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Article
Publication date: 30 July 2021

Angel Herrero-Crespo, Nuria Viejo-Fernández, Jesús Collado-Agudo and María José Sanzo Pérez

This paper evaluates how the intention to develop webrooming or showrooming behaviour is affected by both the perceived usefulness and the perceived ease-of-use, as well…

Abstract

Purpose

This paper evaluates how the intention to develop webrooming or showrooming behaviour is affected by both the perceived usefulness and the perceived ease-of-use, as well as by the consumer's personal predisposition to exploratory information seeking and acquisition.

Design/methodology/approach

The fashion retailing environment is more omni-channel than ever before. The two predominant omni-channel behaviours are webrooming and showrooming. Taking as its basis the technology acceptance model (TAM) and the concept of exploratory consumer behaviour.

Findings

The results obtained from a sample of 847 apparel shoppers (462 webroomers and 385 showroomers) show that the higher perception of the usefulness and ease-of-use of omni-channel buying processes, the higher the intention to develop both webrooming and showrooming behaviours. Additionally, the perceived ease-of-use exerts an additional indirect effect on the intention of developing these omni-channel behaviours through perceived usefulness. Finally, exploratory information seeking and acquisition have a relevant influence on webrooming intentions, but not on showrooming.

Originality/value

The authors’ research contributes to the literature on consumer behaviour in the fashion sector by testing a model to explain the intentions of individuals to adopt webrooming and showrooming, incorporating different psychographic variables linked to the use of ICT and the development of an exploratory consumer behaviour.

Details

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

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Book part
Publication date: 6 September 2019

Feng Yang, Xue Li and Zhimin Huang

In an omnichannel environment, customers switch channels from product discovery to eventual purchase decision strategically. Hence, the biggest challenge for retailers…

Abstract

In an omnichannel environment, customers switch channels from product discovery to eventual purchase decision strategically. Hence, the biggest challenge for retailers nowadays is how to operate an effective omnichannel strategy. To improve inventory operational efficiency, this chapter investigates the influences of price setting and customers’ return probability on inventory forecasting. Subsequently, we explore how retailers participate in providing appropriate information delivery and product fulfillment. Specifically, a stylized newsvendor model, which incorporates customers’ showrooming behavior, is developed to address retailers’ inventory problem. Furthermore, we compare the benefits of buy-online-and-pick-up-in-store (BOPS) and showroom strategy which originates offline but is completed online. Three main findings are obtained as follows: (1)online and offline inventory order quantities augment with the ascending of pricing offline and online, respectively. Meanwhile, the inventory decisions increase when customers’ return probability declines; (2) the implementation of showroom helps retailers expand their pure online market coverage than BOPS, while it reduces the total inventory quantity if the proposition of unit online inventory cost accounting for product price exceeds physical store; and (3) showroom strategy is more profitable than BOPS option as long as unit online inventory cost is small enough. In addition, we find this boundary where showroom increases total profit expands with the attenuating of return probability.

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Book part
Publication date: 10 August 2017

Riddhi Bhandari

This chapter examines how the everyday interactions that are fostered with the circulation of debt impact the socioeconomic order in which they operate. Employing the…

Abstract

Purpose

This chapter examines how the everyday interactions that are fostered with the circulation of debt impact the socioeconomic order in which they operate. Employing the theoretical framework of “circuits of commerce,” scholars have examined how social relations and economic activities intertwine, are negotiated and transformed through the circulation of debt. The focus of such studies has been on the motives of actors, such as the desire for relationship-making, and structural conditions, like the inaccessibility of formal institution, that necessitate the emergence of debt-centered circuits of commerce (Hampton, 2003; Heslop, 2016; James, 2014). However, such circuits also have broader impacts and affect socially pervasive moral evaluations and work cultures (Ho, 2009; Zelizer, 2011). Building on these findings, I examine commission-based alliances among showroom owners and tour guides in Agra’s tourism market to understand how “bad debt” between them shapes Agra’s local tourism economy.

Methodology/approach

This chapter is based on ethnographic research conducted in 2012–2013 with Agra’s tourism entrepreneurs, like showroom owners, tour guides, and convincers.

Findings

Entrepreneurs’ everyday practices around the circulation of debt impact how tourism in Agra is perceived and conducted. Although debt is initiated to mitigate uncertainty of getting clientele, its circulation exacerbates that very uncertainty.

