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Article
Publication date: 26 September 2023

Philip Tin Yun Lee, Aki Pui Yi Hui, Richard Wing Cheung Lui and Michael Chau

This paper aims to examine why retail firms seldom achieve full integration of online and offline channels as prescribed in omni-channel literature. It examines the intermediate…

Abstract

Purpose

This paper aims to examine why retail firms seldom achieve full integration of online and offline channels as prescribed in omni-channel literature. It examines the intermediate process of channel integration from an internal, operational perspective.

Design/methodology/approach

This study is composed of two parts. In the first part, the authors interviewed informants from nine firms that were engaged in channel integration. In the second part, the authors conducted case studies with three firms from the cosmetics and skincare industry against the backdrop of the COVID-19 pandemic to find evidence to support or negate the propositions made in the first part.

Findings

The first part identified six operational challenges to channel integration. The authors categorized these challenges into two groups: inter-channel communication and inter-channel competition. Inter-channel competition carries more weight at the latter stage of integration. The authors also identified two antecedents that affect the seriousness of these challenges: heterogeneity among channels in business operation and external competitive pressure. In the second part, the authors found that both inter-channel communication and inter-channel competition were improved because of the external competitive pressure exerted by the COVID-19 pandemic. However, the heterogeneity of offline channels against online channels in business operation is a double-edged sword.

Originality/value

The study identifies the changing effects of the challenges of channel integration and their antecedents in the midst of integration. The positive influence of a specific dimension of channel heterogeneity against other channels increases and then decreases along channel integration. The identification of the changing effects lays the foundation for a finer stage model of channel integration.

Details

Internet Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 25 October 2021

Dragan Stojković, Aleksa Dokić, Bozidar Vlacic and Susana Costa e Silva

Newly established intersections between offline and online channels create room for enhancing inter-channel synergies. The nature and structure of emerging markets only further…

Abstract

Purpose

Newly established intersections between offline and online channels create room for enhancing inter-channel synergies. The nature and structure of emerging markets only further emphasize the need to expand existing knowledge. Consequently, this study investigates inter-channel synergy creation during offlineonline retail integration in emerging markets.

Design/methodology/approach

Data collected from 97 companies in Serbia that incorporated online channels into their offline retailing businesses were analyzed using the structural equation modeling method.

Findings

The results show that retailers who have undergone click-to-brick integration in the emerging markets struggle to leverage physical presence for inter-channel synergy creation through digital channels. Essentially, retailers integrating clicks into bricks in emerging markets are less likely to achieve immediate omni-channel synergy, resorting to a multi-iterative transition process.

Originality/value

This research synthesizes knowledge on inter-channel synergy creation in an omni-channel context, as well as existing findings regarding inter-channel integration. This paper presents the first comprehensive study on inter-channel synergy creation during click-to-brick integration in emerging retail markets. Moreover, this study outlines challenges facing retailers seeking channel synergy during click-to-brick integration. The study results have theoretical and practical implications regarding inter-channel synergy creation in the multi-channel environment of emerging markets.

Details

International Journal of Emerging Markets, vol. 18 no. 9
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 10 July 2017

Marta Frasquet and Maria-José Miquel

The purpose of this paper is to investigate the effects of multichannel integration (MCI) on customer loyalty. The specific objectives are to provide an appropriate reliable…

3750

Abstract

Purpose

The purpose of this paper is to investigate the effects of multichannel integration (MCI) on customer loyalty. The specific objectives are to provide an appropriate reliable measure of the construct, and to analyse the impact of MCI on offline and online loyalty, both directly and by mediation of customer satisfaction.

Design/methodology/approach

The paper focusses on the retail apparel sector of Spain and the UK. The authors applied a scale development process and tested the model with data of 761 multichannel apparel shoppers. The proposed theoretical model was estimated through EQS 6.1 and a mediation test was calculated.

Findings

The findings show, first, that the construct of channel integration has two dimensions: reciprocity, which refers to the possibility of crossing the channels while shopping, and coordination, which refers to the alignment of offline and online offers. Second, that MCI affects positively both offline and online loyalty both directly and through satisfaction, which partially mediates the relationship.

