consumer cross-channel behaviour: is it always planned?
TRANSCRIPT
Swinburne Research Bankhttp://researchbank.swinburne.edu.au
Author: Maggioni, I., Sands, S.J., Ferraro, C.R., Pallant, J.I.,Pallant, J.L., Shedd, L. and Tojib, D.
Title: Consumer cross-channel behaviour: is it alwaysplanned?
Year: 2020Journal: International Journal of Retail & Distribution
ManagementPages: 1-19URL: http://hdl.handle.net/1959.3/456745
Copyright: Copyright © 2020 Emerald Publishing Limited.Author's final accepted manuscript is under aCreative Commons Attribution Non-commercialInternational Licence 4.0 (CC BY-NC 4.0)https://creativecommons.org/licenses/by-nc/4.0/
This is the author’s version of the work, posted here with the permission of the publisher for yourpersonal use. No further distribution is permitted. You may also be able to access the publishedversion from your library.
The definitive version is available at: https://doi.org/10.1108/IJRDM-03-2020-0103
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Consumer Cross-Channel Behaviour: Is It Always Planned?
Structured abstract
Purpose. For consumers, cross-channel behaviour is increasingly prevalent. Such behaviour
involves consumers actively engaging in (and deriving benefit) from one channel during a
product search but switching to another channel when making a purchase. Drawing on multi-
attribute utility theory, this study proposes a cross-channel behaviour typology consisting of
three key aspects: channel choice behaviour; functional and economic outcomes; and
consumer-specific psychographic and demographic variables.
Design/methodology/approach. Segmentation analysis conducted via latent class analysis
(LCA) was performed on a sample of 400 US consumers collected via an online survey.
Findings. Cross-channel behaviour is not always intentional. We identify a specific segment
of consumers that most often engage in unplanned, rather than intentional, cross-channel
switching. We find that of all shoppers that engage in cross-channel behaviour, a fifth (20%)
are forced to switch channels at the point of purchase.
Practical implications. Cross-channel behaviour can be mitigated by retailers via a deep
understanding of the driving factors of different configurations of showrooming and
webrooming.
Originality/value. In contrast with existing conceptualisations, this study suggests that cross-
channel behaviour often stems from consumers being ‘forced’ by factors outside of their
control, but within the retailers’ control. This research presents a nuanced approach to
decompose consumer cross-channel behaviour from the consumer perspective as planned,
forced, or opportunistic.
Keywords: cross-channel behaviour; channel switching, showrooming, webrooming
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Consumer Cross-Channel Behaviour: Is It Always Planned?
1. Introduction
Imagine that next week is the start of the school term and you need school supplies. Your local
brick-and-mortar stationery store has run out of stock, and after a quick online search while
standing in the store you discover what you need via an online retailer with free next-day
delivery. You leave the store and place the order with the online retailer. What is a quick and
simple solution to your dilemma has labelled you as a cross-channel shopper; one of the most
challenging kind of consumers for retailers (Chou et al., 2016). Such apparent exploitation of
retailers by switching between online and physical store channels has become commonplace
(Fornari et al., 2016; Kalyanam and Tsay, 2013; Konuş, Verhoef, and Neslin, 2008), with such
cross-channel behaviour typically perceived as intentional (Flavián, Gurrea, and Orús, 2019;
Santos and Gonçalves, 2019; Schneider and Zielke, 2020). Although, as this example
illustrates, cross channel switching may not always be an intentional behaviour, with some
consumers forced to switch channels due to factors outside their control.
Cross-channel behaviour, or switching channels between search and purchase, is a
common retail behaviour (Neslin et al., 2006) and can involve showrooming or webrooming.
Showrooming relates to the intentional patronage of a physical store (showroom) before
purchasing online (Rapp et al., 2015; Verhoef, Neslin, and Vroomen, 2007), where
webrooming relates to the use of an online channel for product research prior to purchasing
from a physical store (Andrews et al., 2016; Aw, 2019; Arora and Sahney, 2017; Flavián,
Gurrea, and Orús, 2016). Cross-channel behaviour can also be classified as either cross-channel
free-riding or within-firm lock-in (Neslin et al., 2006). Cross-channel free-riding occurs when
a consumer engages with one retailer in the search phase (i.e. to obtain initial information,
search, or make comparisons) and then switches channel and retailer to purchase (Aw, 2019;
Viejo-Fernández, Sanzo Pérez, and Vázquez-Casielles, 2020). Within-firm lock-in is a second
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form whereby a consumer switches channel but not retailer; with the retailer retaining the
consumer across search and purchase. While this later is good in that it prevents consumer
migration from the retailer, it can still have negative consequences – for instance, channel
conflicts can arise if store-based sales staff lose commission of within a franchise network the
purchase could be attributed to another franchise store, or the corporate (online) store.
