Omnichannel Retailing Research Articles

Omnichannel as a driver of digitalization: evidence from the emerging market in the fashion industry

PurposeThe aim of the study presented in this paper is to investigate the interrelationships among technologies in retail, webrooming and showrooming purchase intentions and customer experience.Design/methodology/approachThe study was conducted in the fashion industry in three fashion groups: LPP, CCC and Inditex, which declare to use omnichannel solutions in their supply chains. The study focusses on 825 customers drawn from the emerging market in Poland. The research follows the partial least squares path model procedure.FindingsBased on the study, it was concluded that out-store technologies are positively associated with omnichannel purchase intentions and also positively associated with cognitive and affective customer experience. This study proves that the boundary between traditional and online stores is beginning to blur, and thanks to new technologies, customers can experience traditional shopping resembling online shopping, and vice-versa.Research limitations/implicationsAlthough the results provide several major contributions to theory and implications for practitioners, the study still demonstrates some methodological constraints. More specifically, although the study employs a relatively large research sample of 825 shoppers, it still focusses only on a selected group of customers in three fashion groups, LPP, CCC and Inditex, and is limited to investigating a particular type of customer experience solely in the fashion industry.Originality/valueThe results of this study not only verify the theoretical concepts and assumptions of technologies supporting omnichannel retail but also offer a practical roadmap for creating omnichannel solutions providing the best customer experience.

Understanding Omnichannel Shopping Behaviors: Incorporating Channel Integration into The Theory of Reasoned Action

Young consumers prefer to switch shopping channels freely for optimal shopping results and experiences. To meet these changing needs, retailers have begun implementing an omnichannel retail strategy that integrates their various shopping channels to create a consistent and seamless shopping environment. Thus, this study examines the effect of young consumers' perceptions of the retailer's channel consistency and seamlessness on their attitudes, intentions, and behaviors in the omnichannel retailing context. We incorporated the concept of channel consistency and seamlessness into the Theory of Reasoned Action to address the study objective. A consumer research firm was hired to recruit millennials and Gen Z consumers, and online surveys took place in the U.S. in 2019, and 430 usable surveys were analyzed with SPSS and AMOS. The results confirmed that consumers’ perception of channel seamlessness positively impacted their attitudes toward omnichannel shopping. Furthermore, these attitudes and subjective norms increased their intentions, leading to engagement in omnichannel shopping. The findings suggest that retailers must create smooth and uninterrupted shopping experiences across channels and proactively manage social components to create a customer’s omnichannel shopping experience

Does pickup service quality explain buy online pickup in-store service user's citizenship behavior? Moderating role of product categories and gender

PurposeBuilding on stimulus organism response theory, the current study examines the influence of pickup service quality of buy online, pickup in-store (BOPIS) service on the BOPIS users' satisfaction, trust and commitment, subsequently leading to customer citizenship behavior (CCB). It examines the proposed relationships against boundary conditions, product categories and gender.Design/methodology/approachThe research is descriptive, quantitative and cross-sectional investigation. It was conducted using data collected from 401 Indian omnichannel shoppers using a validated self-administered questionnaire. The proposed conceptual model was tested using Partial Least Squares-Structural Equation Modeling (PLS-SEM) and Partial Least Squares-Multi-group analysis (PLS-MGA).FindingsThe results indicate that pickup service quality in BOPIS positively impacts all the dimensions of relationship quality of the BOPIS users. Satisfaction and commitment directly affect CCB. However, trust impacts CCB indirectly through commitment. The moderating effect of the product category purchased and gender on specified relationships was tested. Results revealed the impact of pickup service quality on BOPIS users' trust and commitment differed across product categories. More impact was seen among users who purchased shopping and specialty goods. The study also found that trust-driven citizenship behavior was seen more among female BOPIS users when compared to males.Research limitations/implicationsThe study is carried out on the Indian population, where omnichannel retailing is still nascent.Originality/valueThis study addresses the gap to investigate the value co-creation behavior (CCB) in the omnichannel retail context among BOPIS users. This study is the first to show that in-store pickup service quality in BOPIS might affect customer citizenship behavior through relationship quality dimensions, assessed against boundary conditions such as the product category and BOPIS user gender.

