Collins, Alan M.; George, Richard G.
2017 International Journal of Retail & Distribution Management
doi: 10.1108/IJRDM-09-2016-0148
PurposeThe purpose of this paper is to investigate whether or not mavens’ dissemination activities are likely to promote or hinder retailers’ store brand premiumisation attempts, by revealing the relationship between mavens’ price and non-price on-pack extrinsic cue search and their store brand purchasing behaviours.Design/methodology/approachThe paper adopts a hypothetic-deductive approach and develops a model of mavens’ store brand purchasing behaviour. The model is tested using SEM on a US data set containing 457 respondents. A full discussion of the direct, indirect and total effects is provided.FindingsMavens’ store brand purchasing behaviours are strongly linked to their price search activities and negatively related to their use of non-price on-pack extrinsic cues. This indicates that their dissemination activities are likely to stress lower prices and hence price competition rather than promote other cues used to infer quality. Thus, mavens are likely to inhibit retailers’ store brand premiumisation attempts. Mavens’ investments in time engaged in search activities are strongly linked to social returns rather than private financial savings.Research limitations/implicationsThe work is based on data collected using an online survey in one region of the USA where store brands are not as prevalent in other countries such as the UK.Practical implicationsThe investigation of non-price on-pack extrinsic cues reduces mavens’ store brand purchasing behaviours while the use of price cues increases them. This suggests that even with mavens’ market expertise that a non-price extrinsic cue deficit continues to exist for these products. Consequently, retailers need to re-examine and rework the cues contained on pack to convey more positive consumption-related information if mavens are to become store brand advocates.Originality/valueRather than conceptualising the maven as possessing market wide knowledge, this research adopts a domain specific perspective arguing that price mavenism can be distinguished from product-related mavenism with consequences for the set of extrinsic cues used as part of the maven’s search process. In doing so, it reveals the conflicting effects that these maven dimensions have on purchasing behaviours and the likely effects on mavens’ dissemination activities.
Yumurtacı Hüseyinoğlu, Işık Özge; Galipoğlu, Erdem; Kotzab, Herbert
2017 International Journal of Retail & Distribution Management
doi: 10.1108/IJRDM-09-2016-0151
PurposeThe purpose of this paper is to evaluate how retailing companies use social media, local and mobile commerce in their omni-channel management strategy. This approach, also known as SO-LO-MO, encompasses customer touchpoints that offer numerous available channels to consumers. The paper provides insights from 16 retailers in two countries, thus showing geographical differences in the SO-LO-MO as well as differences depending on product segments.Design/methodology/approachIn order to analyse how retailing companies implement SO-LO-MO, a conceptual framework including 48 SO-LO-MO activities was derived from literature. The empirical validation was built upon qualitative and quantitative data collection by retrieving information from the websites, social media channels and mobile applications (apps). Analyses included triangulated content analysis as well as non-parametric statistical tests.FindingsThe research findings enable a comparison of the SO-LO-MO concept between retailers operating in the two countries. The authors were able to reveal similarities and differences in the SO-LO-MO-based omni-channel management strategies. The identified SO-LO-MO practices vary according to different product segments. The authors identified slightly more SO-LO-MO implementation and integration within the German sample. Differences in local commerce between the two samples appear to be statistically significant. Although the differences in mobile and social commerce are not of statistical significance, there are variations in practical usage.Research limitations/implicationsThe research focusses on a small sample of retailers from different product segments in two markets.Practical implicationsThe findings present the current state of the SO-LO-MO concept from the omni-channel perspective in Germany and Turkey.Originality/valueIn view of a limited theoretical understanding and empirical grounding on the SO-LO-MO concept, the findings provide empirical evidence by assessing innovative omni-channel management practices of leading retailers in various industry segments. Furthermore, the paper proposes a frame of reference for measuring the level of SO-LO-MO implementation from an omni-channel perspective.
Bertrand, Jean-Louis; Parnaudeau, Miia
2017 International Journal of Retail & Distribution Management
doi: 10.1108/IJRDM-09-2016-0152
PurposeRetailers have long been aware that weather affects the sales of a myriad of products, but until now, most were not in a position to manage the risks weather presents. Rising weather variability combined with advances in weather-index financial instruments have prompted new interest in investigating the relationship between sales and weather. The purpose of this paper is to explore the impact of changes in weather on UK retail sales, to estimate the contribution of weather to sales, and evaluate the maximum potential loss caused by adverse weather, for each season and retail sector.Design/methodology/approachThe authors present a methodology to identify and quantify the extent to which a company is exposed to weather risks, in order to incorporate them into its risk management policy and take actions to mitigate these risks. For each season and each retail category, the authors provide a measure of the impact of weather on sales that can be used as a benchmark to analyse sales performance.FindingsThe authors propose a new risk assessment indicator to evaluate the potential losses caused by adverse weather (WeatherRisk). The authors show that intra-annual changes in weather significantly affect retail sales. The exposure of retail categories to weather are not the same depending on the season, and the response of individual retail categories to the same change in weather varies considerably. Although temperature is a predominant explanatory variable, the authors show that weather-sensitivity analysis should include precipitation, humidity rate and wind.Research limitations/implicationsOne limitation of this study is that the authors individually compute WeatherRisk for each significant weather variable. Further research could explore new approaches to evaluate Total WeatherRisk, which take into account potential multicollinearity issues between weather variables.Practical implicationsThe methodology allows retailers to measure the effects of weather on sales performance, evaluate the risks at stake, and protect sales and margins from weather risks, with newly available index-based financial instruments. Managers may now actively use weather as a differential advantage, and at the same time focus their efforts on improving resiliency to increasing climate variability.Originality/valueIn this paper, the authors produce a detailed analysis of the exposure of each retail sectors to unseasonal weather. This is the first time all retail sectors are analysed and ranked per season at a national level. The authors provide managers with actionable information to improve their understanding of how weather impact sales over each season, and to allow them to structure weather-index-based instruments with financial partners.