Originality/value

This chapter contributes to the theory of economic practice, highlighting how economic actors, through their everyday practices, shape the macro-structure of the economic system in which they operate.

Details

Anthropological Considerations of Production, Exchange, Vending and Tourism
Type: Book
ISBN: 978-1-78743-194-2

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Article
Publication date: 16 November 2020

Sandro Battisti and Alexander Brem

Retail networks present new challenges in the business-to-business (B2B) collaboration between technology-based spinoffs and traditional businesses. This study aims to…

Abstract

Purpose

Retail networks present new challenges in the business-to-business (B2B) collaboration between technology-based spinoffs and traditional businesses. This study aims to explore a public–private partnership (PPP) that leverages advanced digital technologies via spinoffs to tackle the key challenge of showrooming that retail shops are facing. Showrooming is the phenomenon in which shoppers go to the physical stores to gather in-depth product information, and later on, decide to buy the product from online retail competitors.

Design/methodology/approach

This research draws on a longitudinal qualitative study of a social context in which digital entrepreneurs are embedded. The empirical setting is a retail network in Italy, Germany and Finland with a particular focus on the process in which a PPP delivers innovation via spinoffs in the context of brick and mortar shops (B&M). The research design enables an understanding of the complexity of the phenomenon from a business and a social perspective.

Findings

New technology to tackle showrooming enables the creation of substantial hybrid value in retail partnerships. Spinoffs are key actors in leveraging digital technologies to create value faster and more tailored compared with large software companies. Spinoff entrepreneurs leverage on specific technologies (e.g. virtual reality and artificial intelligence) available inside organizations’ network (i.e. PPPs). Spinoffs are found to be a fundamental actor in the process of dealing with showrooming because of their time to market. Large software companies usually are not interested in approaching B&M shops because of the high operational costs of product customization for B&M shops.

Practical implications

Managers could use the success factors of the spinoffs in helping their B&M shops to improve both shopper experience and salesperson performance. For managers of B2B retail network, the results are useful towards increasing the involvement of shoppers while they are visiting physical stores, and it also improves salesperson performance. It also leads to the observation that cross-selling is one of the most effective responses to the phenomenon of showrooming. As practical implications for policymakers, the current research supports the view that PPPs should support the creation of spinoffs as a result of longitudinal innovation projects.

Social implications

Retail technologies leveraged from a PPP and commercialized by spinoffs are powerful tools to enable a better quality of salespeople’s life in the working place. At the same time, these new technologies help shop owners increase the retention rates, conversion rates and reduce short-term loss, increasing the likelihood of B&M shops to survive in the condition of extreme competition caused by the showrooming phenomenon.

Originality/value

This research proposes a model of hybrid value creation from networks in digital retail. The model indicates that PPPs create spinoffs to explore showrooming and deliver substantial hybrid value (i.e. business and social) for physical retail shops, mainly because it influences the companies’ growth, employee performance and customer satisfaction. This model expands the field of B2B marketing by identifying factors that enable spinoff creation from retail networks and proposes success factors and research propositions in retail networks.

Details

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

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Article
Publication date: 24 November 2020

Narasimhan Rajkumar, Pankaj Vishwakarma and Kishore Kumar Gangwani

Grounded on the concept of a value trade-off, the authors of this study seek to address the question of why some people visit an offline store before purchasing online…

Abstract

Purpose

Grounded on the concept of a value trade-off, the authors of this study seek to address the question of why some people visit an offline store before purchasing online. The authors offer a novel perspective by identifying and describing the perceived value drivers (benefits and sacrifices) associated with showrooming in the context of the branded apparel segment.

Design/methodology/approach

Data collected from 318 showrooming customers were analysed in the context of the proposed perceived value framework using the structural equation modelling method.

Findings

The results showed that enhanced product evaluation, monetary savings, smart shopper feelings and perceived enjoyment (positively) and search costs and online risk (negatively) influenced consumers' showrooming value perceptions as benefits and sacrifices associated with showrooming. Only perceived consumption delay emerged as insignificant. As expected, perceived showrooming value was identified as an important driver of showrooming intentions.

Research limitations/implications

The application of this paper's findings is limited to the branded apparel segment. The model can be tested in other sectors with a larger sample size to gain deeper insights.

Practical implications

The findings can be utilized by brick-and-mortar retailers to retain showrooming customers.

