Omni-channel Retail Environment Research Articles

WeStore or AppStore: How Customers Shop Differently in Mobile Apps vs. Social Commerce

In the dynamic e-commerce environment, social commerce has emerged as a revolutionary force, transforming how consumers interact and transact online. This paper investigates the differences in customers’ search and purchase patterns between a prominent online retailer’s burgeoning social commerce channel, the WeChat mini-program, and its native mobile app. We analyze the customers’ entire journey through a sequential search model that encapsulates decisions from channel selection to product search, search termination, and the final purchase. This study contributes to the search model literature by being the first to estimate both fixed and marginal search costs in a sequential search model in an omnichannel retail environment. We calculate fixed search costs, marginal search costs, and preferences for each channel, revealing differences in customers’ behaviors across channels. Our analysis shows that customers’ fixed search costs are higher, but marginal costs are lower on WeChat channel compared to the App channel. Also, customer characteristics like historical spending levels and search timing influence their search costs. From these insights, we suggest strategies tailored to each channel capitalizing on the differences in customers’ search costs. The first strategy encourages search initiation by lowering fixed search costs through peer-to-peer link sharing in the WeChat channel. The second strategy aims to minimize marginal search costs using search-triggering coupons in the App channel. Implementing these strategies significantly boosts conversion rates and profits for the online retailer. This research is one of the first to explore the differences between traditional retail channels and emerging social commerce channels.

Determinants of continuous usage intention of branded apps in omni-channel retail environment: Comparison between experience-oriented and transaction-oriented apps

Branded applications (apps) have become core touchpoints for improving consumer shopping experiences in omni-channel retailing, and many firms have developed different types of branded apps to provide additional value. Moreover, continuous usage intention is the key to improving enterprises' gain efficiency and consumers’ brand loyalty. This study aims to reveal how branded apps achieve continuance intention from the perspective of consumer perceptions by combining the technology acceptance model and investigating the impact of differences in channel features on usage behavior between the two types of branded apps. An experiment was designed comparing transaction- and experience-oriented branded apps. A structural equation modeling technique was employed to validate the model based on the survey data of respondents from the experimental groups. The results show that the supportive role of omni-channel has a unique experience mechanism that promotes continuous usage intention. However, there are two discrepant results regarding the effect of perceived complementarity on perceived usefulness in transaction- and experience-oriented branded apps. The mediating role of perceived usefulness between perceived consistency, complementarity, ease of use and consumer satisfaction was supported in the experience-oriented apps but rejected in the transaction-oriented apps.

Bilevel Programming for Manufacturers Operating in an Omnichannel Retailing Environment

In this article, we present a joint production, pricing, and inventory control problem that can help manufacturers manage revenue in an omnichannel environment. This article puts forward a multiperiod Stackelberg game between a manufacturer and a retailer, assuming the former to be the leader. The leader–follower game is formulated as a mixed-integer nonlinear bilevel optimization problem wherein both players seek to maximize their respective profits. The article envisions an omnichannel retailing environment where online, offline, direct, and drop-shipping channels coexist. It then investigates how enabling showrooming and webrooming on the drop-shipping channel account can affect the supply-chain profitabilities. The analyses suggest that when the customers are aided with showrooming and webrooming services and are allowed to place drop-shipping orders from retailers’ stores, additional profit can be generated in the supply chain. To solve the proposed bilevel optimization problem, we investigate single-level reduction using Karush–Kuhn–Tucker conditions and hierarchical optimization technique based on the simulated annealing and randomized decomposition solver. To assess the efficacy of the solution techniques, a comparative analysis is carried out. Thereafter, with the aid of numerical experiments and sensitivity analyses, this article draws the key managerial insights for manufacturers.

