Online versus offline: preferred retail choice for premium brand purchase

Abstract

PurposeThis exploratory study aims to examine the prevalent triggers that motivate a premium brand purchase in an online vs offline retail format.Design/methodology/approachA binary logit analysis is used to build a predictive model to assess the likelihood of the premium brand consumer seeking an online or an offline platform. Demographic and usage-based profile of the two set of consumers is established through a chi-square analysis.FindingsThree hundred and forty six urban consumers of premium branded apparels residing in two Indian Metros were studied. A predictive model with 89.6% accuracy was validated for distinguishing premium brand buyers who shop at brick-and-mortar store or online platforms. Quality and finish were factors sought by the online buyer, whereas autotelic need, pleasurable shopping experience and social approval were important triggers for an in-store purchase.Research limitations/implicationsThe study posits divergent demographics and motivational drivers that led to an online vs offline purchase. Though interesting and directional, the study results need to be examined across geographies and categories for establishing the generalizability of the findings.Practical implicationsThe study findings indicate that premium brand manufacturers can devise an omni-channel strategy that is largely tilted toward the online platform, as the quality conscious and brand aware consumer is confident and thus open to an online purchase. The implication for the physical outlet on the other hand is to ensure exclusive store atmospherics and knowledgeable but non-intrusive sales personnel.Originality/valueThe study is unique as it successfully builds a predictive model to forecast online vs offline purchase decisions among urban millennials.