Retail Channel Research Articles

Evaluating omni channel retailing in the emergence of industry 5.0: A perspective of South Asian generation Z

This study investigates the influence of Omnichannel-Retailing (OCR) on customer-retention (CR) for Generation Z (Gen Z) in the nascent Industry 5.0 era. Employing a survey with South Asian respondents, the research explores their experiences with retailer-provided omnichannel services. A novel model examines the relationships between OCR, customer-satisfaction (CS), CR, and customer-engagement (CE). Additionally, the model investigates the moderating role of Man-Machine-Collaboration (MMC) on the OCR-CR association. Process macro analysis is employed to assess mediation and moderation effects. The findings reveal positive associations between OCR and both CR and CE. Interestingly, CS does not mediate the OCR-CR relationship, suggesting a more nuanced effect of OCR on retention. However, CE emerges as a significant mediator. Furthermore, the moderating role of MMC is confirmed. This research holds novelty by examining the early stages of Industry 5.0 and its potential disruption of marketing practices, particularly for CR strategies targeting Gen Z in South Asia.

Retailer information sharing under manufacturer encroachment and production cost reduction

AbstractThis study investigates retailer's sharing decisions concerning ex ante information about demand when the encroaching manufacturer can reduce production cost. Equilibrium information sharing decisions with encroachment are quite different from that with no encroachment. The encroaching manufacturer's cost reduction efficiency is key to determine equilibrium results, and these thresholds regarding cost reduction efficiency depend on competition intensity between the encroaching manufacturer's direct channel and retailer channel. Furthermore, through investigating the encroachment decisions of the manufacturer, we prove that the equilibrium information sharing decisions under encroachment is robust in general.

A Study on the Production-Inventory Problem with Omni-Channel and Advance Sales Based on the Brand Owner’s Perspective

This study explores a supply chain product-inventory problem with advance sales under the omni-channel strategies (physical and online sales channels) based on the brand owner’s business model and develops corresponding models that have not been proposed in previous studies. In addition, because the brand owner is a member of the supply chain, and has different handling methods for defective products or products returned by customers in various retail channels, defective products or returned products are included in the supply chain models to comply with actual operating conditions and fill the research gap in the handling of defective/returned products. Regarding the mathematical model’s development, we first clarify the definition of model parameters and relevant data collection, and then establish the production-inventory models with omni-channel strategies and advance sales. The primary objective is to determine the optimal production, delivery, and replenishment decisions of the manufacturer, physical agent, and online e-commerce company in order to maximize the joint total profits of the entire supply chain system. Further, this study takes the supply chain system of mobile game steering wheel products as an example, uses data consistent with the actual situation to demonstrate the optimal solutions of the models, and conducts sensitivity analysis for the proposed model. The findings reveal that increased demand shortens the replenishment cycle and raises order quantity and shipment frequency in the physical channel, similar to the online channel during normal sales. However, during the online pre-order period, higher demand reduces order quantity and cycle length but still increases shipment frequency. Rising ordering or fixed shipping costs lead to higher order quantity and cycle length in both channels, but variable shipping costs in the online channel reduce them. Market price increases boost order quantity and frequency in the online channel, while customer return rates significantly impact inventory decisions.

Qualitative acceptability testing of a paper-based care planner in patients with metastatic non-small cell lung cancer (mNSCLC).

