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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 nowadays is…

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.

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 theoretical…

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

Keywords

Article
Publication date: 8 August 2023

Jung-Kuei Hsieh, Sushant Kumar and Ning-Yu Ko

Showrooming presents a complex and evolving challenge to retail managers, as it signifies the emergence of new forms of exchange rules. The purpose of this research is to…

Abstract

Purpose

Showrooming presents a complex and evolving challenge to retail managers, as it signifies the emergence of new forms of exchange rules. The purpose of this research is to investigate how factors responsible for information search and evaluation affect showrooming and also consider the consumer mindset as a moderator.

Design/methodology/approach

This research undertakes three experimental designs to investigate how the push (i.e. assortment size), pull (i.e. price discount), and mooring (i.e. sunk cost) factors influence consumers' showrooming intention. Specifically, consumers' maximizing tendency plays the role of moderator.

Findings

The results reveal that push, pull, and mooring factors are significantly related to consumers' showrooming intention. Furthermore, the findings show that maximizers have higher showrooming intention than satisficers in the context of the push, pull, and mooring factors.

Originality/value

By integrating the push-pull-mooring framework and the maximizing mindset theory, this research proposes a novel research model and the empirical testing results support six hypotheses. The findings add to the body of knowledge in showrooming behavior by taking consumer mindset into account. The results also provide implications for practitioners to develop their retail strategies.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 36 no. 2
Type: Research Article
ISSN: 1355-5855

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Article
Publication date: 15 August 2023

Neha Sharma, Amit Sharma, Nirankush Dutta and Pankaj Priya

This article undertakes a literature review on showrooming, offering an exhaustive overview of research publications and future research objectives that will contribute to…

Abstract

Purpose

This article undertakes a literature review on showrooming, offering an exhaustive overview of research publications and future research objectives that will contribute to extending the understanding of the phenomenon.

Design/methodology/approach

The showrooming literature has been collected from journals indexed by SCOPUS and ranked by ABDC. This was later analysed with the SPAR-4-SLR framework and the TCCM methodology (theories, contexts, characteristics, and methodologies) proposed by Paul et al. (2021) and Paul and Rosado-Serrano (2019).

Findings

The insights of this review include bibliometrics of showrooming research and the number of explored showrooming theories, methodologies, and contexts from which the phenomenon has been studied. It also highlights the various aspects that might be considered while building an optimal approach.

Research limitations/implications

Articles published in SCOPUS-indexed and ABDC-ranked journals between 2012 and August 2022 were considered. Some articles published in conference proceedings and journals, not fulfilling the aforementioned criteria, might have been missed.

Practical implications

SPAR-4-SLR and TCCM methodologies would aid the researchers in further exploration of this phenomenon and suggest options for enhancing customer experience (CX) eventually leading to customer retention. Retail channel managers will find this knowledge handy in “encouraging loyal showrooming” and ensuring business sustainability.

Originality/value

This study uses the novel SPAR-4-SLR framework to structure the review, while TCCM methodology sheds light on the showrooming from the perspective of various theories, contexts, characteristics, and methodologies. The scope for further research identified through the above-mentioned framework and methodology would be of high value to the researchers and practitioners alike.

Details

International Journal of Retail & Distribution Management, vol. 51 no. 11
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 2 May 2023

Yiwei Su and Mingyu Tian

In this paper, the authors explore the consequences of showrooming and price matching strategy to combat showrooming under the consideration that brick-and-mortar (BM) stores and…

Abstract

Purpose

In this paper, the authors explore the consequences of showrooming and price matching strategy to combat showrooming under the consideration that brick-and-mortar (BM) stores and online retailers hold different costs.

Design/methodology/approach

The authors use a duopoly model to analyze the impact of showrooming behavior on competition between a BM store and an online retailer with different types of customers and different costs. Then, they consider the price matching strategy that a BM store could employ to combat showrooming and explore the effect of such a strategy.

Findings

Showrooming behavior is detrimental to the profit of the BM store, and the online retailer suffers a loss of their profit unless the relative cost of the BM store is high and only part of the customers exhibit showrooming behavior. As the fraction of customers who seek price matching increases, profits of both the BM store and the online retailer initially decrease and then may increase, even if there is no showrooming.

Originality/value

Unlike existing studies that ignore different costs between online and offline retailers, the authors set different costs between the BM store and the online retailer to consider the effects of showrooming and price matching strategy.

Details

International Journal of Retail & Distribution Management, vol. 51 no. 7
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 4 August 2022

Pradeepkumar Chokkannan, Saripalli Bhavani Shankar and Murugan Pattusamy

This study aims to examine the positive impact of showrooming on the fashion retail business by examining the interrelationship between deal-seeking on mobile devices and digital…

Abstract

Purpose

This study aims to examine the positive impact of showrooming on the fashion retail business by examining the interrelationship between deal-seeking on mobile devices and digital coupon redemption intention on mobile shopping intention.

