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Article
Publication date: 24 October 2023

Doan Thao Tram Pham, Sascha Steinmann and Birger Boutrup Jensen

In this paper the authors aim to review the state-of-the-art literature on online review systems and their impacts on consumer behavior and retailers' performance with the aim of…

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Abstract

Purpose

In this paper the authors aim to review the state-of-the-art literature on online review systems and their impacts on consumer behavior and retailers' performance with the aim of identifying research gaps related to different design features of review systems and developing future research agenda.

Design/methodology/approach

The authors conducted a systematic review based on PRISMA 2020 protocol, focusing on studies published in the domains of retailing and marketing. This procedure resulted in 48 selected papers investigating the design features of retailer online review systems.

Findings

The authors identify eight design features that are controllable by retailers in an online review system. The design features have been researched independently in previous literature, with some features receiving more attention. Most selected studies focus on the design features adapted metrics and review presentations, while other features are generally neglected (e.g. rating dimensions). Previous literature argues that design features affect consumer behaviors and retailers' performance. However, the interactions among the features are still neglected in the literature, creating a relevant gap for future research.

Originality/value

This paper distinguishes between different types of retailer online review systems based on how they are implemented. The authors summarize the state-of-the-art of relevant literature on design features of online review systems and their effects on consumer- and retailer-related outcome variables. This systematic literature review distinguishes between online reviews provided on websites controlled by retailers (internal systems) and third-party websites (external systems).

Details

International Journal of Retail & Distribution Management, vol. 51 no. 9/10
Type: Research Article
ISSN: 0959-0552

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: 11 May 2010

Sandy Dawson and Minjeong Kim

The purpose of this study is to investigate the external cues on apparel web sites that encourage impulse buying.

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Abstract

Purpose

The purpose of this study is to investigate the external cues on apparel web sites that encourage impulse buying.

Design/methodology/approach

Focus group interviews were first conducted to identify potential external cues on apparel web sites. The findings from the focus group interviews were then used to create an appropriate coding guide. A content analysis of 60 apparel web sites was then conducted to assess the extent to which external trigger cues of impulse buying are available on apparel web sites.

Findings

From the focus group interviews, four mutually exclusive thematic categories, consisting of 20 external trigger cues of impulse buying, were identified; sales, promotions, ideas, and suggestions. A content analysis of these external impulse buying cues was presented. A correlation analysis indicated a positive relationship between retailers' web sales and the amount of external cues present on their web sites.

Research limitations/implications

The findings from the study suggest that the amount of external trigger cues of impulse buying may be a factor that affects a retailer's profitable success by encouraging online impulse purchases. Not so successful online retailers therefore should consider offering more external impulse trigger cues (e.g. sales, promotions, purchase ideas, and suggested items) on their web sites to increase potential impulse purchases.

Originality/value

A coding guide developed in the study can be used by online apparel retailers to assess their marketing strategies. For consumers, the findings of the study inform consumers of factors that may encourage impulse purchases.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 14 no. 2
Type: Research Article
ISSN: 1361-2026

Keywords

Article
Publication date: 3 February 2020

Cui Zhao and Yao Zhang

This paper aims to investigate the impacts of uncertain online reviews on product prices and profits of two competitive retailers.

Abstract

Purpose

This paper aims to investigate the impacts of uncertain online reviews on product prices and profits of two competitive retailers.

Design/methodology/approach

First, the authors develop a game-theoretical model to determine the optimal product prices and profits considering uncertain online reviews. Afterwards, to examine the effects of the uncertain online reviews, they compare the equilibrium solutions with those of the game-theoretical models of deterministic online reviews and no online reviews, respectively.

Findings

Uncertain online reviews play a significant role in product price optimization and profit maximization. In the quality-dominates-fit case, both retailers will lower their product prices in response to the uncertain online reviews. And the uncertain online reviews would hurt the two retailers. Conversely, in the fit-dominates-quality case, the presence of uncertain online reviews will encourage both retailers to raise their product prices. And the two retailers can still benefit from the online reviews. With the increase in consumer uncertainty about online reviews, both retailers might raise their product prices, thus generating higher profits.

