Consumer behavior in a multichannel context and its managerial implications

The dissertation project consists of four papers. Two papers are concerned with multichannel customer behavior: (a) drivers of competitive webrooming and (b) profitability effects of offline channel additions. The remaining two papers deal with consumer reactions towards different website cookie notifications

How the Roles of Internet Affect Successful Multichannel Retailing? ---The Exploratory Analysis from America

More retailers are now incorporating the Internet as a channel to their existing operations and becoming multichannel retailers. However, not all multichannel retailers are successful in their attempts and even some otherwise successful traditional retailers have failed to capitalize on the Internet as a retail channel. This paper explores the various multichannel strategies of some American prominent retailers in an attempt to identify key success factors in the incorporation of the Internet as a distribution channel. This exploratory analysis concludes with some managerial implications on the use of the Internet as an element of a retailers’ multichannel strategy

B2c e-commerce adoption in inner cities: An evolutionary perspective

Internet makes it possible for consumers to shop without visiting a physical store. As online shopping is becoming more popular, this could have significant impact on in-store shopping. The extent to which consumers, producers and retailers make use of the Internet as a complementary channel or as a substitute for in-store shopping is fundamental for the way traditional retailing will be affected. It is only recently that geographers are becoming interested in the spatial consequences of this new form of commerce. From a traditional geographical perspective, one could expect that business-to-consumer (b2c) e-commerce could make physical shopping redundant, leading to a ‘death of distance’. There are, however, several factors that may limit this new form of commerce, such as logistical constraints (e.g., personal delivery of goods may be quite expensive), habits of people, and the need for social contact. The main goal of the paper is to draw some expectations concerning the relationship between b2c e-commerce and inner city retailing. Using new insights based on evolutionary economics, hypotheses will be developed concerning the impact of b2c e-commerce on consumers’ shopping behaviour, retailers’ store strategy, and the inner city retailing environment as a whole. We claim that habits may act as a constraint to change consumers’ shopping behaviour. In addition, routines can explain why retailers may be rather reluctant in exploiting this new channel of commerce, and why they are most likely to adopt rather conservative e-commerce strategies. We also explain how and why inner cities, as important retailing and consumption places, may affect the way actors deal with this new form of commerce. One may expect that especially in these localities, both stimulating and limiting factors of b2c e-commerce adoption are predominant, depending on the quality or the attractiveness of the inner cities, among other things.evolutionary economics, e-commerce, urban economics

The Omnichannel phenomenon: unveiling the role of Channel Integration for consumers and retailers

