Omnichannel Experience : Towards Successful Channel Integration in Retail

Abstract

According to Deloitte’s (2018) forecast for 2018 many changes will occur in retail markets. The growth of online retailing is continuing, and it is going to have a great impact on traditional retail players. The number of physical stores will decrease, but they will still have important role in retailing. Customer experiences are now more important than ever, and digital technologies will have a key role to the store experience. Consumers are spending more and more time on smartphones relative to other devices. Typically, they conduct searches on mobile devices and make purchase in physical stores (Singh and Swait, 2017). Today, 8% of time spent online is related to shopping (Mander and Jason, 2017). According to eMarketer’s forecast (2017), while 80% of retail sales still occur in physical stores, 80% of all sales consist of web-enabled brick-and-mortar shopping. According to Brynjolfsson, Hu, and Rahman (2015), more than 50% of cell phone owners in the United States have smartphones, and over 70% of them have used their mobile devices for comparison shop ping. Thus, understanding the role of mobile technologies in retail has become critical. This research of omnichannel experiences can help managers understand the nature of online and physical store integration and provide resources to improve customer experiences. Consumers are searching for information from several sources and are using multiple-channel combinations, including stores, catalogs, and the internet (Shim et al., 2001). Technology is breaking barriers between different retail channels, and consumers are shopping in multiple channels and expecting seamless shopping experiences between channels. The purpose of this study was to determine how retailers should integrate their online and offline store channels to provide the best retail brand experience. The research focuses on online and offline store images and their effects on brand experience and examines channel integration from the perspective of omnichannel management. The specific research questions in this study are as follows: 1) What are the characteristics of the omnichannel experience? 2) How should retailers integrate online and offline channels to create a satisfying brand experience? 3) How should firms use digital technologies to improve customer experiences in physical stores? First, the conceptual framework and methodology are presented. In the ensuing section, the findings as well as theoretical and managerial implications are discussed. We end with presenting the limitations of our study and proposing several areas for further research.