Multichannel Consumer Behaviour and Barriers in Omni-channel Retailing

This report delves into multichannel consumer shopping behaviour, highlighting how consumers utilize various channels before making a purchase and the implications of these trends on consumer anxiety and decision-making. It examines the consumer's channel choices during the buying process, influenced by functional drivers, motivations, and past experiences. The report also explores the concept of omni-channel retailing, a customer-centric approach aimed at providing a seamless brand experience across different channels and devices. It identifies several barriers to developing omni-channel retailing, including shifting from a product-centric to a customer-centric approach, the high costs involved, inconsistencies in customer experience, differing product ranges and prices across channels, and increased competition driven by rising customer expectations. The report emphasizes the importance of understanding customer behavior and buying patterns for retailers to implement effective customer-specific measures and overcome these barriers.

Marketing

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 physical stores are linking their independence of 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

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.