259 Background: Patients with cancer and their caregivers often describe the fragmented, multi-modal and multi-provider cancer care experience as undertaking a difficult expedition without a map. Based on her experience in 2020 and using self and family management theories (doi: 10.1016/j.outlook.2008.10.004.), Daswani developed a pan-cancer patient planner, which helps patients and families prepare for appointments, track symptoms, and manage their care. It has been available since 2021 through hospitals, advocacy organizations and online retail channels. We adapted and customized the pan-cancer planner for patients with mNSCLC. We tested acceptability through a series of structured patient interviews, and a brief, in-person survey tool. Methods: A lung cancer survivor recruited members of the lung cancer community to participate in a 30-minute structured virtual interview. After reviewing the planner, interviewees were asked: 1) about their diagnosis and treatment experience and 2) to provide semi-structured feedback. We conducted interviews until thematic saturation was reached. We modified the planner based on interview results, distributed planners to patients and care-partners at a major lung cancer patient summit and immediately collected a brief survey to assess patient knowledge of their diagnosis and motivation for planner access. Results: The table shows high level thematic groups of interview responses. Interviewed patients concluded that the planner would have improved their experience because they would have: Stayed organized, facilitated note-taking during appointments, better tracked and managed symptoms & meds, been more confident in decision-making and been able to journal, stay grounded and more mindful. Of 94 planners distributed at the summit, 49 patients knew their diagnosis, 31 knew their stage, 28 knew their cancer mutation status. Of the four domains of self-management, positive responses were: 1. Increase confidence 44 (47%) 2. Gain peace of mind 40 (43%) 3. Stay organized 58 (62%) 4. Manage meds & symptoms 42 (45%). Conclusions: A paper based mNSCLC specific planner is acceptable to patients and they anticipate it would help with all four domains of self management (confidence, peace of mind, organization, med and symptom management) and enhance a difficult experience. We plan further usability testing as we did with the breast cancer planner (JCO Oncol Pract 19, 2023 (suppl 11; abstr 552)). Interviews of 8 (7 female, 1 male) patients (3 with English as a second language) were held in December 2023. Diagnosis Biomarker Testing Treatment Living with lung cancer Medical terms difficult to understand “Mutation” term caused anxiety Understanding options important Need for community Diagnosis often delayed Loss of agency Gratitude for care team Digital tools desired Cumulative trauma Additional languages Young adult survivorship desired

How expansion to the Nintendo Switch impacts PC players’ game usage and spending: A study of an omni-channel strategy

Offering multiple retail channels for browsing and purchasing—an omni-channel strategy—is a well-established approach for modern retailers. This strategy is also increasingly adopted by ’online-first’ digital services such as social media and video gaming to expand consumer reach and enhance customer engagement. However, unlike the potential complementary relationships between physical and digital channels, it is unclear whether a firm’s channel expansion within the digital area (e.g., online to mobile) benefits firms or merely redistributes existing demand without growth. Using the context of a major online video game, we assess whether creating a mobile console version of an existing PC-based game causes meaningful behavioral changes among existing users. We find that mobile console adoption significantly impacts mobile channel adopters’ engagement, with a 31% increase in games played and a 6.9% increase in voluntary spending. Further analysis reveals that mobile console adopters enjoy the game over a broader range of hours, suggesting increased (ubiquitous) access is the mechanism behind this positive impact. Additionally, mobile adopters make more purchases, although they do not necessarily spend more per purchase. We also observe that the impact of the mobile game is more pronounced among players at high risk of churning and those with sparse voluntary spending. Finally, our analysis shows that new mobile players experience a slight but significant dip in in-game performance. This finding suggests a need for game developers to help players mitigate the downside risk of transitioning between two distinct user environments.

Channel-switching behaviour and customer deviance

PurposeUnacceptable behaviour in retailing – negative customer deviance (NCD) is rising, damaging retailers financially. Current research investigates forms of NCD by addressing its impact on employees but overlooks its effects on bystander-customers and their retail channel preferences. As channel switching within retailing is increasing unprecedentedly, this research investigates its correspondence with NCD encounters.Design/methodology/approachThis research uses structural equation modelling, based on data collection administered through a web-based survey of 1,008 customers of at least 16 years of age, to analyse the research model.FindingsThe findings reveal unexplored forms of NCD perceived by bystander-customers in retailing and their consequences, linking it to bystander-customers' ill-being, dissatisfaction with the shopping experience, a decrease in store commitment and an increase in their retail channel-switching intentions. Additionally, the research uncovers moderating variables.Practical implicationsThis research tests NCD dimensions and effects on bystander-customers, which indicate the need for retailers to address shopping values, attitudes and commitment through corrective, proactive and long-term strategic actions.Originality/valueAs one of the first studies to investigate the impact of NCD on bystander-customers' intentions to switch from store-based to online shopping, strategies for retailers are developed to help diminish and control NCD-induced threats to bystander-customers.

