Examining customer channel selection intention in the omni-channel retail environment

Abstract

Omni-channel supply chain management, with the objective of integrating multiple channels to achieve better overall performance across the entire supply chain, has been implemented by an increasing number of retailers. One of the challenges of omni-channel retailing and supply chain management is a result of the new and complex characteristics of the omni-channel retail environment; specifically, how to make customers more familiar with and adapt themselves to the omni-channel retail setting and to get them to utilize it to their advantage. Understanding customer perception is the first step in overcoming that challenge. This study examines the influential factors of customer channel selection intention in an omni-channel retail setting. Via an empirical analysis through surveys of customers (among whom a majority are online buyers) from the United States and United Kingdom, we find that channel transparency, channel convenience, and channel uniformity positively influence customer perceived behavioral control. In addition, we find that channel transparency and uniformity help reduce customers' perceived risk, whereas channel convenience does not have a significant impact. Higher product price increases the influence of channel transparency, convenience, and uniformity on reducing customers' perceived risk. Furthermore, we find customer perceived behavioral control and channel price advantage have a positive impact, and perceived risk has a negative impact on customer channel selection intention in the omni-channel retail environment. Our study provides an opportunity for omni-channel retailers to understand customer perception and needs, and better improve their offerings and supply chain management to attract more customer demand.