Do customers always adopt buy-online-and-pick-up-in-store service? Consideration of location-based store density in omni-channel retailing

Abstract

An increasing number of retailers and researchers regard buy-online-and-pick-up-in-store (BOPS) as an important strategy of omni-channel operation. Although many studies focus on the implementation results of the BOPS mode, few explore the antecedent variables that shape its effects. By analyzing 420,020 online transactions (including 33,546 BOPS orders) generated by 110,909 customers via an omni-channel retailer, we empirically examine the impact of retailers' store density at different distances from customers' locations on BOPS adoption behavior. User characteristics, including channel preference and online purchase experience are considered as boundary conditions in this study. We control for relevant factors, conduct several additional analyses, and perform various robustness checks to validate the consistency of our results. Our research shows the significant positive effects of retailers' store density in medium distances on customers' BOPS adoption. However, retailers' store density at short-distance has a negative influence on customers' BOPS adoption. We also find that channel preference and online purchase experience show different moderating effects in the influence of retailers' store density at two difference distances on customers’ BOPS adoption. Our findings generate important theoretical and managerial implications, and suggestions for future research are discussed in detail.