The impact of buy-online-and-return-in-store channel integration on online and offline behavioral intentions: The role of offline store

Abstract

Retailers have treated the buy-online-and-return-in-store (BORS) policy as an important initiative to reduce return losses and provide a better customer experience. Studies on BORS policy have primarily focused on the retailer's strategic value, but not on how such a seamlessly integrated omnichannel operation affects customer behavior. Using Chinese customer data and the structural equation model (SEM), we investigate how BORS channel integration impacts customer behavioral intentions, with the consideration of the mediating effect of customer satisfaction and the moderating effect of offline store characteristics. Based on the stimulus-organism-response framework, our research found that two dimensions of BORS channel integration (integrated return fulfillment and integrated customer service) positively impact customer satisfaction and subsequently impact behavioral intentions in different channels. Furthermore, offline store convenience moderates the relationship between integrated customer service and customer satisfaction. Product variety in the offline store moderates the relationship between customer satisfaction and offline behavioral intentions, while it is not statistically significant in the relationship between customer satisfaction and online behavioral intentions. Compared to the younger group, the older group who is satisfied with BORS service is more likely to purchase offline. These findings generate important theoretical and practical implications for omnichannel return operations.