Online Channel Research Articles

Does outsourcing enhance consumer services and profitability of a dual-channel retailing?

In the era of digital commerce, the concept of dual-channel retailing has attracted increased attention. Dual-channel retailing increases the importance of outsourcing for an imperfect production process to enhance customer satisfaction. This study explores a sustainable dual-channel retailing strategies for an imperfect production process under a flexible production system. The manufacturer runs a production process prone to defects utilizes both offline and online channels for product sales. The manufacturer contemplates green investments to enhance the production efficiency and reduce waste and carbon emissions, alongside the possibility of outsourcing a portion of production to a partner. A mathematical model is developed to accounts for these factors and analyzes the optimal allocation of products between channels, pricing strategies, production rates, and investments amount to reduce carbon emissions. The model incorporates demand sensitiveness to green practices and channel's selling price. Results of this research are directed towards offering significant perspectives for organizations that aspire to attain a harmonious equilibrium among financial profitability, ecological sustainability, and addressing deficiencies in their manufacturing procedures in a dual-channel retail setting through subcontracting. Numerical illustrations exhibit that partial outsourcing enhances system's profit by 2.03%, whereas investments to reduce carbon emissions enhance the profit by 4.95%. Flexibility in the production process helps to increase the profit by 13.50%, and channel coordination helps to enhance the profit by 38.54%.

Analysis of the Live-Streaming Market

As society evolves throughout time, the complexity of relationships has brought social media and online apps under the spotlight. With more than 3 billion users worldwide, social media has developed far beyond its intention; rather than just a platform used to share stories and lifestyles or expand social circles, it has become a market where businesses can launch their products to all social media users. The broad use of this advanced platform allows companies to be creative and innovate in diverse ways essential to selling their products. Since the influence of online platforms is nonnegligible, the live-streaming market becomes in todays world because companies can use live broadcasts to enhance or maximize direct communication with customers, and it allows people across the world to interact with which broadens the range of customers that companies could potentially target. Specifically looking at pieces of data, there are around 12~24 million online stores. This further shows that most companies view online channels or social media as a crucial tool to promote their products. In this essay, the analysis of the origin, development, profit, and impact of live streaming on customers will be provided. Multiple perspectives of the live-streaming market will be shown with data and explanations as well.

Analysis of the Live-Streaming Market

As society evolves throughout time, the complexity of relationships has brought social media and online apps under the spotlight. With more than 3 billion users worldwide, social media has developed far beyond its intention; rather than just a platform used to share stories and lifestyles or expand social circles, it has become a market where businesses can launch their products to all social media users. The broad use of this advanced platform allows companies to be creative and innovate in diverse ways essential to selling their products. Since the influence of online platforms is nonnegligible, the live-streaming market becomes in todays world because companies can use live broadcasts to enhance or maximize direct communication with customers, and it allows people across the world to interact with which broadens the range of customers that companies could potentially target. Specifically looking at pieces of data, there are around 12~24 million online stores. This further shows that most companies view online channels or social media as a crucial tool to promote their products. In this essay, the analysis of the origin, development, profit, and impact of live streaming on customers will be provided. Multiple perspectives of the live-streaming market will be shown with data and explanations as well.

Unveiling consumer preferences: A two-stage deep learning approach to enhance accuracy in multi-channel retail sales forecasting

In the dynamic and turbulent business environment, sales forecasting for multi-channel retailers has become increasingly intricate, particularly with the shift from traditional brick-and-mortar channels to a diverse range of distribution channels. This transition not only complicates forecasting challenges but also highlights the crucial role of utilizing online traceable consumer purchase data to discern consumer preferences for stores and products and enhance sales forecasting accuracy. This paper proposes a two-stage deep learning approach based on the Online Channel Consumer Preference Heterogram and Multi-Head Attention mechanism (OCCPH-MHA). In the first stage, the model identifies potential consumer group preferences based on individual purchasing behavior. In the second stage, it seamlessly integrates this identified feature with time-series demand data using a global–local attention mechanism, thereby facilitating multi-step forecasting. This study’s robust validation involves testing the model on the dataset from a multi-channel retail restaurant company, showcasing its prowess in significantly improving the precision of sales forecasting. This not only substantiates the model’s effectiveness but also underscores the importance of consumer group preferences, as it contributes to a comprehensive framework. This framework, focused on tracking the preferences of potential consumer groups, emerges as a valuable tool that collectively refines and optimizes the sales forecasting process for both industry practitioners and researchers.

