Digital Retail Research Articles

Interacting with background music engages E-Customers more: The impact of interactive music on consumer perception and behavioral intention

The current study investigates the potential of applying interactive music to the design of e-commerce websites, aiming to create more engaging consumer experience. The model of Theory of Interactive Media Effects (TIME) is applied to propose two psychological mechanisms – heightened consumer control and perceived vividness of the website – that explain the effect of interactive music on consumer engagement. A single-factor experiment with three conditions (the control condition without background music, the static background music condition, and the interactive background music condition) was conducted and data from 248 consumers were collected. Results found that consumers in the interactive music condition were more affectively engaged in the shopping task compared to those in the other two conditions due to a higher level of novelty. The novelty dimension of affective engagement subsequently led to stronger behavioral intention and more positive perception toward the website and its brand. Whereas consumer control explained only affective engagement with the online store, perceived vividness of the website predicted both cognitive and affective engagement. In conclusion, the present study contributes to scholarship by addressing limited discussion on interactive music under the context of consumer behavior and drawing attention to perceived control and vividness as critical mediators of consumer engagement in the digital retailing environment.

CONSTRUCTION OF CUSTOMER RELATIONSHIP MANAGEMENT IN RETAIL BUSINESS

This article aims to construct the dimensions of customer relationship management (CRM), which consists of processes, preferences, customization, readiness, and capability in the retail service industry. With a total sample of 257, the results of testing using Structural Equation Modelling show that the fifth dimension of CRM construction contributes significantly to the construction of CRM.The findingsof the study on the construction of CRM customizationshow that there is still a weaknesses in registering valuable loyal customers. The collapse of conventional retail business is caused by not putting the priority of detecting valuable old customers This weaknessbecomes the strength of online retailers who are able to get traditional retail customers to switch to online platforms. CRM customization is also a crucial managerial implication for conventional, digital retailers and digital-conventional retail formats.

From clicks to bricks: The impact of product launches in offline stores for digital retailers

More digital retailers are expanding into offline channels by launching products in partners' stores, despite the mature offline shopping. Despite this extensive phenomenon, little attention is focused on the impact of offline product launches on sales. This paper examines how offline product launches via third-party offline stores affects online and mobile purchases, and extends understanding by investigating the moderating effect of offline store intensity. We analyze data obtained from a digital-first beauty retailer through a difference-in-differences analysis using a bivariate negative binomial distribution model. Empirical results show offline product launches are synergistic with online and mobile purchases, especially with respect to the latter. In addition, offline store intensity weakens the positive effect of offline product launches on online purchases, whereas it does not moderate the effect on mobile purchases. Moreover, we provide insights into developing geo-targeting launch strategies through what-if analyses. Our findings provide critical managerial implications for digital retailing.

An Optimized Technique to Foster Omnichannel Retail Experience Leveraging Key Technology Dimensions in the Context of an Emerging Digital Market

Customers’ approach towards shopping has transformed, as a result of their reduced tolerance, increased technology usage and being well informed than ever before. As customers expect a seamless shopping experience regardless of where they are engaged within a retailer’s network, the line between physical and digital retailing is blurring. Retailers across the world are contemplating on transforming into Omnichannel hubs to deliver an elevated experience anytime anywhere. And, experts have often indicated that an Omnichannel strategy delivers a unified shopping experience than a mere channel experience. However, the true Omnichannel experience is still not evident in India with minimal action in this space, indicating a subverted outlook towards building necessary Omnichannel Capabilities. This paper examines the most essential and significant technology dimensions that are imperative towards fostering a seamless Omnichannel Retail Experience. The findings of this study serve as a basis for retailers in India to evaluate their strategies towards adopting these technology dimensions and respective capabilities, using an optimized approach. The study employed a quantitative research involving survey of executives from major retailers in India. The quantitative data was analyzed applying Structural Equation Modeling, to ascertain the technology dimensions that emerged and their significance in deriving Omnichannel Retail Experience.

