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Article
Publication date: 31 January 2022

Sarat Kumar Jena

Many e-commerce firms suffer from high returns because of inaccurate and incomplete product information. Omnichannel and bundling settings can help firms improve…

Abstract

Purpose

Many e-commerce firms suffer from high returns because of inaccurate and incomplete product information. Omnichannel and bundling settings can help firms improve operational efficiency and lower returns costs. However, no studies have been conducted on omnichannel supply chains considering bundling strategies. The purpose of this study is to examine the comparison between test-in-store-and-buy-online (TSBO) and online retail, comparing manufacturers’ bundling with retailers’ bundling.

Design/methodology/approach

The supply chain discussed here consists of two competitive manufacturers and one retailer. The retailer sells both manufacturers' products online and displays one manufacturer's product in a showroom who bears the display cost. Stackelberg game theory is used to develop mathematical models that help manufacturers and retailers make the most effective decisions. Here, the manufacturer is the Stackelberg leader, while the retailer is the follower. Using the backward induction approach, the authors determined the optimal values for selling price, wholesale price and service effort level.

Findings

The results show that the total TSBO retailing profit under manufacturer bundling is highest when the second manufacturer integrates with the online retailer. The result additionally establishes that when the bundling cost exceeds a certain threshold (1.5), the total profit is higher for the non-integrated type of supply chain channel as compared to the integrated retailer bundling-based configuration.

Practical implications

The operations and logistics manager will likely undertake the TSBO omnichannel strategy during manufacturers bundling and retailer bundling under the integrated strategy.

Originality/value

The main contribution of the study is to examine the effect of TSBO retailing on supply chains profit and individual decision-making under different bundling strategies. The authors developed different mathematical models in the TSBO retailing and bundling context and extended the earlier work in the area of integration frame.

Details

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

Keywords

Article
Publication date: 26 March 2019

Sonal Kureshi and Sujo Thomas

The purpose of this paper is to understand the beliefs of local grocery retailers about online grocery retailing. Using the theory of planned behavior (TPB), the study…

2454

Abstract

Purpose

The purpose of this paper is to understand the beliefs of local grocery retailers about online grocery retailing. Using the theory of planned behavior (TPB), the study explores the outcome, normative and control beliefs held by the local grocers about online grocery retailing which would eventually translate into behavior. Factors influencing local grocers intention to participate or refusing to participate in the online grocery retailing was investigated.

Design/methodology/approach

In total, 20 in-depth interviews with local grocery retailers were conducted ranging from small to large sized retail stores from a city in the western part of India. The sample included two groups of local grocers – first, grocers who partnered with online retailers as suppliers. This group included those retailers who had partnered but discontinued later and second, grocers who had not partnered with online retailers. In-depth interviews with the local grocery retailers were conducted using TPB as a basis to uncover local grocers’ beliefs toward online grocery retailing and predict their behavior.

Findings

The outcome beliefs were classified into five broad heads – business expansion; gaining visibility and reputation; customer expectations; inventory management; and margins, costs and technical issues. The normative belief was that the actions and response to online grocery retailing would be governed by their referent group – the consumers. The main control belief was that partnering with online grocery retailing would result in loss of control regarding their business operations.

Research limitations/implications

The results indicated that in a country like India especially in small to medium size towns, online grocery retailers would have to think of creative ways to involve the local grocery retailers to grow their business. The local grocers due to their size were able to adapt to the requirements of their referent consumers without any additional cost. They were unlikely to give up control regarding how they run their business. The main limitation of this study was the exploratory nature of this study which makes it difficult to prioritize the importance given to each belief. The study sample was restricted to one city in India, and future studies could include other cities.

Practical implications

The findings have practical implications for online grocery retailers who wish to expand into emerging markets like India. It provides understanding about the local grocery retailers who were the major competitors of online grocery retailers. It provides direction to integrate and partner with the local grocers and utilize them for mutual benefits.

Originality/value

Given the absence of academic literature in the public domain, this study provides a platform for future studies in this area. This paper is a systematic attempt to uncover the underlying beliefs of local grocery retailers who were the key players in the grocery retailing business.

Details

International Journal of Retail & Distribution Management, vol. 47 no. 2
Type: Research Article
ISSN: 0959-0552

Keywords

Open Access
Article
Publication date: 22 July 2022

Peter C. Verhoef, Corine S. Noordhoff and Laurens Sloot

The Covid-19 pandemic has a strong effect on societies, business and consumers. Governments have taken measures to reduce the spread of the pandemic, such as social…

Abstract

Purpose

The Covid-19 pandemic has a strong effect on societies, business and consumers. Governments have taken measures to reduce the spread of the pandemic, such as social distancing and lockdowns. The latter has also resulted in a temporary closure of physical stores for “non-essential” retailing. Covid-19 thus has a profound impact on how people live. The period of relative isolation, social distancing and economic uncertainty changes the way we behave. New consumer behaviors span all areas of life, from how we work to how we shop to how we entertain ourselves. These shifts have important implications for retailers. This paper aims to discuss the potential structural effect on shopping behavior and retailing when Covid-19 measures are no longer needed and society moves back to a normal situation.