Pricing Decisions in Dual-Channel Supply Chains Considering the Offline Channel Preference and Service Level

With the rapid development of e-commerce, the online channels encroaching on the offline sales market are becoming more serious, which will definitely harm the offline market. Moreover, there exists a certain percentage of consumers (mostly elderly people) who are not able to purchase online because they lack digital skills. Therefore, understanding the impact of the purchase channel preference and service level on pricing decisions is vital for the dual-channel supply chain management. Focusing on the channel preference and service level, we first develop an optimal pricing model containing centralized and decentralized decision-making for an online and offline retailer by deploying the Stackelberg game. We first develop a Stackleberg game to capture such a dual-channel supply chain with the offline channel preference and service level. Secondly, under centralized decision-making, we derive the optimal retail prices and obtain the optimal total profit. Thirdly, under decentralized decision-making, we obtain the optimal retail prices and optimal total profit as well. Moreover, extensive monotonicity properties when system parameters change are obtained. Relying on the theoretical results, firstly, we show that the improvement of the offline service level would lead to higher pricing of the commodities for both online and offline channels. From our numerical results, when the service level is improved, the offline and online optimal pricing increases by 47.5% and 31.1%, respectively, which may contradict the conventional belief that the improvement of one channel would harm another one. Secondly, we demonstrate that the benefit of improving the offline service level has a diminishing marginal effect. The numerical results show that when the current service level is low, the effectives of improving the service level is roughly five times that when the service level is high. This indicates that the investment in improving the offline service level should not be unlimited. Thirdly, we show that the pricing decision under centralized decision-making should be adopted with the existence of both the offline channel preference and offline service.

Optimizing Online Channels: Exploring the Interplay of E-Commerce in Customer Journey of Smartphone & Gadget Retail

The rise of e-commerce has transformed the global retail industry, including the smartphone and gadget sector. In Indonesia, while online shopping has become more popular due to its convenience, smartphone brands still face challenges. Despite the growth of online platforms, many customers prefer shopping in physical stores, especially after the pandemic. This research aims to understand what drives consumers to shop online for smartphones and gadgets, and to offer insights and strategies for both smartphone manufacturers and e-commerce platforms to boost their online presence and attract more customers. The study addresses key questions about consumer behavior: What motivates people to buy smartphones and gadgets online rather than in-store? How do they perceive their online shopping experience, and what factors affect their satisfaction? What obstacles do they face when shopping online, and how do they overcome them? How do they react to personalized marketing and recommendations? And what drives their loyalty and repeat purchases in the online market? By using the Customer Decision Journey, Marketing Technology, and Porter’s Five Forces analysis, the research identifies important factors like delivery, promotions, store information, and ease of finding product details. The study will provide actionable business solutions and recommendations to help smartphone manufacturers and e-commerce platforms tackle challenges and improve their online market strategies.

