Omnichannel Retail Experience Study
Omnichannel Retail Experience Study
https://www.emerald.com/insight/0959-0552.htm
customer experiences
Angelina Nhat Hanh Le 595
School of Management, University of Economics Ho Chi Minh City,
Ho Chi Minh City, Vietnam, and Received 14 February 2020
Revised 29 February 2020
Xuan-Doanh Nguyen-Le 18 March 2020
10 July 2020
International School of Business, University of Economics Ho Chi Minh City, 12 October 2020
Ho Chi Minh City, Vietnam Accepted 10 December 2020
Abstract
Purpose – The purpose of the paper is to create a well-integrated and unified customer experience anytime,
anywhere, through any channel is the leading objective of omnichannel retailers. Scholars advocate the crucial
role of channel integration quality (CIQ)–specifically its components of channel-service configuration and
integrated interactions–in formulating the customer experience, which in turn determines their patronage
intention. However, a dearth of research exists on the dynamic nature of this particular mechanism. The
potential mediating and moderating effects of customer empowerment and Internet usage have hardly been
considered at all in the context of omnichannel retailing. These research gaps will be addressed in this study.
Design/methodology/approach – Based on a data set of 312 omnichannel customers, the partial least
square–structural equation model (PLS-SEM) was employed to test the hypothesised relationships.
Findings – The results reveal the dynamic mechanism in which channel-service configuration and integrated
interactions are the key factors that not only directly enable omnichannel retailers to deliver customers with a
seamless shopping experience but also empower customers to shape their own consumption experiences. The
findings also demonstrate the contingency role of consumers’ Internet usage in such a dynamic mechanism.
Finally, the notion that a strong customer experience increases their intention for patronage is supported by the
empirical evidence.
Originality/value – This study contributes to the existing literature by quantitatively examining the
moderated mediating mechanism of forming customer experience and its subsequent patronage behaviour in
the context of omnichannel retailers.
Keywords Omnichannel retailers, Channel integration quality, Customer experience, Customer empowerment
Paper type Research paper
Introduction
Over the last few years, retailing has advanced dramatically, while technological advancement
has enabled retailers to connect and conduct transactions with their customers through various
channels such as websites, mobile apps, social media and so on (Lynch and Barnes, 2020;
Savastano et al., 2019). With multiple channels and interactive touchpoints during customer
shopping journeys, it is crucial for retailers to apply omnichannel strategies to serve customers
with seamless switching among all available channels and across every touchpoint (Ieva and
Ziliani, 2018; Keyser et al., 2020; Savastano et al., 2019; Shen et al., 2018). According to Lee et al.
(2019), the ultimate goal of omnichannel retailers is to create a well-integrated and unified
customer experience at any time, any place and through any channel (Kuppelwieser and Klaus,
2020; Lynch and Barnes, 2020; Jocevski et al., 2019; Picot-Coupey et al., 2016; Ye et al., 2018).
Historically, the concept of the customer experience has been studied in different contexts of
retailing, from physical-store retailing (Mohd-Ramly and Omar, 2017; Terblanche, 2018) International Journal of Retail &
Distribution Management
Vol. 49 No. 5, 2021
pp. 595-615
© Emerald Publishing Limited
0959-0552
This research is funded by the University of Economics Ho Chi Minh City, Vietnam. DOI 10.1108/IJRDM-02-2020-0054
IJRDM to e-retailing (Izogo and Jayawardhena, 2018; Pandey and Chawla, 2018; Rose et al., 2012),
49,5 m-retailing (McLean et al., 2018) and even multichannel retailing (Lemon and Verhoef, 2016).
However, for omnichannel retailers, the seamless customer experience in which customers
rationally and emotionally respond to an omnichannel retailer (c.f., McLean et al., 2018) remains
scant, and the mechanism that underpins such a seamless experience is not fully understood
(Lemon and Verhoef, 2016). To the best of our knowledge, the existing studies that attempt to
conceptualise and describe the omnichannel experience have mainly been qualitative or
596 exploratory in nature (e.g. Ieva and Ziliani, 2018; Parise et al., 2016; Picot-Coupey et al., 2016).
