Omnichannel Strategy Research Articles

Value co-creation through branded apps: enhancing perceived quality and brand loyalty

PurposeBranded applications (apps) are increasingly important in marketers' omnichannel strategies. They have not only changed the way customers purchase but also changed the way how companies interact with customers. Building on value co-creation literature, this research investigates consumer brand engagement's role in enhancing perceived quality and brand loyalty via value co-creation.Design/methodology/approachUsing online survey data from 355 brand app users, a conceptual model is tested employing the partial least squares structural equation modeling.FindingsThe results suggest that not only does branded app personalization drives brand co-creation (fully mediated by consumer brand engagement) but that this process also increases perceived quality and brand loyalty among users of branded apps.Research limitations/implicationsData for the study are self-reported and thus may not accurately reflect actual attitudes and behaviors. In addition, respondents were students within the United States who, although representative of branded app users, may limit the generalizability of the study.Practical implicationsKnowing that branded apps can influence customers' perception of the quality and value of their apps, products and services, or even their associated brands, marketers and app designers should work together to provide a value co-creation platform through the apps to increase customers' personalized, engaging experience.Originality/valueAlthough various relationships between personalization, engagement and co-creation have been studied, along with their impact on loyalty and perceived value, the interaction between these factors is not widely understood. The study examines these interactions in the context of branded apps, through the service-dominant logic perspective.

Performance Evaluation of Omni-Channel Distribution Network Configurations considering Green and Transparent Criteria under Uncertainty

Satisfying customer demand is one of the growing concerns of supply chain managers. On the other hand, the development of internet communications has increased online demand. In addition, the COVID-19 pandemic has increased the demand for online shopping. One of the useful concepts that help to address this concern is the omni-channel strategy, which integrates online and traditional channels with the aim of improving customer service level. For this purpose, this paper proposes an algorithm for evaluating Omni-channel Distribution Network Configurations (OCDNCs). The algorithm applies an extended Data Envelopment Analysis (DEA) model to evaluate OCDNCs based on cost, service, transparency, and environmental criteria; and then, forms a consensus on the evaluation results generated according to different criteria by utilizing an uncertain optimization model. To the best of our knowledge, this is the first attempt in which such an algorithm has been employed to take into account the mentioned criteria in a model to evaluate OCDNCs. The application of the proposed models was investigated in a case study in relation to the Indian retail industry. The results show that the configuration with the most connections among its members was the most stable, robust, and efficient.

STRATEGI OMNICHANNEL SEBAGAI UPAYA PENINGKATAN TRUST DAN BRAND IMAGE PADA MASA PANDEMI COVID-19 KOTA SURABAYA

ABSTRACTThis study analyzes omnichannel strategies as an increase in trust and brand image using qualitative methods with indepth interview data analysis. The focus of this research is omnichannel, trust, and brand image which seeks to be analyzed so that it can explain social phenomena that occur in society. The location of this study was conducted in the city of Surabaya, the location of the study was determined because the complex problems discussed in this study were experienced by consumers and producers in the city of Surabaya. Although it is not fully researched by each region, considering the urgency of this research is in the online marketplace where all consumers and producers in the city of Surabaya can be actively involved in market mechanisms. The study broadens the understanding of the field of omnichannel retail in a number of dimensions, firstly the research assumes a linear consumer decision-making process. Second, the literature and structure review brings the spotlight needed to observe omnichannel based on a broader management perspective. This focus is more context-specific and fragmented from the findings about the decision-making process. Fourth, this study shows results in online business people who do not understand much about omnichannel strategies carried out by the segmentation of medium to upper business people.

