Showrooming is a phenomenon that describes a consumer’s behavior of collecting information about a product or service in a physical store and purchasing it in an online store afterwards. For retailers, this behavior can be a major opportunity or thread. To give insights into the phenomenon the thesis aims to determine a) channel attributes that encourage or deject customers from attending showrooming and b) how customer characteristics distinguish showrooming customers from customers who did not purchase online?
An empirical study collected data of 334 respondents via an online questionnaire. 149 showroomers and 185 respondents who did not showroom during a recent product purchase were compared regarding their perceived difference of channel attributes in the offline and the online channel. Further, both groups were compared in various customer characteristics.
The results of the binary logistic regression reveal that among all observed channel attributes the difference in price, service, purchase convenience, enjoyment and risk perception between the online and offline shop have a significant impact on the likelihood of showrooming, whereas the assortment and after-sales services did not show significant impact. Among the observation of customer characteristics, a positive attitude towards free riding, towards shopping and retailer loyalty were found to have a significant impact on the showrooming likelihood. The internet experience and the level of price-consciousness showed no significant impact.
With the results, the thesis supports physical retail stores to adjust the design of channel attributes in order to avoid showrooming behaviors of their customers. It also helps retailers to identify customers that are more likely to attend showrooming and target them specifically to prevent them from attending showrooming.
Table of contents
1 Introduction
2 Theoretical background of showrooming
2.1 Shopping trends and behaviors related to showrooming
2.1.1 Multi-channel shopping
2.1.2 Research shopping
2.1.3 Free riding
2.2 Findings about showrooming
3 Factors influencing showrooming
3.1 Literature review
3.2 Channel attributes
3.2.1 Enjoyment
3.2.2 Assortment
3.2.3 Purchase convenience
3.2.4 Service
3.2.5 After-sales service
3.2.6 Price
3.2.7 Risk
3.3 Customer characteristics
3.3.1 Attitude towards shopping
3.3.2 Internet experience
3.3.3 Price-consciousness
3.3.4 Attitudes towards free riding
3.3.5 Retailer loyalty
3.4 Conceptual framework
4 Empirical study
4.1 Study design
4.2 Operationalization of variables
4.3 Sample
4.4 Reliability of construct
4.5 Logistic regression
5 Results
5.1 Testing of hypotheses
5.2 Additional analyzes
6 Conclusion
6.1 Summary of findings
6.2 Implications for retailers
6.2.1 Channel attributes
6.2.2 Customer characteristics
6.3 Limitations and future research
Objectives and Topics
This master's thesis aims to investigate the showrooming phenomenon by identifying the channel attributes that encourage or discourage this behavior, and by analyzing how customer characteristics distinguish showrooming consumers from those who complete their purchases within a single channel.
- Impact of channel attributes on the likelihood of showrooming.
- Analysis of customer characteristics influencing showrooming behavior.
- Empirical comparison of showroomers versus non-showroomers.
- Strategic implications for physical retail stores to mitigate showrooming.
- Application of binary logistic regression to evaluate consumer behavior.
Excerpt from the book
3.2.1 Enjoyment
Enjoyment of a shopping channel is defined as “the perceived shopping experiences that reflects the hedonic value of shopping in a channel” (Verhoef, Neslin, and Vroomen 2007, p. 134). It can also be described as simply liking to do shopping in a particular channel (Babin, Darden, and Griffin 1994; Dawson, Bloch, and Ridgway 1990; Mathwick, Malhotra, and Rigdon 2001).
The perceived enjoyment of shopping in a channel can be seen as entertainment and emotional benefit (Babin, Darden, and Griffin 1994). It involves fun, adventure and excitement to try new items, customizing products and more (Forsythe et al. 2006). Offline stores have recognized the need to improve the shopping experience in their stores, for example through adding restaurants to shops or arranging events (Burke 1997). The offline shopping enjoyment is also influenced by social experiences. For instance, when a customer visits an outdoor equipment store not only to purchase hiking equipment but also to enjoy a conversation about hiking experiences with a salesperson or other customers (Dawson, Bloch, and Ridgway 1990). Offline enjoyment is also influenced by the store’s atmosphere (like music and light) (Baker et al. 2002) and the facility itself (like size and layout of the store) (Yoo, Park, and MacInnis 1998).
