意向更高,感知稀缺性起了中介作用。文章丰富了促销理论和消费者购买决策理论,同时为商家进行有效的在线促销提供了直接指导。     

Consumer values,the theory of planned behaviour and online grocery shopping

Taking a hierarchical value‐attitude‐behaviour approach, this study empirically tests relations of consumer personal values, attitude, social norm, perceived behavioural control (PBC) and willingness to buy groceries online. The study distinguishes three groups of consumers: consumers who have not yet bought anything on the Internet; consumers who have bought something on the Internet – but not groceries; and consumers who have bought something on the Internet – including groceries. Data were collected from an online survey of Swedish consumers (n = 1058) using self‐administered questionnaires. The findings suggest that consumers may link personal values to attitude towards online grocery buying – but also that this relation may be moderated by whether the consumer previously has carried out an online purchase or an online grocery purchase.     

The omnichannel continuum: Integrating online and offline channels along the customer journey

This paper provides a framework for conceptualizing omnichannel integration as a continuum, identifies phenomena that determine how firms should position along that continuum, and summarizes empirical research regarding these phenomena. The framework combines the customer journey (search to purchase to aftersales) and channel choice (online vs. offline). This generates a range of omnichannel strategies, anchored by “Unconnected” on one extreme and “Complete” on the other. In between, “Vertical” strategies integrate channels over the customer journey, while “Horizontal” strategies integrate across channels at a given stage in the customer journey. We draw on more than 200 articles to identify 10 consumer and marketing phenomena (“determinants”) that influence where a firm should position along the continuum. This however raises challenges. For example, empirical research surprisingly finds many customers belong to an offline-focused segment. This suggests a Vertical strategy linking offline channels. However, today's turbulent retail environment questions whether the offline-focused segment will endure. Should the retailer cater to offline-focused customers or facilitate their progression to “multichannelism”? Another finding is that consumers strongly prefer consistency across channels. This suggests a Horizontal strategy. However, consistency might create channel cannibalization. How can the retailer avoid this? We discuss these and several other findings regarding the impact of the 10 determinants on omnichannel continuum strategy. We identify issues researchers need to research and managers need to consider when developing omnichannel continuum strategy.     

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

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

Brand hate and non-repurchase intention: A service context perspective in a cross-channel setting

The purpose of this study is to investigate the brand hate phenomenon for service products in a cross-channel setting (offline/online environment). To reach this objective, structural equation modeling was employed on a sample of 265 consumers. Findings reveal that brand hate positively influences offline negative word-of-mouth (NWOM), online complaining, and non-repurchase intention. Furthermore, while offline NWOM has a positive effect on non-repurchase intention, online complaining has a negative one. Finally, a mediated path was identified, which starts from brand hate and ends with non-repurchase intention through online complaining and offline NWOM. The study provides implications for firms’ marketers and practitioners.     

Do offline and online go hand in hand? Cross-channel and synergy effects of direct mailing and display advertising

Despite the rise of digital, direct mailing as a marketing communication tool remains relevant and widely applied in practice. Nevertheless, research into the effectiveness of direct mailing in the online environment is scant. Key questions that remain entail how direct mails affect different online and offline consumer activity metrics throughout the purchase funnel and how they interact with digital marketing communication tools. The current paper, therefore, investigates these two questions by conducting two studies. First, we focus on the effect of direct mailing on zip-code level upper, middle, and lower funnel performance metrics over time by analyzing quasi-experimental data from a large European insurance firm. The results reveal that direct mailing significantly influences consumer activity metrics in the online channel (i.e., online search and clicking behavior), in support of cross-channel effects of direct mailing. Moreover, direct mailing is shown to be effective throughout the purchase funnel, both directly and indirectly, with a positive net sales effect. Second, we study the joint effect of direct mailing and display advertising by analyzing field experiment data from the same insurance firm. The results show positive synergy between direct mailing and display advertising. Therefore, despite the rise of digital, direct mailing still serves as an effective marketing tool, both by itself and in combination with digital marketing.     

