Omni-channel retailing:Some reflections

In this paper, I discuss some reflections on the emerging literature on multi- and omni-channel retailing. I discuss four important area’s of prior research and briefly describe some general findings. Next, I consider three important emerging trends: 1) digital only, 2) Covid-19 effects and 3) New Technologies. I discuss the implications of these trend for omni-channel retailing and provide some ideas for future research on these trends

Does sustainability sell? The impact of sustainability claims on the success of national brands’ new product introductions

In the hope of benefiting from the increasing focus on sustainability in Western markets, national brands are introducing new sustainable products. We investigate the success of new sustainable products with a unique dataset combining household panel data, consumer survey data, expert panel survey data, and advertising expenditure data. We show that sustainable new product introductions achieve lower sales than their conventional counterparts. Investing in corporate social responsibility activities compensates for this negative effect and is therefore a viable strategy to boost sales of new sustainable products. Importantly, making sustainable new products clearly innovative mitigates the negative effect of a sustainability claim on new product sales, whereas price promotions aggravate the negative effect. We furthermore caution that the negative effect of sustainability may not decrease as sustainability becomes more mainstream, even if our data covers a period before the currently increased interest in sustainability

Reflections and Predictions on Effects of COVID-19 Pandemic on Retailing

Purpose: The Covid-19 pandemic has a strong effect on societies, business and consumers. Governments have taken measures to reduce the spread of the pandemic, such as social distancing and lock-downs. The latter has also resulted in temporary closure of physical stores for ‘non-essential’ retailing. Covid-19 thus has a profound impact on how people live. The period of relative isolation, social distancing and economic uncertainty changes the way we behave. New consumer behaviors span all areas of life, from how we work to how we shop to how we entertain ourselves. These shifts have important implications for retailers. This paper discusses potential structural effect on shopping behavior and retailing when Covid-19 measures are no longer needed and society moves back to a normal situation. Design/methodology/approach: The paper synthesizes empirical and conceptual literature on the consequences of COVID-19 and introduces a conceptual framework along with a set of predictions that can be investigated with empirical data. Findings: We suggest that Covid-19 shapes both consumer needs and behavior and how retailers respond to these changes. Moreover, we suggest that this will affect market outcomes (i.e. retail sales, market share online), but also firm outcomes (i.e. customer experience, firm sales) and importantly the competition between online and offline retailers. Originality/value: In our conceptual framework, we aim to advance knowledge on longer-term outcomes (vs immediate outcomes such as panic buying) and how COVID-19 is changing the competitive landscape of retail

The impact of hard discounter presence on store satisfaction and store loyalty

Hard discounters, such as Aldi and Lidl, have become more important in the last decade. Recent research suggests that the presence of a hard discounter (HD) decreases customers' share of wallet. In this study, we aim to understand why this occurs, by considering how HD presence affects store attributes and store satisfaction. In particular, we investigate whether HD presence affects store satisfaction formation as well as the effect of store satisfaction on share of wallet. We analyze Dutch data on store attribute evaluations, store satisfaction and share of wallet. Our results show that HD presence decreases convenience evaluations of a store, satisfaction and share of wallet. Moreover, we show that the relationship between convenience and store satisfaction becomes more important when a HD is present, while we then also find a stronger positive relationship between satisfaction and share of wallet. Simulations based on our model estimations show that especially price-oriented retailers should fear decreases in share of wallet when a HD is present

Good, better, engaged? The effect of company-initiated customer engagement behavior on shareholder value

In today’s connected world, customer engagement behaviors are very important. Many companies launch initiatives to stimulate customer engagement. However, despite evidence that customer engagement behavior also matters to share-holders, academic research on the firm value consequences of customer engagement campaigns is limited. This study is the first to investigate the value-related consequences of firm-initiated customer engagement behaviors, using shareholder evaluations of the public announcements of such initiatives. We find that companies’ customer engagement initiatives, on average, decrease market value, which is likely because the shareholders are sensitive to the risk of these initiatives backfiring.Nevertheless, initiatives that stimulate word-of-mouth are viewed less negatively than initiatives that solicit customer feedback, as are initiatives that are supported by social media. Companies that operate in a competitive environment or do not advertise much can create value by stimulating customer engagement, while companies with a strong corporate reputation are likely to not benefit from it

The effects of cultural differences on consumers' willingness to share personal information

Consumer information is an increasingly valuable resource in the digitally interconnected modern world. Globally, the number of firms collecting and exploiting consumer information to optimize their marketing efforts is increasing rapidly. The authors determine how four cultural dimensions—power distance, masculinity, uncertainty avoidance, and long-term orientation—affect consumers’ willingness to share their personal information with firms (WTS). The authors empirically test the direct effect of national culture on WTS, as well as its moderating effect on the link between WTS and two of its key drivers, privacy concerns and perceived benefits. Drawing on regulatory focus theory, the authors develop a conceptual framework and test it using multilevel modeling on data from 15,045 consumers across 24 countries. The empirical findings demonstrate that national culture directly affects WTS and moderates the effects of both privacy concerns and perceived benefits on WTS. These results highlight the need for managers and marketers to consider international cultural differences when collecting consumer information

Antecedents of Webrooming in Omnichannel Retailing

Although webrooming has become common practice in omnichannel consumer behavior, only a few empirical studies have managed to shed light on the phenomenon. With this research work, we aim to investigate important antecedents of webrooming. We base our conceptual framework on anticipated utility theory and expect that customers' anticipated utility from using the physical store versus the online store for purchase can be predicted by four groups of antecedents: psychographic variables, shopping motivations, channel-related variables, and product-related variables. With the help of a data set from a large cross-national online survey in which 1497 customers reconstruct their last purchase journey, we differentiate webroomers from pure online shoppers. In addition, we disentangle customers who used retailer-owned, competitor-owned, and independent touchpoints along the search and purchase phase of the customer journey in order to characterize webroomers in an omnichannel context and assess their prevalence in different countries and industries. Our insights on the characteristics and antecedents of webrooming help retailers to detect and better understand the psychology behind the webrooming phenomenon from a consumer perspective in an omnichannel retailing environment. In addition, results from our exploratory analysis on the positive association between webrooming and customer spending contribute to research and practice by providing first evidence on the economic value of webrooming