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Article
Publication date: 26 July 2021

Cheng Xu, Jooyoung Park and Jacob C. Lee

This research investigates the novel questions of whether and how specific forms of shopping channels (online vs offline) influence consumers' decision-making. Moreover…

Abstract

Purpose

This research investigates the novel questions of whether and how specific forms of shopping channels (online vs offline) influence consumers' decision-making. Moreover, this research investigates marketing firms' proper marketing strategies across different shipping channels.

Design/methodology/approach

The authors conducted three studies using a large sample (N = 703) recruited from a diverse pool (students and adults) that examined multiple products (camera and car) across different shopping channels (online vs offline). Study 1a (n = 251) and Study 1b (n = 252) examined the effect of an online versus offline channel on consumers' decision-making using a one-factor (shopping channel: online vs offline) between-subjects design. Meanwhile, Study 2 (n = 200) investigated the effective strategies that firms should employ across different shopping channels using a 2 (shopping channel: online vs offline) × 2 (mental simulation: outcome vs process) between-subjects design. Participants in the online condition evaluated the product on a computer screen, whereas participants in the offline condition evaluated the real product assuming a real-world retail store setting.

Findings

The three studies supported the predictions that shopping channels (online vs offline) affect consumers' psychological distance and, in turn, affect their decision process. Specifically, results reveal that the online (offline) channel increases (decreases) psychological distance and leads consumers to pay more attention to a product's desirability (feasibility) aspects.

Originality/value

Given that many firms sell the same products through multiple channels, the findings of this research offer insightful theoretical and practical implications.

Details

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

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Book part
Publication date: 26 November 2020

Elif Türk

Innovations in technology and evolution of internet elicited the usage of technology and internet during the shopping process of consumers. Changes in consumer shopping…

Abstract

Innovations in technology and evolution of internet elicited the usage of technology and internet during the shopping process of consumers. Changes in consumer shopping processes opened doors for shifts in consumer buying behavior. As a result of the variations in consumer buying behavior, retailers formed new channel structures to fulfill customer requirements. New channel structures created different retailing formats and enhanced the complexity of retailing processes. As the complexity of retailing processes increased, complexity of consumer shopping behavior increased as well. In this sense, multichannel retailing emerged and expanded all around the world and paved the way for omnichannel retailing. Transformation of multichannel retailing to omnichannel retailing created two different shopping forms as: Showrooming and Webrooming. In this chapter, showrooming and webrooming concepts will be studied and the complementarity dimensions of these concepts will be explained in detail.

Details

Managing Customer Experiences in an Omnichannel World: Melody of Online and Offline Environments in the Customer Journey
Type: Book
ISBN: 978-1-80043-389-2

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Article
Publication date: 10 July 2020

Ching-Hsuan Yeh, Hsin-Hui Lin, Yu-Ling Gau and Yi-Shun Wang

To examine the effectiveness of a multichannel strategy, this study mainly investigates two issues: (1) whether customers' five value perceptions (i.e. product quality…

Abstract

Purpose

To examine the effectiveness of a multichannel strategy, this study mainly investigates two issues: (1) whether customers' five value perceptions (i.e. product quality, service quality, innovation, price and store image) extend from e-stores to physical stores and (2) whether customers' five value perceptions derived from e-stores/physical stores facilitate purchase intention within and beyond the channel context.

Design/methodology/approach

This study develops a research model to elaborate on the relationships between the focal constructs and collects 177 useable responses via an online community and personal contacts survey. Partial least squares structural equation modeling (PLS-SEM) methods and mediation analyses are conducted to validate the proposed hypotheses.

Findings

The results show that the values perceived in e-stores/physical stores generally motivate online/offline purchase intention, respectively. Next, based on Tversky's belief/feature matching process, the five value perceptions correlate with their counterparts across online and offline channels. The results of the mediation analyses suggest that the advantages established in online channels may be contagious to offline channels at the belief level. Specifically, four of the five online value perceptions may have different effects on offline purchase intention: (1) product quality perceived in e-stores directly (negative) and indirectly (positive) results in offline purchase intention, demonstrating cannibalization effects and (2) service quality, innovation and store image perceived in e-stores indirectly and positively contribute to offline purchase intention, indicating synergetic effects.

Originality/value

The findings of this study provide several important theoretical and practical implications for multichannel and omnichannel retailing strategies.

Details

Journal of Enterprise Information Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0398

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Article
Publication date: 25 November 2019

Preeti Narwal and Jogendra Kumar Nayak

The purpose of this paper is to explore the applicability of Pay-What-You-Want (PWYW) pricing multi-channel retailing. Specifically, the impact of PWYW endogenous price…

Abstract

Purpose

The purpose of this paper is to explore the applicability of Pay-What-You-Want (PWYW) pricing multi-channel retailing. Specifically, the impact of PWYW endogenous price discrimination on consumers’ price fairness perception of and reactions to PWYW is investigated.

