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Is showrooming really so terrible? start understanding showroomers
Institution:1. WHU – Otto Beisheim School of Management, Burgplatz 2, 56179 Vallendar, Germany;2. Department of Marketing, Culverhouse College of Business, University of Alabama, Box 870225, Tuscaloosa, AL 35487-0225, USA
Abstract:The customer journey is more omni-channel than ever. In this scenario, so-called showrooming behavior emerges as a growing trend that is usually considered by retailers as a threat. The purpose of this research is to analyze whether showrooming, when compared with online buying behavior in which the customer does not visit the store prior to the purchase, has a positive effect on the price paid online by the customer. The empirical research is based on the database compiled by GfK, which contains detailed information about the shopping journey of 4067 customers who purchased products from different retail sectors. The results, derived from the estimation of several regression models, reveal that showroomers who use their smartphones in store are more likely to purchase products at a higher price, which explains why these customers can be of special interest to retailers.
Keywords:Showrooming  Online price dispersion  Retail
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