OMNICHANNEL RETAILING AND ITS IMPLICATIONS ON THE CUSTOMER SHOPPING EXPERIENCE

(1)

OMNICHANNEL

RETAILING AND ITS

IMPLICATIONS ON THE

CUSTOMER SHOPPING

EXPERIENCE

(2)

OMNICHANNEL RETAILING AND ITS

IMPLICATIONS ON THE CUSTOMER

SHOPPING EXPERIENCE

Master dissertation

Matthéüs Jacobus (Mats) van Essen

Dual Award Master of Science

Advanced International Business Management & Marketing

University of Groningen, S2196859

Newcastle University Business School, B5068799

Drs. A. Visscher & Dr. S. Bhattacharya

Word count:

15.652

(3)

Mats van Essen S2196859 / B5068799

1

Abstract

Omnichannel retailing is a concept which gained a lot of attention in the last couple of years. Even though a lot of conceptual research stresses the importance of omnichannel retailing, empirical verification is scarce. This research aims to provide more insights into the concept of omnichannel retailing by examining its relationship with the customer shopping experience. By conducting a customer-centric study in an international setting, it clarifies the importance of aspects of omnichannel retailing and consequently makes a beginning with closing the gap between research and application.

By carefully studying prior literature, seven different dimensions of omnichannel retailing have been compiled. Subsequently, an online survey has been conducted, with an international sample of N = 283 respondents, to provide insights into the relationships between these different dimensions of omnichannel retailing and the customer shopping experience. A hierarchical multiple regression analysis showed that six of these dimensions of omnichannel retailing have a positive influence on the customer shopping experience. It is recommended to managers to integrate their channels by providing consistent information across channels. Moreover, retailers should provide access to other channels in all the channels that are employed. The integration regarding the processing of goods has the biggest positive influence on the customer shopping experience, followed by the dimensions of ‘product information integration’ and ‘recommendation’. Managers should therefore prioritize these dimensions when they formulate their omnichannel retail strategy. Furthermore, this research showed that retailers with a mobile app provide more positive shopping experiences than retailers without a mobile app. Retail companies should therefore consider to develop a mobile app. The major limitation of this research is that it does not control for other factors that possibly influence the customer shopping experience.

Keywords – Omnichannel retailing · Multichannel retailing · Customer shopping experience

(4)

2

Acknowledgements

This dissertation project is the end of my dual award Master Advanced International Business Management & Marketing. I would like to thank some people who have helped me to achieve this.

First, I would like to thank my supervisors, dr. S. Bhattacharya from the Newcastle University Business School and drs. A. Visscher from the University of Groningen, for their support, help and feedback during my dissertation process. Moreover, I would like to thank dr. J. A. Voerman, for providing me with helpful advice and support during the development of this research.

Furthermore, I would like to acknowledge the contribution of everyone that participated in my survey and who helped to distribute it. Special thanks to my fellow students, for their support and the good times we had together.

Finally, I have to express my profound gratitude to my family, girlfriend and friends for supporting me throughout my study time and the whole process of writing this dissertation. Without you I could not have made it to the point where I am standing now. Thank you!

Mats van Essen

(5)

Mats van Essen S2196859 / B5068799 3

List of Tables

Table 2.1. Multichannel versus omnichannel strategy………14

Table 2.2. Prior empirical literature on omnichannel retailing / channel integration………...21

Table 5.1. Sample characteristics………43

Table 5.2. Internal consistency of variables……….45

Table 5.3. Factor analysis of items………...47

Table 5.4. Convergent and discriminant validity……….48

Table 5.5. Multiple regression analysis results………50

Table 5.6. Overview of findings…...………...52

List of Figures

Figure 2.1. Visualization of difference between single channel vs. multichannel vs. omnichannel………13

Figure 3.1. Conceptual model………...34

Abbreviations

(8)

6

1. Introduction

Technology has rapidly influenced the international retail sector in the last couple of years. Online retail sales have not only experienced a significant growth (Statista.com, 2016), but also other digital technologies have made their appearance with all their consequences (Verhoef, Kannan and Inman, 2015). Internet, mobile devices, wearables and social media have revolutionized the international retail sector by offering customers a research and shopping channel which can be visited and used from every place at any time (Avery et al. 2012; Hansen and Sia, 2015). As a result, the retail customer experience has been totally changed (Blazquez, 2014). Research from Deloitte (2014) reveals that more than 20% of European customers follow brands on social media, 75% browse and research online before they visit a physical store, and 56% use their mobile phones for shopping related search activities. PricewaterhouseCoopers (2014) has revealed similar results in a global context and shows the increasing use of smartphones and tablets as a purchasing channel. Furthermore, research from Forrester (2014) shows that 71% of consumers in the U.S. and Europe expect to view in-store inventory online, while 50% of the respondents expect the possibility to buy online and pick up in-store.

All these findings show the importance of using multiple channels as a retailer. In addition, these findings show the increasing expectations of customers (Picot-Coupey, Huré and Piveteau, 2016; PricewaterhouseCoopers, 2015). Even more specifically, the research from Forrester (2014) also shows that channel integration becomes the key to success. Convenience, in general, has become paramount for the customer (Deloitte, 2016a). This means that the customer of today demands to have a choice of channels, in order to make use of the advantages of all specific channels (Deloitte, 2015; PricewaterhouseCoopers, 2015; Rigby, 2011). The example of British retailer John Lewis, which introduced a ‘click and collect’ service last year, shows that customers demand and appreciate an extra channel choice when it comes to their shopping (PricewaterhouseCoopers, 2015; Teletech, 2015). This example also shows that companies should think about how to satisfy the customer, when and wherever he or she decides to shop (Herring, Wachinger and Wigley, 2014).

(9)

7

channels and digitalization (Blazquez, 2014; Hagberg, Sundstrom and Egels-Zanden, 2016). As a result of these trends, competitors of companies can be reached in just a click-away. Hence, obtaining a loyal customer is difficult (Heitz-Spahn, 2013). Consequently, it could be said that the customer shopping experience in general is more important than ever (Choi, Yang and Cheung, 2015; Deloitte, 2016b; Ostrom et al., 2015; Stein and Ramasheshan, 2016).

Previous research already showed that the customer shopping experience has a major (positive) influence on the loyalty of a customer regarding a brand, retailer or service provider (Badgett, Boyce and Kleinberger, 2007; Caruana, 2002; Frow and Payne, 2007; Mascarenhas, Kesavan and Bernacchi, 2006). Other, related, research has shown too that brand experience has a positive impact on the stated loyalty of customers (Brakus, Schmitt and Zarantello, 2009; Chang and Chieng, 2006). Some research even states that the most effective way to obtain a loyal customer is to deliver a delighting experience (Agustin and Singh, 2005; McPartlin and Feigen Dugal, 2012). Likewise, Grewal, Levy and Kumar (2009) showed that a superior customer experience leads to more frequent shopping visits, larger wallet shares, and higher profits. Argued is therefore that companies should focus on creating positive shopping experiences in order to gain a competitive advantage.