The Agency of Consumer Value and Behavioral Reasoning Patterns in Shaping Webrooming Behaviors in Omnichannel Retail Environments

With tremendous technological advancements, traditional retailing has progressively been transformed into an omnichannel retail environment. While making an appeal to the behavioral reasoning theory, this paper explicates consumers’ (hedonic and utilitarian) value expectations and behavioral reasoning patterns as key antecedents of the maturing of their webrooming intentions in omnichannel environments. Performing PLS-based structural equation modeling on survey data obtained from 470 consumers, it has been found that both the (perceived) value and behavioral reasoning patterns of the consumers exhibit significant direct and indirect effects on building favorable attitudes toward webrooming that eventually lead to the culmination of pro-webrooming intentions. Besides expanding our understanding of the phenomena of interest, this study offers useful insights to marketers/retailers on how to boost pro-webrooming attitudes, intentions, and behaviors by ensuring a superior alignment with (utilitarian and hedonic) value perceptions and pro- and counter-webrooming reasoning patterns of the consumers.

Omnichannel retailing: exploring future research avenues in retail marketing and distribution management

PurposeThis study explores the present state of research related to omnichannel retail, investigates retail's different sub-areas and suggests future research directions.Design/methodology/approachThe subdomains of omnichannel retail have been identified using a keyword co-occurrence network (KCN) map and content analysis. The 5W1H method assisted in finding the bibliographies of 258 SCOPUS-indexed and ABDC-ranked journal articles and showcasing the omnichannel retail landscape.FindingsMost research on omnichannel retail is concentrated on five subdomains: customer behaviour, channel integration, technological innovation, supply chain and operations and strategy. The study's conceptual framework illustrates the omnichannel retailing environment and the variables that must be considered whilst establishing an omnichannel strategic vision. Besides, future researchers have been urged to concentrate on interdisciplinary research, as a seamless experience is unachievable if focussed on a single subdomain.Research limitations/implicationsThere is a slight probability of missing out on some good articles as this study considered only those articles that have been published in SCOPUS and ranked by the ABDC quality list.Practical implicationsThis study emphasises that for businesses to capitalise on the omnichannel model, the businesses must undergo a transformation involving technology convergence, customer-centricity and internal process reorganisation that integrates consumer feedback to co-create value. When a business adopts an omnichannel model, the business's priorities shift. Rather than depending solely on technology, faster delivery and channel integration, an omnichannel strategy requires strong leadership, a clear vision, training for all stakeholders and an understanding of customer pain points to reach the full potential.Originality/valueThe illustration of the omnichannel retail landscape using the 5W1H methodology and antecedents-decisions-outcomes (ADO) framework.

An optimal decision for the fresh food supply chain network under omnichannel context

ABSTRACT Despite the significant attention to the customer experience which is a critical factor to help firms gain a competitive edge, there has been limited research regarding how to offer a superior customer experience in an omnichannel retailing environment through designing a fresh food supply chain network (FSCN). This paper develops a customised bi-level programming model for a capital constraint FSCN to reflect the interdependent relationship between two independent parties - the Omnichannel retailing company and customers with heterogeneous consumption requirements under time-varying overall demand uncertainty. A two-stage algorithm is applied to solve the optimisation problem, and a case study concerned with the establishment of FSCN is used to illustrate the applicability and efficiency of the proposed model and approach. The results obtained indicate the economic benefits of having a model that combines with a customer segmentation strategy. Both the operational efficiency of FSCN and the satisfaction level of customer experience are effectively improved.

Impulse buying behaviour in omnichannel retail: an approach through the stimulus-organism-response theory

PurposeThis study investigates impulse buying as a consumer behaviour outcome in omnichannel retail through the stimulus-organism-response (S-O-R) theory. For such, the authors addressed convenience and channel integration as the stimuli, the relationship among consumer empowerment, trust, satisfaction, and perceived value as the organism, and impulse buying as the response.Design/methodology/approachAn online survey was conducted with 229 customers of a Brazilian retailer that adopts the omnichannel strategy. Data were analysed by partial least squares structural equation modelling (PLS-SEM).FindingsChannel integration and convenience had a positive influence on consumer empowerment which, in turn, influenced customer satisfaction and trust, producing direct and indirect effects on their perception of value relative to the retailer. In addition, impulsive buying was significantly influenced by perceived value.Practical implicationsThe results indicate that retailers that use the omnichannel strategy need to be alert to the factors mentioned above. The study empirically demonstrates that investing in channel integration increases customer empowerment, which will significantly improve customer trust and satisfaction and, eventually, customer impulse buying from the retailer.Originality/valueThis work contributes to the literature on marketing and consumer behaviour by identifying factors that influence consumers' impulse buying behaviour in the context of omnichannel retail. It suggests that impulse buying may be a relevant variable to understand the reaction of consumers empowered by the integration of the marketing channels and the convenience offered to them in an omnichannel retail environment.

