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

An omnichannel approach to retailing: demystifying and identifying the factors influencing an omnichannel experience

The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link.The purpose of this research is to identify the factors that influence an omnichannel experience. Omnichannel is an emerging approach to retailing that responds to the changing nature of how customers shop in alternation between online and offline shops, and the increasing use of digital devices (e.g. smartphones and tablets) retailers are focusing and establishing a seamless integrated approach to their services. Omnichannel is now a hot topic in retailing but there is a lack of empirical studies into the factors that influence an omnichannel experience. Using a mixed methods approach, we propose and empirically test a conceptual model that identifies four factors influencing an omnichannel experience: brand familiarity; customisation; perceived value, and technology readiness. We conceptualise omnichannel to include three key channels; in-store, online and mobile. 246 questionnaires were collected and analysed using PLS-SEM and 11 interviews with marketing/omnichannel professionals. Our results indicate that brand familiarity has a strong influence on omnichannel (in-store, online and mobile) while perceived value has a negative impact on mobile experience. Our results show that retailers need to consider multiple factors, such as brand familiarity customisation, perceived value and technology readiness as influencing factors of an omnichannel experience, and plan the use of multiple touchpoints simultaneously to enhance their overall customer’s experience. Although this study demonstrates the significant factors influencing an omnichannel experience, questions remain regarding the exact use of each touchpoint by customers and the extent of overlap between the touchpoints. Our research attempts to address the lack of academic research on what factors influence an omnichannel experience

Understanding consumer behavior in an evolving context: from single channel to omnichannel use

La presente tesis doctoral tiene como principal objetivo avanzar en el conocimiento del comportamiento del consumidor en el actual contexto, caracterizado por el uso de múltiples canales durante todo el proceso de decisión de compra. Dicho objetivo general se desagrega en cuatro objetivos específicos que, a partir de cuatro investigaciones independientes, buscan entender desde diferentes enfoques teóricos y empíricos dicha cuestión. Para testar empíricamente las propuestas realizadas en cada una de las investigaciones, la tesis se sirve principalmente dos metodologías de investigación, la encuesta y el diseño experimental. Las cuatro investigaciones ofrecen resultados que enriquecen la literatura del comportamiento del consumidor. Los hallazgos de esta tesis doctoral también se traducen en distintas implicaciones para las empresas en el actual contexto cambiante. Particularmente, los resultados ayudan a los profesionales del marketing a adoptar estrategias útiles tanto en el contexto de compra móvil como en el contexto de compra omnicanal

Understanding the effect of smart retail brand - consumer communications via mobile instant messaging (MIM) - an empirical study in the Chinese context

Faced with competitive forces, retailers are innovating by adopting ‘smart’ technologies such as contactless, omni-channel, ubiquitous computing, social networking and mobile apps. This paper examines consumer behavior responses during the use of a mobile instant messaging (MIM) application channel adopted by a Chinese pure-play retailer. MIM is text-based, real-time, mobile computer-mediated communication technology accomplishing real-time interaction with other users regardless of location. WeChat, a full service MIM application, contains functional and social features including SMS, MMS, LBS, photo sharing, voice message, video calls and “Moments” sharing, which is its social propagating feature. There is a paucity of literature on the role of MIM in building relationships and especially, the relevance of emotion and WOM for consumers engaging in MIM human-computer interactions. The model tested was derived from prior research on trust and also Stimuli-Organism-Response (SOR) that depicts the effects of environmental/informational stimuli on consumers’ responses. Specific research objectives included investigating the prediction that environmental stimuli comprising socialness perception, media richness, and involvement induce a positive emotional state, which results in positive WOM. The study employed a quantitative approach using a questionnaire posted on a WeChat (MIM) channel. The sample comprised Chinese WeChat users, typically young consumers (n=486). SEM was used to analyze the data. Prior research has indicated that building relationships with consumers is more difficult when the relationships are consumer-computer as compared to consumer-person (face-to-face). The findings of this study suggest that such a negative effect can be alleviated by the use of MIM, which is associated with socialness perception, media richness, consumer involvement, emotional connections and positive WOM. To the authors’ knowledge, this study is original in integrating socialness perception, media richness and WOM into the SOR framework. The implications for practitioners are discussed, relating in particular to retailers’ need to be aware of the extent to which consumers are willing to engage with MIM applications