Keeping the Iron Cage from Closing: How clashes over shared principles elicit collective authoring

When less hierarchical organizations attempt to avoid positional authority and rely more on the authority of shared principles, they are challenged to balance a relative open-endedness and sufficient consensus of those principles. However, situations inevitably arise when assertions about the principles clash, disturbing the sense of collective sharing of principles and so triggering tendencies to make the principles more rigid or default to positional rule. This paper explores how internal collective dialogue unfolds in such situations in the central online channels of three mid-sized Nordic software consultancies aspiring for less hierarchical, principles-based organizing. Our research reveals the emergence of “collective authoring”—peripheral participation that reacts to the distress stirred by the clash. The collective responds with tension-mediating remarks and, most markedly, with a polyphony of inquiries and musings that are attentive to what is unfolding but not stubbornly fortified with either side of the clash. We discover how this collective dialogue comes to embed the initial clash with the iteratively maturing and saturating soundscape of deliberations, gradually invoking a tacit sense of the collective understanding of the issue on the channels. The dialogues persist until the most acute sense of distress over the sharing of principles seems to dissolve. We discuss how our findings, by illuminating the role of “the collective,” contribute to the extant conceptions of relational authority and less hierarchical organizing.

Omnichannel services in the presence of customers' valuation uncertainty

AbstractWith the advancement of online‐ordering technology, an increasing number of service providers are transforming to sell services through online channels alongside traditional offline stores. Our paper studies this emerging business model (also known as omnichannel services) in which customers can choose between online and offline ordering. We develop a queueing‐game‐theoretic model to evaluate the performance of omnichannel systems in terms of throughput and social welfare when customers strategically choose their ordering channels in the presence of service valuation uncertainty. We also contrast omnichannel services with single‐channel services, that is, online‐only and offline‐only services. Our analysis yields the following main insights. First, although customers run the risk of making suboptimal decisions and suffering from unexpected losses when they are uncertain about their service valuations, we find that all customers would be better off in expectation with an increasing level of service valuation uncertainty. Second, while social welfare improves as ordering online becomes more convenient in some cases, it (even online customer welfare) can also be worse off in others, especially when the system operates under heavy congestion, because customers' self‐interested channel choice behavior would impose significant negative congestion externalities among customers. Third, despite the fact that omnichannel services provide customers with an additional, more convenient ordering channel option in comparison with conventional offline‐only services, we find that, somewhat surprisingly, adopting omnichannel services does not necessarily guarantee improvement in social welfare. Finally, we discuss two alternative modeling assumptions to demonstrate the robustness of our main insights.

The Effects of Livestreaming and Online Shopping Integration on Buyers’ Online Omnichannel Transaction Experience

ABSTRACT Purpose This study explores buyers’ online omnichannel transaction experience, focusing on integrating livestreaming commerce and online store channels. It shifts the spotlight from the predominant emphasis on online and offline channel integration to the online-only omnichannel environment. Design/methodology/approach Grounded in social cognitive theory, this study adopts a multi-method approach, integrating structural equation modeling (PLS-SEM) and fuzzy set qualitative comparative analysis (fsQCA) to capture individual and complex interactions among factors. Findings The study finds that internet usage significantly enhances online omnichannel experience by strengthening the positive effects of factors. While PLS-SEM results assert that channel integration quality positively impacts online omnichannel experience, fsQCA results indicate improved online omnichannel experience can be achieved in configurations where channel integration quality is absent. Research implications The study introduces a unique conceptualization of online omnichannel, revealing symmetric causal mechanisms of online omnichannel experience and improving the findings with asymmetric mechanisms, highlighting new insights, such as achieving higher experience without extensive shopping innovation or channel integration quality. Practical implications This study can guide practitioners in understanding the configuration of causal elements that enhance buyers’ omnichannel transaction experience through integrated online channels. Originality This research employs symmetric and asymmetric approaches to investigate transaction experience in an omnichannel setting, whereas the conceptualization of omnichannel emphasizes the integration of online-only channels.