Fulfillment scheduling for buy‐online‐pickup‐in‐store orders

One of the most popular ways of shopping in an omnichannel retailing environment is buy‐online‐pickup‐in‐store (BOPS). Retailers often promise BOPS shoppers short in‐store pickup ready times. We study fulfillment scheduling decisions of BOPS orders destined for a single store of a retailer. There are two fulfillment options for BOPS orders: they can be either processed at a fulfillment center (FC) and delivered to the store or processed at the store without needing delivery. There are two types of trucks available to deliver the BOPS orders fulfilled at the FC: prescheduled trucks that are already committed to replenishing store inventory and have some spare capacity that can be utilized, and additional trucks that can be hired from third‐party logistics providers. There is a fixed cost for using each truck; the cost for using a prescheduled truck is lower than that for using an additional truck. If an order is fulfilled at the store, it incurs a processing cost and a processing time, whereas the processing cost and time are negligible if an order is fulfilled at the FC. The problem is to determine where to fulfill each order (FC vs. the store), how to assign the orders fulfilled at the FC to trucks for delivery, and how to schedule the orders fulfilled at the store for store processing, so as to minimize the total fulfillment cost, including the delivery cost from the FC to the store incurred by the orders processed at the FC, and the processing cost for fulfilling the rest of the orders at the store, subject to the constraint that each order is ready for pickup at the store by its promised pickup ready time. We consider various cases of the problem by clarifying their computational complexity, developing optimal algorithms and heuristics, and analyzing theoretical performance of the heuristics. We also conduct computational experiments to validate the effectiveness of the proposed heuristics in both static and dynamic settings and derive important insights about how the presence of prescheduled trucks and the presence of store fulfillment option impact the fulfillment cost and decisions.

Consumer Intention towards Webrooming Behavior in Emerging Economies: A Conceptual Framework based on Behavioral Reasoning Theory

Purpose: Recent research about consumer webrooming behavior has conferred the importance and wide prevalence of this behavior and indicates the impelling need for the exploration of this emerging phenomenon in the omni-channel retail environment. The purpose of this study is to understand consumers’ reasons related to channel attributes, acting as determinants and resistance factors for the consumers’ intention towards webrooming behavior, based on the framework of the Behavioral Reasoning Theory (BRT).
 Design/Methodology/Approach: Using the framework of BRT, postulations related to webrooming behavior have been proposed. The postulations are based on the literature review on webrooming conduct in the omnichannel shopping scenario.
 Findings: The proposed model imparts understanding about webrooming behavior on the basis of consumers’ reasoning and values underlying their attitude and intention towards webrooming behavior to provide a comprehensive view for understanding webrooming behavior in omni-channel retail environment.
 Implications/Originality/Value: This study contributes to the literature on the important research area of changing consumer buying behavior due to transforming retail structure, herein, the webrooming behavior, in the context of omni-channel retailing, in emerging economies.

Determinants of Consumers’ Willingness to Participate in Fast Fashion Brands’ Used Clothes Recycling Plans in an Omnichannel Retail Environment

Omnichannel retailing and sustainability are two important challenges for the fast fashion industry. However, the sustainable behavior of fast fashion consumers in an omnichannel environment has not received much attention from researchers. This paper aims to examine the factors that determine consumers’ willingness to participate in fast fashion brands’ used clothes recycling plans in an omnichannel retail environment. In particular, we examine the impact of individual consumer characteristics (environmental attitudes, consumer satisfaction), organizational arrangements constitutive for omnichannel retailing (channel integration), and their interplay (brand identification, impulsive consumption). A conceptual model was developed based on findings from previous research and tested on data that were collected online from Chinese fast fashion consumers. Findings suggest that consumers’ intentions for clothes recycling are mainly determined by individual factors, such as environmental attitudes and consumer satisfaction. Organizational arrangements (perceived channel integration) showed smaller effects. This study contributes to the literature on omnichannel (clothing) retail, as well as on sustainability in the clothing industry, by elucidating individual and organizational determinants of consumers’ recycling intentions for used clothes in an omnichannel environment. It helps retailers to organize used clothes recycling plans in an omnichannel environment and to motivate consumers to participate in them.