(10)

8

and Piveteau, 2016). Omnichannel retailing refers to ‘an integrated shopper experience that

merges the physical store with the information rich digital environment, with the aim of

providing excellent shopper experiences across all touch points’ (Frazer and Stiehler, 2014, p. 655). Important to notice in this definition is the fact that omnichannel retailing is about

integrated channels.

1.1. Academic relevance

Previous research related to omnichannel retailing is mainly focused on creating an understanding about the concept (Rigby, 2011; Verhoef, Kannan and Inman, 2015). Some research is more applied and takes a company perspective, like research of Brynjolfsson, Hu and Rahman (2013) and Deloitte (2014). The former identifies possible successful strategies, while the latter discusses the influence of omnichannel retailing on incremental sales and retailer’s store sales. Only a few studies have examined the implications of omnichannel retailing from a customer perspective (Beck and Rygl, 2015; Binder, 2014). This is remarkable, given the fact that omnichannel retailing aims to provide an optimal shopper experience (Melero, Sese and Verhoef, 2016). The implications for the shopping experience can only be understood by using a subjective customer perspective (Lemke, Clark and Wilson, 2011). The few existing customer studies are, or nationally focused, or take only a small subset of omnichannel activities into account. Therefore, the implications of omnichannel retailing on the customer experience in an international context have been marginally examined.

1.2. Managerial relevance

(11)

9

1.3. Purpose and aim

In light of the above mentioned unexplored aspects of the concept of omnichannel retailing, this research tries to make a contribution to the literature in several ways. First of all, the implications of omnichannel retailing (channel integration) on the customer shopping experience will be examined across three channels. Secondly, a better understanding of aspects of omnichannel retailing will be provided. This research makes a start in clarifying the relative importance of different omnichannel initiatives by examining their influences on the customer shopping experience. In this way, this research tries to begin with reducing the gap between research and applied strategies in the real world. Thirdly, these relationships will be examined in an international customer setting across different retail categories.

The main research question that will be addressed is therefore;

‘What influence does omnichannel retailing have on the customer shopping experience?’

Subsequently, the following questions will be answered: ‘Which aspects of omnichannel retailing have a relatively large effect on the customer shopping experience?’ and ‘Does omnichannel retailing have the same effect on all customers? Or do shopping goals have an influence on the relationship between omnichannel retailing and the customer shopping experience?’

To summarize, the primary objective of this study is to clarify the influence of omnichannel retailing on the customer shopping experience from a customer point of view. By getting a better understanding of this relationship, this study responds to papers from Neslin et al. (2006), Piotrowicz and Cuthbertson (2014) and Verhoef, Kannan and Inman (2015), which have called for further clarification regarding the implications of an omnichannel retail approach.

(12)

10

2. Literature review

2.1. Introduction

In the following chapter, first the difference between the concepts of multichannel retailing and omnichannel retailing is clarified. Following this, prior literature regarding channel integration will be discussed. Hereafter, a next chapter will present the hypotheses and conceptual model of this study.

2.2. Multichannel vs. Omnichannel

A ‘channel’ can be defined as ‘a customer contact point or a medium through which the company and the customer interact’ (Neslin et al., 2006, p. 96). There is however a lot of misunderstanding and confusion about the concepts ‘omnichannel’ retailing or experiences and ‘multichannel’ retailing or experiences (Picot-Coupey, Huré and Piveteau, 2016; Pophal, 2015). In the contemporary literature a lot of academics use the terms multichannel retailing, cross-channel retailing and omnicross-channel retailing interchangeably (Beck and Rygl, 2015). It could even be said that there is not a real consensus regarding the definitions so far (Picot-Coupey, Huré and Piveteau, 2016). In this research only the distinction will be made between multichannel and omnichannel retailing. An example will be used to clarify this distinction.

Years ago, people went to a local department store to check various product options and buy, for example, a television. They were informed about the purchasing possibility by others (word-of-mouth), the television or by printed publications like catalogues. The entry of the Internet changed this. People were now able to search, compare and purchase online. Because of this, consumers were able to learn about a product or service, and they could compare, evaluate and purchase products via various channels (Chiu et al., 2011). This is the so called multichannel experience. Important to notice is that in a multichannel environment all stages of the purchase process have to be executed in one single channel (Chatterjee, 2010). A multichannel strategy can be defined as ‘… a distribution strategy to serve customers using more than one selling channel or medium such as the Internet, television and retail outlets’ (Stone, Hobbs and Khaleeli, 2002, p. 41). Another definition is of Chatterjee (2010, p. 10), who states that multichannel retailing is about ‘operating multiple channels as independent entities’.

(13)

11

consumers had even more options to satisfy their shopping needs (Juaneda-Ayensa, Mosquera and Murillo, 2016). This development gave more opportunities, and at the same time brought more complexities to companies (Melero, Sese and Verhoef, 2016). Keeping interactions consistent across multiple channels has become a challenge. This could be called the challenge of omnichannel retailing (Pophal, 2015).

Omnichannel retailing can be seen as the new way of conducting business. It can even be stated that omnichannel retailing is the evolutionary step of the multichannel concept (Frazer and Stiehler, 2014; Mirsch, Lehrer and Jung, 2016). The concept ‘omnichannel retailing’ can be defined in several ways. Rigby (2011, p. 11), one of the first scholars who have mentioned it, states that it is ‘an integrated sales experience that melds the advantages of physical stores with the information-rich experience of online shopping’. Likewise, Verhoef, Kannan and Inman (2015, p. 176) state that omnichannel management is ‘the synergetic management of the numerous available channels and customer touchpoints, in such a way that the customer experience across channels and the performance over channels is optimized’. Kamel and Kay (2011, p. 1) state that a true omnichannel experience infers the ‘desire to serve the customer however, whenever and wherever they wish to purchase merchandise (and return it too)’. All these definitions make clear that omnichannel retailing is about an optimized, synergetic and

integrated customer experience across channels.

(14)

12

channels and want to use channels simultaneously. These persons may start in one channel and move to another as they progress throughout the course of their customer journey (Juaneda-Ayensa, Mosquera and Murillo, 2016; Melero, Sese and Verhoef, 2016; Teletech, 2015). As a result, interactions do not follow a predictable path anymore across channels (SAP, 2014). This trend, strengthened with the earlier mentioned developments of the evolution of technology and ongoing digitalization, means that the lines between different channels increasingly blur (Brynjolfsson et al., 2013; Piotrowicz and Cuthbertson, 2014; Trenz, 2015). Omnichannel retailing takes the above mentioned preferences and developments into account.