Thus, much uncertainty still exists about the formation of the omnichannel customer
experience as well as subsequent behavioural outcomes such as patronage intention.
Channel integration quality (CIQ hereafter) is regarded as a key factor determining the
ability of omnichannel retailers to manage customer relationships across channels and
deliver customers with a seamless purchasing experience throughout their shopping journey
(Kembro and Norrman, 2019; Lee et al., 2019; Ye et al., 2018). According to Sousa and Voss
(2006), CIQ is comprised of two components: channel-service configuration and integrated
interactions. The former refers to the wide range and flexible combination of various online
and offline channel services, while the latter describes the consistency and uniformity of both
content and process attributes through different channels provided by omnichannel retailers.
In recent years, a number of novel service combinations and functional attributes with regard
to CIQ have been implemented by omnichannel retailers. For instance, big-box omnichannel
retailers like Walmart and Target have been successful in launching the “buy online, pick up
in-store” (BOPS) and “click and collect” services (Walk-Morris, 2019). Moreover, in order to
exclude the natural boundaries between channels and provide customers with a seamless
experience, many in-store technologies (e.g. in-store interactive digital kiosks, interactive
fitting rooms, price-checkers) and robust mobile app features (e.g. scan-and-go, push
notifications for in-store, online promotions) have been invested in by omnichannel retailers
(Jocevski et al., 2019; Savastano et al., 2019). Tesco’s Scan Pay Go app allows customers to
scan and pay for their purchase by using their smartphones without actually visiting the
store cashier, while Amazon Go offers shoppers a brick-and-mortar shopping experience
without the check-out line. With these tremendous efforts to improve CIQ, it is critical to
evaluate the effectiveness of CIQ on enhancing the seamless customer experience in the
context of omnichannel retailers.
Customer empowerment refers to the level of control that customers receive during their
shopping journey over exactly where, when and how to shop and receive deliveries (Zhang
et al., 2018). According to Prentice et al. (2016), the Internet and advanced technologies
increasingly provide business firms with the opportunity to empower customers at their
fingertips. Indeed, a number of customers today are avid users of touchpoints and are
technology savvy (Ieva and Ziliani, 2018); as such, empowering customers with the ability to
shape their own consumption experiences has become an inevitability for online businesses.
In the context of omnichannel retailers, we anticipate the vital role of customer empowerment
in influencing the omnichannel experience and presume that the process of applying
advanced technologies to integrate various online and physical channels provides an
increasing independence/autonomy for customers to make their own choices at all stages of
their shopping journey (Savastano et al., 2019). In other words, customer empowerment is
predicted to play a mediating role in the linkage from CIQ to a seamless omnichannel
experience. This proposition will be explored in this study. In addition, according to Chang
and Chen (2008), customers who spend more time online tend to accumulate more internet-
related knowledge, experiences and skills. Consequently, they are confident in navigating
information-searching tasks across multiple channels and become more familiar with
omnichannel retailers’ available offerings (Daunt and Harris, 2017). Thus, we contend that
Internet usage exhibits a contingency role in affecting customer perception and evaluation in Omnichannel
the context of omnichannel retailing settings. customer
Given the above voids in the extant literature, the current study aims to contribute to the
scarce literature on customers’ seamless experience with omnichannel retailers by offering
experiences
relevant insights into the dynamic mechanisms of forming the omnichannel experience and
its subsequent patronage behaviour. In particular, this empirical study attempts to
(1) examine the effects of the two components of CIQ (i.e. channel-service configuration and
integrated interactions) on the customer experience; (2) explore the mediating role of customer 597
empowerment on the relationship between CIQ and the customer experience; (3) identify the
moderating role of Internet usage on the effects of CIQ and customer empowerment on the
customer experience; and (4) assess exactly how this customer experience results in
patronage intention. The findings of this work offer important practical knowledge for
omnichannel retailers to optimise their channel management to deliver a seamless shopping
experience for their customers.
f2: 0.395
-0.100a
Integrated f2: 0.019
interactions Variety-
First-order construct
seeking
Second-order construct
Control variable
Figure 1.