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

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

The right to be heard and to be understood: a conceptual framework for consumer protection in emerging economies

In many emerging economies and developing countries, comprising consumers from different cultures and with varying degrees of sophistication (knowledge and skill) concerning consumer protection, the promotion of consumers' rights to develop a consumer‐oriented culture remains a very big challenge. One way of protecting the consumer, especially the consumer that has not been fully socialized to execute informed decisions when purchasing expensive durables, is by establishing a redress environment that would ensure fair redress as well as an understanding and appreciation of the consumer. Manufacturers and retailers are often not aware of the performance failures that consumers experience concerning their products because many people do not communicate their dissatisfactions to them. However, unless and until manufacturers and retailers fully comprehend their customers' complaint behaviour, their reasons for engaging in specific complaint behaviour and the reasoning (cognitive processes) and emotional processes behind their behaviour, they will not recognize the link between complaint handling and customer loyalty and profits. The purpose of this paper was to develop a theoretical conceptual framework that would enable consumer scientists, consumer consultants, consumer behaviour researchers and those with the responsibility of handling consumer complaints to explore and understand consumer complaint behaviour in its entirety. We argue that, to be able to establish and manage a redress environment that is characterized by an understanding of the specific consumer as well as by effective complaint behaviour handling, it is of the utmost importance that the manufacturer, retailer, consumer consultant and all those that work with consumers' complaints understand the entire complaint process, including the underlying cognitive and emotional processes as well as the consumer's post‐complaint perception of justice and his/her satisfaction with the complaint handling. It is also important to understand the role that consumer‐, product‐ and redress environment‐related variables play in consumer complaint behaviour. The consumer who blames the retailer for the problem and who probably feels angry about the situation and decides to complain will expect redress. From a consumer's viewpoint, complaint‐related justice is, however, not only a matter of economic calculus but also a matter of procedure and interaction. We therefore argue for a holistic approach where consumer complaint behaviour is addressed in its entirety. Practical suggestions that could enhance customer satisfaction are given for manufacturers, retailers and those who deal with consumers' complaints.     

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.     

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.     

The Perceived Impact of Information Technology on Salespeople's Relational Competencies

Abstract

Cross-cultural service research is an important topic with a rich array of empirical evidence for differences in customer perceptions, attitudes and behaviours. However, the extant literature is almost exclusively focused on differences between cultures at each end of the diversity spectrum (most commonly East vs. West). Contemporary researchers have observed that existing studies fail to acknowledge the substantially greater levels of intra-cluster variation that exist. A cultural cluster is a group of countries that reflect values, attitudes and beliefs stemming from a common cultural ancestry. This seems surprising given the anecdotal evidence and stereotypes that are portrayed in popular culture, media and art. One area where intra-cluster variation may be evident is consumer complaint behaviour and in particular within the Anglo-cultural cluster in countries. A cultural cluster is a group of countries that reflect values, attitudes and beliefs stemming from a common cultural ancestry. The aim of this study is therefore to explore and elucidate the nature of differences in consumer complaint behaviour between cultures traditionally conceived and operationalised as identical. This study presents a qualitative study of 60 in-depth interviews with consumers in the United Kingdom and Australia and identifies differences in complaining styles, parental influence and the conceptualisation of complaining.     

The Influence of Consumers’ Cognitive and Psychographic Traits on Perceived Deception: A Comparison Between Online and Offline Retailing Contexts

In this article, we examine the role of several consumers’ cognitive and psychographic traits in their perceptions of retailers’ deceptive practices (perceived deception) and the different effects on perceived deception associated with online vis-à-vis in-store shopping. Building on theoretical models of persuasion in consumer behavior, we hypothesize that the antecedents of perceived deception in traditional settings are the same as those on the Internet, while the intensity of the impact of these antecedents differs between the online and the offline environment. Results suggest that the effects of individual’s cognitive traits (Internet-based information search and perceived Internet usefulness) and risk aversion on perceived deception are more relevant when consumers shop online than when they purchase from traditional stores. Conversely, psychographic traits (shopping enjoyment and materialism) play a more important role in explaining perceived deception in the traditional shopping context as compared to the online channel. Several theoretical and managerial implications are derived from these findings.