A true omnichannel experience would mean that one transaction can span over more than one channel (Frazer and Stiehler, 2014). An example is that a customer buys a product online and he or she can collect the product at the store (the so called ‘click-and-collect’). This is at the moment the dominating mode of online grocery shopping in the United Kingdom (Chopra, 2016). Another example is a customer that orders a product via an online in-store kiosk, because the respective product is out of stock in the physical store (Beck and Rygl, 2015). Both these examples show that omnichannel retailing melds the advantages of offline and online channels. Consequently, it is a strategy for all customers, however, wherever, and whenever they decide to shop (Accenture, 2014). Because the channels are managed together, the perceived interaction of the customer is not with a channel, but rather with the brand (Piotrowicz and Cuthbertson, 2014).

An omnichannel approach puts the customer at the centre of its strategy (Melero, Sese and Verhoef, 2016; Pophal, 2015). It can even be called a customer satisfaction strategy, since it aims to satisfy the needs of customers by exploiting the benefits of certain channels to overcome the deficiencies of others (Zhang et al., 2010). The whole channel system is designed to create synergies and thus maximize the value for customers across customer touch points (Binder, 2014). This is in contrast to the multichannel approach where corporate silos are taken as the centre of strategy (Frazer and Stiehler, 2014; Pophal, 2015). In recent years, several consultancy companies have emphasized the shift that has to take place from a channel-focused organization (inside-out) to a customer-focused organization (outside-in) (Accenture, 2014; PricewaterhouseCoopers, 2014).

(15)

13

Figure 2.1 | Visualization of difference between single channel vs. multichannel vs. omnichannel

(16)

14

Table 2.1 | Multichannel versus omnichannel strategy

Multichannel strategy Omnichannel strategy

Separation of channels Separate channels with no overlap

Integrated channels providing seamless retail experiences

Integration No integration Total integration

Channel focus Interactive channels only Interactive and mass-communication

channels

Channel scope Retail channels: store, online

website and direct marketing (catalogue)

Retail channels: store, online website, direct marketing, mobile channels (i.e. smart phones, tablets, apps), social media, customer touchpoints Brand versus channel

customer relationship focus

Customer – Retail channel focus

Customer – Retail channel – Brand focus

Channel management Per channel Cross-channel

Objectives Channel objectives (i.e. sales

per channel; experience per channel)

Cross-channel objectives (i.e. overall retail customer experience, total sales over channels)

Customers ▪ No possibility of

triggering interaction ▪ Use channels in

parallel

▪ Can trigger full interaction

▪ Use channels simultaneously

Centre of strategy Corporate silos Customers

Based on Beck and Rygl (2015), Juaneda-Ayensa, Mosquera and Murillo (2016), Mirsch, Lehrer and Jung (2016) and Verhoef, Kannan and Inman, (2015)

2.3. Advantages for companies

(17)

15

forecast demand per-store which makes that offline channels have higher demand-supply mismatches (Bell, Gallino and Moreno, 2015). An omnichannel approach combines the best of both worlds. It focuses on channel synergies (Herhausen et al., 2015; Lee and Kim, 2010; Wagner, Schramm-Klein and Steinmann, 2013; Zhang et al., 2010), and protects against channel cannibalization (Herhausen et al., 2015; Huang, Lu and Ba, 2016; Kollmann, Kuckertz and Kayser, 2012). Channels can be used to promote one another, customer information can be shared and economies of scope can be accomplished (Sousa and Voss, 2006; Zhang et al., 2010). Consequently, a company improves simultaneously its efficiency and flexibility because of the integration of its resources (Oh, Teo and Sambamurthy, 2012). Peak Performance is an example of a company which increased its efficiency and online conversion rates by introducing an omnichannel program (PricewaterhouseCoopers, 2015). Besides the traditional brick-and-mortar stores, pure online retailers see the benefit too of using a combination of channels. Examples are Zappos.com, Zalando and Amazon, which all make use of pop-up stores to create channel synergies (PricewaterhouseCoopers, 2012; Melero, Sese and Verhoef, 2016).

(18)

16

counteracts the need to go to another competitor’s channel (e.g. Apple store). Thus, an integrated channel system increases the customer lock-in between the online and offline channels and therefore reduces cross firm channel free-riding (Binder, 2014; Chiu et al., 2011; Pantano and Viassone, 2015; Verhoef, Neslin and Vroomen, 2007). These examples show too that omnichannel retailing satisfies customers with different shopping motivations, such as a convenience orientation, need for flexibility or a shopping enjoyment orientation (Heitz-Spahn, 2013). Lastly, customers are also encouraged to buy more, because of the improved convenience and customer experience (e.g. John Lewis) (PricewaterhouseCoopers, 2015).

2.4. Challenges for companies

Implementing an omnichannel strategy is not without challenges. When the omnichannel activities lack an underlying strategic rationale, or are not properly executed, the cancelling of channel silos could lead to customers distrust and confusion (Berry et al., 2010). Furthermore, operational synergies may be difficult to accomplish because unique skills and resources are needed to effectively manage each channel (Zhang et al., 2010). Besides, retailers nowadays are often efficient in their current retail practices, but not necessarily equally competent in the digital environment (Binder, 2014). In addition, integration efforts increase the complexity in, for example, store management (Gallino and Moreno, 2014). A lot of changes are therefore needed to implement an omnichannel strategy. This is in terms of strategy, infrastructure, organizational competences, organizational culture and coordination capabilities (Chatterjee, 2010; Gallino and Moreno, 2014; Picot-Coupey, Huré and Piveteau, 2016; PricewaterhouseCoopers, 2012).

2.5. Channel integration

The above paragraphs showed the differences between multichannel retailing and omnichannel retailing (see table 2.1). The major difference between the two concepts can be summarized as the extent to which the channels are integrated. While multichannel retailing refers to different channels which coexist in silos, a true omnichannel strategy entails the full integration of the offline and the online shopping experience (Gill, 2013; Rigby, 2011, p. 7). In this research, omnichannel retailing will therefore be defined as ‘the integration of various

channels in order to serve the customers in a customised fashion through their channel of choice’ (Frazer and Stiehler, 2014, p. 655). This definition clearly emphasizes the main goal of

(19)

17

omnichannel retailing. This seamless experience can only be provided, when an integrated multichannel system is in place (Frow and Payne, 2007; PricewaterhouseCoopers, 2012). Goersch already defined multichannel integration in 2002 as ‘the simultaneous and consistent employment by a retailing organization of Web sites and physical store-fronts possibly in addition to other channels, such that customers derive a seamless experience when they switch channels during their interaction with the retailer’ (p. 749). This definition shows that, according to this research, the concepts omnichannel retailing and an integrated multichannel system can be used interchangeably.

In the next paragraph prior literature regarding omnichannel retailing (and consequently channel integration) will be discussed.