Originality/value

The authors of the current research work contribute to a better understanding of showrooming by adopting a perceived-value-based perspective, which offers an alternative yet effective route for understanding showrooming.

Details

International Journal of Retail & Distribution Management, vol. 49 no. 2
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 27 October 2020

Olivia Johnson and Stefanie Ann Ramirez

Omnichannel retailing has changed the behaviour of consumers by empowering activities like showrooming which is the process of collecting product information in store then…

Abstract

Purpose

Omnichannel retailing has changed the behaviour of consumers by empowering activities like showrooming which is the process of collecting product information in store then making the purchase online. Since individuals, particularly Millennials, interact with multiple touchpoints throughout their shopping journey, retailers must consider how these experiences influence purchasing behaviour. Literature regarding showrooming has focussed primarily on antecedents to the phenomenon and the negative effects to brick and mortar retailers, however limited studies have investigated the quantitative influence of showrooming from the consumers' perspective. While data show that interest in online shopping is spiking, a vast majority of retail sales are made in-store suggesting barriers to online shopping still exist. Thus, the purpose of this research is to identify the role of showrooming in decreasing risk in an online shopping context. Additionally, Millennial generational cohorts (MGCs) were proposed as moderators in exploring the differences between the dimensions of perceived risk and online shopping intention.

Design/methodology/approach

To explore the relationship between showrooming and MGCs online shopping behaviour an online survey was administered. Data were collected from 480 Millennial consumers at a large southwestern university. Multiple linear regression was used to determine the direction, magnitude and significance of relationships within the models.

Findings

Results from the analysis revealed showrooming and MGCs influence online shopping behaviour as it relates to dimensions of risk. Moreover, showrooming increased online shopping intention specifically in relation to product and financial risk.

Originality/value

This paper contributes to the relevant literature by proposing a relationship between showrooming and online shopping behaviour. This research provides evidence that Millennials are not a monolithic generation and consume differently.

Details

International Journal of Retail & Distribution Management, vol. 49 no. 1
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 7 July 2020

Sourabh Arora, Rashmi Ranjan Parida and Sangeeta Sahney

The present piece of research aims at enhancing our understanding of situational and intentional showrooming behaviour. The study further tests and validates a model based…

Abstract

Purpose

The present piece of research aims at enhancing our understanding of situational and intentional showrooming behaviour. The study further tests and validates a model based on the stimulus–organism–response framework to draw richer insights.

Design/methodology/approach

The study adopts a two-phased approach to discover the consumers' rationale behind showrooming. In the first phase, a narrative-based examination followed by an inductive thematic analysis was employed. In the second phase, the stimulus–organism–response model was validated through structural equation modelling method.

Findings

The results of the study highlighted the factors that contribute to intentional and situational showrooming behaviour. Results show that consumers also showroom on account of situational circumstances such as assortment issues, poor sales-staff assistance and long payment queues at offline stores. However, intentional showroomers are primarily driven by perceived showrooming value which emerges as a combination of in-store search value and online purchase value. Past showrooming experience also plays a role in stimulating consumers to showroom. The results also revealed the moderating impact of product involvement and perceived product type, barring time pressure. The impact of showrooming self-efficacy was also observed.

Research limitations/implications

The study majorly validates the factors stimulating intentional showrooming conduct intertwined with product-related factors, time pressure and showrooming self-efficacy. Hence, the future scope of the study lies in quantitatively validating the findings concerning situational showroomers as this would help draw richer insights.

Practical implications

The findings of the study can be utilized by both offline and online retailers for managing showroomers.

Originality/value

The study offers rich insights on showrooming which has been identified as a major challenge being faced by offline retailers nowadays.

Details

International Journal of Retail & Distribution Management, vol. 48 no. 11
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 11 June 2018

Sourabh Arora and Sangeeta Sahney

The purpose of this study is to propose an integrated framework utilizing the theory of planned behaviour (TPB) and technology acceptance model (TAM) to augment the…

Abstract

Purpose

The purpose of this study is to propose an integrated framework utilizing the theory of planned behaviour (TPB) and technology acceptance model (TAM) to augment the understanding on consumers’ showrooming behaviour.

Design/methodology/approach

Selective sampling was used for data collection. The integrated TAM-TPB framework led to 12 propositions, which were tested using partial least squares-structural equation modelling.

