Perceived Consumer Value of Omni-Channel Service Attributes in Japan and Korea

Abstract

Digitization of retail platform and integration of various retail channel is coupled with rapid change in consumer shopping behavior and their expectation for retail experience. Consumers expect retailers to be able to provide seamless, consistent and personalized service in which they also have enriched retail experience (Picot Coupey et al., 2016). Omni-channel retailing has emerged to provide integrated retail service of various channels which enable consumers to use various channels and touch points synergistically. In this study, we investigated the effect of perceived value of attributes of the OC service on consumers’ decision process for omni-channel usage in Japan and Korea. The AHP method is applied to assess hierarchical process of consumers’ decision making in using omni-channel service. In the AHP framework, consumers’ decision making is structured hierarchically, and framed to have three levels of process in which consumers make decision on omni-channel usage based on three constructs: ‘Customer Value (CV), ‘Touch Point (TP)’ and ‘Payment System (PS)’. The AHP survey was administered to individual shoppers in Japan and Korea, and 240 respondents and 229 respondents answered the AHP survey in Korea and Japan, respectively. Findings reveal that ‘Customer Value (CV)’ is perceived to be more important than ‘Touch Points (TP)’ and the ‘Payment System (PS)’, affecting consumers’ decision for using the omni-channel service. Furthermore, consumers in two countries show different preferences for specific aspects of the CV attributes. The authors also discuss the methodological and managerial implications of the findings.

Omni-Channel Intensity and Shopping Value as Key Drivers of Customer Satisfaction and Loyalty

“…However, our results revealed a strong influence of shopping value, measured as brand equity, on loyalty. We, therefore, agree with [52] when proposing that retailers invest in building brand loyalty in the online environment, and with [4] when they state that if the retailer's brand is recognized by consumers and translates into true brand loyalty, consumers will even be willing to switch brands to shop at their favourite store. Retailers must, therefore, conduct in-depth analyses on how to give value to their own brand and use all the tools at their disposal to communicate that value to consumers.…”

“…In [51], consumer satisfaction is defined as a customer assessment in terms of whether a service meets their needs and expectations. In an online context, according to [52], consumers perceive that they have an experience with a brand rather than with a channel, and that brand acquires greater importance because it is at the intersection between touchpoints [9]. The authors of [53] demonstrated that brand experience is strongly linked to satisfaction, trust and intentions for future purchasing.…”

The Effect of Retail Market Concentration on Development of Electronic Retailing in the Danube Region

“…The conclusion about the importance of electronic retailing in contemporary marketing channels can be drawn based on the results of previous research (Hu & Oliveri, 2020;Borkar, 2020;Kordrostami & Rahmani, 2020;Zarie et al, 2020;Wu et al, 2020;Kim et al, 2019;Altıntas et al, 2019), as well as potentials of its growth and relevance of the research problem. Electronic retailing is a consequence of the development of traditional retailing and the application of technology in the business of the largest and strongest retailers in the market, but also itself is a factor drawing the further development of traditional retail (Tunsakul, 2020;Huggins et al, 2020;Altıntas et al, 2019Siqueira et al, 2019.…”

“…However, no other innovation has received as much attention from retailers, manufacturers, consumers, and the general public as did Internet retailing, or e-tailing; no other form of intertype competition has threatened to upset traditional retailing more than Internet retailing in the last few decades including discount stores, superstores, warehouse stores, direct sales, and home shopping cable networks, where the difference between these retail formats and e-tailing is technology (Rajesh & Prasad, 2020;Wisker, 2020;Pandey, 2019). All the largest retailers, manufacturers, and other participants in the world apply electronic retailing in their business as a factor for achieving market competitiveness (Kim et al, 2019).…”

Determinants of customer experience in e-services: the case of online universities

“…A wide range of studies analyze the use of value in different services, such as tourism and hospitality (Gallarza, Arteaga, & Gil-Saura, 2019), telecommunications (Izogo, 2017), retail (Kim, Matsui, Park, & Okutani, 2019), and financial services (Dootson, Beatson, & Drennan, 2016). However, competitive pressures have grown in other service sectors, too, such as health care (Lakdawalla et al, 2018), public services (Osborne, 2018), and education (Botti, Grimaldi, Tommasetti, Troisi, & Vesci, 2017).…”