2.5.1. Prior literature

As the ‘Introduction’ and the previous section show, a lot of conceptual research regarding omnichannel retailing (or channel integration) has been conducted (see Neslin and Shankar, 2009; Verhoef, Kannan and Inman, 2015; Zhang et al. 2010). However, prior

empirical research regarding omnichannel retailing is scarce. It could be said that there is still

a lack of empirical verification (Binder, 2014). Table 2.2 shows this prior empirical literature regarding omnichannel retailing.

(20)

18

All this research from the company perspective however does not fully explain why channel integration has positive outcomes from the consumer perspective. Studies which take a consumer perspective try to clarify this. Bendoly et al. (2005) were one of the first who empirically examined the influence of channel integration on customer behaviour. They found that higher levels of integration between store and online channels are associated with a greater ‘stickiness’ to firms. Likewise, Schramm-Klein et al. (2011) found that linkages between retail channels have a positive effect on the customer loyalty through the increase in customer image and trust toward the multichannel system. The positive effect of channel integration on channel trust has also been found by Jiang, Xu and Bao (2015). Additionally, Lee and Kim (2010) showed that three cross-channel integration factors were significant predictors of consumers’ loyalty intention. Chatterjee (2010) showed that retailer satisfaction is higher for cross-channel firms in comparison with multiple channel firms and therefore suggest that brick-and-click retailers can exploit synergies between their channels through offering an order-online pick-up in store functionality. Hsieh et al. (2012) and Pantano and Viassone (2015) showed similar results in respectively a service and retail context, by finding a positive influence of integration factors on the perceived channel quality and the ease of channel switching.

On the other hand, in the empirical customer focused studies, contradictory results have also been found. Verhoef, Neslin and Vroomen (2007) showed that channel integration is a facilitator of the research shopping phenomenon and Chiu et al. (2011) found that perceived channel integration does not have a significant positive effect on within firm lock-in. Something similar was found by Van Baal (2014) which investigated the harmonization of marketing variables across channels. The harmonization has a positive influence on customer loyalty, though on the other hand also positively correlates with channel cannibalization. This research therefore shows that it is hard to make general recommendations regarding harmonization of marketing variables.

(21)

19

retailing is to provide a seamless experience. This is the reason why the before mentioned research question is justified. By examining all the different aspects of channel integration, this research tries to give a comprehensive view regarding the influence of omnichannel retailing on a customer. Moreover, the relative importance of the different aspects of omnichannel retailing can be derived, which provides valuable insights for practitioners.

Table 2.2 also illustrates that the few consumer studies which are present, are solely nationally focused. This research will examine the implications of omnichannel retailing in an international sample context to check whether national differences exist in the examined relationships.

2.5.2. Conceptualization of channel integration

As table 2.2 shows, prior literature examined channel integration from a lot of different perspectives. This research has undertaken several steps to operationalize the concept of channel integration. First of all, prior conceptual and empirical literature has been studied to get an overview of existing possibilities of operationalisations. Secondly, a list of omnichannel (integration) activities has been created. From these steps a conceptualization and operationalization of channel integration (and thus omnichannel retailing) emerged which will be used in this research.

(22)

20

research will take both these approaches to channel integration into account. The accessibility facet overlaps with both the informational and logistical integration mentioned by Chiu et al., (2011) and Saeed, Grover and Hwang (2003).

The second facet is the ‘consistency’ facet. This facet is referred to in multiple other studies (see Beck and Rygl, 2015; Binder, 2014 and Hsieh et al., 2012) and will be seen as the degree of consistency of marketing variables (e.g. price, product, promotions) and personal data across channels. The consistency facet is similar to the information consistency aspect mentioned by Lee and Kim (2010) and Hsieh et al. (2012).

(23)

Table 2.2 | Prior empirical literature on omnichannel retailing / channel integration

Authors Context Channel scope (Measurement) Channel integration Research method Country

Cao and Li (2015) Company Physical store,

Online website, Social media,

Call center

Extent of integration of front office and back office activities (4 levels of cross channel integration)

Qualitative + Quantitative (longitudinal data)

U.S.

Hansen and Sia (2015) Company Physical store,

Online website, Social media

- Exploratory case study Denmark

Herhausen et al. (2015) Company Physical store, Online website

Online – Offline integration (store locator, store assortment availability

information, order online – return in store functionality)

Experiments Germany

Jiang, Xu and Bao (2015) Consumer Physical store, Online website

Three constructs:

 Integrated information  Integrated channel access  Integrated customer service

Quantitative (Survey) China (552 respondents)

Pantano and Viassone (2015)

Consumer Physical store, Online website,

Mobile app

Channel accessibility Experiment Italy (237

respondents)

Banerjee (2014) Company Bank service

channels

Integration quality:

 appropriateness of channel configuration

 data integration

 within and across channel integration

Qualitative (Case study)

U.K.

Gallino and Moreno (2014)

Company Physical store, Online website

(24)

22

Van Baal (2014) Consumer Physical store,

Online website, Catalogue

Degree of harmonization of constructs:  Conveyed image

 Price

 Product assortment

Quantitative (Survey) Germany (1000 respondents)

Hsieh et al. (2012) Consumer Physical store,

Online website, Mail, Call center

Three constructs:

 Information consistency  Channel accessibility  Personal data integration

Quantitative (Survey) Taiwan (479 respondents) Oh, Teo and

Sambarmurthy (2012)

Company Physical store, Online websites

Six constructs:

 Integrated promotion

 Integrated transaction information management

 Integrated product and pricing information management  Integrated information access  Integrated order fulfilment  Integrated customer service

 Degree of IT-enabled retail channel integration capability

Quantitative (Survey) Singapore (125 multichannel

retail stores)

Chiu et al. (2011) Consumer Physical store,

Online website

Order online – Pick up/return/change in store functionality

Quantitative (Survey) Taiwan (322 respondents) Schramm-Klein et al.