Effects of perceived interactivity of augmented reality on consumer responses: A mental imagery perspective

As the use of technological features is becoming more common in digital retailing, retailers have adopted augmented reality (AR) solutions to help consumers browse their products. This study examines dimensions of perceived interactivity after experiencing shopping with AR and investigates the relationships between perceived interactivity and mental imagery and between mental imagery and other consumer responses in a mobile shopping context. A total of 302 female online consumers in South Korea participated in a survey. After shopping cosmetic products with the AR function in a mobile app, participants completed the questionnaire. The findings reveal that the controllability and playfulness dimensions of perceived interactivity influence mental imagery, which, in turn, affects consumers' attitudes toward a product and their behavioral intentions. The relationship between perceived interactivity and mental imagery differs based on an individual's involvement level. These results provide practical insights for digital retailers in creating effective mobile shopping environments.

PERPAJAKAN DI ERA EKONOMI DIGITAL: INDONESIA, INDIA DAN INGGRIS

The development of new technology and diverse consumer demand has increased the digital retail industry today. This also affects the way buyers / consumers get the goods and services they want. Consumers turn to e-commerce and cellular to make purchases that are usually done physically. This change in shopping style has been driven largely due to the emergence of many market places and platforms. This change will also have effect on the taxation of the transaction. The Government of India applies the Equalization Levy Rules (EQL) scheme which is categorized as PNBP (Non-Tax Revenues). While in the United Kingdom there is a Diverted Provit Tax (DPT) scheme. Whereas Indonesia has no more specific rules, there is only a Circular (Surat Edaran) that regulates the Affirmation of Tax Regulations on e-Commerce Transactions, namely SE / 62 / PJ / 2013 tax regulations e-commerce follows the income tax law and value added tax.

INVESTIGATION OF DIGITAL RETAIL COMPANIES FINANCIAL PERFORMANCE USING MULTIPLE CRITERIA DECISION ANALYSIS / SKAITMENINĖS MAŽMENINĖS PREKYBOS ĮMONIŲ FINANSINĖS VEIKLOS TYRIMAS TAIKANT DAUGIAKRITERIUS SPRENDIMŲ ANALIZĖS METODUS

Digital retail (online retail or e-commerce) sector is continuously expanding its stake in the global economy each year. According to the statistics, online retail share of the total global retail sales takes approximately 11.9% in 2018 and is expected to reach 17.5% at the end of 2021. The same pattern of rapid growth was noticed more than 18 years ago when a burst of dot-com bubble crashed many of the internet-based online shopping companies. “Growth over profits” mentality and overestimated perception of the magnitude of online sales resulted in a superficial understanding of the business’ financial performance. Because of that, it is highly necessary to analyze and adequately evaluate the financial performance of digital retail companies. Thus, the purpose of this article is to investigate the top 4 digital retail companies’ financial performance by applying multiple criteria decision analysis (MCDA) TOPSIS and SAW methods to demonstrate that sales turnover is not the only and the prime measure to evaluate the successful company’s financial performance.

The Symbiosis of Offline and Digital Retail: Ukrainian Context

It is substantiated and scientifically proved that retail is one of the components of the Ukrainian economy in the context of ensuring its sustainable development. The arguments about the determination of the symbiosis of offline and digital retail as one of the alternatives for successful operations in a modern environment with permanent market changes are summarized considering the trend of digitalization. The purposes of the paper are to investigate the landscape and features of digital and offline businesses of retailers, and to justify recommendations for retailers with a trade network for their persistent digital business development in the context of Ukrainian realities. The object of the study is the largest Ukrainian retailers in the food retail segment, which carrying out simultaneous online and offline trade. As part of the study, the analysis of the volumes of online trade in the general structure of Ukraine's trade turnover during 2014–2019 years was carried out. The trends of the Ukrainian online trading market in Europe are identified. The comparative analysis of the spending volume of online retail in Ukraine, Eastern Europe and the world in 2014–2020 years was conducted. Prospects for doing digital business for retailers in Ukraine are substantiated. The features of the online buyers’ activities in the online space are diagnosed. The digital activity of consumers by the types of gadgets and devices in Ukraine and the world is determined. Trends in Ukrainian online retail is interpreted. The development of the digital business of Ukrainian food retailers is analysed. Based on the results of diagnostics of the Ukrainian retailers’ activity in the food retail segment and taking into account current market trends, perspective directions of persistent progressive development of their digital business are determined. Approbation of the recommendations that are provided in the article, is confirmed the feasibility of their usage by online retailers in Ukraine to maximize the satisfaction of heterogeneous requests, needs and preferences of online buyers, as well as the rapid expansion of new market segments. Key words: digitalization, digital business, digital transformation, offline business, retail.