Practical implications

Managerially, the results indicate that in the quality-dominates-fit case, when consumers are uncertain about online reviews, it might be better for retailers to abandon the online review system; however, in the fit-dominates-quality case, both retailers could still benefit from the uncertain online reviews through product price optimization. Therefore, the presence of an online review system could be beneficial.

Originality/value

This paper develops a game-theoretical model to help competitive retailers optimize their price strategies and achieve profit maximization considering uncertain online reviews.

Details

Kybernetes, vol. 50 no. 2
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 29 March 2011

Mary Ann Eastlick and Sherry Lotz

Via an initial trust‐building model, the purpose of this paper is to examine consumers' initial trust in an unfamiliar online retailer, considering cognitive perceptions of the…

3719

Abstract

Purpose

Via an initial trust‐building model, the purpose of this paper is to examine consumers' initial trust in an unfamiliar online retailer, considering cognitive perceptions of the retailer and institutional beliefs about the online environment.

Design/methodology/approach

A random sample of 2,000 US households, resulting in 477 usable responses, was surveyed by assigning subjects to one of the two shopping scenarios portraying an online insurance retailer with a weak or strong reputation.

Findings

Structural equation modelling revealed that second‐hand cognitive and first‐hand institutional information have comparable and contrasting effects on purchase intent through formation of initial trust.

Research limitations/implications

Results imply that consumers form initial trust using a combination of cognitive perceptions about the online retailer and consumers' institutional beliefs regarding the online environment. Ways in which researchers and online retailers can shape initial trust formation via these antecedents are suggested.

Originality/value

The influence of an institutional belief, situational normality of the online environment, on initial trust has not been previously investigated by simultaneously assessing relative influences of institutional beliefs and cognitive perceptions of the online retailer.

Details

International Journal of Retail & Distribution Management, vol. 39 no. 4
Type: Research Article
ISSN: 0959-0552

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…

1856

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), online–offline 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 November 2004

Xiaolin Xing and Fang‐Fang Tang

In this study, we compare the pricing behavior between online branches of traditional retailers (OBTRs) and online‐only retailers (ORs). Focusing on branded electronics sold online

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Abstract

In this study, we compare the pricing behavior between online branches of traditional retailers (OBTRs) and online‐only retailers (ORs). Focusing on branded electronics sold online, we find that no significant pricing differences between ORs and OBTRs, but ORs seem to price slightly higher than OBTRs both in terms of posted‐ and full‐prices online. This result seems unique in online retail markets, contrary to the observations in the online markets of books, CDs and DVDs. The evidence also shows that both types of online retailers do not change their prices frequently, but adjustment magnitudes are large.

Details

International Journal of Commerce and Management, vol. 14 no. 3/4
Type: Research Article
ISSN: 1056-9219

Keywords

Article
Publication date: 13 March 2018

Rofin T.M. and Biswajit Mahanty

The purpose of this paper is to investigate the impact of price adjustment speed on the stability of Bertrand–Nash equilibrium in the context of a dual-channel supply chain…

Abstract

Purpose

The purpose of this paper is to investigate the impact of price adjustment speed on the stability of Bertrand–Nash equilibrium in the context of a dual-channel supply chain competition.

Design/methodology/approach

The paper considers a dual-channel supply chain comprising a manufacturer, a traditional retailer and an online retailer. A two-dimensional discrete dynamical system is used to examine the Bertrand competition between the retailers. The retailers are assumed to follow bounded rational expectations. Local stability of Bertrand–Nash equilibrium is investigated with respect to the price adjustment speed.

Findings

As the price adjustment speed increases, the stability of Bertrand–Nash equilibrium is lost, leading to complex chaotic dynamics. The results showed that chaotic dynamics deteriorates the profit of the retailers. The authors also found that the chaos can be controlled using an adaptive adjustment mechanism and the retailers enjoy higher profit when the chaos is controlled.

Practical implications

This study helps retail managers to choose an appropriate price adjustment speed to maximize profit.

Originality/value

The heterogeneity of the retailers is not considered in the studies involving dynamics of retailer competition. This paper contributes to the literature by considering the operational difference between a traditional retailer and an online retailer, i.e. price adjustment speed. In addition, the study establishes a link between price adjustment speed and profit.