Enjoyment of the online channel is mainly driven by high flexibility in navigation, clarity, convenience and the level of ability to substitute the real viewing of the product (Childers et al. 2001). However, the online shop was found to be less joyful for shopping. It lacks on personal service, entertainment and social interaction (Burke 1997). But the internet has improved in its variety of entertainment opportunities, for example with integrated videos, music, customization possibilities or real time auctions. This was found to increase the attitude towards this media and thus drives its adoption and usage (Lee and Tan 2003). It is also reported that enjoyment is a significant driver of using the online channel for search and purchase and is influencing online purchase most (Verhoef, Neslin, and Vroomen 2007).
Summary of chapters
1 Introduction: Introduces the showrooming phenomenon as a significant challenge for traditional retailers and outlines the research questions and structure of the thesis.
2 Theoretical background of showrooming: Provides an overview of relevant shopping trends, such as multi-channel shopping and research shopping, to establish a foundation for understanding showrooming.
3 Factors influencing showrooming: Details the literature review, hypothesis development, and conceptual framework focusing on channel attributes and customer characteristics.
4 Empirical study: Describes the methodology, including the online questionnaire design, sample selection, and the use of logistic regression for data analysis.
5 Results: Presents the findings from the empirical study, evaluates the hypotheses, and analyzes the significant variables impacting showrooming likelihood.
6 Conclusion: Summarizes the key findings, provides strategic implications for retailers to address showrooming, and acknowledges study limitations alongside future research opportunities.
Keywords
Showrooming, Multi-channel shopping, Research shopping, Free riding, Channel attributes, Retailer loyalty, Consumer behavior, Logistic regression, Online shopping, Physical retail, Customer characteristics, Purchase decision, Price-consciousness, Service quality, Shopping enjoyment
Frequently Asked Questions
What is the core subject of this master's thesis?
The thesis explores the "showrooming" phenomenon, where consumers collect information in a physical store but complete the actual purchase online, and investigates the underlying drivers for this behavior.
What are the central thematic areas?
The work focuses on the intersection of consumer behavior, multi-channel retailing, and the impact of specific channel attributes like price, service, and convenience on the purchase decision.
What is the primary research goal?
The goal is to determine which channel attributes encourage or discourage showrooming and to identify how specific customer characteristics differentiate showroomers from non-showroomers.
Which scientific methodology is applied?
The author conducted an empirical study using an online questionnaire with 334 respondents and utilized a binary logistic regression model to analyze the influence of 12 independent variables.
What does the main part of the paper cover?
The main part encompasses a theoretical foundation, an analysis of factors influencing the phenomenon (literature review), the design and execution of an empirical study, and the statistical evaluation of the results.
Which keywords characterize this work?
The work is characterized by terms such as showrooming, multi-channel shopping, free riding, retailer loyalty, consumer behavior, and retail strategy.
How do showroomers differ regarding their attitude towards free riding?
The study found that consumers with a more positive attitude toward free riding—feeling less guilty about utilizing retail services without purchasing in-store—are significantly more likely to engage in showrooming.
What is the impact of retailer loyalty on showrooming?
Retailer loyalty has a significant negative impact; consumers who are loyal to a specific physical retailer are much less likely to showroom, as they prefer to complete their purchases within the same channel.
Does price-consciousness significantly affect showrooming?
Surprisingly, the study revealed that price-consciousness did not significantly differentiate showroomers from non-showroomers in this specific sample, as both groups were found to be highly price-conscious.
Why are physical retail stores particularly vulnerable to showrooming?
Physical stores are vulnerable because they incur high operational costs for providing services like personal assistance and product trials, which showroomers use without compensating the retailer through a purchase.
- Quote paper
- Christel Zaubitzer (Author), 2013, Understanding the Showrooming Phenomenon, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/278999
