Drivers and technology-related obstacles in moving to multichannel retailing

Today, multichannel retailing is a key strategic issue for most retailers. Yet, while there are many drivers associated with retailers going multichannel so too are there technology-related obstacles, however, few prior empirical studies explore these themes. In light of this, by using a multi-case approach to understand the key drivers and technology-related obstacles associated with retailers moving to multichannel retailing our study makes two key contributions. First, we extend prior theory by providing novel empirical insights into the main drivers underpinning retailers using a multichannel strategy. We find that meeting customer needs and increasing sales were the primary drivers behind retailers using the strategy, although there is diversity in the way retailers respond to these motives. Second, we provide empirical support for a proposed theoretical framework which summarises the key technology-related obstacles retailers encounter when going multichannel, by stage of implementation. The framework reveals that retailers face technology-related obstacles when implementing a multichannel strategy due to the need to switch/acquire resources and achieve channel integration. Furthermore, the framework highlights that these resource and channel integration issues are often interrelated with each other and with other staff engagement and cultural issues, vary by retailer and stage of implementation, and pose greater obstacles to retailers using new and multiple channels than the extant literature suggests

CHANNEL INTEGRATION TOWARDS OMNICHANNEL MANAGEMENT: A LITERATURE REVIEW

The evolution of technology and the constant digitalisation strongly influence how consumers behave, how markets develop, and how companies and consumers interact. By offering many channels, companies attempt to react to these developments. In recent years, researchers as well as practitioners have proposed omnichannel management as the best approach to offer several channels. An omnichannel strategy enables consumers to use channels seamlessly and interchangeably and experience the channels uniquely. However, reality looks different: many channel management approaches coexist in practice, and in research, terms to describe different concepts are used without clear distinctions. This paper seeks to eliminate ambiguities regarding the term omnichannel management. By delimiting the term from related approaches and understanding current topics discussed by omnichannel management research, this paper creates a common basis from which to fully understand the concept. Omnichannel management has shown relevance in many areas, but particularly in retailing, marketing, and information systems (IS) research. IS plays an important role in the implementation of the omnichannel approach because obstacles are often technology-related and companies are strongly dependent on information technology (IT). To move research on omnichannel management forward, this paper proposes directions for further research

Omnichannel Transition: A Panacea for Retail?

Digitalization has affected the status quo of every industry and retail is no exception. Omnichannel is the new norm in today’s retailing. The days of managing and highlighting ecommerce and digi-tal channels are over, now the time is for omnichannel. The shoppers are already omnichannel and this puts pressure on retailers to be omnichannel as soon as possible. In the last few years, acade-micians as well as practitioners have proposed omnichannel management as the future of retailing. However, the reality looks different; the knowledge about omnichannel management and the omni-channel transition is fragmented in the current literature. This research sheds light on the extant knowledge on omnichannel retail drivers and transition journey. The purpose of this study is to illuminate how the omnichannel concept is used and propose a model for outlining the transition from single channel to omnichannel. Moreover, contemporary research on omnichannel drivers and challenges are provided, as well as areas needed for further research

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

The role of digital in the town centre experience

To date, omnichannel activity is studied between consumers and an individual retail brand or within a single retail setting, whereas consumer search activity and customer shopping journeys regularly involve multiple brands and multiple channels, both offline or online. This is particularly important for consumer choice consideration of a retail channel and shopping location. Town centres have been impacted visibly by the growth of online shopping resulting in reduced footfall and store vacancies. However, scope exists for an integrated digital high street to deliver an enhanced, seamless customer experience. While individual brands and major retail organizations are developing their digital capabilities, similar evidence is scarce for retail agglomerations and town centres. This paper seeks to explore the role of digital in the town centre customer experience. Specifically, the research examines consumers’ attitudes and behaviours regarding the use of digital in town centre journeys. To achieve this objective, a multi-method research approach involving focus groups, diaries and telephone interviews is developed to capture in-depth understanding of the factors that encourage or disrupt consumer town centre experiences. The research draws from a combined sample of 234 respondents. The empirical findings reveal respondents use digital channels for various purposes before, during and after their town centre visits. However, consumers’ restricted access to dynamic information limits the scope, enjoyment and quality of their town centre experience. The lack of free and consistent Wi-Fi in town centres is but one barrier to successful multichannel experiences, resulting in a fragmented physical and virtual customer experience