Design/methodology/approach

The paper synthesizes empirical and conceptual literature on the consequences of COVID-19 and introduces a conceptual framework along with a set of predictions that can be investigated with empirical data.

Findings

This study suggests that Covid-19 shapes both consumer needs and behavior and how retailers respond to these changes. Moreover, it suggests that this will not only affect market outcomes (i.e. retail sales and market share online) but also firm outcomes (i.e. customer experience, firm sales) and importantly the competition between online and offline retailers.

Originality/value

In the conceptual framework, this study aims to advance knowledge on longer-term outcomes (vs immediate outcomes such as panic buying) and how COVID-19 is changing the competitive landscape of retail.

Details

Journal of Service Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-5818

Keywords

Article
Publication date: 4 April 2022

Pablo Farías, Miguel Reyes and Jenny Peláez

This study aims to assess how department store websites can add online retail brand equity. A quick, relatively easy and low-cost diagnostic tool for stakeholders (e.g…

Abstract

Purpose

This study aims to assess how department store websites can add online retail brand equity. A quick, relatively easy and low-cost diagnostic tool for stakeholders (e.g. retailers, investors) is presented.

Design/methodology/approach

A content analysis of department store websites in the USA and Latin America was conducted.

Findings

The findings show that Latin American and US department store websites exhibit acceptable use of online retail brand equity dimensions related to emotional connection and trust. In contrast, compared to their US counterparts, Latin American department store websites show weak usage on some of the dimensions of responsive service nature, online experience and fulfillment. The results also show that higher online retail brand equity is positively associated with average daily time on site. This indicates the usefulness of this index for developing effective websites to creating online retail brand equity.

Practical implications

This study suggests that Latin American department stores should improve three dimensions of online retail brand equity: responsive service nature, online experience and fulfillment. The online retail brand equity index presented can serve as a diagnostic tool for department store managers to monitor the online retail brand equity they are building on their websites. It is also possible to analyze the websites of competing department stores and monitor the long-term impact of modifications made to their websites and those of competitors.

Originality/value

This paper proposes an easy-to-apply index to assess online retail brand equity through website design partially. In addition, this research is the first to evaluate how Latin American department store websites, compared to those in the USA, are building online retail brand equity.

Details

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

Keywords

Article
Publication date: 1 April 2022

Rajagopal Rajagopal

This study explores the causes and effects of technology usefulness on shopping behavior of consumers in Mexico by measuring inter-relationships between the constructs of…

Abstract

Purpose

This study explores the causes and effects of technology usefulness on shopping behavior of consumers in Mexico by measuring inter-relationships between the constructs of shopping with new-normal following coronavirus disease 2019 (COVID-19) business shutdown and online retail technology.

Design/methodology/approach

This study has been conducted in six online retail stores with the online survey of 342 buyers in Mexico. Data have been analyzed using two regression models with dependent variables, perceived usefulness of technology and buying decision of customers. Multiple correlations across the variables were computed.

Findings

Results of this study reveal that as customers found higher ease of use of online shopping, they perceived higher usefulness of online retailing technology. The perceived quality of retailing website positively influences impulsive buying behavior of customers. The study observed that increase in coupon promotions has positively enhanced the perceived buying impulsiveness of consumers in online stores. The perceived usefulness of online redemption of coupons has also positively benefited the attitude of customers toward buying.

Research limitations/implications

Online shopping has attracted a large section of customers during the COVID-19 business shutdown, and peer interactions have motivated them to experience the retailing technology of virtual stores. This study offers important insights for managers working in the retailing industries. Online strategies of retailers with unified customer experiences during the pandemic and business shutdown has provided extensive online retail space.

Practical implications

Managers of virtual retail stores need to build their business on customer-centric propositions, encourage 3D visions of products, develop “do-it-yourself” kiosks with augmented reality technology and enhance the value-based online business model. Online retailers need to prioritize developing an easy to navigate and quality website with comprehensive product information and instant messaging facilities over the sales promotion strategies. Online retailers need to establish quick response (QR) technology to improve the ease of use for navigation.

Originality/value

This study finds out the perceived usefulness in using online retail technology, and how customers have experienced it as a single wide option during the COVID-19 pandemic.

Details

Marketing Intelligence & Planning, vol. 40 no. 4
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 4 April 2018

Marion Garaus

The purpose of this paper is to introduce the new construct online shopper confusion and to identify online confusion causes and consequences.

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Abstract

Purpose

The purpose of this paper is to introduce the new construct online shopper confusion and to identify online confusion causes and consequences.

Design/methodology/approach

Data obtained from a projective technique and a quantitative study were analyzed to identify online shopper confusion causes. Two experiments employing different stimulus materials tested the conceptualized consequences of online shopper confusion.

Findings

Confusing online store elements are classified into three online confusion causes. Data yielded from two experiments using fictitious and real shopping scenarios as stimulus material show that a confusing internet retail process leads to negative consumer reactions.