It has been reported that more than two-thirds of consumers engage some form of cross-
channel behaviour (IBM, 2017), with many retailers concerned about the subsequent effects on
sales (Machavolu and Raju, 2014; Venkatesan, Kumar, and Ravishanker, 2007). Yet while
studies of this phenomenon continue to increase (e.g. Flavián, Gurrea, and Orús, 2019; Sands
et al., 2010; Santos and Gonçalves, 2019; Schneider and Zielke, 2020), those investigating it
from the consumer perspective remain limited (Fernández, Sanzo Pérez, and Vázquez-
Casielles, 2018; Schneider and Zielke, 2020). Given the importance of a holistic understanding
consumer cross-channel shopping, this study adds to our understanding by taking a customer
view of the channel switching phenomenon in terms of both free-riding and within-firm lock-
in.
In developing a better understanding as to why consumer engage in cross-channel
behaviour, we apply a segmentation lens drawing on multi-attribute utility theory (Wallenius
et al., 2008). In doing so, this study provides a more nuanced understanding of how and why
consumers engage in cross-channel behaviour. We propose a typology of heterogeneous
consumers exists in terms of their engagement in different configurations of showrooming and/
or webrooming behaviours. In doing so, we enhance our understanding of consumer channel
switching; finding three distinct motivations for consumer cross-channel behaviour; those that
intentionally plan to engage in channel switching, those that are forced to switch channels (i.e.
via factors inside or outside the retailer’s control, respectively), and those that are opportunistic
and engage in channel switching if and when an opportunity arises (for instance, are driven by
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environmental factors, i.e. they stumble across a promotion). Following a review of pertinent
literature, the research methodology is outlined before our segmentation results are presented.
After describing the segments, we conclude with a general discussion and discuss implications
for theory and retail managers.
2. Theoretical background
Past research has examined the role of different factors driving customers’ switching behaviour
in both online and offline contexts, including price perceptions (Bansal, Taylor, and St. James,
2005, Singh and Rosengren, 2020), satisfaction (Ganesh, Arnold and Reynolds, 2000), service
quality (Keaveney and Parthasarathy, 2001). The push-pull-mooring (PPM) theory (Bansal,
Taylor, and St. James, 2005) provides a comprehensive framework for the drivers of consumer
channel switching behaviour. In the case of cross-channel behaviour, push variables are
negative factors at the initial retailer in the first channel of choice, which drive customers away,
pull variables are those elements of the alternative retailer or alternative channel attracting
customers towards them, while mooring variables are intervening factors that could facilitate
or prevent switching from occurring. Among push factors, the role of customer service,
convenience (product delivery or store location), price perceptions, product quality, trust
(Bansal, Taylor, and St. James, 2005; Singh and Rosengren, 2020) have been investigated.
Among the pull word of mouth and alternative attraction (Bansal, Taylor, and St. James, 2005,
Singh and Rosengren, 2020) have been identified as important. While for mooring variables,
or those conditions that prevent switching or create switching obstacles (Bansal, Taylor, and
St. James, 2005), switching costs, prior switching behaviour, attitude to seek variety, and
subjective norms (Bansal, Taylor, and St. James, 2005; Ganesh, Arnold and Reynolds, 2000;
Singh and Rosengren, 2020) have been identified as important. The PPM framework has
originally been used to study switching behaviour among alternative service providers or
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retailers (Bansal, Taylor, and St. James, 2005; Ganesh, Arnold and Reynolds, 2000; Singh and
Rosengren, 2020). Chou et al. (2016) apply this framework to study both within-channel
switching and cross-channel switching from the online channel to the offline and highlight how
perceived risk and switching barriers have a significant effect on both within-channel switching
behaviour and cross-channel switching, while alternative attractiveness significantly influences
only within-channel switching behaviour.
Most consumers engaging in cross-channel switching seek to maximise utility via
different channels (Chiou, Wu, and Chou, 2012; Heitz-Spahn, 2013). Several factors have
influenced this phenomenon including the increasing availability of products and retailers, the
diversification of shopping channels, and the increasing use of mobile devices for browsing
and purchasing (Bezes, 2016; Sit, Hoang, and Inversini, 2018; Wang, Malthouse, and
Krishnamurthi, 2015). The emergence of cross-channel behavioiur originates from consumers’
increasing need for comparative evaluations before proceeding with a purchase decision.
Among such drivers of showrooming and webrooming, price has consistently been identified
as a primary motivator (Machavolu and Raju, 2014). Although non-price related factors have
also been identified as prevalent among channel switching consumers, such as product quality
and wait time perceptions, which are more positively associated with showrooming (Gensler,
Neslin, and Verhoef, 2017). Consumer emotions have also been indicated as meaningful within
the showrooming context (Sit, Hoang, and Inversini, 2018).