FROM OFFLINE PRODUCT LAUNCH TO DIGITAL SALES PERFORMANCE

Digital channels have been rising to the major shopping paths from the past few years, yet it is interesting to notice that more and more digital retailers advance into offline channel nowadays due to the benefits. For example, the digital retailing giant Amazon opened its first bricks-and-mortar bookstore in 2015. Dell, which distributes its products only in the catalog and digital channels, entered the leading retail stores such as Best Buy and Walmart. The digital retailers’ strategy trend that moves into the real world reveals the unique and powerful capabilities of the offline distribution channel and the importance of launching products in the offline channel. Previous studies in marketing have investigated various complement and substitute impacts of offline channel introduction (i.e., Avery et al. 2012, Wang and Goldfarb 2017). However, most of the literature focus on the pc-based online channel and catalog, there is little research about the impact of offline channel introduction on smartphone-based mobile channel. Although mobile channel is similar to online channel in many ways (i.e., internet access and convenient shopping), it can be distinguished from online channel in terms of search and access, leading to a different interplay with offline channel. This research, therefore, aims to investigate how product launching in offline channel affects purchases in mobile channel versus online channel, and deepen the understanding by exploring the moderating effect of offline store intensity. Besides, we also explore the interaction between two digital channels: online channel and mobile channel. As most of the multi-channel retailers offer products in both online and mobile channels, it is incremental to know the interplay between these two digital channels. Using data from a representative multichannel retailer selling beauty products, we find the following three empirical results. First, product introduction in offline channel has a positive effect on online and mobile sales, and the effect is greater for mobile. Second, as offline store increases, the positive impact of offline product launch weakens on online channel, and even turns to negative once the number of offline stores reaches a threshold. However, the influence on mobile channel stays the same. The results reflect that the complementary interplay between offline and mobile channel is relatively stronger than between online channel. Finally, within the digital channels, online purchases only increase with the growth of sales performance within online channel, whereas mobile purchases are positively affected by both within mobile channel sales and across online channel sales. Our findings contribute critical academic and managerial implications for multichannel retailing.

‘Touch it, swipe it, shake it’: Does the emergence of haptic touch in mobile retailing advertising improve its effectiveness?

This article illustrates that haptic touch, the sensation of gaining and sending information through the hand, can improve mobile retailing advertisements’ effectiveness. To date, (haptic) touch has been predominantly thought of as a sensation only possible for physical retail settings, with limited theoretical or empirical evidence of its existence in mobile retailing advertising in the current literature. This study presents a model which includes interactivity, value, involvement, brand attitude and purchase intentions in a singular model for the first time. The model is comparatively examined across haptic touch (n = 303) versus non-haptic touch (n = 359) conditions using structural equation modelling (SEM) multi-group test of invariance. The findings demonstrate haptic touch improves the experience of advertisements and this strengthens purchase intentions, whereas for the non-haptic touch condition, results demonstrate the actual brand being advertised should be leveraged to increase purchase intentions. These findings present a new theoretical perspective that haptic touch is now a sensation which can be engaged in mobile and digital retail settings and provides an important foundation for future research.

Big Data and Personalised Price Discrimination in EU Competition Law

Big Data and Personalised Price Discrimination in EU Competition Law

Risk, privacy and security concerns in digital retail

This paper provides a review of various aspects of the digital retail environment to inform understanding of the antecedents and consequences of the main barriers towards consumer acceptance behaviour and to identify limitations in literature requiring empirical exploration. Through analysis of relevant secondary research, this paper draws on significance research findings and limitations and offers three important contributions for both academics and practitioners. First, it adds to the understanding of the roles of perceived risk, privacy and security concerns throughout the digital environment and, second, specifically recognises limitations in risk related research within online shopping literature. Finally, it indicates the potential consequences of the barriers identified providing a framework for future consideration, which informs the development of mobile shopping platforms and facilitates the establishment of mechanisms to defuse the barriers affecting m-shopping acceptance.