Research limitations/implications

Culture might play a moderating role in the relationships found that are not analysed.

Practical implications

The findings have implications for the managers of multichannel retail companies as they help to understand the benefits of channel integration in creating a loyal customer base both online and offline.

Originality/value

This paper contributes to the literature on multichannel retailing in two main ways: first, by developing a scale to measure MCI, and second, by demonstrating that MCI has strong effects on customer satisfaction and loyalty.

Details

International Journal of Retail & Distribution Management, vol. 45 no. 7/8
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 7 September 2020

Zeeshan Ahmed Bhatti, Ghulam Ali Arain, Hina Mahboob Yasin, Muhammad Asif Khan and Muhammad Shakaib Akram

Drawing on social identity theory and prosocial behaviour research, this study explores how people's integration of their offline and online social activities through Facebook…

Abstract

Purpose

Drawing on social identity theory and prosocial behaviour research, this study explores how people's integration of their offline and online social activities through Facebook cultivates their Facebook citizenship behaviour (FCB). It also offers further insight into the underlying mechanism of offline and online social activity integration - FCB relation by investigating people's social identification with their offline and online social groups as possible mediators.

Design/methodology/approach

Based on social identity theory (SIT) literature, community citizenship behaviour and offline-online social activity integration through Facebook, we developed a conceptual model, which was empirically tested using data from 308 Facebook users

Findings

The results confirm that the participants' offline-online social activity integration via Facebook is positively linked to their FCB. Further, the integration of offline and online social activity through Facebook positively affects how a person identifies with their offline and online social groups, which in turn causes them to display FCB. In addition, offline/online social identification mediates the integration – FCB relation.

Practical implications

In practice, it is interesting to see people's tendency towards altruistic behaviours within groups they like to associate themselves with. Those who share their Facebook network with their offline friends can use such network to seek help and support.

Originality/value

From a theoretical perspective, unlike past research, this study examines how individuals' offline-online social activity integration via Facebook helps them associate with groups. In addition, this study investigates social identification from an offline and online perspective.

Details

Information Technology & People, vol. 34 no. 5
Type: Research Article
ISSN: 0959-3845

Keywords

Article
Publication date: 19 July 2022

Philip Tin Yun Lee, Feiyu E and Michael Chau

A new business model online to offline (O2O) has emerged in recent years. Similar to many new models at an early stage, O2O has inconsistent definitions which not only inhibit its…

1060

Abstract

Purpose

A new business model online to offline (O2O) has emerged in recent years. Similar to many new models at an early stage, O2O has inconsistent definitions which not only inhibit its adoption but also poorly differentiate O2O from other existing business models. To resolve the two issues, the authors propose an approach of definition development.

Design/methodology/approach

To show the usefulness of the approach, the authors demonstrate the differences among O2O and other business models with the use of the distinctive definition and thereby evaluate adoption of O2O from a practical perspective and identify research directions from a theoretical perspective based on the differences.

Findings

The authors' proposed approach of definition development integrates the work of Tatarkiewicz (1980) and Nickerson et al. (2013). The approach generates a distinctive definition of O2O with important analytical dimensions which help decision-making of adoption of O2O.

Originality/value

The paper aims to make several contributions. First, on theoretical contribution, the authors confine the scope of O2O studies and facilitate accumulation of more coherent knowledge of O2O. The authors help O2O evolve from a “buzz word” of successful stories in real businesses to a more serious concept from an academic perspective. Second, from a practical perspective, the authors' definition provides business executives with critical evaluative dimensions for gauging the adoption of O2O. Lastly, from a methodological perspective, the proposed approach can be used in future to define an emerging concept in real life businesses.