Mediating effect; [ ] 95% confidence interval Research framework
and analysis results
Note(s): p: a < 0.05, b ≤ 0.01, c ≤ 0.001; H3a, H3b, H3c: moderating effects SRMR: 0.079
Methodology
Sample and data collection
In the omnichannel retailing context, customers use both online (e.g. websites, mobile apps)
and physical stores to complete their purchasing journey. According to Picodi (2018), a global
e-commerce platform operating in Vietnam, half of Vietnamese online customers (49%) were
aged between 25 and 34 years old. Moreover, 60% of them were women, and 40% were men.
Thus, the respondents of the current study were limited to those aged 25–34, and purposive
sampling based on gender (see Table 1) was employed.
The data collection was conducted in Ho Chi Minh (HCM) City, where the retail business
activities are striking and leading (Thuy Mien, 2018). Moreover, all of the well-known
Vietnamese omnichannel retailers do business in HCM City. Therefore, the current study
employs HCM City for data collection. The survey was conducted at the five busiest shopping
malls and office buildings in the metropolitan area of HCM City (i.e. Vincom Center, Saigon
Square, Takashimaya Vietnam, Diamond Plaza and Parkson Plaza) to approach potential
respondents. After being presented with the definition of omnichannel retailers in the survey
questionnaire, in order to be able to fill in the questionnaire, participants either chose one
well-known omnichannel retailer – Nguyen Kim (electronic appliances), FPT Shop/The Gioi
Di Dong (mobile carriers and devices), or Concung (mother and baby products) – or self-
declared the omnichannel retailer they were most familiar with. Next, to be included in the
Realised quota Planned quota Purchase frequency (websites/apps/
Omnichannel
Gender Freq. % % stores) Freq. % customer
experiences
Male 126 40.4 40.0 Several times a week 29 9.3
Female 186 59.6 60.0 A few times a month 148 47.4
Total 312 100.0 100.0 A few times a year 100 32.1
Rarely (only once or twice) 35 11.2
Total 312 100.0 603
Education Freq. % Average order value (websites/apps/stores) (*) Freq. %
survey, filtering questions were used to ensure that the person (1) had visited both the online
(websites/mobile apps) and physical stores of the chosen omnichannel retailer; (2) had made
at least one purchase either online or physical stores of this omnichannel retailer and (3) was
aged 25–34. If any of these three conditions were not met, the questionnaire was not given.
A small souvenir was also offered to them in appreciation of their support.
Measurements
The current study consists of three multi-dimensional constructs, two single-dimensional
constructs, one single-item construct and two control variables. The measurements for these
constructs were adopted from prior studies with some minor modifications to fit the current
research context (see Appendix). Specifically, the two multi-dimensional constructs that
belong to CIQ (channel-service configuration and integrated interactions) had two
dimensions for each, with scales adopted from Lee et al. (2019). In particular, channel-
service configuration was comprised of breadth of channel-service choice and transparency
of channel-service configuration, while integrated interactions encompassed both content
consistency and process consistency. Each of these constructs was measured by four items.
Another multi-dimensional construct, customer experience, consisted of satisfaction with
experiences and positive emotions that were measured by three- and ten-item indices taken
from McLean et al. (2018). Unidimensional constructs of customer empowerment and
patronage intention were adapted from Zhang et al.’s (2018) scales of five and three items,
respectively. Internet usage was assessed based on Fioravanti et al.’s (2012) single-item
construct. Regarding control variables, trust in retailers was measured with four items
adopted from Chiu et al. (2012), while variety-seeking was measured with seven items taken
from Menidjel et al. (2017). All items were measured with a seven-point Likert scale
IJRDM (1 5 strongly disagree, 7 5 strongly agree) and were translated into Vietnamese, the official
49,5 language of the current research context.
