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The Digitalization of Retail Store Through the Integration of Online Store Through Mobile Apps and Interactive Kiosks
Authors: Nathalie Demoulin (IESEG School of Management, France), Gwarlann de Kerviler (IESEG School of Management, France)
Mobile devices and interactive kiosks enable to integrate retailers’ website in brick-and-mortar stores (Bodhani, 2012). The digitalization of physical stores provides extensions of offerings through asymmetrical integration because the online store has more assortment options than physical stores (Emrich et al., 2015). Indeed, the combination of online and offline stores is an opportunity for physical stores to extend the range of products and services offered by retailers (Bhatnagar and Syam, 2014). Digitalization of retailing may strongly impact consumers shopping behaviour in-store (Hagberb, Sundstrom and Egels-Sandén, 2016). Despite a large body of research channel integration, no studies have investigated the conditions under which asymmetrical channel integration has a positive impact on the shopping behaviour. This research examines the impact of offline-online asymmetrical integration, defined as access to a larger online assortment in-store by enabling customers to order online while being in-store via kiosks. Even though channels integration is a key challenge for retailers trying to provide customers with a seamlessness shopping, the effect of offline-online integration is still unclear.
Our theoretical model proposes that digitalization of outlets increases the purchase intention of products unavailable in-store and reduces switching behaviour. This effect is mediated through perceived service quality, convenience and perceived variety and is moderated by the type of goods, and individual characteristics such as impulsiveness, delay gratification, self-control...
Several between-subjects experiments have been conducted to demonstrate that digitalization of retail stores creates cross-channel synergy (Verhoef et al., 2007). The first study investigates the effect of the integration of online store in physical stores on the customer basket size, purchase intention, brand switching and advocacy. The second study provides a better understanding of the process by which the offline-online integration affect customer’s behavior through the perception of service quality, convenience and perceived assortment variety. Finally, we also consider moderating variables such as the product types (search versus experience goods) and individual variables such as impulsiveness, self-control and delay gratification. Results demonstrate that the digitalization of a physical store is beneficial because it increases the purchase intention and decreases retailer switching behavior through increased service quality, convenience and percieved variety of assortment. Further results will be presented during the conference.