Details

Internet Research, vol. 32 no. 5
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 26 February 2021

Heng Xu, Xuliang Wu and Yatian Liu

This paper aims to theoretically investigate an online company’s optimal decision on its offline expansion strategy. In the past five years, many large online retailers and…

Abstract

Purpose

This paper aims to theoretically investigate an online company’s optimal decision on its offline expansion strategy. In the past five years, many large online retailers and internet-based companies such as Amazon, Google, Alibaba, Tencent and JD.com have expanded their offline market but it was observed that they adopted different expansion strategies. Specifically, some of them expand the offline market by acquiring offline retailers, while some do so by purchasing a portion of offline retailer’s stake. This difference leads to a quite different structure in post-expansion market, having an impact on profit, consumer surplus and social welfare. The goal of this paper is to model such expansion strategies in a general way and complete studies on profits and welfare.

Design/methodology/approach

By constructing a Salop model with two offline retailers and one online company, this paper analyzes the case where the online company can expand its offline market by either acquiring or jointing (e.g. stakeholding) with one offline retailer. The former strategy (named Strategy A) allows the online company to fully control and capture residual claims of the offline retailer. With the adoption of the latter strategy (named Strategy C), on the other hand, the online company can obtain a fixed proportion of its offline partner’s quasi rent. In the price competition, the online company chooses its optimal offline expansion strategy by predicting its profit in the post-expansion market.

Findings

This paper found that the equilibrium crucially depends on the synergy effect due to onlineoffline integration, and such synergy also influences both consumer and social welfare. This study shows the various conditions on the synergy that affect an online company moves toward offline markets. Accordingly, this finding can assist online companies with or without retailing business to choose an optimal strategy when expanding offline markets. Moreover, by doing some necessary welfare analysis, this study shows that the online company’s offline expansion is not always benefiting consumers nor be socially desirable, which may shed some lights on the possible competition policy in the case where online companies practice in offline expansion.

Originality/value

Different from conventional wisdom in online-offline integration, the theory indicates that the offline expectation of online company may not always benefit consumers nor be socially desirable. Moreover, the findings also shed some lights on the possible competition policy in the case where online companies practice in offline expansion.

Details

Kybernetes, vol. 51 no. 1
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 6 August 2018

Yu-Wei Chang, Ping-Yu Hsu and Qing-Miao Yang

This study uses the travel industry as the research context and investigates onlineoffline integration between the different business entities of hoteliers and online travel…

3413

Abstract

Purpose

This study uses the travel industry as the research context and investigates onlineoffline integration between the different business entities of hoteliers and online travel agencies (OTAs). The purpose of this paper is threefold: first, to examine cooperation between hotels and OTAs; second, to examine how online and offline satisfaction increase behavioral intentions toward online and offline channels; and third, to investigate the factors that increase online and offline satisfaction.

Design/methodology/approach

To investigate customers’ behavioral intentions toward online and offline channels, the authors collected 241 data points from ten hotels from four well-known chains. The partial least squares structural equation modeling approach was used to test the research model and the 13 hypotheses.

Findings

The results show that system quality, information quality and service quality of OTA websites increase online satisfaction. Online satisfaction further increases behavioral intentions toward online channels but has no significant effect on offline satisfaction and behavioral intentions toward offline channels. Emotional value and social value offered by hotels increase offline satisfaction. Offline satisfaction further increases behavioral intentions toward online and offline channels. Finally, behavioral intentions toward online channels indeed reinforce behavioral intentions toward offline channels.

Originality/value

Some prior studies have focused on the effects of offline channels on online channels, whereas others have examined the influences of online channels on offline channels. However, in previous studies, the online and offline channels were both owned by the same business entities. To the best of the authors’ knowledge, this study is the first to examine how online and offline channels belonging to different business entities can work together to increase customer intentions.

Details

Internet Research, vol. 28 no. 4
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 21 October 2021

Yingzhao He, Yan Yu and Meiyun Zuo

Drawing on open systems theory, this study aims to investigate the direct and moderating effects of information collaboration in the pre-sale stage, transaction management…

Abstract

Purpose

Drawing on open systems theory, this study aims to investigate the direct and moderating effects of information collaboration in the pre-sale stage, transaction management collaboration in the transaction stage and customer service collaboration in the post-sale stage on the linkages of the onlineoffline store image and the market performance of small sellers.