Arora, Sourabh; Sahney, Sangeeta
2017 International Journal of Retail & Distribution Management
doi: 10.1108/IJRDM-09-2016-0158
PurposeRecent statistics on increasing webrooming customers make it topical in the multi-channel retailing domain. The purpose of this paper is to offer an enhanced understanding on “Webrooming behaviour”, an area of concern for e-retailers by proposing an integrated framework grounded on the Theory of planned behaviour and Technology acceptance model.Design/methodology/approachThe conceptual model presented develops a number of propositions applicable to webrooming behaviour utilizing the rich literature on channel choice behaviour in the multi-channel retailing environment. The propositions are open for verification and can serve the basis for future line of research.FindingsThe model proposed provides basis for understanding the webrooming sequence via search attitude towards online channels, purchase attitude towards offline channels, perceived ease of online search and perceived usefulness of webrooming behaviour. The impact of online risk perceptions and mediating role of (lack of) “trust” have been proposed along with the direct impact of product type and category which offers an holistic view towards understanding the webrooming conduct.Research limitations/implicationsThe model proposed lacks empirical verification. There is a need to test the model empirically to validate the model and to find out the suitability of integrated TPB-TAM model.Practical implicationsWebrooming substantially erodes online profits. Before retailers’ strategies to defend webroomers, it is imperative to understand the phenomenon from the consumer’s side. The model proposed is a step in this direction and provides the basis for formulating strategies for holding back the webroomers.Originality/valueThis paper adds to the body of knowledge in retailing by proposing a conceptual model on webrooming behaviour which is an emerging area of research in the present retail landscape.
Ruiz-Real, José Luis; Gázquez-Abad, Juan Carlos; Esteban-Millat, Irene; Martínez-López, Francisco J.
2017 International Journal of Retail & Distribution Management
doi: 10.1108/IJRDM-09-2016-0163
PurposeThe purpose of this paper is to analyze consumers’ reaction to assortment composition.Design/methodology/approachThis study examines several scenarios: private label (PL)-only assortments; mixed assortments (PL and national brands (NBs)), and in the latter case both small and large assortments. Consumers’ reaction is measured through three dependent variables: store image, PL purchase intention and store-switching intentions. The authors ran a structural equation model (SEM) to analyze the influence of different explanatory aspects (product category involvement, attitude toward PL, value consciousness and assortment variety perception) on consumers’ reactions for each scenario. For this research, the authors carried out an online experiment with a sample of 1,400 individuals from a large panel of consumers.FindingsConsumers react differently to different assortment compositions, giving importance to the differences between the three assortment models analyzed. The results show that the composition of the assortment, either according to its size or its structure, influences consumers’ response in a significant way. The results demonstrate that store image exclusively affects PL purchase intention in PL-only assortments. Only in mixed assortments is there a relationship between the assortment variety perception and store image, product category involvement and PL purchase intention, and both store image and value consciousness are related to store-switching intentions. Store-switching intentions decrease when consumers intend to purchase PL, but strictly in PL-only and large mixed assortments. Finally, value consciousness and variety perception are positively related to PL purchase intentions only in large mixed assortments.Research limitations/implicationsOne limitation of this research is that it is restricted to the Spanish context. Second, the methodology is based on an online experiment, with the advantages and disadvantages that this entails. Third, the authors did not differentiate between high- and low-value PL which, if undertaken, could be of interest for observing how brand value affects the management of retail assortments. Finally, the authors did not differentiate regular buyers at these retail chains from those who are not.Practical implicationsThe comparison between different assortment compositions helps the authors to draw some very interesting conclusions. The estimation of different consumers’ responses is ideal for providing retailers with recommendations on how to frame their assortment strategies. Thus, the main recommendation of this study for retailers is to look for a “balance” between PL and NBs, i.e., to offer mixed assortments.Originality/valueAside from mixed assortments, this study estimates the consequences of assortments that are exclusively PL. The authors proposed and deployed a SEM, so this paper contributes to the retailing field by including multiple dependent variables – store image, PL purchase intention and store-switching intentions. The authors conducted an online experiment containing “real” brands, which is another contribution as it enables consumers’ response to be estimated in a “real” environment.