Coupon promotion and its cross-channel effect in omnichannel retailing industry: A time-sensitive strategy

An increasing number of retailers are allowing consumers to freely switch between online and offline and conducting coupon promotions to stimulate channel transfer. This paper develops a stylized model to investigate omnichannel coupon promotion strategies considering consumers' time sensitivity in redeeming coupons. This paper first explores the benchmark model where consumers show time-insensitive and then takes consumers’ time sensitivity into account. For each model, three coupon promotion scenarios are studied, namely, online promotion, offline promotion, and online and offline co-promotion. Results show that whether the omnichannel retailer has the motivation to provide online or offline coupons depends on retail price—a higher retail price leads to a stronger promotion motivation, thereby achieving profit improvement. Results also indicate that the retailer may derive fewer profits in a co-promotion scenario than in a unilateral promotion scenario if there is too much channel switching or coupon promotion for a specific channel is intense. This study further reveals that in a unilateral promotion scenario, the retailer is less enthusiastic to provide coupons in a time-sensitive case than in a time-insensitive case, and the opposite happens in a co-promotion scenario when the time value and time consumed in redeeming coupons are high. Even though, the retailer derives higher profits in the time-sensitive case within specific conditions. The extension model verifies the robustness of the model and further reveals that a high online perceived value leads to a weak online promotion and a strong offline promotion. The retailer is more likely to increase profit in a time-sensitive case than in a time-insensitive case when online perceived value is high.

Design Principles of a Mixed-Reality Shopping Assistant System in Omnichannel Retail

New digital technologies furnish retail managers with new means to enhance consumer experiences in omnichannel retailing. Conceptual academic literature and industry emphasize the promising use of immersive digital displays and their potential benefits for retailers. In this research, we present the design of a personal shopping assistance system that is based on optical see-through mixed-reality technology. Microsoft HoloLens 2 was leveraged as the archetype to realize this novel system, facilitating consumer information search and decision making. The design incorporates various shopping assistance elements (i.e., product information, reviews, recommendations, product availability, videos, a virtual cart, and an option to buy). Users can interact with these elements with gesture-based inputs to navigate through the interface. A qualitative study with 35 participants was conducted to collect users’ feedback and perceptions about the mixed-reality shopping assistant system. Derived from the qualitative feedback, we propose seven design principles that aim to support future designs and developments of mixed-reality shopping applications for head-mounted displays in omnichannel retail: rigor, informativeness, tangibility, summary, comparability, flexibility and holism.

Consumers’ Continued Intention to Use Online-to-Offline (O2O) Services in Omnichannel Retail: Differences between To-Shop and To-Home Models

Online-to-offline (O2O) commerce is a specific form of omnichannel retailing, wherein consumers search and purchase online and then consume offline. There are many different O2O models, and new O2O businesses are emerging during the COVID-19 pandemic; they can be categorized into two types of O2O services: to-shop and to-home. However, few studies have focused on consumer behavior in a comprehensive O2O scenario, and no study has attempted to compare the differences between to-shop and to-home consumers. Therefore, this study aimed to propose a universal model to predict consumers’ continued intention to use O2O services and to compare the differences between to-shop and to-home O2O in terms of factors influencing consumer behavior. A cross-sectional survey was conducted, and the PLS-SEM was used for data analysis. The basic SEM results indicated that habit, performance expectancy, confirmation, and offline facilitating conditions are the main predictors. The multigroup analysis showed differences between to-shop and to-home consumers regarding hedonic motivation, price value, and perceived risk. The study suggests that marketers and designers in various O2O scenarios can use the framework to build their business plans and develop different marketing strategies or sub-platforms for to-shop and to-home consumers.

Factors affecting consumers' purchase intention for agriculture products omni-channel.

Agricultural retailers face serious challenge of losing consumers due to channel integration, it has become essential to provide an expected consistent and seamless omni-channel shopping experience in an omni-channel environment. Although previous literature has begun to focus on the consumer perspective of the omni-channel experience, little attention has been paid to the process of change from a single retail environment to omni-channel. By combining the research frameworks of unified theory of acceptance and use of technology (UTAUT) and the value-based adoption model (VAM), this study aims to identify the drivers of omni-channel consumer purchase intention in agriculture products retail. This article conducts a questionnaire survey on 620 samples in China. The results show that single-channel shopping cost, reference groups, positive online reviews, and single-channel perceived risk have a significant positive impact on the omni-channel purchase intention of agricultural products, and perceived value plays a mediating role. Moreover, contextual factors partially have a negative moderating effect. When consumers purchase agricultural products, the more suitable the online shopping environment is, the weaker the influence of single-channel shopping costs, reference groups and positive online reviews on consumers' omni-channel purchase intention. These findings build on the existing literature on the omni-channel retail consumer experience and provide insights for fresh produce retailers to implement and evaluate an omni-channel integration strategy for agriculture products. The findings may shed lights on how to promote the healthy development of the omni-channel sales model of agricultural products.

