Omni channel shopping behaviour

To take advantage of the growing internet access of households, retailers have developed strategies for communicating with their customers. Consumers use various channels to satisfy their needs and wants for products and services. Retailers can profit from operating on several channels because cross channel shoppers are more profitable than single channel shoppers. Cross channel shoppers spend more money and are more loyal than single channel shoppers (Lihra & Graf, 2007; Accenture, 2010). In 2010, seventy per cent of Dutch inhabitants were engaged in some way in cross channel shopping. These cross channel shoppers base their choices on customer service, convenience and buying experience.

Dutch consumers wish to shop more cross channel; over forty percent of the customers wants to pick up their online ordered products at the shop. On the other hand, thirty five percent of the customers want to buy products in the shop and have them delivered at home. Twenty percent wants to return online bought items in the shop (Accenture, 2010). Retailers have strategies for reaching their customers through one or more channels. They can have a single channel, multi channel, cross channel or omni channel strategy. Figure 3 makes these different strategies clear. Single channel retailers focus on one channel only and, these channels are branded by traditional media or online. Some single channel retailers have a brick and mortar shop and also a website, but this website is not used for commercial activities. The customer is primarily managed in the shop. Those single channel retailers can be small retailers with brick and mortar shops as well as big retailers.

Retailers which are involved in several channels for their commercial activities can be multi channel, cross channel or omni channel retailers. The difference between those types of retailers is in their strategy. In multi channel retailing, every channel has its own strategy. The branding of each channel is managed separately.

Cross channels retailers and omni channel retailers have one strategy for all channels. The customer is the central object in their strategy. In omni channel retailing, consumers switch continuously between channels.

The experience of customers is managed in all channels and improved by a cross channel dialogue. Omni channel shopping gives consumers a blended online and offline experience during their customer journey. The organization is completely focused on customers’ wants and needs. Omni channel customers use different channels but see them as one. They switch constantly between channels and this switching is seamless and happens (almost) automatically (Unic, 2012). Customers of the Bijenkorf use the Bijenkorf app while shopping in the Bijenkorf, for instance, to compare prices. Consumers can switch between channels, these channels feel as one complete channel. Dutch retailer the ‘Bijenkorf’ has developed all its channels with the same strategy (Figure 4).

This omni channel shopping experience can be focused directly and indirectly on digital and physical channels.

The shopping experience of customers is very dynamic because new channels arise continuously. The challenge for omni-channel retailers is to manage customers' experiences on the best possible way across all channels.

19 FIGURE 3, CHANNEL STRATEGIES (UNIC, 2012)

FIGURE 4, BIJENKORF OMNI CHANNEL SHOPPING (WWW.DEBIJENKORF.NL)

2.3 THE CUSTOMER JOURNEY

Consumers’ decision making process has changed due to online shopping behaviour. A considerable amount of literature has been published on the consumer decision making process. Steinfield, Bouwman & Adelaar (2002) describe the purchase process in three phases. The first phase is the pre-purchase stage, followed by the purchase stage and the process ends with a post-purchase stage (Kollmann et al., 2012). Suominen (2005) divides the buying process in five phases: activate, browse, configure, decide and purchase. Solomon, Bamossy, Askegaard & Hogg (2002) define the following phases: problem recognition, information search, evaluation of alternatives and last, product choice (Lihra & Graf, 2007). According to Engel et al. (1995), consumer decision making process has seven phases: need recognition, search for information, pre-purchase alternative evaluation, purchase, consumption, post-purchase alternative evaluation and divestment.

The problem recognition phase of Solomon et al. (2002) shows similarities with the activation phase of Suominen (2005) and the need recognition of Engel et al., (1995). When consumers show significant differences between the current state and their desired state, then a problem is recognized: the consumer needs a product. Problem/need recognition is a natural process, which can be stimulated by marketing. After consumers have recognized the problem, they want to gain information. This information can be found in the consumers’ memory (internal search) or it can be acquired from the environment (external search). As the purchase is more expensive, a consumer generally wants to obtain more information about the product. The scope of information search can differ regarding the product type and consumers characteristics such as age, education level and gender (Lihra & Graf, 2007; Engel et al., 1995). When the information about possible products is obtained, the customer can evaluate the alternatives. Consumers may carefully evaluate different products based on the expected benefit or make a routine decision depending on the product category. When relevant options are known, the customer must choose between the product options. Consumers can be influenced in making their decision by experience, available information and attachment to the brand. There are also stages after the product purchase, as described by Engel et al. (1995): consumption, post-purchase

SINGLE CHANNEL MULTI CHANNEL CROSS CHANNEL OMNI CHANNEL

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alternative evaluation and divestment. Consumption is the phase in which the product is used. The post-purchase evaluation is the evaluation of the satisfaction about the product bought. The last phase of the consumer decision making process is the divestment phase, in which the unconsumed product or its residue is disposed.

For this research, thebuying process of a customer is called 'the customer journey'.This customer journey is more enhanced than the buying process of Steinfield et al. (2002) and comparable with the consumer decision making process of Solomon et al. (2002). The customer journey for this research consists of five phases;

stimulation, search for information, purchase, delivery and after sales service. The phases are shown in Figure 5 and described below. These phases are the most relevant phases for retailers. The delivery phase is added in the customer journey because consumers have (among others through online shopping) several options for the delivery of their products.

FIGURE 5, THE CUSTOMER JOURNEY (ADAPTED FROM ENGEL ET AL., 1995)

Description of the customer journey Phase 1 - Stimulation:

During the first phase customers become inspired by a product. This phase is not always visible; consumers can get stimulated to buy a product in their subconscious mind. For instance, when consumers see an advertisement of the Hema on Facebook. Then the consumer can get attracted to buy the product.

Phase 2 - Search for information:

During the search phase, customers know what they are looking for because they are already inspired.

Consumers are searching for information about products and/or services and their providers. This process can take a long time, but it can also be done in a short time, it depends on the type of product. There is a distinction between high involvement and low involvement products. Grocery is in general a low involvement product; a house for instance is a high involvement product.

Phase 3 - Purchase:

When all the information is collected, a purchase decision can be made. During this phase the consumer determines which product or service is actually purchased for what price and from which supplier.

Phase 4 - Delivery:

When the product is bought, there are few options depending on the channel where the product is bought;

take the product home directly, delivery at home or at work, collect from a pick-up point or pick-up later in the shop.

Phase 5 - After sales service:

Then there is the after sales service. There are several channels through which consumers can reach companies offline as well as online. The importance of after sales service should not be underestimated; companies with a good after sales program acquire customer loyalty.

Every phase in the customer journey requires the right information in order to go to the next phase. As result of an increasing number of digital touch points, the customer journey becomes more and more complex. Touch points are expressions of a retailer to contact the customer. On each touch point, the consumer is going through an experience, and this experience can be positive as well as negative (Kloet & Lenssen, 2012).

Stimulation Search for

information Purchase Delivery After sales service

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