Optimal Omnichannel Development Strategy in O2O Supply Chain under the Impact of Webrooming

This study analyzes how webrooming affects the O2O supply chain of an e-tailer and a brick-and-mortar store. Two types of brick-and-mortar stores are considered: self-owned and franchised. We first determine via game theory the optimal pricing and service decisions for the e-tailer and brick-and-mortar store when prices are uniform or nonuniform online and offline. The results indicate that webrooming benefits both the e-tailer and brick-and-mortar store when prices are nonuniform. For self-owned stores, the online market share and consumer traveling costs weaken the positive webrooming effect on the e-tailer’s profit when the price is nonuniform. For the franchised store, webrooming weakens the positive role of online market share and reinforces the negative effect of traveling costs for the e-tailer. The positive effect of webrooming on franchised stores in the case of nonuniform pricing is more significant than in the case of uniform pricing when online market share or traveling costs are lower. These results have important implications for management and should help e-tailers develop an omnichannel strategy.

Benefit from a high store visiting cost in an omnichannel with BOPS

Omnichannel sales surge in the coronavirus pandemic. This paper establishes an analytical model to study when a firm can benefit from implementing the omnichannel strategy of buy-online and pick-up in-store (BOPS), where the market characteristics are captured by the two-dimensional heterogeneity of product valuation and online waiting cost. The increase in the store visiting cost will reduce BOPS consumers’ willingness to pay, but it will also strengthen the encroachment of BOPS on traditional dual-channel. The results show that the firm can benefit from the BOPS strategy when the store visiting cost is relatively high. This well explains the rapid development of the omnichannel with BOPS because of a high store visiting cost during COVID-19. Furthermore, sharply contrasting to the traditional dual-channel sales in which a higher store visiting cost always hurts the firm, the profit under BOPS can be nonmonotonic in the store visiting cost and the firm can benefit from a higher store visiting cost. Specifically, the combination of cross-selling effect, BOPS encroachment effect and BOPS expansion reduction effect associated with the store visiting cost can result in a U-shaped or inverse U-shaped BOPS profit. In addition, introducing BOPS motivates the firm to either increase or decrease the optimal price, conditional on the store visiting cost. For consumers, online and offline consumers can also indirectly benefit from the BOPS strategy, though they may not enjoy the BOPS service.

Do as You Say, or I Will: Retail signal congruency in buy‐online‐pickup‐in‐store and negative word‐of‐mouth

AbstractBuy‐online‐pickup‐instore (BOPIS) services have become an increasingly important part of a retailer's omnichannel strategy. When service failures (e.g., stock‐out) occur, consumers may resort to negative word‐ofmouth (NWOM) to share their evaluation of the retailer's BOPIS service. While a retailer's service recovery policies (e.g., cross‐channel substitution) may help to fulfill its service intent, the extent to which these two signals can improve consumer satisfaction and diminish their NWOM intent remains unknown. Drawing from both service recovery literature and signaling theory, we conducted a series of five experiments and find that the intradimensional congruity of the signal set communicated by the retailer during its BOPIS service process depends on both its operational capability and the consumer's own predilection regarding the product category. These insights collectively indicate that while a retailer's operations need to support service policies to provide a congruous BOPIS service process, substitution policies offered to consumers during the transaction need to consider the extent to which a consumer's purchase decision is hedonic or utilitarian. In turn, this finding suggests that a retailer's category management needs to consider BOPIS substitution in terms of both product assortment and inventory policies.

Developing a Sustainable Omnichannel Strategic Framework toward Circular Revolution: An Integrated Approach