The future of digital retail payments in Europe: A place for digital cash?

This paper provides a perspective on the potential for central bank issued digital cash as a complementary retail payment tool for Europe. The research approach begins with a comparison of different types of money and their respective characteristics, including both traditional forms of money and private digital currencies such as Bitcoin. Against this backdrop and as an extension of the European Central Bank’s categorisation of forms of central bank issued cash, the paper elaborates the case for a central bank issued digital cash equivalent, labelled ‘d-cash’. Key questions ranging from the involvement of banks and non-bank payment service providers, to anonymity versus transparency and the role for consumer protection in d-cash are discussed. Following this theoretical analysis, the paper provides an overview of the current evolution of retail payments in Europe. The combination of infrastructure enhancements, regulatory change and technological innovations is poised to deliver more innovative services and bring more competition into the payments space. Depending on how these changes unfold over the coming years, European retail payments may be able to stand the competition with private digital currencies when it comes to payments. However, in the context of the substantial cash usage in Europe, which represents significant costs to society, the idea of introducing d-cash should be explored further.

Incorporating online shopping into travel demand modelling: challenges, progress, and opportunities

ABSTRACTThere is a large body of literature, spanning multiple disciplines, concerned with the relationship between traditional (physical) shopping and associated travel behaviour. However, despite the recent rapid growth of digital retailing and online shopping, the impact on travel behaviour remain poorly understood. Although the issue of the substitution and complementarity between conventional and virtual retail channels has been extensively explored, few attempts have been made to extend this work so as to incorporate virtual retail channels into modelling frameworks that can link shopping and mobility decisions. Here, we review the existing literature base with a focus on most relevant dimensions for personal mobility. How online activity can be incorporated into operational transport demand models and benefits of such effort are discussed. Existing frameworks of shopping demand are flexible and can, in principle, be extended to incorporate virtual shopping and the associated additional complexities. However, there are significant challenges associated with lack of standard ontologies for crucial concepts and insufficiencies in traditional data collection methods. Also, supply-side questions facing businesses and policy-makers are changing as retailing goes through a digital transformation. Opportunities and priorities need to be defined for future research directions for an assessment of existing tools and frameworks.

Understanding how Millennial shoppers decide what to buy

PurposeThe shopper journey can cross a number of channels leading up to the point of a possible purchase, which may be unseen by the retailer or brand for the targeted purchase. The purpose of this paper is to gain a greater understanding of the decision making and purchase intention activity for online Millennial shoppers in deciding what fashion garments to buy in the digital retail environment. The paper also investigates the use of technology and social media involvement in the shopper journey leading up to the point of purchase.Design/methodology/approachIn line with other studies that investigated online shopper behaviour (Balabanis and Reynolds, 2001; Pavlou et al., 2007), the authors have undertaken an exploratory investigation using an online survey conducted with respondents sourced through using Survey Monkey Audience. The survey was conducted with over 580 respondents (49.7 per cent female and 50.3 per cent male) between 16 and 34 years old living in England.FindingsThe findings highlight a picture of shoppers going on very different shopper journeys with different lengths, influenced by different touch points and using different media and devices. Each customer has their own individual experience and expectation. They can move through extremely diverse, long and complicated journeys in the buying process before they purchase a product. Most striking is their willingness to reach out and be influenced by other people beyond the control of any retailer – using platforms that are not necessarily specifically related with any retailer. Shoppers can undertake numerous activities before they make their final purchase decision, seeking content from different retailers, asking for social validation of their decision from their social networks both online and offline which is often out of sight of the retailer or brand.Practical implicationsThe findings show how retailers and brands can understand the shopper decision journey and their behaviours across all the devices and channels that are used. Moreover, for some or part of the digital journey the shopper can often be unseen by the retailer or brand.Originality/valueConsumers actively seek out novelty, knowledge and inspiration but shoppers employ a variety of interactions over a much greater period of time to arrive at the moment of purchase. This research provides an insight into the range of complex views and positions held by each individual to get a much more complete picture of where shoppers are looking to buy and what are their interests.