Design/methodology/approach

Data were collected from multiple sources, including self-reported and online objective data from 148 small restaurants that simultaneously sell online and offline, for validating the developed research model. Partial least squares-based structural equation modeling was used for data analysis.

Findings

This study illustrates the direct effects of an online store’s image and onlineoffline collaborations on the market performance of small stores. This study further reveals the boom-bust moderating effects of different collaborations between onlineoffline images and market performance.

Practical implications

Small stores should be aware of the importance of information congruence and functional integration concerning onlineoffline collaboration. They should also recognize the paradoxical intervening effects of onlineoffline collaboration on different channels and arrange appropriate collaboration tactics.

Originality/value

This study presents a significant contribution to the open systems theory by revealing both constructive and destructive properties of the onlineoffline collaborative system with offline-to-online targeting. Vertically differentiated onlineoffline collaboration may strengthen one side of the store image but weaken the other side for promoting the market performance of small stores.

Details

Internet Research, vol. 32 no. 3
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 17 July 2019

Yang Li, Hefu Liu, Matthew Lee and Qian Huang

Previous studies have attempted to address online uncertainties from the relationship marketing perspective. The purpose of this paper is to argue that the integration of media…

1827

Abstract

Purpose

Previous studies have attempted to address online uncertainties from the relationship marketing perspective. The purpose of this paper is to argue that the integration of media richness theory (MRT) and cognitive fit theory (CFT) can contribute a new perspective in addressing consumers’ transaction-specific uncertainties in online retailing.

Design/methodology/approach

On the basis of MRT and CFT, a research model was developed by correlating online channel media richness (OCMR), onlineoffline information integration (OOII), information privacy concern, perceived deception and online loyalty. The model was empirically examined based on survey data collected from 258 multi-channel consumers in China.

Findings

An analysis of structural equation model showed that OCMR is negatively associated with information privacy concern and perceived deception but is not significant to online loyalty. Information privacy concern has a negative influence on online loyalty, but the effect of perceived deception is not significant. Moreover, information privacy concern is positively related to perceived deception. The OOII strengthens the influence of OCMR but not the moderating effect of integrated promotion, product and price information on the relationship between OCMR and online loyalty.

Originality/value

This study contributes to the extant literature on online retailing by examining the effect of OCMR on online transaction uncertainties. Information integrity in the form of OOII was proposed to complement OCMR. Results have shown that OCMR is significant in reducing online uncertainties, and OOII strengthens this effect, thereby enhancing online loyalty.

Article
Publication date: 30 June 2020

Yunjeong Kim and Yuri Lee

The purpose of this study was to investigate whether consumers differ in their online or offline purchase intention, depending on which channel with price promotion information…

1439

Abstract

Purpose

The purpose of this study was to investigate whether consumers differ in their online or offline purchase intention, depending on which channel with price promotion information they are first exposed to, and to analyse the moderating role of brand trust.

Design/methodology/approach

Overall, 174 responses were obtained via an online survey using two contact channels (online/offline) by two levels of brand trust (high/low) between-subject designs.

Findings

Spillover effects were found across channels when a consistent price promotion is executed in both online and offline channels, purchase intentions for cross-channel and contact channel increase simultaneously. Although there was a similar effect in the discrepancy of purchase intentions towards the cross-channel according to contact channels, it varied depending on brand trust. When brand trust is high, having contact with offline price-discount information has a large online spillover effect. When brand trust is low, the spillover effect from online to offline is large.

Research limitations/implications

This study expands the multi-channel research by proving the spillover effects between channels and confirming the difference according to brand trust.

Practical implications

Increasing promotion information for online contact is effective in driving offline visits for new brands, and the effective use of promotion information at offline stores can have a positive impact on online channels for well-known brands.

Originality/value

This study explores the cross-channel spillover effect of price promotion and proves that these effects depend on brand trust.

Details

International Journal of Retail & Distribution Management, vol. 48 no. 10
Type: Research Article
ISSN: 0959-0552

Keywords

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