Optimal Channel Strategy for a Fresh Produce E-Commerce Supply Chain

As an increasing number of firms move to omnichannel operation for business sustainability, it is also necessary for fresh produce firms to adopt an omnichannel model by integrating online and offline channels. We focus on a fresh produce supply chain consisting of a supplier who sells online directly and a physical store retailer. The purpose of this paper is to explore the optimal channel selection strategy considering the fresh-keeping efforts of supply chain members. Specifically, we examine the conditions under which the supply chain members should cooperate to adopt the deliver-from-store (DFS) model and further investigate the impact of consumers’ freshness sensitivity and offline hassle cost on supply chain members’ sales model options. Several important conclusions are shown as follows. First, the retailer’s profit increases with the increasing freshness sensitivity in the dual-channel model, while it decreases if consumers are sufficiently sensitive to freshness in the DFS model. Second, if adopting the DFS model, online demand and total market demand expand, and the performance of the supplier and the retailer heavily depends on the size of the commission rate. Third, there always exists a win–win situation with an appropriate range of commission rate when the consumer’s hassle cost is large. This paper contributes to the omnichannel strategy research of fresh produce supply chain management and the results provide management insights for the sustainable development of the fresh produce industry in the omnichannel retailing environment.

Importance of offline service quality in building loyalty of OC service brand

Customer management becomes increasingly important as consumers have more flexible shopping process and options and competition become intensified in omni-channel (OC) retail environment. OC retailer can facilitate customer communication of OC service with OC service brand. This study evaluates an OC service brand (i.e. SSG OC service brand) to explore the effectiveness of integrated OC service platform which has a standing brand identity, and to determine the importance of selected offline characteristics of OC service on loyalty of OC service brand. Survey of 127 respondents was collected to test Partial Least Squares-Structural Equation Modeling (PLS-SEM). Findings show that tangibility and empathy of offline OC service directly affect customer satisfaction and attitude toward overall OC service brand, confirming the importance of offline service quality of OC in the OC service brand management.

Impact of environmental attitude and materialism on apparel disposal intention

Sustainability is an important rising trend in the apparel industry. Accordingly, this study focuses on the influence of environmental attitude, materialism, channel integration, and other factors on apparel disposal recycling intention in an omni-channel retailing environment. The main findings are as follows: materialism has a significant positive impact, channel integration quality has a significant negative impact, and environmental attitude has no significant impact on impulsive consumption. Next, environmental attitude, impulsive consumption, and channel integration exert significant positive effects on used apparel recycling intention. Finally, improving channel consistency could increase female consumers’ willingness to recycle used clothes more than that of male consumers.

Optimal in-store fulfillment policies for online orders in an omni-channel retail environment

The explosive growth of e-commerce creates a need for increasingly responsive omni-channel fulfillment capabilities, which raises new challenges in inventory management and order fulfillment for retailers. In response to these challenges, many retailers attempt to establish so-called ship-from-store concepts, which leverage their physical store networks to fulfill online orders. In this study, we analyze the optimal setup of these in-store fulfillment processes of online orders for an omni-channel retailer. We use a simulation-based approach combined with exploratory modeling to prescribe optimal fulfillment policies under a variety of sources of uncertainty. We apply our proposed model to a case study informed by real data from a leading sports fashion retailer in New York City in order to illustrate the practical applicability and value of our approach. Our results determine (i) the optimal amount of time to allow for batching of online orders prior to starting the in-store picking process; (ii) the optimal amount of time to allow for readily picked orders prior to starting the delivery process; (iii) the optimal number of pickers; and (iv) the optimal number of packers, and the related performance measures. Finally, we build on our analysis results to derive a set of managerial implications applicable to many omni-channel problems.