Physical or virtual showroom? The decision for omni-channel retailers in the context of cross-channel free-riding

Physical or virtual showroom? The decision for omni-channel retailers in the context of cross-channel free-riding

An Omnichannel Retailing Operation for Solving Joint Inventory Replenishment Control and Dynamic Pricing Problems From the Perspective of Customer Experience

Customer experience, a key element in the domain of omnichannel retailing, plays a vital role in attracting consumers. Implementing a new BOPS (buy online, pick up in store) strategy will not only affect the inventory structure and pricing strategy of retail enterprises, but will also impact the original sales channel. In accordance with the consumer experience, a dynamic optimization model of a retailer inventory system was established in this research. Based on the optimal control theory, analyze the optimal control strategies under four sales modes: online, offline, BOPS, and BOPS-PLUS (BOPS and buy offline online-logistics distribution). Through numerical experiments, the inventory control strategies and optimal discounted profits under the four modes are compared and analyzed. The results show that the optimal experience investment and dynamic pricing levels gradually decrease with time, and the inventory state has a vital influence on the discounted profit of the system. The traditional dual-channel retail model is optimal when the channel inventory is not out of stock. In situations where channel inventory is in short supply (both online and offline), a deeply integrated omnichannel retail mode BOPS-PLUS is best. The numerical analysis also reveals that price sensitivity coefficient, experience service coefficient and online return rate also have significant influence on the selection of optimal channel strategy.

What Factors Drive Product Returns in Omnichannel Retail?

What Factors Drive Product Returns in Omnichannel Retail?

Personalisation and the purchase intention of consumer in omnichannel retailing: the mediating role of hedonic motivation and brand attachment

Personalisation and the purchase intention of consumer in omnichannel retailing: the mediating role of hedonic motivation and brand attachment

Antecedents and outcomes of omnichannel retail customer experience

This research applies the concept of customer experience to omnichannel retail model and explores its antecedents and consequences. A conceptualised model was proposed to investigate the relationships among showrooming, webrooming, channel integration and omnichannel customer experience; relationships among the omnichannel customer experience and customer satisfaction, customer-brand engagement and word-of-mouth intention. 238 valid responses were obtained from surveys taken with customers of three biggest digital retailers in Vietnam which penetrating over 50% of the whole market share. Partial least square-structural equation modelling was employed to assess hypotheses. The results show that: 1) webrooming, showrooming and channel integration are the antecedents of the omnichannel customer experience; 2) omnichannel customer experience has three dominant outcomes as customer satisfaction, customer-brand engagement and word-of-mouth intention; 3) omnichannel customer experience plays the significant role in leading the customer satisfaction and webrooming has powerful role in enhancing customer experience.

Optimal Fulfillment and Replenishment for Omnichannel Retailers with Standard Shipping Contracts

Optimal Fulfillment and Replenishment for Omnichannel Retailers with Standard Shipping Contracts

Smart Luxury Shoppers’ Behaviour in China: Omni-Channel Perspectives of Gen Y Consumers

This study examines luxury goods purchasing behaviour among Chinese Generation Y consumers in the omni-channel retail context. Traditionally, in-store purchases were favoured for luxury items due to the tactile experience and quality assessment during decision-making. However, the unprecedented impact of COVID-19 has transformed consumer behaviour. People now navigate complex decisions, embracing various channels, including online platforms. With a dataset of 354 survey responses, this study employs quantitative analysis and structural equation modelling to uncover the factors influencing Chinese Generation Y consumers’ purchasing choices. The findings reveal that Generation Y luxury shoppers prioritise convenience and channel benefits. They also emphasise information sharing and community engagement, fostering shared experiences on retail platforms. Interestingly, this contradicts previous findings favouring offline channels such as webrooming. Ultimately, this study uncovers a behavioural trend where tech-savvy young consumers exhibit characteristics indicative of an interconnected marketplace. They prioritise convenience and mutual support through shared information in the luxury goods community, regardless of the item’s price tag. These insights provide valuable resources for marketers and researchers navigating luxury goods promotion. As online purchasing behaviours continue to evolve, these findings facilitate impactful discussions and informed strategies within the dynamic luxury market.

Alibaba Realizes Millions in Cost Savings Through Integrated Demand Forecasting, Inventory Management, Price Optimization, and Product Recommendations

Alibaba has developed a series of models and algorithms that include deep-learning algorithms for demand forecasting, simulation-optimization-based models for inventory management, price optimization for promotions, and markdown optimization for product recommendations. These models and algorithms have been implemented in its omnichannel retail infrastructure of several retail business subsidiaries over the past three years, and have generated more than 100 million dollars in annual cost reductions in cost and increases in profit.