Manufacturer’s Channel Strategy and Demand Information Sharing in a Retailer-Led Green Supply Chain

In the rapidly evolving landscape of e-commerce, companies are increasingly focusing on their channel strategies to gain sustainable development. However, asymmetric demand information poses challenges to these decisions. This paper explores the interplay between a retailer’s information sharing strategy and a manufacturer’s channel strategy in a retailer-led green supply chain, where the manufacturer may establish an online channel to sell its green products directly. The dominant retailer has private demand information about the market and decides whether to share private information with the manufacturer. By establishing a game model, we analyze the impacts of information sharing and the manufacturer’s channel strategy on the payoffs for all the supply chain members, considering sustainability aspects such as the environmental benefits of green products and the efficiency of supply chain operations. The results show that information sharing benefits both the retailer and the manufacturer, irrespective of the establishment of an online channel. When the retailer shares demand information, opening an online channel benefits the manufacturer but benefits the retailer under certain conditions. Furthermore, through a numerical approach, we examine the strategic preferences of the firms and derive the equilibrium strategy. Interestingly, the manufacturer consistently prefers the scenario involving both an online channel and information sharing. The retailer’s preference, however, depends on the direct selling cost; it favors information sharing with or without an online channel based on this cost. Ultimately, our findings suggest that the equilibrium strategy can either be sharing information with an online channel or not sharing information without an online channel, which is contingent upon the direct selling cost and the forecast signal precision. These insights provide actionable strategies for enhancing the sustainability of supply chain operations.

The Importance of the Vinted Application in Popularizing Sustainable Behavior among Representatives of Generation Z

Changes in the fashion market (mainly fast fashion) mean that the negative impact of this sector on the natural and social environment is increasing. An important measure to limit this negative impact is to create more responsible consumer behavior in this market. This applies especially to young consumers, who are the recipients of most fast fashion campaigns, and thanks to new media (including mobile applications), their sustainable behavior can be shaped. The main aim of this study was to identify the features of the useful Vinted mobile application in terms of promoting socially and environmentally sustainable behaviors of Generation Z on the clothing market. At the stage of collecting research material, the desk research and CAWI (computer-assisted web interview) methods were used, and the analysis included, among others, measures of descriptive statistics, a customer satisfaction index (CSI) and a Mann–Whitney Z test. The research was carried out at the turn of 2022/23. The responses of 370 respondents using the Vinted application were qualified for analysis. A convenient selection of the research sample was used. The link to the survey was shared through online channels, including social media. The snowball method was used to obtain respondents. This study shows that less frequent use of the application corresponds to lower ratings of the analyzed parameters. The most important features (attributes) of the application are free application, ease of creating an account and secure payment. The main reason for using the Vinted application is the economic factor (looking for bargains). There is a difference between the CSI value in the group of women and men. To the best of the authors’ knowledge, this is the first survey conducted among representatives of Gen Z, which simultaneously took into account satisfaction with using the Vinted application and its impact on popularizing sustainable attitudes.

Research on the Integration of Online and Offline Channels in Marketing

Research on the Integration of Online and Offline Channels in Marketing

From news websites to social media: Unpacking the influence of online channels on presumed influence and responses to misinformation

This study employs the theoretical model of the influence of presumed influence to examine the mechanisms that drive online users to engage in information authentication and social correction, which are critical for countering misinformation. In particular, this study examines how the perceived prevalence and presumed influence of misinformation affect the intention to verify and correct misinformation, and how the use of different online platforms (i.e., social networking sites, video platforms, instant messaging applications, and news websites) for political news shapes these perceptions. This research draws on survey data from 2,589 respondents in Taiwan. The findings indicate that perceived prevalence has a positive relationship with presumed influence, which in turn, leads to authentications and corrections. Moreover, using social networking sites and video platforms for political news is positively related to perceived prevalence, whereas instant messaging applications have a negative association.