Big Data and Personalized Price Discrimination in EU Competition Law

Big Data and Personalized Price Discrimination in EU Competition Law

The dark side of experience-seeking mall shoppers

Purpose The purpose of this paper is to illustrate that mall shoppers who participate in a mall’s experiential offerings, including entertainment and activities, do not necessarily exhibit more favorable attitudes or behaviors toward the mall than mall shoppers who do not participate in these offerings. Design/methodology/approach This study employs survey methodology from a sample collected in an expansive regional mall that offers customers experiential activities. Findings The findings show that mall shoppers who partake in mall-based activities are less satisfied, are less likely to spread positive word of mouth, and have lesser desire to return to the mall than shoppers who do not partake in these activities. The findings also reveal that mall expenditures are the same between shoppers who partake in mall activities and those who do not. Research limitations/implications Researchers have argued that malls can compete with digital retailers by offering shoppers experiential activities. Although segments of shoppers partake in these activities, this study finds that experiential investments do not result in significant favorable shopper outcomes. Practical implications Mall developers that implement experiential offerings as a means to combat competition from digital retailers may not attain managerially relevant results from doing so. Originality/value Although retailing academics and consultants espouse the idea that retailers can obtain financial benefits by creating memorable experiences for shoppers, this research offers empirical evidence that counters these speculations. In the case of enclosed malls, investments in experiential features and activities may not lead to improved shopper attitudes, behaviors, or sales.

Diffusion of Technological Innovation in Business:A Study on New Generation Business in India in E-Business Environment

E-commerce is expanding steadily in the country. Customers have the ever increasing choice of products at the lowest rates. E-commerce is probably creating the biggest revolution in the retail industry, and this trend would continue in the years to come. Various business process owners including retailers should leverage the digital retail channels. Customers in the Indian market place have started adopting the new ways of getting their requirements fulfilled and in the process there is a pool of technology savvy customers have stated emerging out. These changes are fuelled by various agencies of Government of India and made popular by multiple stake holders like online firms, banks, investors and customers at large. The pace at which the preference towards online transactions in India is growing it has become essential to understand the technological factors influencing this recent form of getting connected to the market place. Digital India lies the development of the digital ecosystem in terms of apps and app-based government services as well as free and equal access to all these for consumers across the country. The Research paper discusses the opportunities and roadblocks of new generation business in India.

Beset by the digital revolution successful retailers embrace technology that enhances customer value

Purpose The authorseeks to identify what strategies are successful companies using to navigate this ever-evolving retail landscape? And what strategies and best practices can be learned from the retail sector for thriving amid major economic transformations such as the current one? Design/methodology/approach To help explain the divergence in performance across U.S. retailers given the same general macro context, the research focused on four companies – Target, Kohl’s, JC Penney and Sears. Findings Successful retailers focused on using technology to build value for customers first, and as a result shareholder value ensued. Practical implications One key indicator of the connection between a company and its customers is the effectiveness of its social media presence. Originality/value The article presents evidence that in order o leverage the full power of technology, retailers must make strategic investments in technology that enable them to understand who their customers are; determine what their customers most need and offer products and services that address these needs seamlessly in stores and online.

Predicting the effects of eWOM and online brand messaging: Source trust, bandwagon effect and innovation adoption factors

This study examined the integrative effects of a brand’s online product description, eWOM content, digital retail platforms and innovation adoption factors on a consumer’s decision-making process. Results from a between-subject experiment (N=231) suggest that consumer perceptions of product-description usefulness, technology fluidity, product usefulness, product-use ease, consumer-review trustworthiness, consumer-review usefulness, user ratings of consumer reviews and retail-platform trustworthiness have a direct or indirect effect on their attitude and purchase intention toward the technology product.