Design/methodology/approach

Purposive sampling was used to obtain data from 496 fashion apparel customers using the database of an online survey collection platform. Stimulus organism response (S-O-R) theory was used to examine the influence of showrooming on showroomers' mobile shopping intentions.

Findings

The findings suggest price consciousness is negatively related to showrooming and product involvement is positively related. In addition, showrooming affects the intention to redeem digital coupons and mobile deal-seeking. The intention to redeem digital coupons boosted mobile deal-seeking behavior. The impact of mobile deal-seeking on showroomers' mobile purchase intention is significant.

Research limitations/implications

This research focused on fashion product consumers and generalization of the findings may be limited. The literature on positive effect of showrooming phenomenon on brick-and-mortar stores are scarce further extensive research may provide substantial generalization.

Practical implications

This demonstrates how showroomers may be successfully enticed to make purchases on the Brick-and-Mortar (B&M) store's online channel.

Originality/value

This study provides insights on navigating the showroomers into online channel customers.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 35 no. 5
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 11 April 2022

Sourabh Arora, Sangeeta Sahney and Rashmi Ranjan Parida

The paper investigates shoppers' justification behind the showrooming behaviour and proposes an integrated SOR-MOA framework and a SAP-LAP model for a better understanding of the…

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Abstract

Purpose

The paper investigates shoppers' justification behind the showrooming behaviour and proposes an integrated SOR-MOA framework and a SAP-LAP model for a better understanding of the showrooming phenomenon.

Design/methodology/approach

The study adopts a qualitative approach. A narrative-based examination followed by an inductive thematic analysis was employed to discover consumers' reasoning behind showrooming.

Findings

The results of the study affirmed the distinction between situational and intentional showrooming conduct. Situational factors have been classified across two categories: store-related (mismanagement at the store, assortment issues) and sales-personal related factors (disrespectful, rude, poor response and dishonest behaviour of the sales staff). However, factors corresponding to intentional showrooming conduct have been characterized as motivational (perceived value, past experience and perceived relative advantage), opportunity (retailer's support and services, channel availability and consumer empowerment) and ability (consumer skills)-related factors in aggregation with the stimulus organism response ideology. In addition, the study also highlights the consequences associated with the showrooming conduct of the shoppers.

Research limitations/implications

The findings of the study need further exploration and examination through the adoption of a quantitative approach on a large sample size.

Practical implications

The findings of the study can be utilized by offline retailers for devising strategies to counter showrooming customers and retain them as buyers.

Originality/value

The study emerges as the first piece of research to account for the ability and opportunity perspectives for better understanding of showrooming.

Details

International Journal of Retail & Distribution Management, vol. 50 no. 3
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 19 May 2022

Luis Edwin Chimborazo-Azogue, Alejandro Mollá-Descals, Maria-Jose Miquel-Romero and Marta Frasquet

The expanded use of mobile devices for shopping has made mobile showrooming a frequent practice among omnichannel shoppers. This paper aims to shed light on the role of mobile…

Abstract

Purpose

The expanded use of mobile devices for shopping has made mobile showrooming a frequent practice among omnichannel shoppers. This paper aims to shed light on the role of mobile dependency and uncertainty reduction strategies together with the motivation of getting the best value for money in showrooming behaviours and user-generated content (UGC) creation.

Design/methodology/approach

Data were collected by means of a questionnaire answered by 659 shoppers in two product categories: clothing and consumer electronics. The research model was tested through partial least squares.

Findings

The results suggest that mobile showrooming attitude is positively affected by mobile dependency, value consciousness and need for touch, and negatively by perceived risk of mobile shopping. The results also reveal how UGC is created by showroomers and suggest this behaviour is linked to mobile dependency in the clothing category.

Research limitations/implications

All the individuals in the sample had some experience in showrooming, which could affect the results regarding showrooming attitude and intentions. Future research should consider the role of experience and also validate the results across a larger number of product categories.

Practical implications

Mobile showrooming is a challenge for multichannel retailers. This paper reveals certain ways in which multichannel retailers could deal with showroomers as potential customers.

Originality/value

This study is the first to analyse the role of mobile dependency in showrooming and the chain of effects towards mobile showrooming attitude, behaviour and UGC creation in two different product categories.

Details

International Journal of Retail & Distribution Management, vol. 50 no. 8/9
Type: Research Article
ISSN: 0959-0552

Keywords

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 explore a…

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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. 36 no. 10
Type: Research Article
ISSN: 0885-8624

Keywords

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 understanding…

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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

Keywords

1 – 10 of over 1000