2.1 Utility maximisation and channel choice
At its core, channel choices and switching can be better understood through a consumer utility
lens; that is, consumers choosing channels based on the channels perceived benefit (Konuş,
Verhoef, and Neslin, 2008). Multi-attribute utility theory provides a foundation to explore
consumer channel choices, proposing that individuals make decisions by evaluating choice
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according to the expected utility of each outcome (Wallenius et al., 2008). In such channel
choice situations, a consumer is faced with a two-step decision process, in which channel to
browse and then in which channel to purchase. At each step, the consumer seeks to maximise
their utility – search value and purchase value. Yet while each decision provides opportunity
for utility maximisation, there is also the risk of a poor choice that is high in costs and low in
benefits, with low overall utility (Conchar et al., 2004).
Functional utility relates to the core performance of a channel, such as its ability to
provide information, and to access certain products. Within a channel choice context,
functional utility could include ease of use or required effort (Heitz-Spahn, 2013; Verhoef et
al., 2007). In the context of cross-channel behaviour, functional aspects such as product-
specific factors can influence such behaviour. For example, showrooming has been recognised
as more likely for products with low purchase frequency, and webrooming for products with
dominant search characteristics and rapid technological change (Heitz-Spahn, 2013; Van Baal
and Dach, 2005). Economic utility relates to not wasting money or time. Within a channel
choice context, there may be perceived differences in price and convenience (Heitz-Spahn,
2013; Verhoef, Neslin, and Vroomen, 2007) or quality and price advantages achieved by
engaging in cross-channel behaviour (Balakrishnan, Sundaresan, Zhang., 2014; Gensler,
Neslin, and Verhoef, 2017).
2.2 Consumer-specific variables
Consumer-specific variables have also been known to affect consumer channel choices across
the path to purchase (Ansari, Mela, and Neslin, 2008; Manss, Kurze, and Bornschein, 2019;
Verhoef, Neslin, and Vroomen, 2007). Consumer decision-making and marketplace interaction
styles have both influenced consumer cross-channel behaviour (Burns, 2006; 2007). In terms
of psychographic variables, a consumer’s tendency for information seeking, defined as a need
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for product attribute information (Noble, Griffith, and Weinberger, 2005), has been known to
increase consumers’ cognitive evaluation of products. Consistent with a reduction in consumer
uncertainty (Flavián, Gurrea, and Orús, 2016; Gensler, Neslin, and Verhoef, 2017 ), a
consumer’s degree of confidence in shopping (online and offline) can drive cross-channel
switching intentions, referred to as online shopping and store shopping savviness in this study.
In contrast, time-pressured consumers are less likely to engage in cross-channel switching,
being less price-conscious and more likely to conduct search and purchase from the same
channel. Verhoef and Langerak (2001) previously demonstrated that the online channel in
particular is often employed by time-pressured shoppers.
It has also been suggested that a consumer’s level of price- and/or brand-consciousness
influences cross-channel behaviour (Lichtenstein, Netemyer, and Burton, 1990). Price-
conscious consumers are aiming to minimise the price paid for an item, including via
evaluations within a specific channel (Verhoef, Neslin, and Vroomen, 2007) that drive channel
choice (Baker et al., 2002; Montoya-Weiss, Voss, and Grewal, 2003). In contrast, brand-
conscious consumers are less likely to switch channels to find a substitute, even when their
branded item is out of stock.
Moreover, Fernández, Sanzo Pérez, and Vázquez-Casielles (2018) identify the aspects
that differentiate webroomers from showroomers. Specifically, webroomers tend to engage in
longer purchasing processes using multiple online touchpoints to obtain and examine
information in depth, becoming ‘smart shoppers’ hard to influence. Webroomers consider
product characteristics as most important in influencing their purchase decisions and have a
clear idea of the product they will purchase once in a physical store. Conversely, showroomers
appear to be more easily influenced particularly by brands and trends. They also tend to
purchase higher value products although they search for the retailer that offers the desired
quality of product at the lowest price (Fernández, Sanzo Pérez, and Vázquez-Casielles, 2018).
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2.3 In-store mobile usage and cross-channel behaviour
In-store mobile usage is another factor that was identified as relevant in understanding
consumer cross-channel free-riding, particularly among showroomers (Sit, Hoang, and
Inversini, 2018; Viejo-Fernández, Sanzo-Pérez, and Vázquez-Casielles, 2020). Mobile devices
continue to have a significant impact on consumer shopping behaviour, integrating easily into
habitual routines (Wang, Malthouse, and Krishnamurthi, 2015), often motivated by
convenience (saving time) and utilitarian value (saving money) (Pantano and Priporas, 2016).
Mobile usage is particularly high in the search phases of the consumer journey among those
that value access to information (Holmes, Byrne, and Rowley, 2014). In-store mobile usage is
often driven by the ability to access information without having to ask service staff, or to find
information unavailable in the store (e.g. price comparisons, product reviews) (Fuentes and
Svingstedt, 2017). Such information access can be empowering, making consumers feel more
knowledgeable and competent, while enabling them to find better value via cross-channel free-
riding behaviour (Fuentes and Svingstedt, 2017).