The data were collected over a five-week period in 2019 at different times of the day and on
both weekdays and weekends. After close scrutiny, 312 valid responses were used for further
analysis. The details about respondents’ profiles and purchase behaviours are presented in
Table 1.
604
Data analysis and results
This research employed SmartPLS 3.2.8 (Ringle et al., 2015) and applied the partial least
square–structural equation model (PLS-SEM) to test the accuracy of measurement scales and
the structural model. The analysis results are shown below.
Channel-service configuration Breadth of channel-service choice 4 0.837 0.891 0.672 0.800/0.581; 0.833/0.440; 0.843/0.484; 0.804/0.476
Transparency of channel-service configuration 4 0.841 0.894 0.679 0.806/0.534; 0.893/0.578; 0.879/0.530; 0.705/0.370
Integrated interactions Content consistency 4 0.822 0.883 0.655 0.810/0.499; 0.858/0.497; 0.849/0.479; 0.711/0.504
Process consistency 4 0.815 0.880 0.648 0.673/0.501; 0.856/0.576; 0.851/0.487; 0.826/0.504
Customer empowerment 5 0.822 0.876 0.586 0.715/0.486; 0.714/0.494; 0.764/0.438; 0.840/0.527;
0.785/0.490
Customer experience Satisfaction with experience 3 0.894 0.934 0.826 0.870/0.650; 0.933/0.676; 0.923/0.707
Positive emotions 10 0.932 0.943 0.623 0.784/0.624; 0.764/0.577; 0.811/0.617; 0.690/0.433;
0.785/0.540; 0.749/0.553; 0.787/0.605;
0.836/0.640; 0.822/0.598; 0.852/0.646
Patronage intention 3 0.896 0.935 0.828 0.912/0.619; 0.917/0.625; 0.901/0.590
Internet usage 1 n.a. n.a. n.a. n.a.
Control variables
Trust in retailer 4 0.829 0.886 0.661 0.778/0.536; 0.836/0.509; 0.838/0.539; 0.797/0.520
Variety-seeking 7 0.950 0.958 0.763 0.836/0.315; 0.908/0.332; 0.934/0.323; 0.890/0.302;
0.881/0.416; 0.821/0.316; 0.840/0.367
Assessment stage II
Hierarchical measurement model
Studied constructs No. of scale dimensions Alpha CRb AVEc Dimension loading/highest cross-loading
605
606
validity
Table 3.
IJRDM
Scale accuracy
analysis: discriminant
Assessment stage Stage I
CSC InI Cexp
Studied constructs (dimensions) BCSC TCSC CC PC Cemp SE PE PI IU Trust Seek
Channel-service Breadth of channel-service choice 0.820 0.700 0.468 0.486 0.534 0.545 0.471 0.538 0.070 0.511 0.115
configuration (CSC) (BCSC)
Transparency of channel-service 0.601 0.824 0.550 0.503 0.486 0.471 0.459 0.457 0.064 0.443 0.280
configuration (TCSC)
Integrated interactions Content consistency (CC) 0.388 0.454 0.809 0.752 0.567 0.561 0.502 0.408 0.087 0.561 0.276
(InI) Process consistency (PC) 0.396 0.414 0.611 0.805 0.626 0.685 0.622 0.516 0.038 0.744 0.334
Customer empowerment (Cemp) 0.448 0.408 0.468 0.514 0.765 0.721 0.694 0.497 0.043 0.632 0.443
Customer experience Satisfaction with experience (SE) 0.467 0.406 0.480 0.588 0.620 0.909 0.810 0.730 0.090 0.735 0.308
(Cexp) Positive emotions (PC) 0.415 0.409 0.437 0.542 0.612 0.742 0.789 0.728 0.037 0.707 0.316
Patronage intention (PI) 0.465 0.403 0.351 0.442 0.434 0.651 0.667 0.910 0.080 0.681 0.143
Internet usage (IU) 0.065 0.058 0.080 0.033 0.031 0.086 0.014 0.075 n.a. 0.030 0.055
Trust in retailer (trust) 0.431 0.378 0.461 0.611 0.528 0.632 0.625 0.592 0.005 0.813 0.228
Variety-seeking (seek) 0.112 0.243 0.238 0.292 0.381 0.289 0.299 0.148 0.042 0.203 0.874
Stage II
Studied constructs CSC InI Cemp Cexp PI IU Trust Seek
Channel-service configuration (CSC) 0.895 0.681 0.541 0.635 0.560 0.079 0.516 0.220
Integrated interactions (InI) 0.512 0.897 0.625 0.760 0.506 0.072 0.687 0.349
Customer empowerment (Cemp) 0.469 0.547 n.a. 0.710 0.421 0.034 0.520 0.400