Impact of COVID-19 pandemic on online consumption share: Evidence from China's mobile payment data

This study investigates the impact of the COVID-19 pandemic on the online retail market in China and explores the mechanisms underlying this relationship. By developing a theoretical model based on utility theory and consumer risk perception theory and utilizing monthly mobile payment consumption data along with the number of people diagnosed with COVID-19 at the city level in 2020, this study finds that the COVID-19 pandemic has driven an increase in the share of online consumption, thereby changing the structure of the retail market. The primary mechanism is that the pandemic boosts e-commerce activity while concurrently reducing the service quality for consumers shopping offline. Furthermore, this study confirms that online consumption has mitigated the negative impact of the pandemic on overall consumption expenditure. Heterogeneity analyses suggest that the COVID-19 pandemic has significantly increased the online share of necessity and upgraded consumption. For city heterogeneity, the effects of the pandemic on online and offline consumption structures are more pronounced in regions with larger consumption scales and lower urbanization rates. Thus, the pandemic has accelerated the development of the online retail market and strengthened consumer inertia for online channels. According to consumer inertia theory, this trend may continue even as the pandemic gradually weakens. The applicability and effectiveness of this study's conclusions and methods provide a new perspective for future research on online retail and e-commerce markets.

The Effects of Poor Fluid Milk Experience on Store Choice and Customer Loyalty in Online and In-Store Retail Channels

Dairy producers work extensively to ensure quality, but there is limited information on how poor experience with milk affects consumer choice. This study uses an online survey of 725 US consumers to assess how a poor experience with milk affects purchase behavior in different channels. We examine the relationship between product experience and purchase behavior and find that a poor experience is associated with a greater likelihood of switching stores and with lower net promoter scores, suggesting that having high quality milk may improve customer loyalty. This work highlights the important role that perishable food quality plays in retail settings.

Challenges and opportunities of short food supply chains in Spain: A stakeholder participatory study

In food distribution, trends are emerging that seek to reduce the number of agents involved, promoting short supply chains (SFSCs). In response to that, the objective of this research is double: analysing the level of consumer awareness, use and willingness to pay for products being distributed through SFSCs and on the basis of the information obtained, analysing the issues that producers employing these channels are facing with the aim of using this information to design strategies to help the production sector. We have employed a qualitative approach and organised 12 focus groups including consumers and producers from various Spanish towns, with discussions being carried out between March and July 2022. The outcomes reveal that, producers and consumers recognize benefits in these channels but note barriers like lack of consumer information and access inconveniences. Consumers show less inclination for SFSC purchases, especially for delicate (meats) or infrequent (wine) products, preferring supermarkets. Finally, the participants highlight price and online channel inconvenience as main limitations, echoed by producers. In order to promote short food supply chains, it would be essential to overcome the barriers identified in this study by implementing strategies focused on information, accessibility, price competitiveness and optimisation of the purchasing process. These actions will not only offer advantages to both consumers and producers, but will also boost the local economy. In addition, this study's findings can help in the design of public policies that promote SFSCs and encourage their adoption.

Official online brand stores or online marketplaces? exploring innovation in consumer intentions

Official online stores and online marketplaces present distinct challenges and opportunities for retail brands, impacting their control over the customer experience, pricing, and brand presentation. Understanding consumer intentions in online channel selection is crucial, especially given the rise of online shopping and the impact of the COVID-19 pandemic on consumer behavior. This study explores the factors influencing channel selection intention within official online stores and online marketplaces, focusing on customers who have purchased Apple electronics. A quantitative questionnaire facilitated data collection, resulting in responses from 490 individuals and 606 samples. Those who shopped through both channels were requested to complete the questionnaire twice. The respondents were divided into two groups based on their purchasing experience, and structural equation modeling was employed for hypothesis testing. In official online stores, cross-channel searching negatively impacts channel selection intention, whereas brand loyalty and channel pricing advantage have positive effects. In contrast, no significant relationships between these variables were observed in online marketplaces. Channel satisfaction was found to positively influence channel selection intention across official online stores and online marketplaces, while perceived risk demonstrated a negative impact. Based on these findings, several recommendations are proposed to aid in developing effective sales channel strategies.