This thesis work is aimed at deepening the knowledge of the phenomenon called "Omnichannel", as the main challenge of modern retailing. Omnichannel is a new retailing configuration, which envisages drastic changes compared to the Multi- and Cross-channel models. Although the Omnichannel phenomenon has been extensively studied in recent years, it is also missing a comprehensive framework. This is also shown by the variety of alternative definitions of "Omnichannel" existing in literature. The three studies presented in this thesis start from this assumption, and come to identify and investigate an element that clearly emerges as the core of Omnichannel: Channel Integration. The first study, an extensive literature review conducted with bibliometric techniques, allowed us to frame the extent of Omnichannel in terms of papers, topics and issues addressed. Furthermore, through the use of co-citation analysis, a clustering technique based on the triangulation of citations, the theoretical foundations of Omnichannel have been identified. 4 research clusters were traced back to: Consumer Behavior, Strategic Management, Channel Management, and Channel Integration. Results also show that Channel Integration is the main element of Omnichannel, capable of creating synergies with other clusters and capturing the perspectives of the consumer and retailer at the same time. The second study qualifies as an extension of these results to the future of Omnichannel, through qualitative research. It was in fact decided to proceed by discussing the topic with a panel of 18 international experts, with proven academic and managerial background. The participants commented on the results emerging from our previous study and expressed themselves on: areas, topics, methodologies and settings of priority development; generation of new theories or application of pre-existing theories; challenges, issues and retailers’ needs in Omnichannel. The results were then coded and analyzed to create a research agenda divided into 5 macro-themes of interest: a) Omnichannel customer journeys, b) Omnichannel customer experiences, c) Omnichannel transition issues, d) the human factor in Omnichannel, and e) augmented and intelligent Omnichannel environments. The experts also validated the model in 4 research clusters proposed by our first study and confirmed the central role of Channel Integration. For the third and final study, we therefore decided to investigate the role of Channel Integration in Omnichannel contexts, from the perspective of customer journeys (theme a) emerging from Study 2). We employed quantitative methodologies (MCA, CFA, SEM) to test the effect of touchpoints - which constitute the various steps of customer journeys - on consumers’ perception of Channel Integration, and the effect of the latter on patronage intention towards the retailer. Through the Categorization Theory, we proposed that the touchpoints capable of activating a Channel Integration perception are different depending on the sector and on the type of consumer (first-time and repeat customer). The research, conducted on two panels of Italian consumers in the grocery and fashion sectors – 1.031 and 759 participants, respectively –, led to the identification of substantial differences related to context and target, and confirmed a positive effect of Channel Integration perception on customer loyalty through patronage intention. The work therefore has, overall, both theoretical and managerial implications.Il presente lavoro di tesi è volto ad approfondire la conoscenza del fenomeno denominato Omnicanalità, quale principale sfida del retailing moderno. Si tratta di una nuova configurazione di retailing, che prevede cambiamenti drastici rispetto ai modelli di Multi- e Cross-canalità che l’hanno preceduta. Nonostante si tratti di un fenomeno ampiamente studiato negli ultimi anni, abbiamo rilevato una sostanziale difficoltà nel suo inquadramento, che si evince anche dalla molteplicità di definizioni alternative di “Omnicanalità” esistenti in letteratura. I tre studi che costituiscono questa tesi partono da questo presupposto, arrivando ad individuare e investigare l’elemento che emerge chiaramente come il fulcro dell’Omnicanalità. Il primo studio, una estesa literature review condotta con tecniche bibliometriche, ci ha permesso di inquadrare l’Omnicanalità in termini di studi condotti in letteratura e tematiche affrontate. Inoltre, mediante la co-citation analysis, una tecnica di clustering basata sulla triangolazione delle citazioni, sono state ricostruite le basi teoriche dell’Omnicanalità. Attraverso l’interpretazione dei contributi fondamentali così individuati, sono stati identificati 4 cluster di ricerca: Consumer Behavior, Management Strategico, Channel Management, e Channel Integration. Dall’analisi emerge anche come la Channel Integration sia l’elemento centrale dell’Omnicanalità, in grado sia di creare sinergie con gli altri cluster sia di catturare al contempo le prospettive del consumatore e del retailer. Il secondo studio si qualifica come un’estensione di tali risultati al futuro dell’Omnicanalità, attraverso un’analisi di tipo qualitativo. Si è infatti deciso di procedere discutendo il tema con un panel di 18 esperti internazionali, dalla comprovata esperienza sia accademica che professionale. I partecipanti hanno commentato i risultati emergenti dallo studio precedente e si sono espressi in merito a: aree, temi, metodologie e contesti prioritari per lo studio dell’Omnicanalità; sfide, problematiche e necessità di ricerca in tale ambito. I risultati sono stati codificati e analizzati per produrre una research agenda articolata in 5 macro-tematiche di interesse: a) Omnichannel customer journeys, b) Omnichannel customer experiences, c) problematiche di transizione verso l’Omnicanalità, d) il fattore umano nell’Omnicanalità, ed e) la gestione di ambienti Omnicanale tecnologicamente avanzati ed intelligenti. Gli esperti hanno inoltre validato il modello in 4 research clusters da noi proposto e confermato la centralità della Channel Integration. Per il terzo ed ultimo studio, si è pertanto deciso di investigare ulteriormente il tema della Channel Integration in contesti Omnicanale, secondo la prospettiva delle customer journeys (punto a) emerso dal secondo studio). Attraverso metodologie quantitative (MCA, CFA, SEM), si testa l’effetto dei touchpoints – che costituiscono i vari step delle customer journeys – sulla percezione di Channel Integration maturata dal consumatore, e l’effetto di questa sulla patronage intention verso il retailer. Attraverso la Categorization Theory, si propone che i touchpoint in grado di attivare una percezione di Channel Integration siano diversi a seconda del contesto settoriale – sulla base di differenti categorie di prodotto – e della tipologia di consumatore (first-time e repeat customer). La ricerca, condotta su due panel di consumatori italiani nei settori grocery e fashion – con 1.031 e 759 partecipanti, rispettivamente –, ha portato all’individuazione ed alla discussione di tali touchpoint, evidenziando differenze sostanziali tra i touchpoint che determinano la channel integration tra settori e tra target, e ha confermato un effetto positivo della percezione di Channel Integration sulla customer loyalty attraverso la patronage intention. Il lavoro presenta pertanto implicazioni sia teoriche che manageriali

Online Retailer vs. Click and Mortar Retailer: Who Performs Better?