Customer experience (Cexp) 0.509 0.616 0.656 0.933 0.765 0.058 0.728 0.341
Patronage intention (PI) 0.486 0.445 0.421 0.707 n.a. 0.076 0.588 0.130
Internet usage (IU) 0.069 0.060 0.034 0.054 0.076 n.a. 0.006 0.057
Trust in retailer (trust) 0.448 0.605 0.520 0.672 0.588 0.006 n.a. 0.202
Variety-seeking (seek) 0.187 0.307 0.400 0.315 0.130 0.057 0.202 n.a.
Note(s): The lower and upper of the diagonal are bivariate correlations and HTMT ratios, respectively; diagonal italic values are the square root of AVE (average
variance extracted); n.a., not applicable
Assessment of the structural model Omnichannel
Following the procedure to evaluate the structural model as proposed by Hair et al. (2017), the customer
collinearity issues among each set of predictor variables were firstly checked; all VIF values
of less than 5.0 demonstrated that collinearity was unlikely to be a concern. To assess the
experiences
quality of the structural model, the SRMR value of 0.079–less than the threshold (0.08)–
asserted a good fit of the model for theory testing. In addition, the predictive power
and predictive relevance of the proposed research model were assessed through the R2 and Q2
of the endogenous constructs, respectively. The R2 values of 0.26, 0.13 and 0.02 represent 607
substantial, moderate and weak levels of predictive accuracy, respectively, while the
predictive relevance of Q2 values should be higher than zero. As can be seen from Figure 1, the
R2 values of customer empowerment (0.347), customer experience (0.541) and patronage
intention (0.532) all reached the substantial level. The Q2 values of three endogenous were
above zero. These indicated that the exogenous constructs had substantial explanatory
capability and adequate predictive relevance for the three endogenous constructs in the
model. Overall, the quality of the structural model was assured. Next, the hypothesis testing
results comprised of direct effects, mediating effects and moderating effects are
presented below.
Direct effects. A t-test calculated from the bootstrapping procedure of 5,000 samples was
applied to test the direct effects in the research model, while Cohen’s indicator (f2) was used to
measure the effect sizes with the values of 0.02, 0.15, and 0.35 representing small, medium and
large effects, respectively (Hair et al., 2017). Figure 1 illustrates how all of the three direct
hypotheses (H1a, H1b and H4) were supported at a minimum of 95% confidence level. The
effect sizes of channel-service configuration and integrated interactions on customer
experience were between small and medium (0.036 and 0.129, respectively), while the effect of
customer experience on patronage intention was rather large (0.395).
Mediating effects. Following Zhao et al.’s (2010) mediation analysis approach, we used one
bootstrap test (5,000 samples) to replace both the Baron-Kenny’s procedure and the Sobel’s
test to examine the indirect, mediating effects. The bootstrapping results pointed out that
both indirect effects stipulated in H2a and H2b were positive and significant and the 95% bias
corrected confidence intervals did not include zero; thus, H2a and H2b were supported.
Further identifying the typology of mediations was conducted. In addition to the above
significant and positive indirect effects, the direct effects of channel service configuration and
integrated interactions on customer experience were also positive and significant, thus
customer empowerment was identified as a complementary mediation of the proposed direct
effects.