Research limitations/implications

The resulting taxonomy of confusing online store elements offers guidance on the creation of non-confusing online shopping trips, and highlights the relevance of a non-confusing internet retail process. Online shopper confusion is linked to negative behavioral reactions. Consequently, this research offers an explanation for undesirable consumer reactions in internet retailing.

Practical implications

The findings provide practitioners with concrete insights into how the internet retail process confuses shoppers which help to assess the confusion potential of their existing online stores and consider confusion issues in the development of new online stores.

Originality/value

This research is the first to explore confusion during the internet retail process. The multi-method approach offers highly valid insights into the causes and consequences of online shopper confusion.

Details

Internet Research, vol. 28 no. 2
Type: Research Article
ISSN: 1066-2243

Keywords

Content available
Book part
Publication date: 30 July 2018

Abstract

Details

Marketing Management in Turkey
Type: Book
ISBN: 978-1-78714-558-0

Article
Publication date: 25 February 2019

Jihyun Lee and Yuri Lee

The purpose of this paper is to examine the relationship between online retail therapy and consumers’ attitudes towards online fashion shopping malls (ATO) based on the…

4640

Abstract

Purpose

The purpose of this paper is to examine the relationship between online retail therapy and consumers’ attitudes towards online fashion shopping malls (ATO) based on the stimulus–organism–response model.

Design/methodology/approach

This study examined how online retail therapy factors (e.g. the aesthetics of web design and attractiveness of the models) affect consumers’ ATO. In particular, the authors examined the mediation of positive mood reinforcement (PMR) and negative mood reduction (NMR).

Findings

The results indicated that aesthetics has a significant and direct effect on ATO. However, model attractiveness has an indirect effect on ATO through PMR and NMR. In addition, the direct effect of aesthetics on ATO is greater than the indirect effect of model attractiveness. Therefore, online fashion shopping malls need to concentrate on improving the aesthetics of the shopping malls. For fashion shopping malls that do not have the capacity to improve the aesthetics, it is possible to improve ATO by using highly attractive models.

Originality/value

This study applied the concept of retail therapy to the online environment and verified the effect. This study expanded the scope of the study of retail therapy by examining the effect of mood improvement on ATO as well. Further, this study examined the structure of two online retail therapy factors, aesthetics and model attractiveness, that affect ATO through PMR and NMR, and suggested managerial implications for online shopping malls.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 31 no. 2
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 1 July 2000

John Fernie

Electronic‐retailing is the buzzword of 2000. Every other press release I receive relates to electronic commerce or Internet shopping. Therefore, it seems appropriate to…

2944

Abstract

Electronic‐retailing is the buzzword of 2000. Every other press release I receive relates to electronic commerce or Internet shopping. Therefore, it seems appropriate to focus this summer issue of Retail Insights on the subject. The first article by Rowley discusses the phenomenon of shopping bots, the intelligent agents designed to support comparison shopping across a number of Internet sites. She reviews the functions and evaluates the coverage of different shopping bots. In the second article, Wee and Ramachandra assess the level of cyberbuying activities in China, Hong Kong and Singapore by concentrating on the who, why and what of online retailing.

Details

International Journal of Retail & Distribution Management, vol. 28 no. 7
Type: Research Article
ISSN: 0959-0552

Article
Publication date: 3 December 2018

Jin-Feng Wu, Ya Ping Chang, Jun Yan and De-Lin Hou

The purpose of this paper is to understand how two online marketing orientations of land-based retailers in product category and price could change retail brand attitude…

1069

Abstract

Purpose

The purpose of this paper is to understand how two online marketing orientations of land-based retailers in product category and price could change retail brand attitude when retail brand familiarities differ.

Design/methodology/approach

This paper proposes a research model with two orientations in product category and price as antecedents of retail brand attitude change and retail brand familiarity as a moderator. Empirical data were collected from 684 shoppers across three land-based retailers to test the research hypotheses.

Findings

Both orientations in product category and price can improve customers’ retail brand attitudes. Retail brand familiarity plays a significant moderator in some of the situations. Online-offline product category congruence and online-prototypical price congruence have significantly positive effects on retail brand attitude change whether retail brand familiarity is high or low. The effect of online-offline price congruence is significant only among high-familiarity customers, while the effect of online-prototypical product category congruence is found to be significant only among low-familiarity customers.

Research limitations/implications

The study identifies the moderating effects of retail brand familiarity on the relationships between two online marketing orientations in product category and price and retail brand attitude change. Based on the moderating effects, this study will help researchers to better understand the effectiveness of two online marketing orientations subject to varying degrees of retail brand familiarity in a multichannel retailing context.

Practical implications

The findings of this study can guide land-based retailers to focus on the right orientations in product category and price to improve customers’ attitudes toward the retail brand when existing or new customers are targeted.

Originality/value

This study provides a first study to empirically assess the change in retail brand attitude prompted by homogenous and prototypical orientations in product category and price and subject to varying degrees of retail brand familiarity. Overall, the results offer insights of how land-based retailers could manage their overall performance by designing more effective online product category and pricing strategies for existing or new customers.

Details

Internet Research, vol. 29 no. 1
Type: Research Article
ISSN: 1066-2243

Keywords

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