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Article
Publication date: 9 October 2023

Hyo-Jeong Kim and Sang Man Han

This study aims to understand why consumers continue to visit physical stores despite the rise in mobile shopping and online channels. Mobile shopping has changed how consumers…

Abstract

Purpose

This study aims to understand why consumers continue to visit physical stores despite the rise in mobile shopping and online channels. Mobile shopping has changed how consumers shop, allowing them to easily switch between channels. However, physical stores continue to remain significant because some consumers still prefer them, challenging the belief that online markets always surpass offline markets. To serve their needs effectively, retailers must understand the motivations and behaviors of shoppers in both channels. Therefore, this study aims to explore why people cross the online channel to offline by examining their dissatisfaction with online shopping, using E-SERVQUAL variables.

Design/methodology/approach

This study uses a two-method approach that involves in-depth interviews to develop questions related to E-SERVQUAL variables and a survey to assess respondents’ likelihood of switching from online to offline. Data was collected from 203 participants.

Findings

The results indicate that dissatisfaction with the timeliness and condition of online shopping services is a significant factor driving consumers to switch to physical stores. This challenges the notion that online markets always surpass offline markets, emphasizing the continued significance of physical stores in the retail landscape.

Originality/value

This study recognizes the importance and relevance of physical stores in the retail environment while challenging the assumption that online markets always outperform brick-and-mortar markets. In terms of dissatisfaction and satisfaction, it is possible to identify under what circumstances dissatisfied consumers go from online to offline by considering the distribution channel migration phenomenon.

Details

Journal of Services Marketing, vol. 37 no. 9
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 13 September 2023

Cheryl-lyn Ngoh and Hillary N. Mellema

This paper aims to study how retailers moving from a multi- (in-store and online) to a single- (online) channel impacts consumers’ retailer and channel choices.

Abstract

Purpose

This paper aims to study how retailers moving from a multi- (in-store and online) to a single- (online) channel impacts consumers’ retailer and channel choices.

Design/methodology/approach

The authors conduct two scenario-based experimental studies to examine consumers’ in-store and online channel shopping preferences and behavioural intentions (i.e. channel and retailer choices) when their preferred focal retailer’s physical store closes.

Findings

The findings show that when a focal retailer removes its physical store location, consumers with a strong preference for shopping online have a greater likelihood of shopping online. Their loyalty towards the retailer explains this relationship but is conditional on low levels of reactance. When reactance is high, consumers with a strong preference for shopping online are more likely to switch to a competitor.

Originality/value

This research paper bridges the intersection between B2B and B2C literature to understand how retailers’ channel-related supply chain decisions affect downstream consumer shopping behaviour.

Details

Journal of Business & Industrial Marketing, vol. 39 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 7 March 2023

Soroosh Saghiri, Emel Aktas and Maryam Mohammadipour

Perishable inventory management for the grocery sector has become more challenging with extended omnichannel activities and emerging consumer expectations. This paper aims to…

Abstract

Purpose

Perishable inventory management for the grocery sector has become more challenging with extended omnichannel activities and emerging consumer expectations. This paper aims to identify and formalize key performance measures of omnichannel perishable inventory management (OCPI) and explore the influence of operational and market-related factors on these measures.

Design/methodology/approach

The inductive approach of this research synthesizes three performance measures (product waste, lost sales and freshness) and four influencing factors (channel effect, demand variability, product perishability and shelf life visibility) for OCPI, through industry investigation, expert interviews and a systematic literature review. Treating OCPI as a complex adaptive system and considering its transaction costs, this paper formalizes the OCPI performance measures and their influencing factors in two statements and four propositions, which are then tested through numerical analysis with simulation.

Findings

Product waste, lost sales and freshness are identified as distinctive OCPI performance measures, which are influenced by product perishability, shelf life visibility, demand variability and channel effects. The OCPI sensitivity to those influencing factors is diverse, whereas those factors are found to moderate each other's effects.

Practical implications

To manage perishables more effectively, with less waste and lost sales for the business and fresher products for the consumer, omnichannel firms need to consider store and online channel requirements and strive to reduce demand variability, extend product shelf life and facilitate item-level shelf life visibility. While flexible logistics capacity and dynamic pricing can mitigate demand variability, the product shelf life extension needs modifications in product design, production, or storage conditions. OCPI executives can also increase the product shelf life visibility through advanced stock monitoring/tracking technologies (e.g. smart tags or more comprehensive barcodes), particularly for the online channel which demands fresher products.