In-store mobile usage can therefore stimulate deal-seeking behaviours such as
showrooming (Fuentes and Svingstedt, 2017), with the information search capabilities
resulting in a high proportion of deal-prone consumers in the mobile channel. In addition to in-
store mobile usage increasing shopper confidence by facilitating information search and
opinion-seeking while increasing purchases by distracting consumers from their shopping task.
The intensive use of smartphones and the increasing growth of m-commerce have generated a
new form of showrooming, the so-called “mobile showrooming” (Viejo-Fernández, Sanzo-
Pérez, and Vázquez-Casielles, 2020). The affinity of both showroomers and webroomers with
information seeking results in an increased usage of electronic devices, particularly
smartphones. The usage of smartphones inside the store has traditionally been seen as a threat
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from many retailers. However, there is still limited and contradictory evidence suggesting a
negative role of smartphone usage inside stores as they could also represent a way to drive
impulsive buying and push product with a higher price (Viejo-Fernández, Sanzo-Pérez, and
Vázquez-Casielles, 2020). Specifically, the real-time and mobility nature of smartphones
allows for convenience, customization and broadcasting (Wu et al., 2010, Huang, Lu, and Ba,
2016), creating “always on” customers that are more likely to engage in impulse buying
behaviour. However, it is important to note that the usage of mobile devices reduces the ability
of performing multiple tasks simultaneously and thus could lead to distraction in consumers
while shopping with negative impact on the ability to accurately complete shopping plans and
increasing the likelihood of unplanned purchases (Sciandra, Inman, and Stephen, 2019).
3. Methodology
3.1 Segmentation variables
To put forward a typology of cross-channel behaviour, this study segmented consumers based
on three key functional aspects: 1) channel choice behaviour; 2) functional and economic
outcomes; and 3) consumer-specific psychographic and demographic variables. In line with
prior exploratory segmentation studies (i.e. Konuş, Verhoef, and Neslin, 2008; Sands et al.,
2016), we conduct an ad hoc analysis with no prior information about the resulting
segmentation, and as such we do not derive or state formal hypotheses about the effect of
attitudinal or behavioural variables. However, we do hypothesise that based on the attitudinal
or behavioural variables in our model, we expect consumers to differ in terms of their cross-
channel behaviour.
Channel choice behaviour (indicator variables). We employ three indicator variables
to assess segment membership: 1) showrooming; 2) webrooming; and 3) in-store mobile
usage. Respondents recalled recent shopping trips (past 3-months) and reported their channel
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choice behaviours (search and purchase). To assess showrooming, respondents were asked to
identify whether their recent behaviour aligned with visiting a physical store: “to examine a
product, then making the purchase online’; ‘to find a product, but it was not available, so
purchased it online’; or ‘when in the store used a smartphone to compare the price, look up
for information or reviews, and then making the purchase online’. To assess webrooming,
respondents were asked to identify whether their recent behaviour aligned with visiting an e-
commerce store to: ‘examine a product, then making the purchase in a physical store’, ‘find a
product, but it was not available, so purchased it in a physical store’; or ‘after intentionally
comparing prices and reviews, made the actual purchase in a physical store’. Two index
variables were created from the above questioning, to capture the extent respondents engaged
in showrooming or webrooming, with variations between 0 (no showrooming or webrooming
activity) to 3 (all showrooming or webrooming activity). The level of in-store mobile usage
was also assessed via five dichotomous variables that captured different mobile-driven
activities that respondents experienced in store: compare product prices, look up product
information, read product reviews, check product availability online, or check products on
other retailers’ websites. An index variable was then created to capture the intensity of in-
store mobile usage activity, which varied between 0 (no in-store mobile usage) and 5 (high
in-store mobile usage).
Consumer-specific variables (covariates). The way that consumers process information
has been identified as a driving factor of cross-channel behaviour (Fernández, Sanzo Pérez,
and Vázquez-Casielles, 2018; Santos and Gonçalves, 2019). In particular, how they seek and
process price- and non-price-related cues during the purchase experience (Sit, Hoang, and
Inversini, 2018). Hence, this study’s segmentation model includes several consumer-specific
psychographic and demographic variables. In terms of psychographic, information seeking,
online shopping savviness, store shopping savviness, time pressure, brand consciousness and
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price consciousness were included. The listing of adapted items including their sources as well
as construct validity and reliability are provided in Table 1. In terms of demographics, age and
gender were included.