Moderating effects. The study examined the moderating effects of Internet usage on the
positive relationships between customer experience and its precursors (i.e. channel-service
configuration, integrated interactions, and customer empowerment). Three interaction terms
were created for moderating effect analysis. The results from Figure 1 asserted that all three
moderating effects (H3a, H3b, and H3c) were supported. According to Kenny’s standard, the
effect size in tests of moderation might be 0.005, 0.01 and 0.025 for small, medium and large,
respectively (Hair et al., 2017). The interaction term’s f2 effect size in the current study had
values of 0.040, plus 0.030 and 0.016, indicating large and medium effects.
Control variables. The analysis of control variables suggested that there were significant
positive and negative effects of trust in retailers and variety-seeking on patronage intention,
respectively.
Breadth of channel-service choice (1) I can purchase products via both online and physical stores of X
(2) I can get support through both online and physical stores of X
(3) I can give feedback about products through both online and
614 physical stores of X
(4) I can get detailed product descriptions from both online and
physical stores of X
Transparency of channel-service (1) I am aware of the available services of both online and physical
configuration stores of X
(2) I am familiar with the available services of both online and physical
stores of X
(3) I know how to utilise the available services of both online and
physical stores of X
(4) I know the differences in the available services offered by both
online and physical stores of X
Content consistency (1) X provides consistent product information for both online and
physical stores
(2) Product prices are consistent for both online and physical stores of X
(3) X provides consistent promotion information for both online and
physical stores
(4) X provides consistent stock availability for both online and physical
stores
Process consistency (1) The service images are consistent for both online and physical
stores of X
(2) The levels of customer service are consistent for both online and
physical stores of X
(3) The feelings of service are consistent for both online and physical
stores of X
(4) The online and physical stores of X have consistent performance in
their speed of service delivery
Customer empowerment (1) In my dealings with X, I feel I am in control
(2) During the shopping process at X, I can select products and services
freely
(3) I can influence the choice-set offered to me by X
(4) The ability to influence the offerings and services of X is beneficial
to me
(5) My influence over X has increased relatively in comparison to the
past
Internet usage How many hours do you use the internet per day?
Less than 2 h; 2 h to < 5 h; 5 h to < 8 h; 8 h and up
Satisfaction with experience (1) I am satisfied with the shopping experience at X
(2) The shopping experience at X is exactly what I need
(3) The shopping experience at X has worked out as well as I thought it
would
Table A1.
Measurement scales (continued )
Construct Adapted items
Omnichannel
customer
Positive emotions (1) I feel frustrated when shopping at X. (R) experiences
(2) I feel confident when shopping at X
(3) I feel assured when shopping at X
(4) I feel confused when shopping at X. (R)
(5) I feel optimistic when shopping at X
(6) I feel uncertain when shopping at X (R) 615
(7) I feel disappointed when shopping at X (R)
(8) I feel relieved when shopping at X
(9) I feel doubtful when shopping at X (R)
(10) I feel satisfied when shopping at X
Patronage intention (1) I am likely to continue to purchase products from X
(2) I am likely to recommend X to my friends
(3) I am likely to choose X as a preferred retailer if I need to buy such
products
Trust in retailer (1) X is a trustworthy retailer
(2) X cares about its customers
(3) X keeps its promises to its customers
(4) X is not overly opportunistic
Variety-seeking (1) When shopping, I find myself spending a lot of time checking out
new websites/apps/physical stores
(2) I take advantage of the first available opportunity to find out about
new websites/apps/physical stores
(3) I like to investigate information about new websites/apps/physical
stores
(4) I like information sources that introduce new websites/apps/
physical stores
(5) I frequently keep watching for new websites/apps/physical stores
(6) I seek out situations in which I will be exposed to new and different
sources of websites/apps/physical store information
(7) I am continually seeking out new websites/apps/physical stores
Note(s): X refers to the well-known or self-declared omnichannel retailer chosen by the respondent;
(R) indicates reversed items Table A1.
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