Channel switching by omnishoppers: a retail strategy switch?

The factors that make omnishoppers switch channels should prompt a rethink by retailers looking to win and retain this high-spending consumer segment, RMIT University Vietnam experts say.

A group of RMIT researchers suggests that retailers would do well to adopt electronic word of mouth techniques and other high-tech features after understanding how and why shoppers switch channels.

They say that factors behind customers switching channels include, but are not limited to, their perceptions of channel benefits, observed past behaviors of other people and pressure to switch channels from other people.

The researchers also examined the interplay between different factors influencing shoppers’ channel switching behaviour.

They found that customers have become more and more efficient these days in searching for and purchasing products and services. That is especially true for the so-called omnishoppers who use various channels – shopping online from a computer or mobile device, by telephone or in a brick-and-mortar store.

According to RMIT lecturer in gigital marketing, Dr. Nguyen Van Anh, omnishoppers are profitable customers since they typically 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 between them.”

A recent article published by the Q1-ranked Quality and Quantity Journal 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.

Drawing upon Dr. Van Anh’s PhD thesis, the article was co-authored by three staff of The Business School at RMIT Vietnam – senior lecturer Dr. Alrence S. Halibas, dean of the school Prof. Robert McClelland and senior program manager Dr. Nguyen Hoang Thuan.

It highlighted the importance of personal and environmental factors in the intention to switch channels.

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 activities.

“For example, important online search channel attributes are that they are time-saving, information-rich, and easy to 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.

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 facilitating conditions.

“Omnichannel shoppers have a higher level of technical efficiency, and thus have higher requirements in technical aspects.

“This means retailers must invest more in technological advancements in their online or offline platforms to ensure customers have a smooth, easy and fast search and purchase journey,” she said.