Online/In-Store Integration and Customer Retention

Abstract

Reducing the risks believed to be associated with product availability can be critical to increasing consumer retention rates. This study considers the role that perceptions of channel integration have on such beliefs and their impact on purchasing decisions. Surveys distributed to purchasers of specific goods both online and in-store provide data used in the analysis of these effects. The findings suggest that firms simultaneously managing both online and instore channels should not only reassess the repercussions of availability failures but also consider efforts that encourage the transparency of channel integration.

Understanding the customer experience in the age of omni-channel shopping

“…In this regard, as shown in Figure 1, the boundaries between multi-, cross-, and omni-channel are blurred. In fact, they are not distinct, isolated strategies, but rather an evolution that depends on the degree of integration customers perceive between channels and the ease with which they can interact with the brand across these channels and touch-points during the shopping journey (Bendoly, Blocher, Bretthauer, Krishnan, & Venkataramanan, 2005). Omni-channel, understood as total integration for retailers and consumers, is a goal to pursue in a continuous strategic line that is difficult to fully achieve.…”

Informational influence of online customer feedback: An empirical study

“…They also allowed many traditional retailers to provide online channels for customers (that is, bricks-andclicks), and studies show that multi-channels appeal to customers. 5 The crowded online marketspace spurs fi erce competitions between online retailers, which drive their further adoption of new technologies to help gain and maintain market share. Increasingly, retailers are allowing customers and visitors to their websites to provide feedback of the products or services offered…”

Seven Contexts for Service System Design

“…Consumers might shop for particular brands, but they don't always buy them from the same retailer. Multi-channel retailers, on the other hand, want customers to treat their different channels as complements or substitutes for each other, because this will increase sales and strengthen loyalty (Tedeschi, 2007;Bendoly, et al, 2005;Neslin, et al, 2006). So many firms offer a "ship to store" or "local pickup" service that allows a customer to purchase or reserve a product in the online channel but obtain faster delivery from the physical channel.…”