Platform‐led or seller‐led? Optimal ex ante information delivery strategy for online retail channels with product match uncertainty

Platform‐led or seller‐led? Optimal <i>ex ante</i> information delivery strategy for online retail channels with product match uncertainty

Supplying Cash-Constrained Retailers: Understanding Shopkeeper Behavior at the Bottom of the Pyramid

Problem definition: As the largest retail channel in the world, nanostores are the source of income for millions of shopkeepers in developing countries. Being cash constrained, nanostore shopkeepers face the challenge of deciding how much of their available cash to retain to support their families and how much to invest in acquiring products from their suppliers, who visit the nanostore with different frequencies and offer products with different margins. We study how shopkeepers deal with this challenge while seeking to make their nanostores financially sustainable. Methodology/results: We conduct an empirical study to explain how suppliers’ visit frequency influences shopkeepers’ ordering behavior. The study integrates more than 29 million orders placed with a multinational manufacturer. Results show that visit frequency adjustments by the supplier cause nanostores to experience a significant discontinuity in their orders such that reduced order frequency leads to significantly lower orders per unit of time. Building on this insight, we ran two experimental studies that make use of theoretical benchmarks to explore how shopkeepers’ ordering decisions are influenced by supplier visit frequency, product margin, and shopkeepers’ cash constraints. We analyze how and when shopkeepers deviate from the theoretical benchmarks and show how the available budget moderates the relationship between suppliers’ visit frequencies and shopkeepers’ order volumes, normalized by unit of time. Our results give support to the theory of diversification bias and show how this bias might bring additional benefits to suppliers offering low-margin products. Finally, we propose a behavioral model that explains how shopkeepers’ decisions might be driven by their preference toward inventory (i.e., leftover versus shortage aversion) and toward cash (i.e., liquidity preferences). Managerial implications: Our findings suggest that suppliers should deploy high-frequency visits to cash-constrained nanostores regardless of the margin that their products provide for shopkeepers. For low-margin suppliers, this mitigates shopkeepers’ tendencies to reduce the order volume per unit of time following a visit frequency decrease. For high-margin suppliers, high-frequency visits mitigate shopkeepers’ overdiversification bias and liquidity preference. Financial and digital schemes that reduce the need for high-frequency visits may lead to substantial efficiency gains. Supplemental Material: The online appendix is available at https://doi.org/10.1287/msom.2022.0362 .

Channel and pricing strategies in a risk-averse dual-channel supply chain: portfolio trade credit financing and platform investment

ABSTRACT This paper considers a dual-channel supply chain where the supplier can distribute products through an online platform and a capital-constrained traditional offline retailer. The retailer needs to fund its business by a portfolio financing of trade credit and platform investment to enter the market. With the price-dependent market uncertain demand, the supplier faces choices among direct, traditional, and dual channels for product distribution. We use the CVaR criterion to formulate the retailer’s risk-averse behaviour. Then derive the optimal retail channel strategy in a Stackelberg game model where the platform leads by setting a revenue-sharing rate. Our results unveil a Pareto improvement region in revenue sharing rates within the portfolio financing scheme. As the slotting fee escalates, the supplier tends towards traditional channels. Conversely, with a modest slotting fee, a threshold emerges for the retailer’s risk aversion, delineating the optimal retail channel. High retailer risk aversion favours the dual channel, while lower aversion steers all members towards the direct channel. Theoretical findings are validated through numerical analysis.

What is the role of product services in the dual-channel closed-loop supply chain?

With the continuous development of internet technology and increasing awareness of environmental protection among consumers, the dual-channel closed-loop supply chain management combining online direct sales channel and retail channel has received more and more attention, however, the existing research has neglected the service research, so this paper focuses on the service strategy in the dual-channel closed-loop supply chain. In this paper, we propose three service strategy models for dual-channel closed-loop supply chains, including when there is no service provision, after-sales service and recycling service provided by retailers and after-sales service provided by manufacturers and recycling service provided by retailers, compare and analyze the optimal decisions of supply chain members under the three service strategy models, discuss the role of service generated in dual-channel closed-loop supply chains, and propose a service cost-sharing strategy to achieve a Pareto improvement in the effectiveness of a dual-channel closed-loop supply chain. The study finds that service plays a positive role in the dual-channel closed-loop supply chain; the model of manufacturer providing after-sales service and retailer providing recycling service is the best service strategy choice in terms of economic and social benefits; the service cooperation mechanism of service cost sharing can achieve Pareto improvement of the supply chain within a reasonable range.