A strategic model for the closed-loop supply chain network design for omni-channel retailing

A strategic model for the closed-loop supply chain network design for omni-channel retailing

A case and framework for expanding the use of model‐free evidence

A case and framework for expanding the use of model‐free evidence

Basket data-driven approach for omnichannel demand forecasting

Omnichannel retailing has changed the purchasing behavior of customers in recent years, especially in online shopping, which has led to higher complexity in supply chain demand forecasting. Nowadays customers buy a variety of products in baskets that do not share similar characteristics and across various channels. In this article, we propose a new approach to forecasting demand, driven by data on customers shopping baskets. Drawing on network graph theory and findings from the marketing literature, we identify for a given product four attributes to promote the connectivity with other products sold together in a basket: degree and strength for cross-categories connection, substitutability and complementarity for within-categories connection. These attributes are used as predictor variables within four proposed methods: an autoregressive integrated moving average model with exogeneous variables (ARIMAX), a linear and a polynomial regression with one lag of sales and a machine learning method. We conduct an empirical investigation using online and physical sales related to an assortment of 24,000 products of a major cosmetics retailer in France. We provide empirical evidence that using the shopping basket data with the proposed forecasting methods improves the forecasting accuracy and the stock control performance in omnichannel retailing. We also show that there is a benefit from joint forecasting of the online and store channels, and a benefit of shared inventory between both channels in terms of shortage reduction.

The Different Phases of the Omnichannel Consumer Buying Journey: A Systematic Literature Review and Future Research Directions

In recent decades, retail has been faced with a challenging scenario, resulting from the digital transformation driven by advances on the internet that has transformed retail business models, especially in commercial transactions, giving consumers a new shopping experience. However, it has been a challenge for retailers to maintain the same shopping experience in different marketing channel formats, mainly with regard to understanding the consumption habits of consumers and what can influence their purchase decisions. As far as is known, the buying process is not only about the act of buying. There is an entire buying journey that must be studied to ensure customer satisfaction from the first contact to the after-sales experience. In this context, this article identifies and analyzes the stages of the omnichannel retail purchase journey from the consumer’s perspective. To achieve the proposed objective, this study was conducted through a systematic literature review in accordance with the SPAR-4-SLR protocol. The results present several analyses that demonstrate the complexity involving the consumer’s perspective in the purchase decision process. The insights show how complex it can be to for companies to manage the purchase journey due to the individuality of each consumer. The main finding shows that most marketing studies do not address the omnichannel consumer journey and, when they do, they focus on specific parts to the detriment of a more holistic view of the buying process. The originality of this article lies in the fact that few studies on omnichannel retail have focused on the integration of all touchpoints using an empirical longitudinal evaluation.

Multi-Channel and Omni-Channel Retailing in the Scientific Literature: A Text Mining Approach

Electronic commerce appeared as a new way of managing businesses in the digital era. However, it has also been accelerated by the recent pandemic situation. Retailers had to find new strategies of reaching customers in the online environment. Thus, concepts such as multi-channel and omni-channel retailing have gained the attention of both retailers and researchers in this field. This paper aims at using a text-mining approach in order to reveal the researchers focus on this theme in a period that also precedes and covers the COVID-19 pandemic. The research methodology follows five steps that are necessary in order to obtain a relevant collection of documents that will further provide the content to be analyzed. These steps refer to: (1) Creating the database of documents for analysis purposes; (2) identifying geographic areas for separating the collection’s documents; (3) framing a thematic dictionary of descriptors; (4) exploring the text using text mining approach; and (5) correspondence analysis. The discussion of the main findings is constructed starting with the geographic and the temporal distribution of documents and the design of a thematic dictionary of descriptors. Then, exploring the content of the documents provides information on the frequency of descriptors and reveals clusters of descriptors along with a link analysis. All of them are presented separately on geographic regions. Finally, the correspondence analysis of descriptors versus years provides the proximity maps and reveals the preferred topics and less approached themes. Among the main findings, one can highlight: (1) The greatest contributor in terms of documents related to the theme of interest is the United States; (2) a higher number of connections (and stronger) among descriptors for America as compared to the other two regions; (3) some categories of descriptors are specific to a particular year, which means that there are different themes under the researchers lens depending on the period; (4) the most frequently used descriptors are included in the following categories from the dictionary: Online retail environment and Consumer behavior, regardless of the region. In the end of this paper, research limitations and guidelines for future research are elaborated.