From Multi-Channel to Omni-Channel: Determinants of Channel Choice

Abstract

Digital platforms empowered and altered consumer shopping behavior in a big way. Consumers buying journey today encompasses interaction with multiple channels such as search engine, comparison sites, mobile browsers, apps, social media platforms and physical stores. As digital continues to empower consumers in newer and better ways to discover, research, engage and buy products and services, retailers should continuously tweak, evolve or even radically change the way they look at or operate their business in order to create seamless customer experience across all touch points and channels customers interact. Retailers who fail to adopt to the changing consumer dynamics risks falling behind. Therefore it is imperative for retailers to understand consumers channel choice and factors that drive consumers channel choice decisions. The main objective of the study is to investigate factors that drive consumers channel choice. Consumers stage in the buying journey and product type was taken as key independent variables and channel choice as dependent variable. A survey was conducted to investigate consumers channel choice across diverse product categories-selected based on Products perceived risks, degree of involvement (search and purchase effort) and tangibility. Consumers channel choice during different stages in the buying journey was also investigated. Data is collected from consumers who have experienced online shopping at least once and bought one or few products selected for the study. Based on the analysis, a conceptual model is derived. It was found that consumers use multiple channels during the research phase (for product information, comparison and evaluation) of their buying journey. There is a strong relationship between consumers channel choice and stages in the buying journey. Online channels such as search engine, review sites, online retailers are mostly preferred due to its perceived benefits. When it comes to making an actual purchase of products like home, kitchen appliances and furniture, physical retailers are still highly preferred by consumers. The convenience and simplicity of giving ratings perhaps explains the reason behind why majority had preferred ratings over other touch points or channels during the post purchase stage. Retailers should strive to create seamless experience for its consumers across channels. Be it search experience in mobile, website or purchase experience inside the physical store, retailers should not leave any stones unturned. The simple mantra is to be there when and where it matters to consumers. Consumers’ decision making journey today is non-linear and fluidic. Consumers’ criss-cross across channels during the journey making it even more imperative for retailers to create relevant, personalized and timely information. This call for a unified approach (no channel demarcation but integration for better consumer experience) and presence across channels consumers interact.