2017 International Journal of Retail & Distribution Management
doi: 10.1108/IJRDM-09-2016-0166
PurposeBecause increasing product variety in retail conflicts with limited shelf space, managing assortment and shelf quantities is a core decision in this sector. A retailer needs to define the assortment size and then assign shelf space to meet consumer demand. However, the current literature lacks not only information on the comprehensive structure of the decision problem, but also a decision support system that can be directly applied to practice in a straightforward manner. The paper aims to discuss these issues.Design/methodology/approachThe findings were developed and evaluated by means of explorative interviews with grocery retail experts. An optimization model is proposed to solve the problem of assortment planning with limited shelf space for data sets of a size relevant in real retail practice.FindingsThe author identifies the underlying planning problems based on a qualitative survey of retailers and relates the problems to each other. This paper develops a pragmatic approach to the capacitated assortment problem with stochastic demand and substitution effects. The numerical examples reveal that substitution demand has a significant impact on total profit and solution structure.Practical implicationsThe author shows that the model and solution approach are scalable to problem sizes relevant in practice. Furthermore, the planning architecture structures the related planning questions and forms a foundation for further research on decision support systems.Originality/valueThe planning framework structures the associated decision problems in assortment planning. An efficient solution approach for assortment planning is proposed.
Beeck, Ines; Toporowski, Waldemar
2017 International Journal of Retail & Distribution Management
doi: 10.1108/IJRDM-09-2016-0171
PurposeThe purpose of this paper is to examine the effect of mobile messages on intention to redeem a coupon or promotional offer, depending on location and content. Location (home, city, shop) and content (coupon, promotional message) were used as independent factors.Design/methodology/approachParticipants in two online surveys (using 3×3 and 3×2 between-subjects factorial designs) received both simulated and real application smartphone messages and they got the location where the smartphone shopping message scenario is located. The surveys produced 528 responses for analysis in the first study and 146 answers for the second study.FindingsThe results indicate that mobile messages can be highly effective for users of discount apps when the consumer is near the shop. However, the high perceived risk associated with such a message could deter potential customers from using mobile coupons.Research limitations/implicationsThe main limitation of this study is that few consumers used the discount mobile applications examined. Future research should implement field experiments with real and potential users to investigate this low usage rate.Practical implicationsBrick-and-mortar retailers can compete with digitization by using mobile messages, as users’ intention to redeem is quite high. However, they should be aware of the privacy concerns preventing some customers from using these apps.Originality/valueCurrent research highlights the importance of digitization in retailing by using new technologies for brick-and-mortars, e.g., mobile messages as part of mobile targeting. This study provides evidence of the potential risks and benefits of sending mobile messages to customers in a different context.
Landmark, Andreas D.; Sjøbakk, Børge
2017 International Journal of Retail & Distribution Management
doi: 10.1108/IJRDM-10-2016-0174
PurposeThe purpose of this paper is to explore how tracking of products by the use of radio frequency identification (RFID) technology may describe customer behaviour in real-time.Design/methodology/approachThe study was conducted as a field experiment, where a commercially available RFID platform was deployed in the fitting rooms of a fashion retail store.FindingsThe study demonstrates an application of in-store RFID tracking to describe customer behaviour, and some practical challenges of utilising such technology. An example typology of four fitting room traits was constructed based on the data collected.Practical implicationsDifferent customer types most likely require and respond differently to attention from the personnel operating the fitting room area. By identifying customer behaviour in real-time, it is possible to deliver “best practice” shop stewardship and create a more personalised retail experience.Originality/valueThe study is based on real-life retail settings, rather than anecdotal management observations or economic and demographic indicators. To the best of the authors’ knowledge, few contributions combine RFID and consumer behaviour outside conceptual work or laboratory experiments.
Frasquet, Marta; Miquel, Maria-José
2017 International Journal of Retail & Distribution Management
doi: 10.1108/IJRDM-10-2016-0175
PurposeThe purpose of this paper is to investigate the effects of multichannel integration (MCI) on customer loyalty. The specific objectives are to provide an appropriate reliable measure of the construct, and to analyse the impact of MCI on offline and online loyalty, both directly and by mediation of customer satisfaction.Design/methodology/approachThe paper focusses on the retail apparel sector of Spain and the UK. The authors applied a scale development process and tested the model with data of 761 multichannel apparel shoppers. The proposed theoretical model was estimated through EQS 6.1 and a mediation test was calculated.FindingsThe findings show, first, that the construct of channel integration has two dimensions: reciprocity, which refers to the possibility of crossing the channels while shopping, and coordination, which refers to the alignment of offline and online offers. Second, that MCI affects positively both offline and online loyalty both directly and through satisfaction, which partially mediates the relationship.Research limitations/implicationsCulture might play a moderating role in the relationships found that are not analysed.Practical implicationsThe findings have implications for the managers of multichannel retail companies as they help to understand the benefits of channel integration in creating a loyal customer base both online and offline.Originality/valueThis paper contributes to the literature on multichannel retailing in two main ways: first, by developing a scale to measure MCI, and second, by demonstrating that MCI has strong effects on customer satisfaction and loyalty.
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