One of the contributions of digitalization to cyclical change is the adoption of Omnichannel Marketing (OM) as a new marketing strategy for brands. In this research, we examined whether the quality of integration (INQ) in omnichannel environments has an effect on brand equity (BE) and its dimensions (brand loyalty (BL), brand association and brand awareness (BAS), and perceived quality (PQ)) within the framework of a structural model. We aim to expand the limited number of INQ research areas. In this context, in the first stage of our research, we conducted an online survey consisting of three parts with the consumers of the Nike luxury sportswear brand, which is in 11th place in the global brand value ranking, residing in Turkey from the developing countries. In the second stage of the analysis, we performed CFA for scale reliability and validity. Crobach’s alpha, AVE and CR values for all factors of the scale exceeded the threshold values in the literature. In addition, the goodness-of-fit values of the scale, which were checked for compliance with the research, exceeded the threshold values. In the third stage of the analysis, we performed SEM analysis to test the model of the study and the assumptions of the study. The SEM results of our research confirmed the assumptions established between INQ and BE and its components in the context of OM. SEM results revealed that INQ had the highest effect (0.93) on BAS and PQ and the least effect (0.86) on BL, and INQ affected BE with 0.90. The results of this research, which examines the predictors of brand equity and its components, offer implications for OM, INQ, BE subject areas that have not been empirically analyzed despite increasing knowledge and still having limitations in theoretical information. Our research is unique, as it is the first study to empirically examine the relationship between INQ and BE and its components in the context of OM. The research on omnichannel applications is quite limited. This study brings a conceptual extension to the literature on omnichannel strategies, INQ and OM, whereas they presented the necessary reasons for managers to provide INQ in an omnichannel environment in order to increase brand equity, with an empirical application. In addition, the most important benefit of this research is that it shows brand owners and managers and brand marketers a way to set up the omnichannel system toward circular revolution.

Channel transparency and omnichannel retailing: The impact of sharing retail store product availability information

AbstractAs more firms look to implement omnichannel strategies to mitigate the inherent information barriers between online and offline channels, understanding the outcomes of these initiatives is critical. This study empirically examines the impact of the decision to share brick‐and‐mortar (B&M) store product availability information with customers, specifically focusing on the scenario where a discrepancy exists in the product assortment of online and offline channels. We investigate the impact of this information sharing strategy on customer research shopping trajectories using a proprietary dataset collected from a leading North American retailer. Using a difference‐in‐differences approach, we find that this strategy helps boost the overall sales from customers who reside within the trade area of a retail store. At the channel level, the policy induces customers to migrate from the B&M channel to the online channel after learning that the product selection offered at their local retail store may not meet their needs, resulting in a significant increase in online sales, but a slight decrease in B&M sales. From an operational perspective, our empirical evidence suggests that sharing retail store product availability information leads to more customers using the expedited shipping service when shopping online. Furthermore, we also discover a slight increase in the overall return rate. We conclude by providing managerial implications on the functionality of the online and B&M channels and how retailers can coordinate services offered by both channels to improve the utility customers receive from the brand.

Store density in omnichannel implementation while considering the environmental impact of packaging materials

A staggering amount of packaging materials consumption in e-commerce has become a significant threat to the environment. The option of ordering online and fulfillment by offline stores significantly decreases the use of packaging materials. The aim of this paper is to introduce an analytical model to support the decision of an omnichannel strategy implementation while simultaneously optimizing the offline stores' density, pricing strategy, and environmental impact of packaging materials. Two omnichannel models are compared, the Buy-Online-and-Pick-Up in-Store (BOPS) mode and a combination of the BOPS mode plus a Ship-From-Store (SFS) mode (BOPS + SFS). The BOPS and BOPS + SFS modes consider an inconvenience cost for consumers who decide to pick up their product at the offline store. The consumers' inconvenience cost is a function of the distance to the offline stores, which suggests that a greater stores' density results in a lower inconvenience cost. The proposed analytical model shows that both the BOPS and the BOPS + SFS modes support a reduction of the environmental impact of packaging materials when compared with the online-only mode. Moreover, there is an optimal offline stores' density that maximizes profits while reducing packaging materials. The density of offline stores is a strategic planning decision to balance operating costs and consumer inconvenience costs. The fulfillment of online orders through physical stores is an encouraging strategy to solve the problem of over-packaging and improves the customer's experience through fast and convenient order pickup; furthermore, it is aligned with the interests of environmentally aware customers. The research findings can guide decision makers when analyzing an omnichannel implementation or searching for improvement opportunities in sustainable e-commerce.

