An empirical study on consumer online shopping channel choice behavior in omni-channel environment

Abstract

With the rapid diffusion of smart devices, retailers provide new forms of interactive communication channels, enabling their consumers to access through the mobile channel. The retailers recognize the importance of the mobile channel as an efficient sales channel and as a tool for CRM (Customer Relationship Management). However, CRM has become increasingly complex after adopting it to the mobile channel. It is imperative for retailers to understand consumer behavior in an omni-channel circumstance. Using the four-year transaction data obtained from the online home-shopping provider that expanded its online service (telephone, ARS, Internet website) onto a mobile platform, this research analyzes the consumer channel choice behavior in the perspectives of consumer sociodemographic information, consumer behavior, and corporate communication strategies. To explain channel choices in the omni-channel environment, we use multivariate probit model with sociodemographic variables, communication strategies, order hour, and product categories. Our empirical results indicate that age and gender have significant influences on channel choice behavior. Consumer fixates their inflow channel. Communication strategies such as SMS and app push alarm significantly influence consumer channel choice. Consumers using mobile channel are making purchases without time constraints, while others not. We observed that products that have characteristics of experience goods or credence goods tend to be purchased via mobile and Internet channels that provide detailed and additive information like consumer reviews. Finally, the results revealed substitution effect between most of the channels, except for the Internet and telephone. Our investigation contributes to omni-channel online shopping literature by empirically testing the choice behavior, cross-channel effects, and also by providing insights for online retailers.