Article
Publication date: 4 July 2016

Rafay Ishfaq, C. Clifford Defee, Brian J Gibson and Uzma Raja

The purpose of this paper is to identify the realignment of the physical distribution process for store-based retailers in their efforts to integrate the online channel into their…

8884

Abstract

Purpose

The purpose of this paper is to identify the realignment of the physical distribution process for store-based retailers in their efforts to integrate the online channel into their business model. Multiple attributes of the physical distribution process are evaluated to identify associations with order fulfillment methods adopted by omni-channel retailers.

Design/methodology/approach

A multi-method approach is used which includes qualitative evaluation of 50 interviews of supply chain executives from large retailers. Additionally, secondary data about firm size, store and distribution networks, online sales, distribution configuration, and order delivery options are used. The findings of qualitative analysis are incorporated into a quantitative classification-tree analysis to identify associations among distribution attributes, order fulfillment methods and order delivery services.

Findings

Retailers are developing a consistent omni-channel physical distribution process in which stores undertake a bigger role in order fulfillment and delivery. Level of online sales, size of distribution network, number of sales associates at a store, and number of years engaged in the online channel are identified as having strong associations with the type of order fulfillment method used by omni-channel retailers. The study finds that retailers are focussed on integrating their store and DC inventories and have the benefit of scale with a large store network.

Practical implications

Retailers are reconfiguring their physical distribution processes in the complex omni-channel environment can use the findings of this study to evaluate their strategy and identify the level of realignment effort that is needed. A better understanding of the requirements of physical distribution in an omni-channel setting will guide retailers in developing requisite operational capabilities.

Originality/value

This paper provides a first in-depth look at order fulfillment choices in omni-channel retail and identifies efforts that are underway to realign key elements of the physical distribution process.

Details

International Journal of Physical Distribution & Logistics Management, vol. 46 no. 6/7
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 23 July 2020

Qinyi Zhang, Wen Cao, Yongmei Liu and Zhichao Zhang

As one of the omnichannel sales models, “buy online and pick up in store” (BOPS) not only is used in the commercial field but also has gradually attracted many scholars’…

Abstract

Purpose

As one of the omnichannel sales models, “buy online and pick up in store” (BOPS) not only is used in the commercial field but also has gradually attracted many scholars’ interests. However, although there are numerous research ideas, most of the current work is still limited to theoretical and empirical research, and few scholars study BOPS through models. This paper aims to discuss the best market conditions and opportunities for the implementation of BOPS against the backdrop of omnichannel by means of mathematical models and data simulations and discuss the optimal price–service strategies under different sales models.

Design/methodology/approach

First, from the perspective of different consumer shopping types, this paper separately divides consumers into different groups in traditional “dual channel” and BOPS models. Then, the authors analyze the impact of company market size, consumer service sensitivity and the scale of BOPS on companies’ strategies and the profit of the supply chain. Subsequently, they conduct an empirical analysis through specific values. Finally, the authors further expand the model on the basis of the original research, and discuss the retailer’s fairness concerns and unit compensation strategy to ensure that the research content is more rigorous.

Findings

It is observed that whether companies adopt BOPS depends on consumers’ service sensitivity degree and the scale of BOPS consumers and online retailers: when the sensitivity and the proportion of online consumers are high or the number of BOPS consumers is large, it is more advantageous for companies to implement BOPS. Moreover, companies should not only consider the market scale and production cost but also have a precise orientation of consumers’ experience sensitivity and willingness to engage in extra consumption when making price and service strategies. At the same time, the compensation strategy of companies and the peer-regarding fairness concern behavior of offline retailers will affect the optimal price and service strategy in the BOPS model.

Social implications

These results provide managerial insights for companies preparing to implement BOPS and promote the development of relevant theories in the channel field.

Originality/value

At present, most of the research on BOPS is based on empirical reviews. However, this paper analyzes the applicability and feasibility of implementing BOPS by using specific models, and it will provide some reference for companies preparing to implement BOPS. In addition, this paper also discusses the unit compensation strategy and peer-regarding fairness concern behavior in the BOPS model, which have not been studied by relevant scholars.

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