Determinants of Webrooming and Showrooming Behavior: A Systematic Literature Review

The aim of this study is to explore the characteristics of omnichannel shoppers in the context of webrooming and showrooming behavior. A total of two hundred and forty research papers were accessed from various sources through searches based on keywords. One hundred and thirteen papers were found to be relevant for further analysis. Most of the studies were from the USA and UK and had predominantly used structural equation modeling for analysis and establishing relationships between the variables of interest. Based on analysis of these studies and a thorough review of extant literature on omnichannel retail environment in general and webrooming and showrooming behavior in particular, the present study attempts to (i) provide deeper insights into the omnichannel phenomena; (ii) identify the determinants of the consumer purchase journey in an omnichannel environment; (iii) categorize the extant studies in five broad areas; and (iv) identify the critical areas for future research focusing on new forms of buying behaviors.

ДОСЛІДЖЕННЯ ПОВЕДІНКИ СПОЖИВАЧІВ В ОМНІКАНАЛЬНОМУ СЕРЕДОВИЩІ ЕЛЕКТРОННОЇ КОМЕРЦІЇ В УКРАЇНІ

If earlier retailers could clearly divide buyers into those who prefer to buy online or offline, then over the past year, the number of omnichannel sales has increased by 25%. A modern buyer uses at least 5-6 sales channels, wants to know everything about the product: from the description on the website to the opinions of opinion leaders on forums and social networks. The convergence of physical and online retail has paved the way for the emergence of omnichannel retailing, and the trend for omnichannel consumption is becoming increasingly important. The main challenge facing companies is to streamline the buying process in such a way that customers will not spend money in the buying process due to a change in the distribution channel. Enterprises are faced with the need for a more detailed study of consumer behavior in order to organize effective cooperation with them in an omnichannel retail environment. The article examines trends, problems and prospects for the implementation of an omnichannel strategy in the activities of domestic retail companies. The necessity of building links between online and offline stores have been substantiated. In order to study the behavioral models of consumers in an omnichannel environment, a marketing research was conducted of the regular customers of the largest retailer of sportswear and footwear in Ukraine, the “Sportmaster Ukraine” company. The case survey was conducted during June-August 2021 using the convenience sampling method. In fact, more than 250 respondents were interviewed. Based on the results of a theoretical study and on the basis of a statistical analysis of empirical material collected in a marketing research of the sportswear and footwear customers behavior, the six most common behavioral models of consumers in an omnichannel environment were identified, in particular: ROPO (Research Online Purchase Offline), BOPS (Buy Online Pick up in Store), "Looking cheaper prices”, “Uses a mobile apps”, “Reacts to push messages”, “Target”. For each of the selected groups of consumers, approaches to cooperation were developed and proposed. For each of the selected consumer segments, approaches to cooperation were developed and proposed that can be used by retailers when working in the omnichannel environment of e-commerce in the clothing and footwear market.

Crafting the customer experience in omnichannel contexts: The role of channel integration

Although the customer experience is a key factor in helping firms gain a competitive advantage, the knowledge regarding how to provide a superior customer experience in an omnichannel retailing environment remains limited. To fill this research gap, this study investigated and compared the effects of channel integration on cognitive and affective customer experiences. The findings suggest that integrated efforts encompassing promotion, product and price, and transaction information are more influential in enhancing the cognitive customer experience than the affective customer experience. Furthermore, integrated customer service has a weaker effect on the cognitive customer experience than on the affective customer experience. The results also indicate that integrated information access and order fulfillment do not differ significantly in their contributions to cognitive and affective customer experiences. These findings enhance the literature on the customer experience and channel integration. They also offer insightful implications for omnichannel retailers in terms of creating and managing the customer experience.

Antecedents of Webrooming in Omnichannel Retailing.