Functional and economic utility (profile outcome variables). Consumers’ derived
functional and economic utility were profiled as: 1) in-store mobile usage (i.e. showrooming);
2) channel switching; and 3) alternative channel for purchase. The utility derived from in-store
mobile usage only occurs when consumers engage in showrooming (i.e. search in store and
purchase via alternative channel). The level of in-store mobile usage intensity was measured
via a series of dichotomous (yes/no) variables that captured different mobile-driven activities
they might have engaged in within the store, such as comparing product prices, looking up
product information, reading product reviews, checking product availability, and checking
products on other retailer websites. For each activity, the respondents were asked how often
they engaged in it when shopping in store. In terms of the utility derived from channel
switching, the model specifies functional and economic utility for showrooming and
webrooming, respectively. In terms of showrooming, this study assumed the primary drivers
for switching between a physical store and online as either deriving functional utility (i.e. free
shipping, home delivery or product availability) or economic utility (i.e. lower price,
promotional deals or convenience). In terms of webrooming, this study assumed the primary
drivers for switching between an online and physical store were either deriving functional
utility (i.e. urgency, need to touch or try, or product availability) or economic utility (i.e. lower
price, promotional deals or convenience). Lastly, we define showrooming as a resulting
purchase destination as either the same retailer’s online store, a different retailer’s online store,
or an online marketplace. For webrooming, we define this as either the same retailer’s physical
store, a different retailer’s physical store, or a department store.
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3.2 Data collection and sample profile
Data were collected via an online survey administered through Amazon Mechanical Turk
(AMT). AMT has been used across a diversity of research, including experiments and
segmentation studies (Guttentag et al., 2018; Shank, 2016), where subjects have been shown
to be more reliable (Paolacci et al., 2010). Several strategies were also employed to enhance
data quality, including manipulation checks, attention checks, and ‘catch trial’ questions,
(Paolacci, Chandler, and Ipeirotis, 2010; Thomas and Clifford, 2017).
Respondents were asked to recall shopping experiences from the prior three-months
and asked to identify if they had engaged in showrooming or webrooming. Showrooming was
defined as having visited a physical store channel to make a purchase but then switched
channels for the actual purchase. Webrooming was defined as having visited an online store
channel to make a purchase but then switched channels for the actual purchase. Given this
study sought to better understand cross-channel free-riding, consumers who had never engaged
in such showrooming or webrooming behaviours were excluded from the sample. Additional
exclusion criteria were used to filter poor responses and those that did not pass the attention
checks, which led to the screening out of 35 respondents. The final sample comprised 400 US
resident respondents.
3.3 Data analysis
Prior to segmentation analysis, confirmatory factor analysis (CFA) was employed to assess the
validity and reliability of multi-item scale measures used as covariates in the segmentation
model (see Table 1). CFA showed an overall acceptable fit (χ2/df=1.843; CFI=0.896;
GFI=0.865; SRMR=0.070), and the constructs showed an appropriate level of reliability and
validity with composite reliability coefficients larger than 0.70, average variance extracted
(AVE) larger than 0.50, and correlations between the latent variables lower than the AVE
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square roots (Hair et al., 2010). Composite scores for each variable were obtained by
computing the mean scores across the items.
INSERT TABLE 1
The segmentation analysis was conducted via latent class analysis (LCA) using
LatentGold 5.1 (Vermunt and Magidson, 2002). LCA has various advantages over other
clustering methods such as k-means, including the ability to segment based on multiple variable
types, the inclusion of covariates, and the stronger statistical basis for final solution selection
(Vermunt and Magidson 2002). It has also been employed across a range of multi-channel
shopping research (e.g. Pallant et al., 2017; Sands et al., 2016).
To determine cluster membership, a three-step procedure was applied (Vermunt, 2010),
meaning that the covariates were included without them interfering with the measurement of
the model (i.e. classification was solely based on the indicators). The three stages were: 1)
estimation of the model based on the indicators; 2) probabilistic assignment of subjects to latent
classes (posterior membership probabilities); and 3) estimation of the effects of the covariates
on latent class membership, corrected for the classification error to prevent bias. This procedure
allows for the establishment of the effects (and significance) of covariates, corrected for
measurement errors, while not letting the covariates interfere with the classification based on
the indicators (Vermunt, 2010). The indicator variables and covariates are provided in Table 2.
INSERT TABLE 2
For the segmentation analysis, the convergence criterion was set at 0.000001 (Collins
and Lanza, 2010), with 50 random sets of starting parameters (Masyn, 2013) to reduce the
likelihood of convergence to local maxima (McCutcheon, 2002). The primary goal of LCA is
to identify the most parsimonious model (i.e. smallest number of latent classes), and in this
study it was used to adequately describe the associations between the indicators within the
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conceptual model. Subsequent models were also estimated with 1 through 10 latent classes to
identify the optimal model, with the corresponding solutions for one shown in Table 3.
INSERT TABLE 3
Multiple criteria were used to select the optimal model. First, the Bayesian Information
Criterion (BIC) was used to compare relative model fit, and the segment profiles were then
considered in terms of over-extraction, class separation and interpretability of results (Masyn,
2013; Wedel and Kamakura, 2012). The preferred solution was determined as the one with the
lowest BIC value, where consistent Akaike Information Criterion (AIC) was considered an
indicator of the optimal model (Collins and Lanza, 2010; Vermunt and Magidson, 2013), which
was the three-segment solution. This solution displayed no evidence of over-extraction, as the
smallest segment was 20% of the sample, and it also enabled meaningful interpretation as the
clusters showed strong class separation. In contrast, solutions with additional segments resulted
in smaller clusters with lower class separation.
