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1 – 10 of over 26000The 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…
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.
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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…
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.
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Many e-commerce firms suffer from high returns because of inaccurate and incomplete product information. Omnichannel and bundling settings can help firms improve operational…
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.
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Using the literature on innovation research, this paper proposes to establish and empirically test a prediction model which consists of four major factors in the adoption of…
Abstract
Purpose
Using the literature on innovation research, this paper proposes to establish and empirically test a prediction model which consists of four major factors in the adoption of online retailing by organisations, namely relative advantage, competitive pressure, channel conflict and technical resource competence.
Design/methodology/approach
Data collected from 140 different companies indicate strong empirical support for the model. Relevant hypotheses were derived and tested by logistic regression analysis.
Findings
The results revealed that relative advantage, competitive pressure and technical resource competence have positive effects on the adoption of online retailing.
Research limitations/implications
The research was conducted in Hong Kong, which may limit the generalisability of the findings.
Practical implications
While many studies contribute to an understanding of behaviours of the online market from a consumer perspective, there are few concrete investigations of the organisational viewpoint. With data obtained from practitioners in 140 companies, the major factors of online retailing adoption are addressed, providing strategic directions for managers to evaluate its adoption.
Originality/value
Although many conceptual papers and case studies have identified different potential factors affecting the adoption of online retailing, there are few empirical studies which establish prediction models for its adoption. In fact, during the past decade, in spite of growing interest in B2C transactions, organisations have not necessarily rushed towards adopting online sales. It is critical to have more empirical evidence of the factors affecting the adoption of online sales to help managers further access the benefits of its continuous and potential development. This study attempts to fill the research gap.
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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 distancing and…
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.
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Hsin‐Hui Lin, Yi‐Shun Wang and Li‐Kuan Chang
The purpose of this paper is to investigate consumer responses to online retailer service recovery remedies following a service failure and explores whether the phenomenon of the…
Abstract
Purpose
The purpose of this paper is to investigate consumer responses to online retailer service recovery remedies following a service failure and explores whether the phenomenon of the service recovery paradox exists within the context of online retailing.
Design/methodology/approach
This paper reports on the results of two studies. Study I explores the main and interaction effects of the various dimensions of service recovery justice (i.e. distributive justice, procedural justice, and interactional justice) on customer satisfaction, negative word‐of‐mouth (WOM), and repurchase intention based on the justice theory. Study II investigates whether the phenomenon of the service recovery paradox exists (i.e. whether customers have higher satisfaction, higher repurchase intention, and lower negative word‐of‐mouth after experiencing an effectively remedied service failure as compared to if the service failure had not occurred). A laboratory experimental design is used to test the research hypotheses.
Findings
The results show that distributive justice, procedural justice, and interactional justice have a significant positive influence on customer satisfaction. Among the three dimensions of service recovery justice, only distributive justice has a significant positive influence on repurchase intention, and only interactional justice has a significant negative influence on negative WOM. Additionally, both the interaction between distributive justice and procedural justice and the interaction between distributive justice and interactional justice are found to significantly influence customer satisfaction, negative WOM, and repurchase intention. The results also indicate that the service recovery paradox does not appear to exist in the online retailing context.
Practical implications
The findings will allow online retailers to develop more effective strategies for preventing service failure and improving customer satisfaction, negative WOM, and repurchase intention.
Originality/value
This study contributes to the understanding of consumer responses to online retailer's service recovery after a service failure.
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Xiaobei Liang, Xiaojuan Hu, Hu Meng, Jiang Jiang and Guanhua Wang
Model's physical attractiveness plays an important role in online shopping. The purpose of this paper is to explore the relationships among model type, consumer's perceived amount…
Abstract
Purpose
Model's physical attractiveness plays an important role in online shopping. The purpose of this paper is to explore the relationships among model type, consumer's perceived amount of information and consumer's approach behaviour.
Design/methodology/approach
Construal level theory and anchoring effect are used to develop hypotheses. The authors conducted an online experiment in China, and 229 females participated in this experiment.
Findings
Compared with the professional model, the nonprofessional model triggers consumers' more perceived amount of information and approach behaviour. The latter effect is significantly enhanced in the website retailing context. Moreover, perceived amount of information positively affects approach behaviour.
Practical implications
The findings can help fashion brands understand the roles of model type and the online retailing context in consumer behaviour. It offers guidance on how to improve its marketing strategy scientifically. It can also provide consumers with suggestions for making objective purchasing decisions.
Originality/value
This study is one of the first to examine the effects of two model types (professional model or nonprofessional model) on consumers' perceived amount of information and approach behaviour within two online retailing contexts (website stores or webcast studio).
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The purpose of this paper is to introduce the new construct online shopper confusion and to identify online confusion causes and consequences.
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.
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Kedwadee Sombultawee and Woraphon Wattanatorn
This study investigates factors in consumer trust and purchase intention through omnichannel retailing. The theoretical framework is an extended theory of planned behaviour (TPB…
Abstract
Purpose
This study investigates factors in consumer trust and purchase intention through omnichannel retailing. The theoretical framework is an extended theory of planned behaviour (TPB) model, with additional factors including time-saving and trust as explanatory variables.
Design/methodology/approach
The study drew on a sample of Thai consumers aged 18 and over (n = 408), with data collected through an online survey. Analysis was based on a structural equation modelling (SEM) approach, employing confirmatory factor analysis.
Findings
The analysis showed that attitudes towards omnichannel retailing had the strongest effect on purchase intention, followed by subjective norms, perceived behavioural control and information search. All variables except attitudes to omnichannel retailing had moderate effect sizes. Analysis also showed that attitudes towards omnichannel retailing had a significant (though only moderately strong) effect on consumer trust towards omnichannel retailing. Subjective norms, perceived behavioural control and time-saving also had significant effects on consumer trust, although these effects were all weaker than the effect of attitudes. Finally, time-saving had a significant and strong effect on perceived behavioural control.
Originality/value
These findings show that both personal attitudes towards omnichannel retailing and technology characteristics can influence user acceptance. Its practical implication is that retailers need to consider the psychological needs and attitudes of their customers before implementing omnichannel tools. Theoretically, there is a need for more empirical research into the consumer decision for omnichannel retailing. This is particularly true since omnichannel retailing is a relatively new retail strategy which consumers may not yet fully understand.
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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…
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.