Cross-channel free-riding consumer behavior in a multichannel environment: An investigation of shopping motives,sociodemographics and product categories |
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| Authors: | Sandrine Heitz-Spahn |
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| Institution: | 1. Eindhoven University of Technology, School of Industrial Engineering & Innovation Sciences, The Netherlands;2. Dartmouth College, Tuck School of Business, United States;3. University of Groningen, Faculty of Economics and Business, The Netherlands;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;1. Institute of Value-Based Marketing, University of Münster, Am Stadtgraben 13-15, 48143 Münster, Germany;2. Tuck School of Business at Dartmouth, 100 Tuck Hall, Hanover, NH 03755, USA;3. University of Groningen, P.O. Box 800, 9700 AV Groningen, The Netherlands |
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| Abstract: | Cross-channel free-riding, in which consumers use one retailer′s channel to prepare a purchase and then switch to another retailer′s channel to purchase, can substantially erode profit margins. This research aims to understand such free-riding from a consumer empowerment perspective, investigating shopping motives and sociodemographic covariates, as well as how this behavior might differ across product categories. A survey study of decision-making behavior shows that cross-channel free-riders mainly seek to fulfill price comparison, convenience and flexibility needs. The likelihood of free-riding is higher when consumers adopt cross-channel rather than single-channel behavior, which highlights a negative outcome of multichannel retailing. The likelihood of cross-channel free-riding differs across products but not sociodemographic covariates. The findings can be used to develop recommendations for managing retention strategies. |
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| Keywords: | Cross-channel consumer behavior Multichannel retailing Free-riding Shopping motives Cross-channel free-riding |
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