Online and Offline Information for Omnichannel Retailing

This paper studies how retailers can effectively deliver online and offline information to omnichannel consumers who strategically choose whether to gather information online or offline and whether to buy products online or offline. Information resolves two types of uncertainty: product value uncertainty (i.e., consumers realize valuations when they inspect the product in store, but may end up returning the product when they purchase online) and availability uncertainty (i.e., store visits are futile when consumers encounter stockouts). We consider three information mechanisms: physical showrooms allow consumers to learn valuations anytime they visit the store, even during stockouts; virtual showrooms give consumers online access to an imperfect signal of their valuations; availability information provides real-time information about whether the store has a product in stock. Our main results follow. First, physical showrooms may prompt retailers to reduce store inventory, which increases availability risk and discourages store patronage. Second, virtual showrooms may increase online returns and hurt profits, if they induce excessive customer migration from store to online channels. Third, availability information may be redundant when availability risk is low and may render physical showrooms ineffective when implemented jointly. Finally, when customers are homogeneous, these mechanisms may not exhibit significant complementarities and the optimal information structure may involve choosing only one of the three

Economic Perspective Of Omnichannel: A Preliminary Analysis

Recent advancements in technology have not only transformed how people lead their lives, but also how they shop. Traditional single or multichannel retailing models fall short of meeting the changing customer behaviours and expectations. Many in the retailing industry believe that evolving towards seamless omnichannel model is the only way forward for the retailers. However, merely ‘going omnichannel’ does not guarantee success. Lack of understanding of its underlying economic rationale might render a retailer unsuccessful in the face of intense competition and a heightened need for operational efficiencies. The omnichannel strategy might even prove to be unsustainable in certain contexts. We make an attempt to explore the determinants of an omnichannel retailer’s success in a competitive retail environment. Given a market currently served by traditional retailers, our analysis tries to figure out the market share an omnichannel aspirant can expect to acquire and its dependence on the price that it needs to charge for providing the additional set of services through omnichannel

Micro-Fulfillment Center Inventory Policies for Digital Grocery Ecosystem

As a new phenomenon of grocery business digital transition, the micro-fulfillment center (MFC) requires further exploration of its management issues. This study aims to address the MFC assortment and inventory decision problem for the digital grocery ecosystem. With the goal of maximizing the profit, we first propose an MFC inventory decision framework based on the Markov decision process. Under this decision framework, we analyze various inventory decision scenarios, including single-period, multi-period, deterministic demand, stationary demand distribution, and varying demand distribution cases. To solve the problem under these scenarios, we propose several effective heuristics and algorithms. Experimental results show that the proposed heuristic policies outperform the benchmark significantly. Meanwhile, based on the critical findings, we also provide management insights for the MFC inventory problem. This study contributes to the research and practice in the field of grocery business digital transformation and digital ecosystems

Trigger factors in brick and click shopping

Purpose: The goal of this research is to describe the customer’s purchase path in different shopping channels and to identify which are the trigger factors that motivate the choice of every shopping channel. The description of the factors that motivate this seamless experience across all channels will provide brands with knowledge about how to improve their strategic approach to engagement, belonging and retention of customers. Design/methodology: This paper builds propositions about the trigger factors for shopping channel choice based on thirty reports from the main consultancy companies made during the last five years and coded regarding the main topics highlighted in the literature. Findings: The findings of this study indicate that there are common trigger factors for every shopping channel and for every stage of the purchase path. Research limitations/implications: The data are from different countries, segments and products although they show common patterns. Originality/value: To date, little research in a complete vision of the shopping paths has been done. The definition of the different paths and the trigger factors associated to each one is unique and will help further research in this area.Peer Reviewe

Impact of artificial intelligence adoption on online returns policies

The shift to e-commerce has led to an astonishing increase in online sales for retailers. However, the number of returns made on online purchases is also increasing and have a profound impact on retailers’ operations and profit. Hence, retailers need to balance between minimizing and allowing product returns. This study examines an offline showroom versus an artificial intelligence (AI) online virtual-reality webroom and how the settings affect customers’ purchase and retailers’ return decisions. A case study is used to illustrate the AI application. Our results show that adopting artificial intelligence helps sellers to make better returns policies, maximize reselling returns, and reduce the risks of leftovers and shortages. Our findings unlock the potential of artificial intelligence applications in retail operations and should interest practitioners and researchers in online retailing, especially those concerned with online returns policies and the consumer personalized service experience