Design/methodology/approach

Three empirical studies with different product categories were conducted through lab experiments with student sample using scenario-based experimental approach.

Findings

Results indicate the viability of PWYW with lower suggested external reference price. The impact of PWYW endogenous price discrimination is dependent upon the magnitude of price deviation from regular market price and product category. Consumers’ negative perceptions of price differentiation interacted with their underlying beliefs about the retailer’s cost of products across different channels. PWYW acceptance can be fostered in multi-channel by communication of additional-value generated in offline selling.

Originality/value

The current research is possibly the first to explore PWYW viability in the multi-channel context by exploring the consumer’s price perception process and critical consumer reactions through a well-structured research framework.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 32 no. 4
Type: Research Article
ISSN: 1355-5855

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Article
Publication date: 9 December 2019

Yuan Shi, Luying Zhou, Ting Qu and Qian Qi

The purpose of this paper is to help online retailers who have an existing reselling channel to figure out the risk of introducing an additional marketplace channel and…

Abstract

Purpose

The purpose of this paper is to help online retailers who have an existing reselling channel to figure out the risk of introducing an additional marketplace channel and identify the introduction threshold with an overall consideration to the fulfilment cost and services.

Design/methodology/approach

In order to evaluate the risk of the marketplace channel strategy, this paper develops a Retailer–Stackelberg pricing model. Products are divided into two categories according to different fulfilment cost–value ratio to get a more targeted strategy.

Findings

The results show that the strategy of introducing the marketplace is not always satisfying. Retailers prefer this strategy when they are the prevailing parties in service output. The overall trend is that retailers have to encourage their marketplace partners to improve services for the product with a big fulfilment cost–value ratio. Otherwise, retailers should block the marketplace from entering.

Research limitations/implications

For an intuitive conclusion, this paper assumes that the operating costs (except fulfilment cost) are equal in two channels. This suggests a need to further investigate the impact of other costs. Meanwhile, it would be interesting to examine the competition among suppliers and retailers.

Practical implications

This research provides the suggestions for online retailers who want to introduce and well manage the marketplace channel.

Social implications

This research also helps both academia and industry become more intelligent about the significant influences of category management on channel strategy.

Originality/value

Most prior research is unaware of the risk of introducing a new channel, which also rarely considers how to manage it. This research points out that the effectiveness of this channel strategy differs in different categories. Moreover, retailers can benefit from managing the marketplace’s service output.

Details

Industrial Management & Data Systems, vol. 120 no. 2
Type: Research Article
ISSN: 0263-5577

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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…

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

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Article
Publication date: 10 July 2017

Sourabh Arora and Sangeeta Sahney

Recent statistics on increasing webrooming customers make it topical in the multi-channel retailing domain. The purpose of this paper is to offer an enhanced understanding…

Abstract

Purpose

Recent statistics on increasing webrooming customers make it topical in the multi-channel retailing domain. The purpose of this paper is to offer an enhanced understanding on “Webrooming behaviour”, an area of concern for e-retailers by proposing an integrated framework grounded on the Theory of planned behaviour and Technology acceptance model.

Design/methodology/approach

The conceptual model presented develops a number of propositions applicable to webrooming behaviour utilizing the rich literature on channel choice behaviour in the multi-channel retailing environment. The propositions are open for verification and can serve the basis for future line of research.

Findings

The model proposed provides basis for understanding the webrooming sequence via search attitude towards online channels, purchase attitude towards offline channels, perceived ease of online search and perceived usefulness of webrooming behaviour. The impact of online risk perceptions and mediating role of (lack of) “trust” have been proposed along with the direct impact of product type and category which offers an holistic view towards understanding the webrooming conduct.

Research limitations/implications

The model proposed lacks empirical verification. There is a need to test the model empirically to validate the model and to find out the suitability of integrated TPB-TAM model.

Practical implications

Webrooming substantially erodes online profits. Before retailers’ strategies to defend webroomers, it is imperative to understand the phenomenon from the consumer’s side. The model proposed is a step in this direction and provides the basis for formulating strategies for holding back the webroomers.

Originality/value

This paper adds to the body of knowledge in retailing by proposing a conceptual model on webrooming behaviour which is an emerging area of research in the present retail landscape.

Details

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

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Article
Publication date: 29 February 2008

Ruiliang Yan

The purpose of this paper is to provide a framework to help business marketers with a mixed online and traditional retail channel (multi‐channel company) to find the…

Abstract

Purpose

The purpose of this paper is to provide a framework to help business marketers with a mixed online and traditional retail channel (multi‐channel company) to find the optimal pricing strategy and market structure in order to maximize their profits.

Design/methodology/approach

A game theory model is developed to determine the optimal pricing strategy for the multi‐channel company.