Crossed signals: The negative effects of manufacturer warranty length on brand share in an independent retail channel

Crossed signals: The negative effects of manufacturer warranty length on brand share in an independent retail channel

명품 화장품에 대한 관계혜택이 전환장벽과 브랜드 충성도에 미치는 영향 - 온라인 및 오프라인 소매업태의 조절효과를 중심으로

This research explores the impact of relational benefits, which are the advantages gained from a sustained relationship with a specific brand, on switching barriers and brand loyalty among female consumers aged 20 to 50 residing in China when purchasing luxury cosmetics. The research analyzes the influence difference between different retail formats online and offline, aiming to reveal the shifting psychological dynamics of consumers amid the latest changes in China's consumer market. Using SPSS and AMOS programs, data from 500 participants were analyzed, with a focus on seven types of relational benefits: experiential benefits, confidence benefits, special treatment benefits, convenience benefits, economic benefits, information benefits and risk reduction benefits. The results indicate that relational benefits significantly enhance switching barriers and brand loyalty, and these effects vary distinctly between online and offline retail channels. The findings offer valuable insights for luxury cosmetic brands to formulate effective strategies in the Chinese market.

Public health measures and retailer channel strategy during pandemics

During COVID-19, public health measures triggered shifts in consumer behavior, disrupting supply chains and challenging physical stores’ viability. To navigate this uncertainty, retailers must adjust their channel strategies. Considering consumer heterogeneity in both retailer and channel preferences, this study examines how two competing brick-and-mortar retailers integrate online channels amidst varying pandemic conditions. Square-Hotelling models indicate that perceived severity and isolation necessity outweigh coupon offerings and delivery charges in integration decisions. As severity rises, asymmetric adoption emerges first, followed by symmetric adoption, and then asymmetric adoption again. Enhanced health knowledge dissemination prolongs the transition process of channel integration equilibria. Retailers should align strategies with perceived pandemic severity and public health measures, ensuring preparedness for channel integration.

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.

Pricing strategy based on a stochastic problem with barter exchange under variable promotional effort for a retail channel

Barter exchange platform gains popularity as an effective trade exchange strategy to minimize the vast use of paper money. In retail management, the application of the barter platform is growing because of cashless trade. It allows a retail enterprise to trade unused products in exchange for other assets purchased by reducing the actual purchase of assets. In this context, the study analyzes a stochastic model of a barter exchange problem under a retail channel. It investigates the barter exchange policy in three different models: conventional newsvendor model without barter exchange, with barter exchange, and with barter exchange with promotional effort and emissions level. The market demand for products is considered random and random with deterministic variables for three types of models. Stochastic models are solved in two different ways: with and without probability distribution functions of the random market demand. For maximization of the retailer's profit, the proposed framework obtains optimal decisions on ordered quantity, retail price, promotional effort, and emissions level. Five examples are tested and numerical results show that the barter exchange policy is more profitable than a traditional newsvendor model. A combination of stochastic and deterministic variable demand provides 34.31% more profit than a stochastic demand. Sensitivity analysis, discussions, and managerial insights are provided in detail on optimal decisions.

Comparative Analysis of Impulse Buying Behaviour Across Retail Channels: A Study of Physical Stores, E-commerce Websites and Mobile Shopping Apps

"The nuanced dynamics of impulse buying behaviour across diverse retail channels unveil a fascinating interplay between consumer psychology and the unique attributes of physical stores, e-commerce platforms, and mobile shopping apps. Delving into the intricate landscape of impulse buying behaviour across three prominent retail channels, namely physical brick-and-mortar stores, e-commerce websites, and mobile shopping applications, sheds light on how retail environments shape and influence impulsive buying behaviours. Employing a comprehensive research framework that encompasses the realms of behavioural psychology, astute marketing strategies and the nuanced analysis of digital interfaces unveils the underpinnings that drive impulsive purchases in each distinct retail environment. By means of meticulous data collection and rigorous scrutiny, this research discerns the unique determinants of impulsive buying behaviour, encompassing consumer motivations, environmental cues and the pivotal role of technology becomes apparent. The comparative analysis not only enriches understanding of the impulse buying phenomenon but also provides actionable insights for retailers and marketers keen on creating bespoke strategies tailored to the specific attributes of each retail channel. Presenting realistic implications for businesses seeking to optimize consumer engagement and bolster sales in today’s multifaceted retail landscape, the recognition of the varied triggers behind impulse buying across different platforms empowers retailers to cultivate precision-targeted approaches that deeply resonate with their intended audience, thereby amplifying the efficacy of their marketing endeavours. Undertaking an exhaustive comparative analysis of impulsive buying behaviour"

Examining the impact of consumers’ showrooming behavior on sales staff job conditions: insights from the Indian apparel retail sector