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.

How to retain customers in omnichannel retailing: Considering the roles of brand experience and purchase behavior

The opportunities and challenges of omnichannel in retail industry have been widely discussed, yet despite these benefits, the key elements that constitute an effective omnichannel and how customers respond to omnichannel retailing strategies remain unclear. This research conducted online surveys to test the effects of omnichannel elements on various brand experiences and customer retention, considering the moderating role of purchase behavior. The results indicate that omnichannel elements (integration, individualization, and interaction) are generally helpful in retaining customers, through omnichannel elements influence brand experiences differently. In addition, these omnichannel elements have different influences on customer retention due to different purchase behaviors. The findings suggest that retailers can use different omnichannel strategies to attract customers’ purchases and provide insights for practitioners who want to use omnichannel strategies to deliver superior experiences for customers.

Optimal ordering decisions for an omnichannel retailer with ship‐to‐store and ship‐from‐store

AbstractMany retailers have recently integrated online and offline channels to give consumers a seamless shopping experience. Our study considers an omnichannel retailer fulfilling order delivery by adopting two common strategies, ship‐to‐store (STS) and ship‐from‐store (SFS), when one of the channels is in short supply. We develop a newsvendor model to investigate the effects of these two omnichannel fulfillment strategies on the retailer's order decisions and expected profits. The analysis reveals the key roles of the external market and inventory cost of different channels in adopting an omnichannel strategy. An interesting finding is that the retailer may adopt the STS (SFS) strategy and take the offline (online) channel as a showroom (virtual webroom) to obtain higher profits than without adopting an omnichannel strategy.

PROSPECTS OF THE MARKETING COMMUNICATION DEVELOPMENT OF TRADE ENTERPRISES IN CURRENT CONDITIONS

Within the article, the main directions of the marketing communication development of trade enterprises are analyzed. The purpose of the article is to substantiate the prospects for the development of marketing communications of commercial enterprises in modern conditions of development, taking into account trends in the digitalization of economic processes. The methodological basis for the study of prospects for the development of marketing communications of commercial enterprises is a comprehensive approach that includes systems and processes. The use of a systems approach makes it possible to explore the components of marketing communications as part of a general system that can give a result greater than the individual components of this system, as well as to justify the recurrent relationship of functional dependence of marketing communications. The main components of marketing communications are identified. It is substantiated that marketing communications should be considered not only in terms of the use of appropriate tools, but also take into account the information component of sales channels. The subsystems of the marketing communication environment that promote information exchange between consumers and enterprises in the formation of effective interaction are studied. Recommendations for the application of omnichannel strategy of the marketing communication development of commercial enterprises have been proposed. The expediency of introduction of the client-oriented approach taking into account current conditions of functioning of trade enterprises is substantiated. It was found that for the effective functioning of commercial enterprises it is necessary to apply a combined approach, which includes both omnichannel and traditional sales channels. To assess the effectiveness of the system of omnichannel marketing communications of a commercial enterprise, it is proposed to use a recurrent ratio.

Omnichannel retailing with different order fulfillment and return options

The omnichannel strategies buy-online-and-return-in-store (BORS) and buy-online-and-pick-up-in-store (BOPS) have attracted attention from both industry and academia. In practice, major retailers adopt BORS and BOPS both individually and jointly, which motivates us to explore when it is profitable for a retailer to adopt BORS or/and BOPS strategy. We formulate a stylised model that captures (1) consumers' uncertainty about product match, (2) the offline search cost for consumers, and (3) the cross-selling effect of the consumers' store visit. We find that the cross-selling benefit and the offline search cost have a significant impact on the retailer's optimal omnichannel strategy. When the cross-selling benefit is sufficiently low, adopting BORS alone is optimal for the retailer. When the cross-selling benefit is moderate and the offline search cost is high, adopting both strategies has a complementary effect, and it is optimal for the retailer to adopt both omnichannel strategies jointly. However, when the cross-selling benefit is sufficiently high, adopting both strategies could be less profitable to the retailer than adopting the BOPS strategy alone. Moreover, consumer surplus may decrease in this case, suggesting that adopting both omnichannel strategies could result in a lose-lose situation for both the retailer and the consumers.