Information Technology, Cross-Channel Capabilities, and Managerial Actions: Evidence from the Apparel Industry

Information technology (IT) has changed the dynamics of competition in the U.S. economy. Firms are gaining competitive advantage by competing on technology-enabled processes. For the retail industry, technology is breaking down the barriers between different retail channels and is making omnichannel retailing inevitable—an integrated sales experience that melds touch-and-feel information in the physical world with online content. Omnichannel retailing is becoming a trend and critical for retailers’ success. To keep up with the pace of change, existing retailers will need to create an omnichannel strategy and develop more omnichannel innovations. Based on the theories of the resource-based view (RBV), IT business value, and competitive dynamics, this study examines the factors that affect cross-channel capabilities and managerial actions in the U.S. apparel industry. We collected a longitudinal dataset on public apparel companies from 1995 to 2007. The empirical results reveal that both the quantity and scope of investments in enterprise IT applications were positively related to cross-channel capabilities. Financial resources positively moderated the relationship between enterprise IT applications and cross-channel capabilities. We found that enterprise IT applications increased the frequency and broadened the types of managerial actions. We found that cross-channel capabilities had mixed effects on managerial actions. Whereas market-oriented capabilities such as e-commerce and multi-channel cross-selling capabilities broadened the types of managerial actions, operation-oriented capabilities, such as cross-channel fulfillment, narrow the range of a firm’s managerial actions. Our findings provide important implications for managers in apparel and other retail sectors

Transitioning to an Omnichannel Approach: A Dynamic Capability Perspective

The proliferation of digital devices and services has fundamentally changed consumer behavior and needs, and thus the way consumers engage with firms. Many consumers want to engage with firms across all channels, enjoying seamless switching and simultaneous use. Within this dynamic channel environment, the omnichannel concept has been proposed as an appropriate approach to fulfill these demands. However, in practice, many firms do not yet provide an omnichannel experience and need to transform. With this research-in-progress paper, we outline our approach to investigating this phenomenon based on the concept of dynamic capabilities. With insight gained through a multiple case study approach, we hope to give practitioners decision support and researchers new stimuli for further research by identifying best practice dynamic capabilities for transitioning to omnichannel management

Multichannel Strategy in Perspective: The Consumer Experience at the Heart of Marketing Policy

Since the early 2000s, distribution channels have undergone a deep transformation in developed countries, but also in developing countries. While physical sales structures (stores, branches) have been, for a very long time, the preferred means for consumers to access products or services, the explosion of the Internet channel has radically changed the foundation of consumer experience. The multiplication of physical and virtual touchpoints is a new economic reality that leads consumers to live a total consumption experience, including migrating from one distribution channel to another with great ease. The background of the investigation is thus based on a major transformation: the great volatility of the consumer, quickly moving from one touchpoint to another. This volatility destabilizes manufacturing and retailing firms, whose customers used only one type of channel in the past and forces them to deeply rethink their marketing policy. Companies must learn to implement an efficient multichannel strategy, at the risk of losing market share in an extremely competitive environment. This paper uses literature on multichannel strategy to highlight three essential dimensions: the identification of multichannel strategy accelerators, the paradigm shift implied by a multichannel strategy and the original consumer migration paths that a multichannel strategy must take into account. Keywords: consumer experience, distribution channels, Internet, migration, multichannel, retailing, touchpoints. DOI: 10.7176/JMCR/59-03 Publication date: August 31st 2019