PurposeThis research aims to investigate the showrooming phenomenon in the context of the evolving omnichannel shopping landscape, which seamlessly integrates both physical and online retail channels. Showrooming, wherein customers browse products in physical stores but ultimately purchase from online competitors, poses a potential threat to the job security and job satisfaction of sales staff in brick-and-mortar (B&M) stores. To address this issue, this study explores the relationship between showrooming, self-efficacy, sales performance, job insecurity and job satisfaction of sales staff, using the job demands-resources (JDR-R) model as a theoretical framework.Design/methodology/approachThis research employs quantitative research methods and gathers data from 219 sales staff working in Indian retail stores. Structural equation modeling is used to test the proposed hypotheses.FindingsThe results indicate that showrooming is associated with a decrease in the self-efficacy, sales performance and job satisfaction of sales staff. Furthermore, the result indicates that showrooming is positively associated with increased job insecurity among the sales staff.Originality/valueThis study offers valuable contributions to existing literature and offers insights for both retailers and salespeople regarding the potential repercussions of showrooming. It also suggests coping strategies to address the challenges posed by showrooming and the behavior of showroomers.

The adoption of live streaming channel considering impulse buying and product returns

Live streaming commerce has experienced rapid development in the past several years. One of the prominent advantages of live streaming is that streamers can stimulate impulse buying. However, impulse buyers may return the product when they calm down, leading to a high loss for the retailer. In this research, considering impulse buying and product returns, we explore the retailer's channel strategy within three channel structures: single traditional channel, single live streaming channel, and dual channel. We find that dual channel strategy dominates single live streaming channel strategy, and adopting live streaming may not always benefit the retailer. When there is a large proportion of impulsive customers and the product has a low marginal loss of return, it is better to adopt the dual channel strategy. Interestingly, the retailer will be more inclined to add a live streaming channel when there are more loyal consumers in the traditional channel. Moreover, considering the influence of product returns will make the retailer less likely to adopt live streaming e-commerce. Additionally, our analysis shows that consumer returns will significantly affect live streaming price. Under the single live streaming channel strategy, as the streamer possesses superior sales ability or there are more impulsive consumers, it is better to reduce the price. If the retailer neglects product returns, he will raise the price. Under the dual channel strategy, the retailer considering product returns will announce a low price in the live streaming channel and a high price in the traditional channel. However, if the retailer neglects product returns, he will announce a high price in the live streaming channel and a low price in the traditional channel.

What makes consumers buy from the informal rather than formal retail market? A consumption value perspective

Purpose This paper aims to understand consumption values buying from informal retail markets (i.e., street vendor retailing). It also explores why consumers prefer daily necessary goods from the informal compared to the formal retail market (such as supermarkets, retail chain outlets and e-commerce). Design/methodology/approach Employing the qualitative research approach, this study collected data from nine respondents in two areas in Malaysia. Data were collected using semi-structured interviews and analysed using the thematic analysis technique. Only representative verbatim codes were presented under five themes of consumption value theory. Findings Consumers are triggered by the convenience, ease, and exclusive products (conditional value), friendly and known relationship with informal sellers, as well as the availability of some particular food items (emotional value) and lower price and freshness of groceries (functional value) while buying from informal compared to formal retail vendor. Research limitations/implications This study provides knowledge implications to the consumption value theory. Functional, emotional, and conditional values are the dominant components of purchase behaviour in informal compared to formal retail channels. Social values are common, whereas epistemic value is more substantial in formal retailing. Practical implications Findings are helpful for informal retail businesses to understand consumers' buying behaviour. Informal retail owners should ensure that commodities are fresh, highly affordable and available in the local communities. Building a friendly relationship with consumers would be a key to the success of this retail sector. Social implications Authorities should support informal sellers to set up mobile retail stores in residential areas. This effort would offer greater convenience to both parties in informal businesses and ensure informal sellers' financial and social well-being. Originality/value Despite the widespread acceptance of buying goods from informal retail vendors, research on consumption value in informal retailing is largely overlooked. Previous research primarily deals with formal market phenomena due to their size and economic contribution. Consequently, current literature lacks an understanding of why consumers prefer to buy from informal retail vendors for their daily groceries when the formal retail channel could fulfil similar needs. Using a qualitative research design, this research uncovers consumers' buying motives from informal compared to formal vendors.

Formation of customer value through channel integration: Modelling the mediating role of cognitive and affective customer experience in the omni channel retail context

Formation of customer value through channel integration: Modelling the mediating role of cognitive and affective customer experience in the omni channel retail context