Retail business is characterized by different business models: pure-play model and dual channel approach, which uses both physical and online channels to reach customers. There is conflicting evidence regarding the relative value of these business models to the consumers. We take a market valuation approach to evaluate the relative merits of both business models. We consider a panel of publicly traded US retailers and evaluate how their sales performance impacts their Tobin’s q. We find that the dual channel retailers receive a market premium for their sales revenue as compared to the pure-play retailers. This higher valuation can be associated with higher customer satisfaction with dual channel firms leading to a higher intangible value as compared to the pure-play firms. Our results have important implications for retailers as we demonstrate the value of different channels. Our work also contributes to the existing literature on online consumer retailing and multichannel research

Adding Bricks to Clicks: The Contingencies Driving Cannibalization and Complementarity in Multichannel Retailing

This paper empirically explores the contingencies that drive cannibalizing and complementary effects across channels to provide sales forecasting, promotion planning, and customer relationship management guidance to multichannel managers. We investigate three contingencies in a sales analysis of a leading U.S. retailer who adds a new retail store channel to existing catalog and online channels. We show that the emergence and strength of cannibalizing and complementary effects varies over time, across type of channel, and by type of customer, and provide insight into when and where managers can expect these effects to dominate and how to counter cannibalization and promote complementarity across channels. We find that opening retail stores cannibalizes sales in the catalog and online channels in the short term, but produces complementary effects in both channels in the long term; cannibalization is magnified in the catalog channel, while complementarity is magnified in the online channel. Customer analysis suggests that opening retail stores paves the way for higher rates of customer acquisition and higher rates of repeat purchasing among existing customers in the direct channels in the long term.Multichannel Retailing, Channels of Distribution, Direct Marketing, E-commerce, Channel Management

Toward a three-dimensional framework for omni-channel

The omni-channel, as an emerging trend in retail, aims to coordinate processes and technologies across supply and sales channels. The evolution of this concept is still nascent. This paper develops a conceptual framework for omni-channel systems, configured by three dimensions of channel stage, channel type and channel agent. Integration and visibility are also explored and discussed as the main enablers, which support the implementation of omni-channel framework. This research is built upon the empirical and secondary data. Multiple case studies and expert interview methods are employed for data collection to validate the recommended framework and to explore its applicability. The framework proposed, along with the key integration and visibility enablers identified for the omni-channel, can be applied to a wide range of retail supply chains. It helps managers to develop, run and monitor omni-channel systems; it may also serve as a stepping-stone for development of the literature on omni-channel systems

Performance Implications of Multi-Channel Strategic Decisions by Incumbent Retailers: The Role of Order of Entry and Degree of Inter-Channel Coordination

The rapidly intensifying adoption of the Internet channel for marketing and sales by incumbent bricks-and-mortar retailers underscores the importance of assessing the impact of the online channel strategies on firm performance in the dynamic competitive environment. At the time when store-based retailers increasingly dominate online sales the questions of when and how an incumbent retailer should adopt an online channel to achieve and sustain a competitive advantage are of utmost interest for both marketing scholars and practitioners. This dissertation investigates the role of two strategic decisions in affecting firm performance: (a) the order of adopting an online channel by incumbent retailers and (b) the degree of coordination between store and online sales channels. The resource-based view and the dynamic capabilities approach are used as theoretical foundations for the study. Following resource-based logic and applying a contingency perspective, this research proposes that firm-specific resource endowments determine the success of the order of online entry strategy for incumbent retailers. This dissertation utilizes the dynamic capabilities approach to propose that the strategy of inter-channel channel coordination leads to higher performance when core, unique dynamic capabilities pertaining to e-commerce are developed in-house, as opposed to being outsourced. By posing and answering the research questions regarding the role of strategic decisions of order of online entry and channel coordination in enhancing long-term financial and operational performance, this dissertation contributes to the development of strategic theory in the nascent areas of electronic commerce and multi-channel retailing, provides further empirical support to resource-based theory of competitive advantage, and assists managers in formulating more informed strategic objectives for achieving multi-channel competitive advantage

Emerging implications of online retailing for real estate:Twenty-first century clicks and bricks

Purpose – This paper aims to initially explore the effects of online retailing on corporate real estate strategies today, examining current trends and the approaches of leading edge retailers in this evolving marketplace. The UK has the greatest proportion of online sales worldwide. Design/methodology/approach – Context is provided through existing literature, and the methodology considers specific case studies. Information from financial reports, websites and evidence directly from retailers is derived to examine selected sectoral responses (food shopping, fashion retailing and department stores) to online shopping. The research considers the interface between the virtual and physical retail landscapes. Findings – The Internet is undeniably driving change, and large retailers have responded by embracing multi-channel sales strategies in which the adapted physical store remains a central element. Research limitations/implications – The case studies are arguably limited in their market assessment by examining only large retailers, but it is these retailers who occupy much of the real estate space in shopping centres. Data on Internet sales and retail space of individual retailers are not publicly available. This paper offers a qualitative introduction into ongoing research on the evolution of Internet retailing today. Practical implications – For large retailers, a multi-channel corporate sales strategy is enhanced by physical stores that can act as showrooms and collection points and enhance consumer service. Multiple retailers have a competitive advantage in the form of store networks and a recognisable brand that they can exploit to capture the sales opportunities the Internet offers. Originality/value – The paper is the first to collate and analyse corporate real estate strategic responses to online retailing. </jats:sec