Table 4 provides a summary of all indicator and covariate variables (Panel A) and
profiling variables (Panel B) relative to segment membership. A strong positive coefficient
meant those consumers that scored high on a covariate were more likely to appear in that
relevant segment. Within Panel A, significant covariate coefficients were found for information
seeking (Wald=14.134, p<0.001), in-store shopping savviness (Wald=15.63, p<0.001) and age
(Wald=20.92, p<0.01). In contrast, online shopping savviness, time pressure, brand
consciousness and online shopping frequency did not vary by segment. In addition to the
demographic variables included in the LCA, we also collect information on household income
and household composition. ANOVA results show that only household composition is a
significant segment predictor (F-value = 4.52; p < 0.01).
INSERT TABLE 4
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4. Profiling consumer cross-channel behaviour
In line with our hypothesis, the study reveals that consumer segments differ in terms of their
channel choice behaviour, their resulting functional and economic benefits, and based on their
psychographic and demographic characteristics. Within each of these segments, we find that
showrooming (store to web behaviour) is the more common form of cross-channel switching
behaviour. In the following sections, we provide a detailed profile for each segment.
Planned channel switcher (Segment 1). Slightly more than a fifth (22%) of all shoppers
exert planned, or intentional, cross-channel switching behaviour. Those in this segment exhibit
the highest propensity to engage in cross-channel switching; both in terms of showrooming
(2.9 out of 3) and webrooming (2.5 out of 3). These consumers also display the highest
frequency of in-store mobile usage (4.3), likely a signal of their intention to switch channels.
These consumers use their mobile devise to engage in price comparison primarily (95%).
Product category analysis identifies cross-channel switching occurs most often for consumer
electronics (35%), clothing, footwear and accessories (22%), and food and groceries (17%).
When showrooming, the vast majority (81%) of these consumers switch to purchase
from a competing channel; most often an online marketplace (70%) or a different retail brand’s
online store (11%). However, 19% exhibit within-firm lock-in, switching to purchase from the
online store of the same retailer – hence not posing a significant threat to the brand in terms of
lost revenue to the retailer overall. Often these consumers intentionally undertake
showrooming when in store, using their mobile device to systematically check products on
other retailers’ websites (83%) and check product availability online (75%). Exhibiting an
extremely high degree of cross-channel switching when showrooming, these consumers are
primarily driven by lower prices (69%) and free shipping (45%). These consumers are also
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more sensitive to deals and coupons, with 20% driven to showroom by the availability of
special promotions.
When webrooming, 60% of these consumers switch to purchase from a competing
channel. This is most often a different retail brand’s physical store (40%) but also a department
store (20%). However, 40% exhibit within-firm lock-in and switch to make the purchase from
the online store of the same retailer. The key drivers for their webrooming (online to store)
behaviour is the ability to touch and feel the product (37%), purchase urgency (34%), and
convenience (34%). In terms of psychographic variables, these consumers tend to report
seeking information frequently (mean = 4.5), report being savvy shoppers (mean = 4.3), and
make online purchases frequently (51% weekly or more). In terms of demographics, planned
channel switchers tend to be young, with more than half (52%) aged under 35 years of age and
53% are female. Respondents in this segment are most likely to dwell in households with
family or single parent that have children between the ages of 5 and 12 years of age.
Forced channel switcher (Segment 2). Twenty percent of shoppers engage in cross-
channel switching behaviour when driven by influences outside of their control, such as out-
of-stock products. Product category analysis identifies cross-channel switching occurs most
often for clothing, footwear and accessories (26%), consumer electronics (24%), and food and
groceries (22%). Those in the forced channel switcher segment exert low levels of in-store
mobile usage (0.4 out of 5) and subsequently these consumers display a low degree of cross-
channel behaviour in terms of showrooming (1.1 out of 3) and webrooming (0.9 out of 3).
When showrooming, the vast majority (82%) of these consumers switch to purchase
from a competing channel. This is most often an online marketplace (61%) but also a different
retail brand’s online store (21%). However, 18% exhibit within-firm lock-in and to make the
17
purchase from the online store of the same retailer. The main drivers for showrooming are
product unavailability (41%) and lower prices (42%).