Flaneuring the buyosphere: A comparative historical analysis of shopping environments and phantasmagorias

This paper proposes a comparative historical analysis of shopping environments, focusing on the aesthetic experience they offer to the consumer and underscoring their nature as phantasmagorias. At a time when digital disruption, exacerbated by the recent pandemic, has dramatically changed social habits and the cityscape, this research aims to investigate the impact of technological and social transformations on the buyosphere and the practice of shopping. The approach's original perspective looks at the close correlation between the flâneur and the consumer, examining how retail spaces in the modern metropolis have developed. The shopping experience is shown as a social ritual with complex facets, where the urban walker and the cityscape have gradually transformed, giving symbolic meaning to architectural forms and human identities. The findings of this study call for considering the opportunities and threats of the present scenario. The shift to the virtual realm has created new forms of phantasmagoria, such as the immersive experience in the brand's universe combined with omnichannel strategies. At the same time, the “retail apocalypse” and the reduction of spaces for wandering may risk limiting social encounters, the freedom of movement, and the individual's ability to interpret urban reality, elements that once defined the practice of flânerie.

Bütüncül Kanal Entegrasyon Kalitesi Boyutlarının Tüketicilerin Satın Alma Niyeti Üzerindeki Etkileri

Bilgi ve iletişim teknolojilerindeki gelişmeler, perakendeciler ile tüketiciler arasındaki işlemlerin gerçekleştirilmesi için alternatif kanalların giderek yaygınlaşmasına ve benimsenmesine neden olmuştur. Bu durum; perakendecilerin sorunsuz müşteri deneyimini geliştirmeleri, veri uyumsuzluğunu azaltmaları ve birden çok kanalı bağımsız olarak yönetme güçlüğünü aşmak için, mevcut kanalların sinerjisine ve entegrasyonuna odaklanan bütüncül kanal stratejisine geçişi teşvik etmiştir. Bütüncül kanal sisteminin kurulmasının ve başarılmasının temel özelliği, kanal entegrasyon kalitesinin sağlanmasıdır. Bu bağlamda çalışmada, tüketicilerin hizmet kalitesi değerlendirmesi için büyük önem taşıyan bütüncül kanal entegrasyon kalitesi boyutlarının belirlenmesi ve bu boyutların tüketicilerin satın alma niyeti üzerindeki etkisinin araştırılması amaçlanmıştır. Çalışmada bütüncül kanal entegrasyon kalitesi boyutlarının belirlenmesinde ve bu boyutların tüketicilerin satın alma niyeti üzerindeki etkisini ölçmede ilgili literatürden yararlanılarak oluşturulan bir modelden yararlanılmıştır. Çalışma, 18 yaşın üzerinde olan ve giyim alışverişlerinde bütüncül kanal deneyimi bulunan 459 tüketicinin katılımıyla, çevrimiçi anket yöntemiyle yapılmıştır. SPSS ve Smart PLS paket programı kullanılarak yapılan analizde bütüncül kanal entegrasyon kalitesinin; kanal hizmet yapılandırma, içerik tutarlılığı, süreç tutarlılığı, güvence ve kanal karşılıklılık kalitesi boyutlarından oluştuğu bulunmuştur. Smart PLS programı ile gerçekleştirilen yapısal eşitlik modellemesi analizi sonucuna göre, güvence, kanal hizmet yapılandırma ve süreç tutarlılığı kalitesi boyutları tüketicilerin satın alma niyeti üzerinde anlamlı etkilere sahipken; kanal karşılıklılık ve içerik tutarlılığı kalitesi boyutları anlamlı etkilere sahip değildir.