New frontiers of fun: sharing and supporting workplace fun in hybrid work

PurposeHybrid work is changing modern conceptions of work as workers move between their office space and alternate spaces such as a home office. Social aspects of work are therefore also changing, and this study aims to explore the implications arising for workplace fun when workspaces become dispersed.Design/methodology/approachWe undertook ethnographic research into two different companies to explore in depth the concept of fun at work and how it is being adapted for hybrid work. Data were collected through full immersion into both companies and gathered using mixed qualitative methods comprising semi-structured interviews, participant observations and evidence from organizational online platforms. A structured coding system was used in the analysis with an interpretive approach.FindingsOur themes include (1) artefacts, (2) organizing fun and space and (3) loss of fun and these provide the underpinning for our theoretical contribution.Research limitations/implicationsWe had limited access to online channels and identified opportunities for future research to explore fun in online platforms including chat functions, meme, gifs and other places where workplace fun may be enacted.Practical implicationsWork has changed for workers and managers, and this impacts fun which needs to adapt to hybrid work models.Social implicationsHybrid work is changing workplace social interactions, particularly, for fun and play. We depict how workers navigate the changing context of work and the significance of emerging elements of workplace fun and the implications for fun cultures.Originality/valueOur contribution is in a re-theorization of workplace fun arguing that sharing and supporting the creation and promotion of fun among workers at all levels offers new opportunities for organizations that value a fun culture. Our theorization of workplace fun shows its adaptation to new hybrid work contexts that deemphasize co-location and physical presence. We outline the significance of artefacts and depict the variability of workplace fun in hybrid work.

Examining presence in immersive virtual reality and website interfaces through the cognitive fit and cognitive load theories

PurposeThe purpose of this paper is to assess the effects of presence on users’ information processing in mediated visualizations using immersive virtual reality (VR) and websites, focusing on information understanding and cognitive load. The impact of user interfaces on users’ perception of presence is also tested.Design/methodology/approachA between-subjects laboratory experiment using two user interfaces – immersive VR and website – is carried out. It is complemented by a self-administered survey on the participants.FindingsThe current results indicate that an immersive VR interface improves tourists’ information processing by producing a heightened sense of presence. The results confirm that presence facilitates tourists’ information processing by increasing information understanding and decreasing cognitive load. Finally, a negative relationship between cognitive load and information understanding is obtained.Practical implicationsVR user interfaces are not only visually appealing but also cognitively optimized. Immersive VR devices can be introduced in the specific sale process of cruise trips through both offline channels (physical stores and travel agencies) and online channels to facilitate tourists’ information processing during the prepurchase phase.Originality/valueThe primary contribution lies in the integration of the theory of presence with two influential information processing frameworks, namely, cognitive load theory and cognitive fit theory. This integration provides a holistic perspective on how user interfaces influence consumer information processing in the unique context of cruise tourism, particularly during the stage of a prepurchase information search.

Impacts of Innovation and Business Analytics on the Performance of the Service Sector in Nigeria

The study investigated the impacts of innovation, including service innovation and business analytics adoption on the performance of the service sector in Nigeria between 2013 and 2022. The proportion of Nigeria's economy attributable to the service sector, the Innovation Efficiency Index, and the Business Analytics usage index were all calculated using secondary data drawn from metrics such as the number of service firms engaging in R&D, the total amount of R&D expenditures, and the share of total service sector revenue received via online channels. As a result of multicollinearity and heteroscedasticity, the study used quantitative analysis, including regression and correlation analyses. The results show that innovation and its impact on service quality, has a large impact on Nigeria's service sector, but that the sector's current adoption level of business analytics is too low to produce far-reaching changes in performance. It was further revealed from the study that the e-participation rate is very vital for driving both the adoption of business analytics and the performance of the service sector. According to the study, the adoption of business analytics should be given more attention in the Nigerian service sector so that its contribution to the performance of the sector is more significant. Finally, the scope of e-participation in the service sector is expanding by the day, and it is recommended that various organizations become more e-service driven to compete in today's market and maintain good performance.