Determinants of Consumers' Purchase Channel Preference in Omni-Channel Retailing

Abstract

Mobile technology and digitalisation put pressure on retailers to engage in omni-channel retailing. However, to avoid cannibalisation and create synergies, channels must differ and provide a unique service offer to the consumer. Indeed, little is known about what constitutes consumers’ channel preference in omni-channel environments. Thus, the present study evaluates consumers’ purchase channel preference considering benefits and costs. Besides, the role of channel experience and product category is estimated. Results demonstrate that consumers perceive differences between offline and digital channels in terms of utilitarian value, hedonic value and risk, but not in effort. While online and mobile channels are perceived as equally risky, the utilitarian value, hedonic value and effort they involve varies. But, despite the growing relevance of digitalisation, consumers still prefer purchasing offline for two different selected product categories. Thus, the authors offer implications for managerial practice to foster digital purchase channel preference.

Factors of customers’ channel choice in an omnichannel environment: a systematic literature review

“…The brick-and-mortar store environment facilitates customers’ immediate and generally reassuring assessment of these risks. Accordingly, perceived risks of offline channels, such as privacy or security concerns, appear to have no significant effect on attitudes toward purchasing via offline channels (Eckl and Lingenfelder 2021 ; Wang et al 2016 ). The perception of risks relating to online channels, by contrast, results directly in a decrease in online channel use (Lee and Jung 2020 ; Madden et al 2017 ; Montoya-Weiss et al 2003 ) and greater use of alternative channels such as brick-and-mortar stores (Chiu et al 2011 ; Kukar-Kinney and Close 2010 ).…”

“…The perception of risks relating to online channels, by contrast, results directly in a decrease in online channel use (Lee and Jung 2020 ; Madden et al 2017 ; Montoya-Weiss et al 2003 ) and greater use of alternative channels such as brick-and-mortar stores (Chiu et al 2011 ; Kukar-Kinney and Close 2010 ). However, arising from the COVID-19 pandemic and associated threats such as danger of infection, other channel risks like human contact gain importance and consumers´ channel choice becomes health-related behavior (Eckl and Lingenfelder 2021 ; Wang et al 2021a ). For instance, Wang et al ( 2021a ) showed that perceived susceptibility to COVID-19 combined with the perceived severity of the virus positively influences the value of channels that do not involve human contact.…”

“…The extent of existing channel experience lessens emphasis on the channel’s perceived disadvantages, such as perceived risks (Xu and Jackson 2019b ) and perceived access, transaction and search costs (Kalyanam et al 2017 ; Konuş et al 2014 ), as well as enhancing its perceived benefits, which might include convenience (Blázquez 2014 ) and media richness (Lipowski and Bondos 2018 ), and boosting customers’ confidence and sense of self-efficacy in their use of the channel (Chiu et al 2011 ; van Dijk et al 2007 ). Channel experience, then, can act as a facilitator or a barrier, particularly with regard to digital channels (Eckl and Lingenfelder 2021 ; Hallikainen et al 2019 ; Sousa et al 2015 ). Generally speaking, customers tend to use the channels with which they are experienced (Albesa 2007 ; Hu and Tracogna 2020 ; Polo and Sese 2016 ).…”

“…The literature on channel choice makes two sets of distinctions regarding types of products and services: they may be either “search” or “experience” goods (see, for example, Goraya et al 2022 ), and additionally, along lines similar to those identifying divergent customer needs, either utilitarian or hedonic goods (cf. Eckl and Lingenfelder 2021 ; Singh and Swait 2017 ). Researchers (Lee and Jung 2020 ; Park and Lee 2017 ; Verhagen et al 2019 ) find relatively greater needs for touch, information, and customer service in relation to experience goods, which are those containing significant proportions of qualities that elude determination prior to their use and only emerge in the course of that use (Nelson 1970 ).…”

“…Channel characteristics are constantly evolving alongside emerging new technologies and digital devices (Sands et al 2016 ). Further research could, for example, examine the impact of virtual and augmented reality technologies such as virtual dressing rooms on perceptions of channel characteristics (Eckl and Lingenfelder 2021 ; Kim et al 2021 ). We also note the changing role of some channels in the omnichannel environment; brick-and-mortar stores, for instance, are gaining in significance for the pre- and post-purchase stages, but may be taking on a more complementary role for the actual purchase (Fornari et al 2016 ; Miquel-Romero et al 2020 ).…”