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The Impact of the Multi-channel Retail Mix on Online Store Choice: Does Online Experience Matter?
•We investigate online store choice decisions of multi-channel grocery shoppers.•We take traditional store choice drivers and multi-channel factors into account.•We allow their effect to change with growing online shopping experience.•At start, consumers tend to select the store of the preferred offline chain.•Online store comparison and the impact of online assortment increase over time.
More and more grocery retailers are becoming multi-channel retailers, as they are opening an online alternative next to their traditional offline supermarkets. While the number of multi-channel grocery shoppers is also expanding at a fast growth rate, there are still large differences in online shopping frequency, and as a result, in the levels of experience with buying in the online grocery channel. This study wants to (i) identify the underlying drivers of online store choice and (ii) explore if and how these drivers change when multi-channel shoppers gain online grocery shopping experience. We investigate this question with an online store choice model using purchase data of an extensive UK household panel over a two-year period, covering all multi-channel retailers in the grocery market. Our results show that multi-channel shoppers, at the start of online grocery shopping, tend to select the online store belonging to the same chain as their preferred offline store, especially when the online store is strongly integrated with the offline store in terms of assortment. When online grocery shopping experience increases, multi-channel shoppers’ focus shifts from a comparison within a chain across channels to a comparison across chains within the online channel, resulting in an increasing importance of online assortment attractiveness and online loyalty when choosing an online store.
Journal Article
Powershop 4 : new retail design
Powershop 4 features 135 recently designed contemporary retail environments selected from all over the world.
Book
Autonomous stores: How levels of in-store automation affect store patronage
•Community or rural locations are preferable for autonomous stores.•The check-in necessity in many autonomous stores is a barrier to retail patronage.•Virtual video support is similarly accepted to telephone support.•Technology-enabled and staffed checkout options are similar in their effect.•Consumers dislike not being able to verify the basket costs before payment.
Autonomous stores operate without needing on-site staff present to support and monitor customers. This study seeks to determine which autonomous stores are most likely to succeed. By adapting convenience theory and drawing on secondary and qualitative data, the authors identify unique features of autonomous stores that constitute convenience dimensions: options for check-in (access convenience), staff support (assistance convenience), check-out (transaction convenience), and to allow customers to check their itemized baskets (verification convenience). Perceptions of convenience, autonomy, and safety explain the influences of unique store features. A conjoint experiment provides a test of the direct effects of each dimension on store patronage and indirect effects through convenience, autonomy, and safety perceptions. The results indicate that, with the exception of check-out, consumers prefer staffed stores; having to check in (e.g., with a credit card), limited access to (remote) staff, and an inability to verify the basket before payment represent significant barriers. In turn, some trade-offs arise: Store features that increase convenience and autonomy undermine safety perceptions. Finally, community-based and rural locations are better suited for autonomous stores than anonymous traffic hubs. Retail managers can leverage these findings to decide whether to establish autonomous stores and, if so, with which design.
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Journal Article
Evolution of retail formats: Past, present, and future
In this paper, the authors review current literature on retail formats and propose a new customer-centric framework for retailers to focus on as they continue to innovate and evolve. Specifically, they review the literature on how formats compare in their attributes and compete with each other; the role of customer behavior in format choice; and developments in multichannel and omnichannel retailing. They propose a framework for retail formats suggesting two paths – either reduce friction in the customer journey or enhance customer experience. They discuss the challenges faced by offline (physical store-first) and online (digital-first) retailers and elaborate on strategies each type of retailer is pursuing to address these challenges. Finally, they offer directions for future research in this domain. They conclude by calling for newer digital-first and physical-first players to continue coming up with different customer-centric formats, which they predict will slowly morph into integrated retailers, leaving space for newer players to enter the market and hence keep the wheel of retailing spinning.
Journal Article
Retail geography
This title surveys and sets in context the wide range of research work that has been done on retailing. It concentrates on western industrial societies, particularly Britain and the USA, and considers empirical research, theory and theoretical applications.
Book
Leveraging In-Store Technology and AI: Increasing Customer and Employee Efficiency and Enhancing their Experiences
Due to digital innovations, retailing is undergoing radical changes. Scholars have proposed frameworks to address outcomes of implementing technology e.g., an increased customer experience, efficiency gains, consumer or employee acceptance. Existing frameworks concentrate primarily on the consumer perspective, focus on specific technologies (e.g., AI) and covering the customer journey. In contrast, this paper also focuses on the employee perspective, and how technology influences the employee journey. Since the convenience offered by online retailers puts offline retailers under pressure, this research focuses on in-store technology. Based on a comprehensive review of managerial and academic literature and expert interviews, we propose a framework covering customers and employees, and technology's function (increasing efficiency or experience), as also including more traditional and newer technologies, such as robots and AI. We identify and showcase technologies increasing efficiency for customers (quadrant 1, e.g., checkout options or autonomous stores) or for employees (quadrant 2, e.g., in-store robots), and enhancing the experience for customers (quadrant 3, e.g., retailer apps or communication) or for employees (quadrant 4, e.g., exoskeletons or smart wearables). Finally, for each of these quadrants, we identify future research opportunities.
Journal Article
Do Store Brands Aid Store Loyalty?
Do store brands aid store loyalty by enhancing store differentiation or merely draw price-sensitive customers with little or no store loyalty? This paper seeks to answer this question by empirically investigating the relationship between store brand loyalty and store loyalty. First, we find a robust, monotonic, positive relationship between store brand loyalty and store loyalty by using multiple loyalty metrics and data from multiple retailers and by controlling for alternative factors that can influence store loyalty. Second, we take advantage of a natural experiment involving a store closure and find that the attrition in chain loyalty is lower for households with greater store brand loyalty prior to store closure. Together, our results are consistent with evidence for the store differentiation role of store brands.
This paper was accepted by J. Miguel Villas-Boas, marketing
.
Journal Article