Increasing Millennial Consumers’ Patronage Intention on Omnichannel Groceries

Abstract

Interaction between online and offline is more important than before, where omnichannel has now become the ‘rule’ and not the exception, since most of nowadays consumers which are dominated by millennials are the omnishoppers type. The purpose of this study is to find out the factors that influence patronage intention of millennial consumers in omnichannel groceries and formulate the market segmentation based on these factors. Research data is collected using online questionnaire distributed to 288 respondents, while the data analysis methods used in this study are SEM-PLS and K-means cluster analysis. The results of this study show that channel integration, retailscape, promotional tools, and customer service have significant effects on the patronage intention of millennial consumers on groceries in the omnichannel context, so that these consumers are segmented into convenience-seeking omnishoppers, benefit- oriented omnishoppers, and attribute-observing omnishoppers.