The effect of communicating via organic and paid social media, on Instagram, on customers’ intention to visit stores

My master thesis studies the effect of different types of communication on Instagram on a consumer’s willingness to visit the physical store. The types of communication that are investigated are paid and organic. The difference in the response to the type of communication between the fashion industry and electronic industry are also investigated. The objective of this thesis is to recommend to companies which type of communication on Instagram they should use and how differently should be used based on the industry. This research offers insights into a topic that has not been extensively investigated by academicians. The research in this master’s thesis is conducted via an online survey that was answered by 188 respondents. Each respondent based on their answer to a selection question were assigned to different scenarios and were invited to imagine to be in a particular situation and indicate their willingness to visit the store. There were two different types of communication and two industries, which resulted in 4 different scenarios to which respondents have been assigned to only one out of four. The results indicate that in general consumers are most likely to visit the store when the communication on Instagram is organic, meaning that customers already follow the brand page. A combination of the type of communication and the industry results in consumers being more likely to visit the store when the communication about fashion brands is via organic and communication about electronic is via paid communication.A minha tese de mestrado estuda o efeito de diferentes tipos de comunicação no Instagram na vontade de um consumidor visitar a loja física. Os tipos de comunicação investigados são os pagos e os orgânicos. A diferença na resposta ao tipo de comunicação entre a indústria da moda e a indústria electrónica também é investigada. O objectivo desta tese é recomendar às empresas que tipo de comunicação no Instagram devem utilizar e de que forma diferente deve ser utilizada com base na indústria. Esta investigação oferece uma visão sobre um tema que ainda não foi amplamente investigado pelos académicos. A pesquisa nesta tese de mestrado é conduzida através de um inquérito online que foi respondido por 188 inquiridos. Cada inquirido, com base na sua resposta a uma pergunta de selecção, foi atribuído a diferentes cenários e foi convidado a imaginar-se numa determinada situação e a indicar a sua vontade de visitar a loja. Havia dois tipos diferentes de comunicação e duas indústrias, o que resultou em quatro cenários diferentes, aos quais os inquiridos foram atribuídos apenas um dos quatro. Os resultados indicam que, em geral, os consumidores têm maior probabilidade de visitar a loja quando a comunicação no Instagram é orgânica, o que significa que os clientes já seguem a página da marca. Uma combinação do tipo de comunicação e do sector resulta numa maior probabilidade de os consumidores visitarem a loja quando a comunicação sobre marcas de moda é orgânica e a comunicação sobre electrónica é paga

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

Uma revisão de literatura sobre as barreiras da logística reversa de pós-venda no varejo omnichannel

TCC(graduação) - Universidade Federal de Santa Catarina. Centro Tecnológico. Engenharia de ProduçãoO varejo sofreu grandes alterações junto do desenvolvimento da indústria. Um marco para essas mudanças foi a introdução do e-commerce, o qual revolucionou a forma de se comprar e vender produtos. Foi a partir da grande aceitação dos varejistas tradicionais a utilizarem também um canal online que surgiu o multichannel, o qual mais tarde daria origem ao Omnichannel, que se baseia na integração de todos os canais de comunicação a fim de gerar uma experiência única de compra ao consumidor. Todavia, realizar tal feito nas empresas não é uma tarefa simples e aumenta consideravelmente a complexidade das operações logísticas da cadeia de suprimentos, sendo a logística reversa uma destas operações. Desta forma, o presente trabalho identifica, através de revisão da literatura, os problemas presentes na logística reversa de pós-venda contextualizada em um varejo Omnichannel. A bibliografia utilizada na revisão de literatura foi levantada por meio de busca estruturada com uso de palavras-chave e, posteriormente, analisada a respeito de aspectos descritivos e de conteúdo. Os resultados apresentados são constituídos pela descrição teórica da logística reversa aplicada ao Omnichannel, a identificação das barreiras encontradas na literatura e um framework conceitual para apresentá-las de forma holística. Ao todo foram identificadas 43 barreiras, dentre as quais pode se citar investimentos elevados, reestocagem de produtos, custos de transporte adicionais e comunicação precária