Findings

It was demonstrated that an optimal pricing strategy exists under different market structures for a multi‐channel company. When a company uses multiple channels to sell its product, the optimal pricing strategy is to use a low‐high pricing strategy if the online marginal cost is equal to or less than the traditional marginal cost, or a high‐low pricing strategy if the online marginal cost is far larger than the traditional marginal cost. Furthermore, in order to maximize its profit, the company using multiple channels should adopt channel integration as the optimal market structure.

Research limitations/implications

The present study assumed that all consumers have perfect information. However, information with the consumers could be incomplete. It is recommended that future research explore the pricing strategy under incomplete information settings.

Practical implications

The paper provides a very useful model framework, pricing strategy, and market structure for business managers who are using or planning to use multiple channels to sell their products.

Originality/value

This paper fills a conceptual and practical gap for a structured analysis of the current state of knowledge about multi‐channel pricing strategies. It provides practical and solid advice and examples demonstrating the application of the different types of pricing strategies for business managers.

Details

Journal of Product & Brand Management, vol. 17 no. 1
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 11 February 2019

Shekhar Singh and Sandeep Srivastava

With India becoming world’s second largest user of smartphones (Ming, 2017) and with more users adopting mobile devices for online shopping, Indian online retailers now…

Abstract

Purpose

With India becoming world’s second largest user of smartphones (Ming, 2017) and with more users adopting mobile devices for online shopping, Indian online retailers now have to manage mobile channel in addition to existing traditional channel (of computers). Hence, the purpose of this study is to investigate the mapping of product characteristics with individual channel capabilities and its effect on online consumer behaviour, so that e-tailers can create enhanced online shopping experience for consumers.

Design/methodology/approach

A comprehensive research model is developed on the basis of the knowledge gained from multichannel retailing and e-commerce literature. Then, the model is empirically tested, with primary data collected from 344 customers, using structural equation modelling. The data are collected from customers across two product categories: electronics and fashion.

Findings

The results reveal that perceived usefulness, perceived risk and perceived self-efficacy are important drivers of online consumer behaviour for continued usage. The multi-group analysis confirms the moderation influence of platform type for some relationships across electronics and fashion.

Practical implications

The findings underline the importance of multichannel complementarity across electronics and fashion. The preference of mobile devices for fashion and traditional devices such as computers for electronics provides valuable insights for online retailers towards management of multichannel e-commerce ecosystem.

Originality/value

In Indian context, this is the first empirical research on online multichannel retail setting, studying the impact of diverse channel formats on different product categories. The study’s findings give empirical basis to online retailers to look out for right product–channel fit strategy for engaging consumers in the long run.

Details

Journal of Modelling in Management, vol. 14 no. 1
Type: Research Article
ISSN: 1746-5664

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Article
Publication date: 3 April 2018

Marcin Lipowski and Ilona Bondos

The purpose of this paper is to identify the differences in the perceived media richness of three marketing channels by different consumer generations as well as to…

Abstract

Purpose

The purpose of this paper is to identify the differences in the perceived media richness of three marketing channels by different consumer generations as well as to indicate the importance of the perceived media richness of each of channel for the intention of online use at pre-purchase stage.

Design/methodology/approach

The study is based on a sample of 1,103 consumers in Poland, which research sample included three generations: Baby Boomers, X generation and Y generation. Computer-assisted personal interview method was used with a standardised questionnaire; the research sample was determined using a quota-random method, with the quotas referring to age and gender and the nature of the place of residence (provincial town, town/city other than a provincial one, or a village) – the structure of the sample was maintained at the regional level.

Findings

Analysed channels (online, offline, phone) have different perceived media richness. Consumers from different generations can perceive media richness of the same marketing channels in various ways. Perceived media richness of the analysed marketing channels has an impact on the intention to use the channel online.

Research limitations/implications

First, the fact of blurring differences between consumers generation, particularly X and Y generation. As well the fact that each generation has identified an internal diversity. Second limitation refers to the type of marketing channels included in research. Finally, limitation also applies to spatial extent of the study. The above limitations can also be some directions of future research – taking into account some other marketing channels and verifying the conclusions on other consumer groups.

Practical implications

General recommendation refers to the need for treating customers in each marketing channel in the same way – immediate response is one of the aspects of this recommended unified customer service in multichannel environment. Online channel communications with customers should be supported by giving consumers more personalised communication via phone, chat and social media. For older consumers, it is recommended to gradually redirect them to an online channel. Information search is a good start for online customer journey, because this channel at the pre-purchase stage is the most useful and least risky for the consumer unfamiliar with online environment.

Social implications

Better understanding of the needs of different customers generations and their perception of different marketing channel at the pre-purchase stage.

Originality/value

Identification of intergenerational differences in the perception of media richness of online, phone and offline channels.

Details

Baltic Journal of Management, vol. 13 no. 2
Type: Research Article
ISSN: 1746-5265

Keywords

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