(2011)

Catalogue

Perceived channel integration with constructs:  Return policies

 Product information  Price information  Orientation information  Recommendation

 Integration customer card

(25)

23

Chatterjee (2010) Consumer Physical store,

Online website

Order online – Pick up in store functionality Quantitative (Survey) U.S. (412 respondents)

Lee and Kim (2010) Consumer Physical store,

Online website

Cross channel integration with dimensions:  Information consistency

 Freedom in channel selection  Email marketing effectiveness  Channel reciprocity

 Appreciation of store-based customer service

Quantitative (Survey) U.S. (706 respondents)

Verhoef, Neslin and Vroomen (2007)

Catalogue

Synergistic effects between search- and purchase in two different channels

Quantitative (Survey) Netherlands (396 respondents) Bendoly et al. (2005) Consumer Physical store,

Online website

Perceived channel integration with constructs:  Advertisement integration

 Knowledgeable employee regarding website

 Nonproduct information integration  Kiosks presence

 Product information  Return policy

 Buy online – Pick-up in store functionality

Quantitative (Survey) U.S. (1598 respondents)

(26)

24

2.6. Customer shopping experience

Understanding and enhancing the customer experience is a subject of scholars for a long period of time (Grewal, Levy and Kumar, 2009). Pine and Gilmore already argued in 1999 that creating a distinctive customer experience can lead to enormous economic value for a company. Moreover, creating a superior customer experience has been distinguished as one of the main objectives of companies in the international retail environment (Verhoef et al., 2009). In today’s retail environment, retailers acknowledge the importance of the customer experience to sustain their competitive advantage (Melero, Sese and Verhoef, 2016; Stein and Ramaseshan, 2016). Therefore, it can be stated that the customer experience should be the starting point for a company when considering a channel strategy (Stone, Hobbs and Khaleeli, 2002). Especially in a multichannel environment, a channel strategy should strive for a perfect and outstanding customer experience both within and across channels (Frow and Payne, 2007). An omnichannel retail strategy does this by aiming for an integrated, seamless customer experience between channels (Juaneda-Ayensa, Mosquera and Murillo, 2016; Melero, Sese and Verhoef, 2016).

Customer experience can be defined as ‘the internal and subjective response customers have to any direct or indirect contact with a company’ (Meyer and Schwager, 2007; p. 118). Another definition is that it is the ‘user’s interpretation of his or her total interaction with the brand’ (Frow and Payne, 2007; p. 90). Choi, Yang and Cheung (2015, p. 10) refer to the customer shopping experience (CSE) as ‘a total summary of a customer’s interaction with a retail company beginning before the customers walks into the store and ending long after he or she leaves’. In this research this last two definitions will be used, combined and slightly adapted. The CSE will namely be seen as the customer’s interpretation of his or her total interaction

with the retailer. This means that the interaction across channels, and thus both the online and

offline shopping experience will be taken into account. It should be emphasized that this means that the CSE encompasses the total experience with a retailer, including the pre-sales, in-store (offline or online), and after-sales, and that it may involve multiple retail channels (Choi, Yang and Cheung, 2015; Stein and Ramaseshan, 2016; Verhoef et al., 2009). Within this customer shopping experience both the affective and intellectual experience will be considered (Dennis

et al., 2014; Foroudi et al., 2016).

(27)

25

of multiple elements like technological and communicative elements (Stein and Ramaseshan, 2016). Frow and Payne (2007) showed too that touchpoints and channels have a big influence on the customer experience. Channel management is therefore of huge importance for companies.

With the rise of e-commerce and online channels, emphasis is being placed on research regarding the online customer experience (Klaus, 2013; McLean and Wilson, 2016; Mosteller, Donthu and Eroglu, 2014). Still, the offline experience is really important too (Herring, Wachinger and Wigley, 2014). A physical store provides namely the immediate gratification of buying a product or experiencing a service (Blazquez, 2014). Moreover, it gives customers the possibility to touch and feel the products before purchase (Melero, Sese and Verhoef, 2016). At the moment, technology is used to bridge online and offline channels, and to integrate the experience across all channels (Blazquez, 2014; Pantano and Viassone, 2015). Some scholars state that customers’ experiences in the current retail environment depend upon the capability of a company to use technology (Foroudi et al., 2016). Others even state that the future of retail can be seen as doing business online with the right physical store network (Herring, Wachinger and Wigley, 2014). Because of these reasons and developments it is important to take a comprehensive view regarding the CSE.

Prior literature regarding the customer experience has shown a lot of positive outcomes of the concept. Examples are the positive influence on loyalty, retailer reputation, purchase intention, word of mouth communication and brand equity (Ahmed, 2011; Bagdare and Jain, 2013; Foroudi et al., 2016; Frow and Payne, 2007; Palmer, 2010; Pantano and Viassone, 2015). Providing a positive customer experience is therefore of utterly importance for every company.

2.7. Conclusion

(28)

26

3. Hypotheses and conceptual model

3.1. Channel scope

Even though it is acknowledged that a lot of other channels play a role in the international retail environment of today (e.g. catalogues, social media), this research will focus on the physical store, online website and mobile app. These specific channels have been chosen because of parsimony reasons and because they play a dominant role in the international retail environment of today (Herhausen et al., 2015; Teletech, 2015). Furthermore, by incorporating the mobile channel, this research distinguishes itself from the multichannel concept (see Table 2.1) and acknowledges the increasing importance of mobile devices in the international retail context (Bodhani, 2012; Hagberg, Sundstrom and Egels-Zanden, 2016; Sands et al., 2016).

3.2. Hypotheses development

As stated earlier, this research will examine both the consistency facet and accessibility facet of channel integration. By combining different literature regarding channel integration, this research came up with seven different aspects of omnichannel retailing. These aspects have been composed by studying different company perspective studies (Herhausen et al., 2015; Oh, Teo and Sambarmurthy, 2012) and consumer perspective studies (Bendoly, 2005; Hsieh et al., 2012; Lee and Kim, 2010; Schramm-Klein et al., 2011; Van Baal, 2014). In this way the influence of omnichannel retailing on the CSE can be examined in the most comprehensive way possible.

Below the general relationship between perceived channel integration, which is the combination of the different aspects of integration, and the CSE will be discussed. Thereafter, the different aspects of integration and their relationships with the CSE will be further clarified.

3.3. Perceived channel integration and the customer shopping experience

(29)

27

professional assistance for product selection, out-of-stocks and long waiting for payments (Choi, Yang and Cheung, 2015). Furthermore, channel inconsistencies can diminish the customer’s view of the company and possibly instigate negative word-of-mouth (Kumar and Venkatesan, 2005; Payne and Frow, 2013). Omnichannel (or channel integration) activities can solve all these problems. In an omnichannel environment, all channels create specific value and therefore contribute to the overall satisfaction (Wagner, Schramm-Klein and Steinmann, 2013; Wallace, Giese and Johnson, 2004).

To summarize, the more positive the customer evaluation of channel integration is, the more the whole retail channel system is perceived to be beneficial to the customer (Schramm-Klein et al., 2011). Thus, because of the fact that channel integration leads to a better fulfilment of customers’ demands and because it is valued by customers, it could be said that, in general, channel integration has a positive influence on the CSE.

Below the different aspects of omnichannel retailing and their relationships with the CSE will be further clarified.

3.3.1. Goods processes integration

(30)

28

The following hypothesis can be derived from this:

H1: Goods processes integration has a positive influence on the customer shopping experience.

