Reducing transaction uncertainty with brands in web stores of dual-channel retailers

Abstract

Transaction uncertainty is an impediment to customer satisfaction and remains a problem in the dual-channel retailing context. Most consumers use web stores for information and evaluation. This process influences their subsequent retailer selection and consumer satisfaction. In this study, the retailer brand, as the source of transaction information, is considered as a solution to the problem of transaction uncertainty. Brand attractiveness, the affective aspect of brand, is identified as an affective-based uncertainty mitigator and is considered together with brand credibility, the cognitive aspect of brand. Drawing on the source attractiveness/credibility model, retailer brand attractiveness and credibility are proposed and confirmed to reduce transaction uncertainty, in turn improving customer satisfaction. The moderating role of online–offline channel integration on the uncertainty reduction effect of retailer brand attractiveness and credibility is investigated. Online–offline channel integration has been found to be the essential condition for the uncertainty reduction effect of retailer brand attractiveness. Online–offline channel integration is also found to form a synergy with retailer brand credibility in reducing uncertainty. These findings show that the web stores of dual-channel retailers should invest in brand attractiveness and credibility orderly and coordinate brand investment with online–offline channel integration.