Originality/value

This paper provides a novel theoretical view on perishables in omnichannel systems. It specifies the OCPI performance, beyond typical inventory policies for cost minimization, while discussing its sensitivity to operations and market factors.

Details

International Journal of Operations & Production Management, vol. 43 no. 12
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 15 December 2022

Felix Septianto, Arnold Japutra, Pragea Putra and Tyson Ang

This research investigates the role of marketing channel selection in influencing brand authenticity and purchase likelihood in the international marketing domain. Further…

876

Abstract

Purpose

This research investigates the role of marketing channel selection in influencing brand authenticity and purchase likelihood in the international marketing domain. Further, perceived firm size is identified as a mediator in this regard. The moderating role of consumer skepticism is also considered.

Design/methodology/approach

Three experimental studies were carried out across three different markets (India, the US and the UK) in the context of South Korean brands.

Findings

The findings demonstrate that firms utilizing (only) online channels are perceived to be smaller than those that utilize hybrid channels (i.e. both online and physical stores) or offline channels (i.e. physical stores). When consumers perceive firms to be smaller, they also report higher levels of brand authenticity, which in turn increases their purchase likelihood. Further, this effect is weaker among consumers with high levels of skepticism.

Originality/value

The findings of the present research contribute to the international marketing literature by demonstrating how consumers perceive online marketing channels, the role of marketing channel selection in driving brand authenticity, as well as providing managerial implications on how to promote products in the international market.

Details

International Marketing Review, vol. 40 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 27 July 2022

Qiongqiong Gu, Rong Zhang and Bin Liu

Due to product value uncertainty, consumers do not know the product matching rate before they get the product, which is the probability of product fitness. Taking the consumers’…

Abstract

Purpose

Due to product value uncertainty, consumers do not know the product matching rate before they get the product, which is the probability of product fitness. Taking the consumers’ anticipated regret into account, this paper aims to develop a theoretical model to explore how the anticipated regret affects pricing and advertising decisions and profits of retailers in the online to offline (O2O) supply chain.

Design/methodology/approach

This paper considers an O2O supply chain consisting of an e-retailer and a brick-and-mortar retailer; both retailers cooperate to provide buying online and pick up in-store (BOPS) for consumers.

Findings

It shows three major findings. Retailers should decide whether to introduce BOPS channel according to the matching rate of the product when the BOPS channel is not very convenient for consumers. When the BOPS channel does not exist in the market, the profits of two retailers increase with the online regret of consumers, while the BOPS channel exists in the market and the matching rate of the product is low, the higher offline regret can enable both retailers to increase the profits; furthermore, when the matching rate is high, the higher degree of online regret can bring more profit to the O2O supply chain. Therefore, both retailers can take measures together to induce consumers’ regrets according to the different matching rates, which makes both retailers obtain more profits. Counterintuitively, consumer surplus will not always increase due to consideration of anticipated regret.

Research limitations/implications

The model has some limitations that are worth further discussing. First, in practice, the O2O supply chain includes many forms except the BOPS channel, for example, order online and pick-up in-store (ROPS) channel; future research can discuss and consider the impact of consumers’ anticipated regret on ROPS. Second, the authors consider that O2O is a supply chain composed of two retailers. In reality, there is also a situation where an oligopoly retailer opens two channels to realize O2O supply chain, in the case the inventory decision-making of the product is worth studying. Finally, to highlight the impact of the anticipated regret on consumers’ decision-making, the return of the product is not considered. Future research can take the return of the product into account to assess the robustness of the results.

Originality/value

The contributions are in two main aspects. First, this paper considers an O2O supply chain with consumer value uncertainty, where there are duopoly retailers in the market and most of the existing literature focus on oligopoly retailer operates both online and offline channels; meanwhile, consumers’ value perceptions of the product is deterministic. Second, this paper explores how the consumer anticipated channel regret affects the pricing and advertising decisions of O2O supply chain, and the authors take behavioral theory into account when studying omnichannel operations, while most studies on anticipated regret consider traditional two-stage price reduction management, product innovation, etc.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 5
Type: Research Article
ISSN: 0885-8624

Keywords

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, service…

1735

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. 35 no. 6
Type: Research Article
ISSN: 1741-0398

Keywords

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

Keywords

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 on…

4598

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

Keywords

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 optimal…

8375

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

Keywords

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 have to…

3838

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

Keywords

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