Factors Influencing Perceptions Toward Social Networking Websites in China

Based on an online national survey of 503 respondents, this study empirically investigates factors influencing perceptions toward social networking websites (SNWs) in China. More specifically, user demographics and media\ud characteristics were examined. While income was found to be a significant predictor of users’ attitude toward SNWs, gender, age, educational level and marital status were insignificant, suggesting that demographic divides may be\ud diminishing when it comes to online social media in China. Both perceived risk and enjoyment were found to have significant positive effects. Managerial implications were discussed

Developing a theoretical framework of consumer logistics from a comprehensive literature review

Paper delivered at the 21st Logistics Research Network annual conference 2016, 7th-9th September 2016, Hull. Abstract Purpose: Logistics as a business discipline entered academic consciousness in the mid-1960s when work by marketing academics discussed the integration between marketing and logistics. However, the link with consumers in the point-of-origin to point-of-consumption typology was not explored until Granzin and Bahn’s conceptualisation and model of consumer logistics (CL) in 1989. Since then few contributions have followed and neglecting this aspect of logistics research is difficult to understand. Firstly, the consumer represents a productive resource as an important downstream supply chain member carrying out logistics activities and tasks. Secondly, logistics activities directed towards the consumer also act along a marketing axis, i.e. satisfaction and loyalty for an overall shopping experience both from transaction-specific and cumulative levels are influenced by product quality elements and service-related dimensions. This paper presents a theoretical framework for deeper research into the topic of CL. Research approach: A literature review was conducted first following philosophical or field conceptualization principles as a first step towards theory building. Data bases of major logistics and SCM journals were searched however the publication timeframe was not limited as the concept of CL is relatively new. Selection criteria and Boolean searches were conducted and keywords used within article abstracts and title fields of search. Due to a relative scarcity of contributions obtained by that approach and in-line with the principle of methodological triangulation, additional search strategies were applied using Google/ Google Scholar searches. The majority of the cited contributions were also cross-referenced and included in the analysis if appropriate. Findings and originality: The literature search yielded a mother population of 46 documents of which 24 have been considered relevant for further consideration. The document harvest was analysed using Granzin and Bahn’s original CL issues and additional features in order to explore, structure, articulate, orient, hierarchize and delimit the field of CL in the 21st century. Research impact: This paper updates Granzin and Bahn’s work to outline new and distinctive features of CL given the obvious changes in the retail landscape since their work 27 years ago, such as the Internet and omni-channel retailing. More broadly, conceptualizing CL in a holistic manner enhances SCM theory building by questioning traditional notions of time and space ranges, isolated marketing-merchandizing/logistics considerations, traditional understandings of sites /locations, and equipment (e.g. shopping cart or basket)/ infrastructure/ layout and buying stages that are in-line with external evolutions on organizational, technological and societal levels. Practical impact: Understanding and improving CL contributes to supply chain competitiveness via increased consumer satisfaction and loyalty, better order fulfilment via cost reductions and efficiency increases, and enhanced differentiation targeting consumers receptive for sustainability/ ethics/ mobility/ lifestyle/ life quality issues. A dedicated approach to CL also enhances management of repercussions and interactions with upstream/ B2B logistics, visible through retail stores being both a destination and a source for inventory, the rise of drop-ship vendor relationships and new fulfilment options and related infrastructure

Understanding the effect of smart retail brand - consumer communications via mobile instant messaging (MIM) - an empirical study in the Chinese context

