Consumer Shopping Behavior in Online and Offline Channels: Implications for Marketing Strategy in Six Countries

Abstract

Study 1 examines which shopping motivations influence consumer intention to search and purchase by using online and offline channels for different product categories (e.g. search and experience goods). Online and offline survey were conducted in six different countries (e.g. Cambodia, China, Korea, UK, USA, and Vietnam) and data were collected from 2,422 multichannel shoppers. Ordered probit model was identified and estimated in STATA to verify the effect of extrinsic and intrinsic shopping motivations on consumer channel choice usage intention. Monetary saving, assortment, convenience, promotion, enjoyment, ease of use, product diagnosticity, and service quality are the important factors influencing consumer’s choice of the retail channel. However, global shoppers consider only some types of them that are more substantial than others within a particular channel, and the same types of motivations may or may not be more important in a different channel and for a certain product category. This study contributes largely to the existing body of knowledge by providing a greater understanding of global consumer’s channel choice of the retail channel in six different countries representing developing, emerging and developed markets. In addition, this research projects the current trends of multichannel consumer segments and their channel choice behaviors. Last, the findings shed light on retail marketers to a) differentiate the channel offerings for different countries because consumers within different countries are interested in different aspects of channel experience, b) formulate retail marketing strategies based on customer segments, and c) emphasize on the important aspect of each stage throughout customer journey because shoppers are motivated by different aspects of each channel on different stage.

Study 2 analyzes the influence of culture, economy, and lifestyle on the relationship between each of the dimensions of extrinsic, and intrinsic motivations and behavioral intention to use online and offline for shopping. This study employed a multi-group analysis and estimated two cases, (a) online, and (b) offline separately, and chi-square difference (Dc2) test was applied to empirically examine for the differential effects of the moderators on the paths between extrinsic, and intrinsic motivations and intention to use. The results demonstrate that the effect of each motivational dimensions (extrinsic and intrinsic) on the behavioral intention to use online and offline for shopping is significantly moderated by culture, economy, and lifestyle. The results highlight that, in the countries with high PD, MAS, POP, INT, FAL, consumers place the most importance on product diagnosticity for using online, while consumers from the countries with low MAS, GDP, INT, and FAL go online mainly because of ease of use, and both high PD, UAI, GDP, and LEL and low MAS, POP, GDP, INT, FAL, and HC, shoppers expect to have fun and enjoyable shopping experience at a traditional brick-and-mortar store. The influential factors on consumers’ selection of the retail channel has been studied; however, few works analyze other related factors such as the influence of culture, economy, and lifestyle. The findings of this study provide advanced insights into understanding of consumer channel selection behavior in different culture, economy, and lifestyle. It also has implication for existing literature as there is a limited understanding of the predictors of consumer selection of online and offline channels.

Study 3 analyzes the influence of self-efficacy on eight types of relationships between each of the determinants of consumers’ channel selection and behavioral intention to use online and offline for shopping. This study employed structural equation modeling (SME) and multi-group analysis with chi-square difference test to empirically examine for the differential effects of moderating role of self- efficacy on proposed hypothesized relationships. At large, the results demonstrate that differences in levels of self-efficacy moderates the relationship between the determinants of consumers’ channel selection and intention to use online and offline. High and low self-efficacy shoppers differentiate the importance of each determinants, which in turn, results in a significant difference and strengthens their relationships with behavioral intention. Shoppers have different perceptions towards online and offline based on their self-efficacy beliefs. Hence, marketing managers should distinguish between shoppers with low and high self-efficacy level when developing marketing strategies. Once the managers know the target market, they should consider creating differentiated marketing strategies when planning to sell products or services online and offline, or they can invest in the factors that can fulfill the needs of both groups of customers. The influential impact of consumer traits, such as self-efficacy has been examined; however, a few studies analyze how individual difference in levels of self-efficacy moderates the impact of determinants of consumer’s channel selection on intention to select online and offline in multichannel context. The moderation effect of self-efficacy in online and offline models is verified in six different countries. The results prove that self-efficacy has a significant moderating effect. Certain factors are highly critical for either high or low self-efficacy groups, while some factors are equally important, and others appear as not at all imperative.