Findings

Both perceived relative search benefits offline and relative purchase benefits online significantly determined the consumers’ showrooming behaviour along with perceived ease purchasing online and the overall usefulness of the showrooming sequence. Results of the study revealed that the showrooming sequence helped consumers avoid the regret of making suboptimal product choices and paying a higher price for the same product. Online trust was found to partially mediate the relationship between consumers’ intention to showrooming and the actual showrooming behaviour.

Research limitations/implications

Notwithstanding the fact that further research is required to arrive at definitive conclusions, this study is an initial move towards understanding the consumers’ showrooming behaviour, and the research provides meaningful insights.

Practical implications

As showrooming substantially erodes profits, devising strategies to defend showrooming customers becomes crucial. The findings of the study provide the basis for formulating strategies to counter showrooming customers.

Originality/value

The paper is amongst the first studies which helps enhance the understanding of consumers’ showrooming behaviour, which is an emerging area in the present multi-channel retailing environment.

Details

Journal of Consumer Marketing, vol. 35 no. 4
Type: Research Article
ISSN: 0736-3761

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Article
Publication date: 10 April 2017

Sourabh Arora, Kunal Singha and Sangeeta Sahney

Recent multichannel research suggests that consumers use multiple channels to reap attribute-based benefits which have led to showrooming phenomenon. The purpose of this…

Abstract

Purpose

Recent multichannel research suggests that consumers use multiple channels to reap attribute-based benefits which have led to showrooming phenomenon. The purpose of this paper is to investigate the reasons for consumers’ showrooming behaviour and propose a comprehensive model based on application and extension of the “Theory of planned behaviour”.

Design/methodology/approach

Using the probability sampling approach, 278 complete responses were obtained via web-based surveys for analysing the showrooming behaviour. The research model was tested using the “Partial least squares method” which follows a variance-based structural equation modelling approach.

Findings

The results of the study indicate that “touching and feeling the product” and “sales staff assistance” motivated customers to visit the physical store before buying online. “Better online service quality” and “lower prices online” induced customers to later purchase online. Price conscious customers and those with the ability to use multiple channels were more likely to engage in showrooming behaviour.

Research limitations/implications

The generalization of the findings may be limited because the data were collected from a small sample size. The subject calls for more extensive research for drawing generalizations due to lack of the substantive literature on the core area of study.

Practical implications

The model proposed will help retailers in understanding the showrooming phenomenon which recent researchers have considered as a threat to retail. The study provides basis for devising strategies to defend showrooming customers.

Originality/value

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

Details

Asia Pacific Journal of Marketing and Logistics, vol. 29 no. 2
Type: Research Article
ISSN: 1355-5855

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Case study
Publication date: 20 January 2017

Mitchell A. Petersen

Teuer Furniture is a privately owned, moderately sized chain of upscale home furnishing showrooms in the United States. The firm survived the economic recession and by the…

Abstract

Teuer Furniture is a privately owned, moderately sized chain of upscale home furnishing showrooms in the United States. The firm survived the economic recession and by the end of 2012, it has regained its financial footing. Now that the firm is more secure financially, some of its long-term investors have asked to cash out their investments. This will be the first time that Teuer has repurchased its equity; the company has paid dividends since 2009. Chief financial officer Jennifer Jerabek and her team have been given the task of valuing Teuer using a discounted cash flow approach. The discount rate is given in the case, and the students need to build a pro forma income statement, balance sheet, and cash flow statement and then calculate a per-share value for Teuer.

  • Estimate firm value using a discounted cash flow approach

  • Construct firm-level estimates of the pro forma income statement, balance sheet, and cash flow from assets based on store-level estimates

  • Recognize how forecasts of revenues, costs, and capital investment are constructed, how the individual estimates relate to each other, and how the forecasts depend upon the underlying economics of the business

  • Evaluate and defend the validity of the firm’s forecasts and the valuation model

Estimate firm value using a discounted cash flow approach

Construct firm-level estimates of the pro forma income statement, balance sheet, and cash flow from assets based on store-level estimates

Recognize how forecasts of revenues, costs, and capital investment are constructed, how the individual estimates relate to each other, and how the forecasts depend upon the underlying economics of the business

Evaluate and defend the validity of the firm’s forecasts and the valuation model

Details

Kellogg School of Management Cases, vol. no.
Type: Case Study
ISSN: 2474-6568
Published by: Kellogg School of Management

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