Although webrooming has become common practice in omnichannel consumer behavior, only a few empirical studies have managed to shed light on the phenomenon. With this research work, we aim to investigate important antecedents of webrooming. We base our conceptual framework on anticipated utility theory and expect that customers’ anticipated utility from using the physical store versus the online store for purchase can be predicted by four groups of antecedents: psychographic variables, shopping motivations, channel-related variables, and product-related variables. With the help of a data set from a large cross-national online survey in which 1497 customers reconstruct their last purchase journey, we differentiate webroomers from pure online shoppers. In addition, we disentangle customers who used retailer-owned, competitor-owned, and independent touchpoints along the search and purchase phase of the customer journey in order to characterize webroomers in an omnichannel context and assess their prevalence in different countries and industries. Our insights on the characteristics and antecedents of webrooming help retailers to detect and better understand the psychology behind the webrooming phenomenon from a consumer perspective in an omnichannel retailing environment. In addition, results from our exploratory analysis on the positive association between webrooming and customer spending contribute to research and practice by providing first evidence on the economic value of webrooming.

Participation in Fast Fashion Brands’ Clothes Recycling Plans in an Omnichannel Retail Environment

The rise of the fast fashion industry allows more and more people to participate in fashion consumption, but goes along with negative consequences on the environment. To reduce wastage, fast fashion retailers have begun to offer used clothes recycling plans to which customers can submit clothes they no longer wear. Since these recycling plans have mainly been operated in offline stores so far, the rise of omnichannel retailing poses new challenges on retailers with regard to organizing the plan and motivating consumers to participate. On a sample of N=370 Chinese fast fashion consumers, this paper investigates, which factors determine consumers’ willingness to participate in fast fashion brands’ used clothes recycling plans in an omnichannel retailing environment. It finds that consumers’ clothes recycling intention is determined by individual predispositions (environmental attitude, impulsive consumption), as well as by organizational arrangements (channel integration quality), as well as by the outcomes of their interaction (consumer satisfaction, brand identification). Conclusions are drawn, implications for omnichannel fast fashion retailing practice, as well as for further research, derived, and limitations discussed.

옴니채널 유통환경에서의 고객서비스전략 – 롯데백화점 사례

본 연구는 현재 포화상태인 유통업계에서 기업이 살아남는 전략을 분석한 사례연구로써, 롯데백화점을 대상으로 사례분석을 실시하였다. 현재 롯데백화점은 온라인과 오프라인을 유기적으로 통합한 쇼핑환경인 ‘옴니채널(Omni-Channel)’ 서비스 구현에 집중하고 있다. 이는 옴니채널을 통한 신 서비스 개발 및 편의성을 고객에게 제공함으로써 효과적인 고객 관리 및 신뢰성 있는 정보 제공을 통해 고객 충성도와 만족도를 이끌 수 있기 때문이다. 또한 기업의 전략 방향을 소통이라는 키워드를 중심으로 분석을 실시하였다. 현재 롯데백화점은 고객과 소통하는 외부적 소통을 가장 발전된 기술을 통해 진행하고 있다. 이와 동시에 내부 마케팅을 통해 내부 직원들과의 소통을 중요시하고 있다. 내부 고객 관리는 고객만족과 소비자지향성 영향을 미치는 직접적인 요인이기 때문에 서비스 직군이 중요한 유통기업에는 필수적인 사항이기 때문이다. 따라서 본 연구는 위의 내용을 중심으로 사례분석을 실시하였으며 그 결과는 다음과 같다. 첫째, 롯데백화점은 내부 구성원들을 위한 다양한 소통 정책을 시행하고 있다. 둘째, 롯데백화점은 종업원 자산화 관점의 경영을 시행하고 있다. 셋째, 롯데백화점은 급변하는 유통 환경에 대응하기 위해 디지털 유통 인프라를 확대하고 있다. 넷째, 롯데백화점은 고객 만족을 넘어 고객의 삶과 질을 높일 수 있도록 노력하고 있다. 마지막으로 롯데백화점은 고객 만족에 영향을 줄 수 있는 다양한 요소를 고려한 내/외부적 프로그램을 시행하고 있다.