Multichannel Consumer Shopping Behaviour and Barriers in Developing Omni-Channel Retailing
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Added on 2023/06/18
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This article discusses the behaviour of multichannel consumers and the implications of multichannel and multimedia retailing on their shopping behaviour. It also covers the barriers in developing omni-channel retailing, such as the cost, inconsistency of customer experience, and increased competition.
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TABLE OF CONTENTS MAIN BODY...................................................................................................................................3 Multichannel consumer shopping behaviour...............................................................................3 Barriers in developing omni-channel retailing............................................................................4
MAIN BODY Multichannel consumer shopping behaviour A multichannel consumer is an individual which utilises different channels prior from having any purchase. If these consumers buy something or not, does not matter. However, when multichannel consumers browse on a different channel in the beginning, it means that they are embracing multichannel retailing. Multichannel and multi media retailing are some of the on growing channels having variety and scope. The implication of such trends on the behaviour of the consumers which leads to the feeling of anxiousness. Customers channel their choices in different stages during their buying process. Retail shopping is fundamental for the consumer behaviour which can be influenced by complex and varying processes. For examples when the consumer is looking to attain variety of goals from the functional drivers to some complex motivation. The motives of the consumers are important and influences the consumer shopping behaviours. It is influenced even with the non conscious processes such as values, emotions and even the past experiences. Past behaviour of the consumers helps in predicting the future of behaviour. This behaviour is shaped with the help of many factors such as retail environment and store layout. Consumers make use of the multimedia channels which are easily available to them. Consumer behaviours involves having psychological processes which the customer will go through while recognising the needs and demands to solve their issues. They will make purchase decision such as whether to buy or not and when they do buy it, they will decide on which brand. Multichannel marketing is the process within the business which is important in making relations with customers and making use of the wide range of direct and indirect channels. For examples making use of promotional events, store fronts and social media. A multichannel customer will gather the information in the chain of stores and purchasing with the online medium. In this type multichannel consumer will have the motive to prevail the information while being on the purchase stage. They can reject the online shop while giving preference to store based retailing. This is because of the fact that the consumer have high risk aversion in the case of non store retailing and the need to be independent. The behaviours of consumers who seek information through the
online sources are more likely to make purchase on the live retail store. They differ from the consumers who are looking to gather information as well as make their purchase in the chain store. There are significant differences in the shopping motives and patterns of behaviours. Multichannel consumer who are assessing the information from the online channels and then making a purchase from the physicalstoresare linking their independenceof gathering information from online sources along with having a reduction in the product or in the method of payment which is associated with risk and having a purchase in chain store. This allows the consumers to check the product before buying. When a multichannel retailer is well-known with the behaviour and buying patterns of its customers, they can take customer specific measures. Barriers in developing omni-channel retailing Omni channel is a customer centric approach where the aim is to understand what channels are customers looking to engage at every stage in their shopping experience while enabling the integrated and consistent brand experience which is present across different channels and devices. Delivering an omni-channel experience is not easy. There are many barriers in the way: Shifting from product centric to customer centric:Focusing on the ways to sell the product is the traditional way to run a retail business. The modern way is to have an analysis of customer data and understanding the way of engaging and transacting across different channels. It is important to collect data and analyse it in order to learn about who the customers are. Cost of omni channel retail:A lot of businesses lack the important concepts, resources and capabilities in order to attain the omni channel retailing within the existing systems. In the process of gaining profits with this approach, a lot of retailer will renovate the current way of working. The costs of using new systems and training the staff accordingly will make us move towards the single stock inventory which will add towards the initial investment for the retailers. The increasing competition within the market has lead to pay high price and having difficulty in making profits. This cost issues makes a significant barrier. Inconsistency of omni channel customer experience:Every system will play an important part in managing the different aspects of omni channel retailing. Business will have a diverse network which can run the risk of consistency in the process of delivering poor omni channel customer experience. Staff working in the sales department are trained with the traditional approach and
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thus, are not equipped with the knowledge and skills which are required in taking care of omni channel fulfilment. Managing the store operations while handling packing and shipping can be challenging and will require a special staff to carry out required actions in the correct standards. Different products and prices across all channels:A lot of retailers have stocked a wide range of products which are present across different channels. These products can be present on the online channels exclusively or might be available in physical stores. The stock for sale is offered differently on different channels. In the case of promotions, it can be applied on different items present online and not on the store. All this can make the ordering process very confusing and might even result in making the customers disappointed who like to purchase in store. Increased competition:Expectations of customers are increasing with a constant rate such as having one day delivery and having the perfect brand experience. These factors have now become a basic requirement. Thus, it has become important for the retailers to do this right in the first go. In being able to meet the demands of the customers will make the retailers to struggle in order to survive in the market and falling behind their competitors. With the help of careful investment, training and selection of systems can make the working of Omni channel possible.