Faced with competitive forces, retailers are innovating by adopting ‘smart’ technologies such as contactless, omni-channel, ubiquitous computing, social networking and mobile apps. This paper examines consumer behavior responses during the use of a mobile instant messaging (MIM) application channel adopted by a Chinese pure-play retailer. MIM is text-based, real-time, mobile computer-mediated communication technology accomplishing real-time interaction with other users regardless of location. WeChat, a full service MIM application, contains functional and social features including SMS, MMS, LBS, photo sharing, voice message, video calls and “Moments” sharing, which is its social propagating feature. There is a paucity of literature on the role of MIM in building relationships and especially, the relevance of emotion and WOM for consumers engaging in MIM human-computer interactions. The model tested was derived from prior research on trust and also Stimuli-Organism-Response (SOR) that depicts the effects of environmental/informational stimuli on consumers’ responses. Specific research objectives included investigating the prediction that environmental stimuli comprising socialness perception, media richness, and involvement induce a positive emotional state, which results in positive WOM. The study employed a quantitative approach using a questionnaire posted on a WeChat (MIM) channel. The sample comprised Chinese WeChat users, typically young consumers (n=486). SEM was used to analyze the data. Prior research has indicated that building relationships with consumers is more difficult when the relationships are consumer-computer as compared to consumer-person (face-to-face). The findings of this study suggest that such a negative effect can be alleviated by the use of MIM, which is associated with socialness perception, media richness, consumer involvement, emotional connections and positive WOM. To the authors’ knowledge, this study is original in integrating socialness perception, media richness and WOM into the SOR framework. The implications for practitioners are discussed, relating in particular to retailers’ need to be aware of the extent to which consumers are willing to engage with MIM applications

Emergent Digital Strategies and Networks: Advancements to Service Management Research

The purpose of this research is to report and explore new channel strategies, which allow delivering services through new digital technologies. Therefore, we have conducted an in-depth qualitative case study to generate comprehensiveness and rich knowledge. The case focused on a Private bank in Portugal and counted with several sources of data collection, gathering 42 semi-structured interviews, more than 80 direct observations and more than 3,600 internal documents, for triangulation and corroboration purposes. The results suggest that organizational synergies are changing the business landscape by encompassing triadic elements channels-services-firms. While some organizations are implementing this strategy around the world, we found that it provides greater channel freedom of choice to customers when compared with the previous strategies. Thus, our findings identify a set of potential advantages, as well as risks of adopting digital business networks as a strategy. This article also studies technologydriven solutions in business networks, as customers are becoming active co-producers.info:eu-repo/semantics/publishedVersio

Understanding complaint channel usage in multichannel retailing

This study aims to understand customer patterns of channel usage to voice complaints to multichannel retailers. Data were collected from multichannel shoppers for apparel in Spain by means of an online survey. Latent Class Analysis on complaint channel (store, website, mobile app and social media) usage was performed. The analysis identifies four customer segments that use complaint channels differently. Channel dependencies emerged, particularly related to mobile app usage. The study then explores how the identified patterns are related to channel usage for information search and purchase and to the quality of the relationship with the retailer. Results provide theoretical and managerial contributions to the retailing field

Engaging consumers on new integrated multichannel retail settings: challenges for retailers

The rapid diffusion of more channels for shopping posits new challenges for retailers, who need to compete in a complex environment for avoiding the problem of consumer cross-channel free riding. To discourage this behaviour, we propose a new environment where one retailer simultaneously handles more channels. The emerging integrated environment would engage more consumers if compared to the single handled channel, which in turn would avoid switching behaviours towards competitors’ channels. Our empirical research, based on the stimulus-organism-response paradigm, involves a sample of 237 consumers who were asked to explore the new retail settings simulated in a university lab. The results lead us to suggest the effective combination of multiple channels managed by one retailer as the new challenge for scholars and practitioners. We note that our participants showed positive emotional reactions towards the environment, which lead them to choose this environment for purchases