Switching channels when shopping: more than meets the eye

Customers nowadays have become more and more efficient in their journey to search and purchase products and services. That is especially true for the so-called omnishoppers who use various channels during that journey – shopping online from a computer or mobile device, by telephone, or in a brick-and-mortar store.

According to RMIT Lecturer of Digital Marketing Dr Nguyen Thi Van Anh, omnishoppers are profitable customers since they often spend more than single-channel shoppers.

“They know what they want, when, and what channel to use for different purposes. They have a strong preference for retailers that can provide a convenient and seamless shopping experience across channels,” she said.

“Given the importance of these customers, retailers must understand how and when omnishoppers use different channels and what drives them to switch channels.” 

In a recent article published by the Q1-ranked Quality and Quantity Journal, Dr Van Anh examined the factors that could influence omnishoppers’ intention behind channel switching behaviour using a new data analysis method called the fuzzy-set Qualitative Comparative Analysis (QCA).

QCA is a modern research method increasingly used in marketing and customer studies to identify combinations of causal conditions or factors that could lead to the presence or absence of a channel switching intention.

Originating from Dr Van Anh’s PhD study, this pioneering article featured three co-authors from The Business School at RMIT Vietnam – Senior Lecturer Dr Alrence S. Halibas, Dean of the School Professor Robert McClelland, and Senior Program Manager Dr Nguyen Hoang Thuan.

Surveying customers of electronic goods omnichannel retailers, the article highlighted the importance of personal and environmental factors in the intention to switch channels.

These factors include, but are not limited to, customers’ perceptions of channel benefits, observed past behaviours of other people, and pressure to switch channels from other people.

To influence personal factors such as customers’ knowledge and attitude towards the channels, Dr Van Anh said that retailers must understand the crucial attributes of online and offline channels that will attract and support customers during their search and purchase.

“For example, important online search channel attributes are time-saving, information-rich, and ease of use. Meanwhile, offline search channels should focus on readiness, in-person shopping enjoyment, and ‘touch and feel’ features,” she said.

“Retailers should also explore the effect of mobile devices on customers' channel switching behaviours.”

Moreover, environmental factors such as others' past switching behaviour and pressure to switch from others play a big role.

Dr Van Anh stated: “For omnishoppers, influence can come from close contacts such as families and friends or complete strangers on the internet via research of online reviews.

“Hence, retailers should adopt electronic word-of-mouth techniques and reviews as they are trustworthy sources of influence for omnishoppers.”

The research findings also included behavioural factors such as perceived self-efficiency and perceived facilitating conditions.

“Omnichannel shoppers have a higher level of technical efficiency, and thus have higher requirements for technical aspects from omnichannel retailers.

“This means retailers must invest more in technological advancements in their online or offline platforms to ensure customers’ smooth, easy, and fast search and purchase journey,” Dr Van Anh suggested.

The researchers hope that the research can contribute to the design of customer retainment strategies of omnichannel retailers in Vietnam. Read the article for more findings.