When webrooming, 65% of these consumers switch to purchase from a competing
channel. This is most often a different retail brand’s physical store (47%) but also a department
store (18%). However, 35% exhibit within-firm lock-in and switch to make the purchase from
the online store of the same retailer. Webrooming behaviour for those in this segment is
influenced by convenience (28%), purchase urgency (21%), the need to touch and feel a
product (20%), as well as product unavailability (18%). In terms of psychographic variables,
these consumers are less likely to report high levels of information seeking (mean = 3.9), are
less savvy in their shopping (mean = 3.7) and tend to be lower in brand-conscious (mean =
2.8). They also tend to shop online less frequently than the other segments, and then are
generally older than those in other segments. Fifty-eight percent of forced channel switchers
are female. Respondents in this segment are most likely to dwell in households with family or
single parent that have children between the under the age of 4.
Opportunistic channel switcher (Segment 3). The final segment is largest segment (58%)
and represents consumers who display a low to moderate propensity to intentionally exert
cross-channel behaviour. Product category analysis identifies cross-channel switching occurs
most often for clothing, footwear and accessories (34%), consumer electronics (19%), and
cosmetics and toiletries (19%). For these shoppers, the decision to engage in channel switching
is more in-the-moment, or opportunistic.
When showrooming, the vast majority (85%) of these consumers switch to purchase
from a competing channel. This is most often an online marketplace (75%) but also a different
retail brand’s online store (10%). However, 15% exhibit within-firm lock-in and switch to
make the purchase from the online store of the same retailer. In the context of showrooming,
18
this segment shows moderate behavioural intensity (1.8 out of 3), with the key drivers for such
behaviour being lower prices, free shipping and home delivery.
When webrooming, 66% of these consumers switch to purchase from a competing
channel. This is most often a department store (36%) but also a different retail brand’s physical
store (30%). However, 34% exhibit within-firm lock-in and switch to make the purchase from
the online store of the same retailer. However, these consumers also convey a low degree of
engagement in webrooming behaviour (1.0 out of 3), which is primarily driven by purchase
urgency, convenience, and ability to touch and feel the product. This segment displays high in-
store mobile usage, mostly to compare prices, read product reviews and search for product
information. When webrooming, they are most likely to switch and purchase from a department
store (36%) or from the same retailer of the website they browsed (34%). In terms of
psychographic variables, no significant differences were identified. In terms of demographics,
56% are female and 18% are 34 years of age or younger. Respondents in this segment are most
likely to dwell in households with family or single parent that have children between the ages
of 5 and 12 years of age.
Figure 1 provides a profile showrooming vs webrooming activity across cross-channel
free-riding and within-firm lock-in across all segments.
INSERT FIGURE 1
5. Discussion and conclusions
Consumer cross-channel switching continues to increase as a prominent phenomenon, with it
generally perceived as consumer-driven and representing a significant threat to bricks-and-
mortar retailers (Daunt and Harris, 2017; Gensler, Neslin, and Verhoef, 2017 ). This study
challenges earlier assumptions that consumer cross-channel switching occurs because the
consumer is price-sensitive, deal-oriented, and disloyal (Chiou, Wu, and Chou, 2012), and
19
highlights that cross-channel behaviour is not always a planned or intentional activity on the
part of consumers. It argues that such behaviour does not always arise from consumer desire
to ‘game’ the retail system and maximise value from trading off benefits of different channels.
By uncovering the heterogenous nature of cross-channel behaviour, this study
distinguishes between intentional behaviour, which is unlikely to be changed through retailer
engagement (i.e. planned showrooming), and unintentional behaviour that could be influenced
by a retailer. It expands on the notion that retail threats from showrooming can be managed
and potentially converted into favourable consumer behaviour (Freeman, 2014; Sit, Hoang,
and Inversini, 2018, Viejo-Fernández, Sanzo-Pérez, and Vázquez-Casielles, 2020).
The results suggest that approximately one fifth (22%) of consumers engaging in cross-
channel switching do so in an intentional, or pre-planned manner. Results indicate that most
cross-channel switching is driven by price, and that these consumers tend to be younger and
have a high degree of in-store mobile usage. In this way, the mobile device is a means for
conducting price comparisons and seeking information from competitor websites to evaluate
purchase decisions. In addition to these planned channel switchers, two additional segments
were identified: the opportunistic channel switcher and the forced channel switcher. These
segments differ in terms of their showrooming, webrooming, and mobile usage intensity.
The largest opportunity for retailers appears to be the forced channel switcher, who
typically is pushed to switch channels due to factors that are often in the retailer’s control (e.g.
out-of-stock products, poor in-store experience, lack of staff). In such forced contexts, retailers
run the risk of these consumers not only switching channels within the same brand, but also
complete the purchase with another brand (i.e. cross-channel free-riding). Hence, it is important
for retailers to understand the reasons for channel switching, including identifying the cause
for both the planned and forced scenarios, to maximise conversion at the browsing stage of the
consumer journey.