3.3.2. Product information integration

Product information integration is a concept derived from the articles of Schramm-Klein

et al. (2011) and Oh, Teo and Sambamurthy (2012). It refers to the extent to which the retailer

provides consistent product information across channels. This integration dimension encompasses both the accessibility and consistency facet of channel integration. A company which has a high product information integration ensures that product descriptions and product categories are consistent across channels. By doing this it provides a flow of information and reduces customer confusion which could have occurred otherwise (Berry et al., 2010; Rangaswamy and Van Bruggen, 2005). Furthermore, it reduces the switching costs (time and effort) of the customer, which will have a positive influence on the customer satisfaction (Hsieh

et al., 2012). The accessibility facet of this concept is apparent in the fact if the company

provides (easy) access to online product information in the physical store. This could be done by offering in-store WiFi, in-store Internet kiosks or even tablets (Melero, Sese and Verhoef, 2016). Apple is an example of a company which provides easy access to online product information to their customers (Verhoef, Kannan and Inman, 2015). In-store WiFi, and employees equipped with a tablet, can communicate product information to customers (Rigby, 2011). This accessibility facet provides a richer service to customers. From the above, the following hypothesis is derived:

H2: Product information integration has a positive influence on the customer shopping experience.

3.3.3. Price information integration

(31)

29

A lot of companies these days have different prices (and discounts) for their online channels and their physical store because of the different cost structures of both channels (Accenture, 2014; Grewal et al., 2010). This strategy is however annoying to customers and leads to customer confusion and perceptions of price unfairness (Accenture, 2014; Berry et al., 2010; Binder, 2014; Neslin et al., 2006; Rangaswamy and Van Bruggen, 2005). It could lead to irritation if a customer starts searching in the online channel and sees a different price (or no discount) in the physical store when examining the product (Van Baal, 2014; Wolk and Ebling, 2010). Moreover, Melis et al. (2015) showed that price integration has a positive effect on online store choice. Lastly, many shoppers expect price consistency across channels (Shankar

et al., 2011). Expected is therefore that it is important to integrate price information across

channels to increase ‘the customer’s interpretation of his or her total interaction with the retailer’. The above leads to:

H3: Price information integration has a positive influence on the customer shopping experience.

3.3.4. Orientation information integration

(32)

30

2014). The same reasoning applies to the option to allow customers to search for product available in the physical store (e.g. inventory) (Bendoly et al., 2005). This real time information is especially beneficiary for (research) shoppers who want to avoid the risk to go the store and not finding the desired item (Accenture, 2014; Gallino and Moreno, 2014; Prasarnphanich and Gillenson, 2003). Assortment integration is the last aspect of this concept. In practice today, most retailers have employed asymmetrical integration where the online channel carries additional assortment items, which is called ‘the long tail’ (Verhoef, Kannan and Inman, 2015). Other research however shows that 1) inconsistencies in assortment may confuse shoppers (Binder, 2014) and 2) harmonization of assortment makes it easier to switch channels within a channel system (Chiu et al., 2011; Schramm-Klein, 2010; Van Baal, 2014). Therefore, there is still some discussion about the preferable level of assortment integration (Emrich, Paul and Rudolph, 2015).

All in all, it can be stated that by integrating the visibility of assortment, the customer shopping experience will be positively influenced. The following hypothesis can be deduced from this:

H4: Orientation information integration positively influences the customer shopping experience.

3.3.5. Recommendation

(33)

31

needs) are lower for customers (Bendoly et al., 2005; Herhausen et al., 2015). From the above, the next hypothesis follows:

H5: Recommendation positively influences the customer shopping experience.

3.3.6. Customer card integration

The above mentioned concept is derived from the article of Schramm-Klein et al. (2011). It refers to the extent to which channels are integrated regarding the customer (loyalty) card. By giving customers the possibility to redeem their gift coupons, vouchers and bonus points across channels, retailers provide customers with convenience and reinforce a seamless shopping experience (Evanschitzky et al., 2012; Pentina and Hasty, 2009; PricewaterhouseCoopers, 2014). Expected is therefore that:

H6: Customer card integration has a positive influence on the customer shopping experience.

3.3.7. Personal data integration

One of the important characteristics of omnichannel retailing is personalization (Melero, Sese and Verhoef, 2016). The concept of personal data integration is related to this. It can be defined as ‘the extent to which customer profiles and historic consumption records can be fully integrated and available across channels’ (Hsieh et al., 2012; p. 319). When a company integrates personal data across channels, the right customer insights can be created which could help in personalizing an offer (or recommendation) to a customer (Blazquez, 2014; Brynjolfsson, Hu, and Rahman, 2013; Mirsch, Lehrer and Jung., 2016). This in turn will enhance the shopping experience of a customer. Customers also expect something in exchange for providing their personal details (Melero, Sese and Verhoef, 2016). Research from Mohapatra (2014) even showed that 54% of their respondents would consider cancelling their relationship with a company if personalised content is not available. Proposed is therefore that:

H7: Personal data integration has a positive influence on the customer shopping experience.

3.4. Mobile app adoption

(34)

32

Wang, Malthouse and Krishnamurthi, 2015; Xu et al., 2014). Seventy-one percent of customers who use their mobile device in-store report that they think it is an important part of their shopping experience (Mirsch, Lehrer and Jung, 2016). Even though the mobile app is mostly characterized as an extension of the online website, research shows that it should be considered as a unique channel (Lee, 2005). A mobile app is especially used in the search stage (Shankar

et al., 2016; Verhoef, Kannan and Inman, 2015). Retailers which augment their core product

offerings with a mobile app, will provide a higher service output and therefore enhance the overall shopping value (Neslin and Shankar, 2009; Sands et al., 2016; Wagner, Schramm-Klein and Steinmann, 2013). Moreover, it provides customers with a more seamless and convenient experience, due to its ubiquitous connectivity and location sensitivity (Pantano and Priporas, 2016; Shankar et al., 2010; Shankar et al., 2016; Wang, Malthouse and Krishnamurthi, 2015). Some mobile apps even offer transactional capabilities which enhance the remote shopping experience (Wang, Malthouse and Krishnamurthi, 2015). Expected is therefore that mobile app adoption by a retailer leads to a more positive CSE. This leads to the following hypothesis:

H8: Retailers with a mobile app provide more positive customer shopping experiences than retailers without a mobile app.

3.5. Moderators

3.5.1. Shopping goals

(35)

33

Griffin, 1994; Hirschman and Holbrook, 1982). Consumers with a high tendency of a hedonic shopping goal enjoy shopping as a recreational activity and shop for the shopping experience, and therefore do not necessarily have to buy something (Gehrt and Carter, 1992). Research regarding shopping has long focused on the utilitarian aspects of the customer experience. Holbrook and Hirschman (1982) were one of the first who emphasized the importance of hedonic aspects of consumption. Since the last fifteen years scholars have really recognized the importance of these hedonic aspects in the shopping process (Arnold and Reynolds, 2003).

