The Hare and the Tortoise: Do Earlier Adopters of Online Channels Purchase More?

Li, J Jing; Konuş, Umut; Pauwels, K.F.D.; Langerak, Fred

doi:10.1016/j.jretai.2015.01.001

Cited by 34 publications

(27 citation statements)

References 59 publications

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“…Moreover, the sampled consumer cohort represents a relatively mature stage of technology adoption according to Roger's Technology acceptance model (Rogers, , p. 281; share of mobile transactions is 42%). Thus, this study extends findings of previous studies, which include much smaller shares of mobile transactions (e.g., Huang et al, ; Wang et al, ; Xu et al, ) by including early adopters and early majority adopters, which makes findings representative of a larger population share and takes account of segment‐specific reactions to new channel adoption (Li et al, ).…”

Section: Discussionsupporting

confidence: 79%

“…This is an indication that the sampled consumer cohort represents a relatively mature stage of technology adoption according to Roger's Technology acceptance model (Rogers, , p. 281). It is particularly important to include segments of later adopters because of segment‐specific changes in purchase behavior as reactions to new channel adoption (Li et al, ). Including not only first movers, but also early adopters and early majority adopters will make findings representative of a larger share of the overall population.…”

Section: Methodsmentioning

confidence: 99%

“…Observing and understanding post‐purchase decision behavior, however, is imperative for researchers and retailers alike to form an end‐to‐end understanding of mobile channels’ impact on consumer decision making. As product return rates can reach 30% and more (Banjo, ), they are critical for determining retailer profitability (Li, Konuş, Pauwels, & Langerak, ) and must be part of any full understanding of behavioral changes. Changed return behavior could offset or intensify the effects on shopping outcomes that researchers have found the mobile channel to cause.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

How information processing and mobile channel choice influence product returns: An empirical analysis

Seeger

Kemper

Brettel

2018

Psychology and Marketing

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The mobile internet is starting to overtake the desktop device-based internet as a purchase channel. Its impact on consumer behavior is therefore increasingly important to understand. This study seeks to understand and measure, if usage of mobile devices for online purchases leads to a lower decision quality and, in effect, to more product returns. In doing so, the impact of information environments on the end-to-end consumer purchase decision-making process is better understood and it is investigated, if the information environment of mobile devices leads consumers to take more error-prone purchase decisions. An exclusive data set spanning more than 140 million transactions of a European online retailer is used to empirically analyze changes in product return behavior after mobile channel adoption. The results show that mobile channel usage is positively related to product returns, overall and for both, purchases made with mobile devices and purchases made with desktop devices, although prior literature predicts that returns from desktop purchases should not increase. These findings suggest that through new channels, consumers' information environment is altered sufficiently to affect their decision accuracy. Moreover, the results indicate that previous research may be overestimating the positive effect of mobile channel adoption on sales by disregarding changes in product return behavior. K E Y W O R D Schannel choice, consumer behavior, decision reversals, expectation disconfirmation, information processing, mobile commerce, product returns

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Section: Discussionsupporting

confidence: 79%

Section: Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

How information processing and mobile channel choice influence product returns: An empirical analysis

Seeger

Kemper

Brettel

2018

Psychology and Marketing

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“…This uncertainty matters more in some product categories, and more so for some segments than others. While the authors focus on the offline showroom as a source of information and a method for resolving uncertainty regarding non-digital attributes, a number of other papers study the complementary phenomenon of brick and mortar retailers providing information through the online channel [17,18].…”

Section: New Retail Channelsmentioning

confidence: 99%

Retailer–Consumer Sustainable Business Environment: How Consumers’ Perceived Benefits Are Translated by the Addition of New Retail Channels

2018

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In the current era, consumers are living in a multi-channel shopping environment. Retailers are expanding their business channels to get the most out of their ongoing multi-channel businesses and to create a sustainable shopping environment for consumers. The extant literature is quite elaborative about the impact of new online channels on retailers, but a very limited part of the said literature discusses the impact of adding both new online/offline channels to the retailers’ existing business channels and the perceived benefits they create for consumers. This paper makes the comparison of multi-channel additions and their impacts on consumer benefits in creating a sustainable retailer–consumer business environment. This dimension of research is quite new regarding the subject of multi-channel shopping. In this paper, a simulated experimental design is adopted to analyze the impact of the multi-channel structure with a mix of different product types (experience and search) and the perceived benefit to consumers (perceived variety, perceived convenience, and perceived risk). The results show that, compared to the newly added offline channels, newly added online channels can make consumers more aware of the overall variety, increase perceived convenience, and reduce perceived risk. However, for retailers selling search products, the newly added online channel does not create any significant difference to the consumers’ overall perceived variety of the retailers.

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“…In response, we investigate the effects of cross-channel competition on customer The increasing competitiveness of the multichannel environment also makes it vital to investigate the consequences of customer adoption of a new channel, especially the effects on competition among firms. Many studies argue that firms benefit from introducing online channels, through more revenues [25,40,79], increased customer retention [10,14], or greater customer loyalty [65,75]. Other studies instead indicate that online channel adoption increases average service costs [14], while diminishing customer purchase frequency [5,71].…”

mentioning

confidence: 99%

Customer Channel Migration and Firm Choice: The Effects of Cross-Channel Competition

Konuş

Langerak

et al. 2016

International Journal of Electronic Commerce

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Customers switch among multiple channels offered by multiple firms and this means that multichannel shopping behavior also depends on the channels offered by competitors. To what extent do competitions' channel offerings influence the use of a new online channel introduced by a firm? This important issue remains largely untapped by marketers and managers since it requires not only multichannel but also integrated multifirm data. This study investigates the impact of customers' past and current purchases from competitors' channels on channel choice with a focal firm that introduces a new online purchase channel. Furthermore, we examine the effect of new online channel adoption on customer purchases (firm choice and order size) from the focal firm and its competitors. The data contain eight-year individual transactions from ten competitive multichannel home decoration retailers. Our research reveals that customers' previous purchases from competitors' online channels increase the probability of online channel adoption from a focal firm that introduces its online channel later than its competitors. This effect is greater for existing customers than new customers who are acquired after the introduction of the new online channel. Customer adoption and use of this new online channel reduce purchase frequencies of competitors, but increase purchase frequencies of the focal firm, for both existing and new customers. Together these findings illustrate the role of competitors' channels in determining customers' channel choice of the focal firm. Retailers therefore should consider the effects of competitors' channel offerings and tailor their channel strategies to accommodate the various needs of new and existing customers, when they plan to introduce a new online channel.

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The Hare and the Tortoise: Do Earlier Adopters of Online Channels Purchase More?

Cited by 34 publications

References 59 publications

How information processing and mobile channel choice influence product returns: An empirical analysis

How information processing and mobile channel choice influence product returns: An empirical analysis

Retailer–Consumer Sustainable Business Environment: How Consumers’ Perceived Benefits Are Translated by the Addition of New Retail Channels

Customer Channel Migration and Firm Choice: The Effects of Cross-Channel Competition

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