20
This study also finds that most consumers engage in cross-channel switching in an
opportunistic manner; driven by environmental factors and often cherry-picking reasons for
channel switching behaviour; including price reductions, free shipping, or home delivery. It
would also appear that when these consumers interact with a retailer (online or in-store), they
have high deal sensitivity and are likely at a tipping point where promotions could have an
impact on their decision to switch. Showrooming also seems to be more common than
webrooming among this segment, with divergent reasons for such behaviours. The main
showrooming drivers are lower prices, free shipping and home delivery, while the main
webrooming drivers are purchase urgency, a need for convenience, and a desire to touch and
feel the product.
When decomposing the psychographic drivers of channel switching across the three
segments, the desire for information (information seeking) and one’s perceived in-store
savviness (store savviness) are critically important determinants. In contrast, price- and brand-
consciousness do not appear to be significant segment identifiers, possibly because price- or
brand-conscious shoppers generally pre-select their preferred channel (cheapest or brand-
specific) and remain with it. It would also appear that cross-channel free-riding is not impacted
by time pressure, meaning these consumers generally have enough time available to switch
channels (i.e. wait for delivery or postpone the purchase).
5.1 Theoretical implications
From a theoretical perspective, this study contributes to existing literature on cross-channel
behaviour by deepening the understanding of it from the consumer perspective. It highlights
the different experiences of consumers that search for product information in one channel and
then complete the purchase in an alternative channel. Importantly, these findings showcase the
positive side of cross-channel behaviour by revealing consumer motives for such channel
21
switching. This new consumer perspective in cross-channel behaviour helps to identify points
of pain and moments that cause friction in consumer experiences.
This study proposes a typology of cross-channel behaviour that distinguishes between
the degrees of consumer intention by introducing the planned versus forced concepts. It also
highlights the differences between showrooming and webrooming cross-channel free-riding.
Further, drawing on multi-attribute utility theory, these findings show the differences between
consumer showrooming and webrooming behaviour from a mix of functional and economic
utility drivers. They highlight that the primary driver for showroomer behaviour is economic
(i.e. prices), while it is less clear what drives webroomer behaviour (varies between functional
and economical).
This study also challenges previous theoretical conceptualisations by illustrating that
cross-channel behaviour can be viewed from a positive standpoint. This includes an ability for
retailers to positively leverage such behaviour via a deep understanding of the driving forces
of different configurations of showrooming and webrooming.
5.2 Managerial implications
This research indicates that cross-channel behaviour can be influenced by retailers, which
means managers should reconsider how they approach showrooming and webrooming
behaviours. Managers should take note of this study’s finding that only a small proportion of
cross-channel free-riding (showrooming or webrooming) is planned. Much of this behaviour
appears to be driven by factors within the retailer’s control, such as having products available
or implementing systems to allow out-of-stock items to be readily delivered. This aligns with
this study’s identification of the most common driver of showrooming being when consumers
find the product is not available in store. Such unintentional showrooming behaviour, which is
prevalent across the consumer segments, suggests that retailers can prevent much of it.
22
In the context of webrooming behaviour, this study’s findings have also suggested
that most consumers that switch channels when searching online remain with the same brand.
Webrooming therefore appears to be less of a threat than showrooming where most switch to
purchase from marketplaces rather than from a physical retailer’s online store. In particular,
these results highlight that retail managers need to get the fundamentals right, such as ensuring
products are in store and facilitating staff training on how to minimise the potential of cross-
channel behaviour. Furthermore, it is important for managers to recognise that these channel
switching behaviours are generally connected, meaning that consumers that webroom also
typically showroom. Thus, one type of behaviour should not be targeted; instead, managers
need to cater for all different consumer journeys or behaviours between and across channels.
Table 5 provides a practical guide for managers in understanding and managing
consumer channel switching behaviour.
INSERT TABLE 5
5.3 Limitations and future opportunities
It is important to highlight that this study is cross-sectional and therefore focuses on a specific
moment in time. Other potential limitations and opportunities include this study’s proposed
approach to sampling and under-sampling, which means that under-representation of specific
consumer groups may exist, particularly in terms of race and income. As such, the results may
not be representative of the general on-the-go consumer, so readers should be careful when
generalising them. Second, the focus on two specific forms of research shopping (webrooming
and showrooming) means that other forms of shopping behaviour were not covered.
While this study’s purpose was not to be inclusive of all forms of cross-channel
shopping, future research could consider how other forms such as click and collect or buy
online and pickup in-store (BOPIS) might be applied across the consumer segments. Third,
cross-channel switching has been defined in this study as a situational behaviour, particularly
23
among opportunistic channel switchers. This implies that the segments are not stable and could
differ depending on situational factors (e.g. product involvement or shopping purpose). Future
research could further analyse the role of situational factors in affecting the proposed typology
of cross-channel behaviour. Lastly, future studies might consider specific consumption sectors.
This study adopted a broad perspective in terms of the products and sectors included, and a
focus on more specific categories could assist with determining whether the same behavioural
patterns apply, or if idiosyncratic category effects exist. In this context, it would be especially
interesting to consider how cross-channel behaviour occurs and develops in the case of
services.
24
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