Omnichannel retail activities provide both utilitarian and hedonic aspects. These activities provide convenience because channels of choice can be used at different stages of the shopping process (Lee and Kim, 2010). Moreover, activities like click-and-collect, in-store returning of products, and providing information about in-store inventory of products provide time and effort savings in the shopping process. At the same time, omnichannel retail activities enhance the shopping experience for customers with a hedonic shopping goal. Omnichannel retailing namely offers additional possibilities to experience fun and sensory stimulation (Lee and Kim, 2010).

Both, a utilitarian shopping goal and a hedonic shopping goal therefore strengthen the relationship between all integration aspects (omnichannel retail initiatives) and the customer shopping experience.

H9: A utilitarian shopping goal positively influences the relationship between all the dimensions of integration and the customer shopping experience.

H10: A hedonic shopping goal positively influences the relationship between all the dimensions of integration and the customer shopping experience.

(36)

34

(37)

35

4. Research design and methodology

4.1. Introduction

In order to answer the above clarified research question and hypotheses it is important to have an appropriate research design. This chapter first discusses the research strategy and paradigm. Subsequently, the data collection method is outlined, followed by a clarification regarding the used constructs and items, and the development of the survey. After this, the employed statistical methods are explained. Lastly, deficiencies and ethical considerations for this research will be discussed.

4.2. Research strategy and paradigm

Research starts either from an objectivist or subjectivist philosophy approach (Holden and Lynch, 2004). This research starts from the former and takes, more specifically, a positivist research approach (Scotland, 2012). Therefore, assumed is that knowledge can be identified and measured because reality is considered to be concrete and objective (Blumberg, Cooper and Schindler, 2011; Holden and Lynch, 2004). Knowledge in this research is acquired by testing the above mentioned hypotheses and quantifiable observations are analysed through statistical methods (Blumberg, Cooper and Schindler, 2011; Goertz and Mahoney, 2012). To answer the research question, a quantitative research method is used. This is necessary to draw conclusions of a larger population (Blumberg, Cooper and Schindler, 2011; Rowley, 2014).

4.3. Data collection and sample

(38)

36

This study is a cross-sectional research, and data has been collected in the period from October 2016 to November 2016 (Malhotra, 2010). Respondents are recruited over the Internet by communicating the survey link via websites, email and social media (e.g. Facebook). People that have been targeted for the study are (international) omnichannel shoppers who have had a recent shopping (purchase) experience with a retailer. This research focused on omnichannel shoppers in all age categories. For the purpose of this study, an omnichannel shopper is defined as a shopper who uses at least two channels (physical store and online website and/or mobile app) of the same retailer during the shopper journey. A screening question has been asked to make sure that the right respondents participated in the survey. Moreover, in this study the term ‘retailer’ comprises, in line with research from Goersch (2002), both intermediaries and other organizations that sell products directly to end consumers. Only retailers of tangible products will be considered.

In order to achieve a solid sample size, this research has used a combination of convenience sampling and referral sampling (Bloomberg, Cooper and Schindler, 2011). An informal pool of friends and acquaintances has been used, together with a snowballing technique. International respondents have namely been asked to forward the survey to family, friends and acquaintances. This latter method is widely used in social science research because it is an effective and efficient way to acquire in-depth and relatively quick results (Biernacki and Waldorf, 1981; Blazquez, 2014). This distribution method helped in accessing a representative (international) sample by using a network of people (Bryman and Bell, 2015; Foroudi et al., 2016).

(39)

37

4.4. Measurements

As already stated in the literature and hypotheses sections, this research will take seven aspects of omnichannel retailing (channel integration) into account. The combination of these dimensions is considered to be the total perceived channel integration. It is common in quantitative research to divide a concept in dimensions (Bryman and Bell, 2015). In order to measure these dimensions, items have been used from previous studies. Most dimensions were evaluated by using multiple items. Some of the statements/questions were provided with examples to help the respondent in interpreting the statements in the right way. It has to be emphasized that the focus of the analysis is on perceptions of respondents regarding omnichannel initiatives (channel integration), rather than an objective measure of these omnichannel initiatives (channel integration). This is deliberately chosen because perceptions give a more realistic view of the cognitive impact than objective measures from which customers are often not aware of (Bendoly et al., 2005).

The dimensions of omnichannel retailing have been carefully composed by using prior literature. Prior studies constructed these questions and/or dimensions via various methods such as, interviewing representatives of various retail chains (Bendoly et al., 2005), by conducting several interviews with consumers and focus group discussions with retailing practitioners (Oh, Teo and Sambumurty, 2012) and by thoroughly reviewing existing literature (Beck and Rygl, 2015).

Below the used measurements per construct will be discussed. Due to the size of the table, Appendix B shows a summary of the constructs and the items used for operationalization. The facets of channel integration, which are incorporated in each dimension, are stated below the dimensions.

4.4.1. Perceived channel integration

The dimensions mentioned by Schramm-Klein et al. (2011) to measure the perceived channel integration have been used as a starting point for this research. The items used to measure these dimensions have been adapted and complemented by other studies that mention omnichannel activities, like studies from Beck and Rygl (2015), Lee and Kim (2010), Hsieh et

(40)

38

Goods processes integration is measured by using adapted items based on the articles from Bendoly et al. (2005), Oh, Teo and Sambamurthy (2012) and Chiu et al. (2011). Items for product information integration have been used from Lee and Kim (2010) and Oh, Teo and Sambamurthy (2012). The same articles and Verhoef, Neslin and Vroomen (2007) have been used for items for price information integration. Orientation information integration is measured by using items from Oh, Teo and Sambamurthy (2012), Bendoly et al. (2005) and Van Baal (2014). Articles from Oh, Teo and Sambamurthy (2012) and Bendoly et al. (2005) have also been used for recommendation. One item for customer card integration is taken from Oh, Teo and Sambamurthy (2012), while the two other items have been constructed for this research. Personal data integration is measured by using statements of Hsieh et al. (2012).

4.4.2. Customer shopping experience

It is a challenging task to measure the dependent variable customer shopping experience, due to its complex nature, diversity of definitions and its many dimensionalities (Bagdare and Jain, 2013; Palmer, 2010; Verhoef et al., 2009). In this research the customer shopping experience, which has been defined as the customer’s interpretation of his or her total

interaction with the retailer, is measured by using three items of Hsieh et al. (2012) and one

item based on the article of Bagdare and Jain (2013). These items measure the complete shopping experience instead of only the online or offline shopping experience (Blazquez, 2014). The three items of Hsieh et al. (2012) have been chosen because they clearly include the ‘delight’ aspect of the CSE which is mentioned by Melero, Sese and Verhoef (2016), and because they give a clear overview of the satisfaction of the customer, which in turn has been pointed out as a major aspect of the CSE by Choi, Yang and Cheung (2015) and Palmer (2010). Moreover, these items take three aspects of the customer retail experience (Joy, Leisure and Distinctive) into account which are distinguished by Bagdare and Jain (2013). Lastly, the four used items take both hedonic and utilitarian aspects of the CSE into account, which is in line with research from Blazquez (2014) and Palmer (2010). These aspects are similar to respectively, the affective and intellectual experience concepts used by Dennis et al. (2014).

