Measuring customers benefits of click and collect

Abstract

Measuring customers benefits of click and collectPurpose -Click and collect (or grocery pickup) represents a growing part of the channel strategy of traditional off-line retailers. The objective is to understand how customers develop their perceptions towards this new channel. In other words, what are the key factors explaining the long-term value creation for each "click and collect" system depending on consumers' profiles?Design/Methodology/Approach -Based on a quantitative survey of 479 respondents, this research uses confirmatory analyses based on the PLS path modeling.Findings -Based on the structural model, the customers' relations, the website, the pickup station are the most important factors creating value for customers whatever the Internet grocery shopping model. The global conceptual model has been implemented under many variations to test the age effect and the kind of click and collect model. It is made evidence that customers' benefits vary regarding the kind of click and collect model and the age of customers. Research limitations/implications-This research allows a better understanding of the performance of the click and collect system by looking at the key factors that maximize the customers' value and those that decrease it. Results show precisely variations of those factors according to the customer's profile and the click and collect model. Originality/value -This quantitative paper studies customer behaviors towards their usual retailer and their relationship with him. To do so, segmented approaches of the causal model are retained to provide specific recommendations.The model is validated because statistical indicators exceed the recommended threshold (Chin, 1998;Fornell and Larcker, 1981;Tenenhaus et al., 2005). The causal model is expressed as follows (Table 8).-Insert Table 8 about here- Key factors of click and collectAs shown in Table 8, it appears that:Re-purchases = 0.234 relation + 0.207 website + 0.201 pickup station + 0.153 service and marketing policy + 0.103 orders + 0.016 functional benefitThe model shows the created value meaning the key success factors of click and collect, in order of importance:1) The customers' relation forms 23.4% of customer value (related to relational benefit);2) The website explains 20.7% of the customer perceived value (related to experiential benefit);3) The pickup station contributes to 20.1% of the customer perceived value (related to experiential benefit);4) The service and the marketing policy explain 15.3% of the created value (related to experiential benefit);5) The attributes related to orders contribute to 10.3% of created value (related to experiential benefit);6) The functional benefit explains 1.6% of created value.

Development and validation of the pick-up service quality scale of the buy-online-pick-up-in-store service

“…Studies from the operational perspective indicate that BOPS implementation positively influences store traffic and offline store sales (Gallino and Moreno 2014;Gao and Su 2016;Akturk et al 2018). Moreover, Jara et al (2018) suggest that accurate stock-out information, dual experiences of website and pick-up service, and pleasant interactions with employees can create long term value for BOPS customers.…”

“…In addition, multichannel customers share common characteristics with online customers. They both tend to be younger, more innovative, and better educated (Konuş et al 2008 ; Kushwaha and Shankar 2013 ; Jara et al 2018 ). Despite these similarities, BOPS customers choose to move from an online to an offline channel to complete their transactions, while online-only customers remain in the single channel.…”

“…Moreover, existing research on retail service quality may not map directly to BOPS customers. For example, compared to conventional shoppers, BOPS customers tend to be more concerned with the convenience and speed of shopping (Jara et al 2018 ).…”

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