Designing a seamless shopping journey through omnichannel retailer integration

Little is known about how omnichannel retailers should integrate their channels to provide their customers with seamless shopping journeys, or how this can impact desirable consumer behaviors. This gap in knowledge can be of significant concern for retailers due to the investment required in omnichannel and the potential negative impacts on their performance. This article explores the concept of the seamless shopping journey and proposes a valid and reliable measurement scale. By analyzing retailers’ omnichannel strategies and their consumers’ perceptions of seamless shopping, we show how retailer omnichannel integration strategies directly affect customers’ seamless shopping journey perceptions. Customers who perceive shopping as seamless are more engaged, likely to buy more and less likely to switch to another retailer. Our work offers actionable guidance to retailers seeking to enhance their omnichannel strategies and to achieve a seamless shopping journey.

When Digitalization Meets Omnichannel in International Markets: A Case Study from the Agri-Food Industry

Digitalization is prompting small and medium-sized enterprises to structural and strategic transformations, also providing new opportunities to expand and succeed in foreign markets. However, relatively few studies have investigated emergent digital technologies in international business management. Contextually, there is still a dearth of research on the multi-faceted impacts of digitalization on omnichannel strategy characterizing most of the global business environment today. This paper, therefore, aims to examine the impact of digitalization on omnichannel choices adopted by internationalized SMEs. A qualitative approach, based on a single case study methodology, is adopted. An Italian agri-food SME is chosen as this industry is considered a key and distinctive pillar of Made in Italy in the international markets. Findings reveal the potential of digital technologies’ applications in an omnichannel environment, blurring the boundaries between channels, through a synergetic integration of them. This evidence contributes to the existing literature on technology management and omnichannel strategies in the international context by rereading these phenomena through a smart ecosystem lens. In addition, this study provides practical insights on how multiple channels adopted by Made in Italy SMEs can be integrated, managed, and operated synergistically on international markets to sustain a digitalized value creation.

A typology of omnichannel retailer activities during the COVID-19 pandemic

PurposeThis paper develops a typology of omnichannel retailer activities and corresponding customer responses during a rapidly changing external coronavirus disease 2019 (COVID-19) pandemic environment, to contribute towards academic research on omnichannel strategies and to assist retailers when making future investment and resource decisions.Design/methodology/approachImplementing a dual desk research process, the authors carry out a document review of 61 retailers operating globally and connected customer reviews and categorise them using a content analysis.FindingsThe findings show that retailers employ a multitude of new omnichannel strategies during a pandemic and implement new or upgraded cross-channel services. Customer data show that delivery and customer service issues largely persist. The authors divide retailer actions and microfoundations into five broad categories and present a typology of strategic retailer activities and customer responses.Originality/valueThis research presents insights into omnichannel strategies from both a retailer and customer perspective, and offers guidance on improving the implementation of future omnichannel strategies.

The impact of anthropomorphism on customer satisfaction in chatbot commerce: an experimental study in the food sector

Food retailers are lagging behind other industries in implementing innovative mobile solutions offering their services and purchasing processes on their online platforms. Chatbots can be leveraged as an application to provide customer-centric services while retailers benefit from collecting consumer data. Previous literature on chatbot technology provides evidence that human characteristics enhance the customer experience. This is the first experimental study to investigate consumer attitudes and satisfaction with anthropomorphic chatbots in food e-commerce. A sample of 401 participants was tested to verify the proposed hypotheses. The test group interacted with a standard chatbot without human-like characteristics, while the control group communicated with the anthropomorphically designed agent. The results confirm the vast potential of anthropomorphic cues in chatbot applications and show that they are positively associated with customer satisfaction and mediated by the variables enjoyment, attitude, and trust. The findings suggest that to remain competitive, food retailers should immediately adopt innovative technologies for their omnichannel strategy and incorporate anthropomorphic design cues.