(41)

39

the nature of the constructs ask about the degree of integration. A binary parameter would therefore be too simplistic (Van Baal, 2014; Zhang et al., 2010). A 7-point Likert scale has been used because it leads to an optimized reliability and less skewness issues compared to a 5-point Likert scale (Aikaterini and Konstantinos, 2012; Azzara, 2010; Dawes, 2008). Moreover, 7-point Likert scales are better suited for bipolar scales and the odd number also give respondents the possibility to answer neutral (Malhotra, 2010). Finstad (2010) showed too that 7-point Likert scales provide more accurate data then 5-point Likert scales and emphasized therefore that this scale should be used to test participant’s true evaluations.

In this study all the scale choices have been labelled, which is in contrast to some articles where questions/statements were taken from (e.g. Bendoly et al. 2005; Oh, Teo and Sambumurthy, 2012; and Van Baal, 2014). This is done intentionally, because labelled scales reduce scale ambiguity and are shown to be more effective (Amoo, 2001; Azzarra, 2010; Friedman and Leefer, 1981). If only the bottom and top answer categories are labelled, respondents have the tendency to choose the labelled answer, and therefore extreme responses are evoked (Malhotra, 2010; Moors, Kieruj and Vermunt, 2014).

4.4.3. Moderators

Items for the hedonic and utilitarian shopping goal have been used from the article of Lee and Kim (2010). This study already proved the reliability of the items.

4.5. Survey development

(42)

40

changed to improve the readability or so called ‘flow’ of the survey (Rowley, 2014). Lastly, unclear (English) words and items have been changed or deleted.

After this pre-test, a pilot test of 20 people has been used in order to check again the interpretations of the questions (Baker, 1994). No significant problems emerged from this. Through these methods confusion regarding questions has been taken to the minimum.

Appendix A shows the complete online survey that has been used in this study.

4.6. Data analysis

The data acquired via the online survey has been analysed by making use of the statistical program IBM SPSS 24.0. A (hierarchical) multiple regression analysis has been performed to test the hypotheses. This multivariable statistical method is appropriate, because this research is interested if, and if so which, dimensions of omnichannel retailing have an influence on the customer shopping experience. Moreover, this method will give insights into the relative contribution of each dimension. The Likert-scales used in this research will therefore be treated as interval data, in line with prior research (Bryman and Bell, 2011; Burns and Bush, 2014; Mitchell and Jolly, 2009; Norman, 2010).

4.7. Deficiencies and ethical issues

In line with research from Blazquez (2014) and Verhoef, Neslin and Vroomen (2007), this cross-sectional survey asked respondents about a recent experience with a retailer to make it easier for respondents to remember clearly their shopping processes in the online and offline channel. Moreover, respondents had to thick the type of retailer in order to help them recalling their experience (Shobeiri, Mazaheri and Laroche, 2014). However, it is still possible that respondents had difficulties with recalling all the details, due to memory lapses (Malhotra, 2010). Therefore, it is possible that they did not know or remember the exact omnichannel (integration) activities of the retailer which they had chosen. This could be seen as a deficiency of the research method.

(43)

41

(44)

42

5. Findings

5.1. Introduction

In the following chapter, the findings of this research will be presented. First, an explanation will follow about data screening and cleaning. Hereafter, descriptive characteristics regarding the sample and data are outlined. Subsequently, the reliability and validity of the used items and tests is checked. Lastly, the hypotheses are tested and an overview will be provided.

5.2. Data screening and cleaning

In order to get a usable data set to test the hypotheses, the raw data has to be cleaned. This data cleaning includes consistency checks and treatment of missing responses (Malhotra, 2010; Rowley, 2014). The data has been checked for out of range, logically inconsistent and extreme values in order to detect erroneous responses. Casewise deletion has been used to handle missing responses (Malhotra, 2010). The initial data set consisted of N = 474 respondents. As a result of the data cleaning, a valid data set of N = 283 respondents remained. This is 59,7% of the raw data set. In this number the 13 persons who did not have a shopping experience in the last month were not included (Mage = 36.76 years, 12 Dutch, 1 German).

5.3. Sample characteristics

As mentioned above, the total data set acquired in the data collection period of one and a half week consisted of N = 474 respondents. After the elimination of incomplete and incorrect data records, a valid data set of N = 283 respondents remained for further analysis. Taken the time, budget and other resource limitations this is a sufficient number of respondents (Bartlett, Kotrlik and Higgins, 2001; Lee and Lings, 2008; Malhotra, 2010). An overview of the characteristics of this sample is given in table 5.1.

(45)

43

and Miller, 2002). Lastly, 59% of the respondents took a clothing company as their retailer of interest and 63% stated that their retailer had a mobile app (N = 178). 63% of these respondents really used the app (N = 112).

Table 5.1 | Sample characteristics

N % Total sample 283 100 Gender  Male  Female 138 145 48.8 51.2 Age  18 to 25 years  26 to 35 years  36 to 45 years  46 to 55 years  56 to 65 years  66 years and older

139 51 25 40 25 3 49.1 18.0 8.8 14.1 8.8 1.1 Nationality  American  Australian  Belgian  Brazilian  Bulgarian  Chinese  Czech  Danish  Dutch  English  Finnish  German  Indonesian  Irish  Italian  Japanese  Maltese  Russian  Serbian  Spanish  Swedish  Swiss  Taiwanese  Turkish 5 1 1 2 1 2 2 7 207 15 2 16 1 2 8 1 1 1 1 1 1 3 1 1 1.8 0.4 0.4 0.7 0.4 0.7 0.7 2.5 73.1 5.3 0.7 5.7 0.4 0.7 2.8 0.4 0.4 0.4 0.4 0.4 0.4 1.1 0.4 0.4 Highest completed level of education

OMNICHANNEL RETAILING AND ITS IMPLICATIONS ON THE CUSTOMER SHOPPING EXPERIENCE

OMNICHANNEL

RETAILING AND ITS

IMPLICATIONS ON THE

CUSTOMER SHOPPING

EXPERIENCE

OMNICHANNEL RETAILING AND ITS

IMPLICATIONS ON THE CUSTOMER

SHOPPING EXPERIENCE

Master dissertation

Matthéüs Jacobus (Mats) van Essen

Dual Award Master of Science

Advanced International Business Management & Marketing

University of Groningen, S2196859

Newcastle University Business School, B5068799

Drs. A. Visscher & Dr. S. Bhattacharya

Word count:

15.652

Abstract

Acknowledgements

Contents

List of Tables

List of Figures

Abbreviations

1. Introduction

2. Literature review

3. Hypotheses and conceptual model

4. Research design and methodology

4.4. Measurements

5. Findings