Omni channel shopper analysis effect of mobile search, belief structure, and salesperson input on shopper purchase intention in retailing market

Omni-Channel Shopper Analysis: Effect of Mobile Search, Belief Structure, and Salesperson Input on Shopper Purchase Intention in Retailing Market Nguyen Thi Hoang Mai Ho Nhut Quang Nguyen Tan Minh International University, Vietnam National University HCMC, Vietnam Abstract It is undeniable that shoppers these days are more empowered, demanding, interactive, collaborative, and diverse which all thanks to the globalization and internet of thing development Therefore, retailing market is in stronger competition than ever To deeply understand the shoppers who access full of different channels before purchase decision (omni channel shoppers), this research aims to explore what determinants influence the shoppers purchase intention by proposing the conceptual framework and quantify the degree of these affects by applying Statistical Package for the Social Science (SPSS) software and analyzing the data through Confirmatory Factor Analysis (CFA) as well as Structural Equation Modelling (SEM) After analyzing the data sample from 466 omni channel shoppers in Ho Chi Minh city, shoppers purchase intention is strongly and positively affected by Attitude, Subjective Norm, Mobile Search, and Predisposition to Comply with Salesperson Input, meanwhile there are three components indirectly influencing purchase intention, comprising of Mobile Dependence, Predisposition to Comply with Mobile Divide Input, and Adaptive Selling Therefore, retailers are suggested to utilize and broaden the product information both in online and offline, yet the important thing is how to gain the trust and reliable sensation from shoppers through salesperson adaptive selling and prestigious online information from social network or information accessibility in everywhere, every time, and everyplace that shoppers are able to search and look for Keywords: Omni-channel Shopper, Mobile Search, Belief Structure, Salesperson Input, Shopper purchase intention Introduction The global retailing market trends are composed by new technology adaptation, convenience format demand, booming of E-commerce, artificial intelligent & virtual reality and prospective omni-channel It is, hence understand that though shoppers are busier in daily life, still fully utilizing the remarkable development of shopping means by various choices, more accessible at different channels Shoppers, additionally, have higher demands, empower more diversity of selections, obtain numerous knowledge, and always keep the dated movement 843 Verhoef et al (2015, p176) dedicates omni-channel retailing as “the synergetic management of the numerous available channels and customer touchpoints, in such a way that the customer experience across channels and the performance over channels is optimized” Indeed, omnichannel provides seamless experiences toward shoppers in different channels, yet, they are united structure and available accessibility Additionally, based on (Fairchild, 2014), omni-channel retailing combines traditional with ecommerce through the integration of business management, aiming to well serve customer demand, regardless of place or time, and create a seamless shopping experience Undoubtedly, following to the technology development, things are integrated in portal devices, shopping is no exception Omni-channel allows shopper to collect information in one channel, experience products from other channel and even make purchasing decision in other retailing means In order words, omni-channel customer experience occurs when customers can order or book in advance from one channel (eg online), pick up at brick and mortar shop, and return in another third channel (Solomon, 2005) Each retailer, for detail, should get on well with the shoppers’ trend and their shopping wisdom in other to win shopper in every channel where optimize the most approachable selling methods Besides, brick and mortar retail owners are competing with ecommerce platform, this paper will illustrate clearer reasons why brick and mortar retailers are better to unite with technology competencies, hence bring the outstanding outcomes “Online and physical stores are complementary, not rivals They must unite together to increase turnover which is the key to a successful Omni-channel strategy.” By Philippe Humeau, CEO, NBS System (2014) Aiming to explore which attributes influence the shopper purchase intention in the current retailing market, then analysis the relationship and correlation among these factors are two fundamental research purposes Retailers, therefore, are inevitably able to apply in their business and sales strategies to boost up the net profit Literature Review and Hypothesis Development Ajzen & Fishbein, 1980 suggest that attitude means a person feels of favorableness or unfavorableness toward the behavior People are willing to carry out the behavior in case they are belief in their evaluation of expected results, in other words, attitude is a function of perceived outcomes weighted by a judgement of the desirability consequences In this research context, shoppers are likely to buy one product, when they evaluate their behavior of purchasing which is good and will bring a beneficial result as their wishes According to Shirley Taylor &Peter Todd, 1994, when a person has strong self confidence in their desirability results, they are likely to perform their behavior intention Also, customers whose perspective contains more trust toward firm, sales staff, or both (Doney and Cannon (1997), the trust obtains a positive and direct effect on consumer attitude in purchasing intention (Pavlou & Fygenson, 2006) Importantly, based on Theory of Reasoned Action one’s attitude has been concluded to influence on behavior performance (Ajzen & Fishbein, 1980) Therefore, leading to the first hypothesis, H1: A consumer’s high self-evaluation in purchasing outcomes is positively related to their purchase intention A person is affected or perceived by social pressure (Ajzen & Fishbein, 1980), especially, by who is considered important In order words, people tend to implement the behavior if they belief in particular references which are weighted by the encouragement to perform with these recommendations Following with the study about omni-channel shopper, shoppers are inclined to purchase goods or not which likely depends on their trust on related references, others’ acts, and social influence A consumer’s personal community tends to apply social pressure in other to make decision in purchase (Young&Kent, 1985) Additionally, from Engels at Al (2001) shows that shoppers who get or receive advice 844 from friends or parents to buy one product are likely to purchase following the advices comparing to one who has no information or suggestion (Conner et al., 2001) Hence, the second hypothesis, H2: A consumer’s subjective norm from respectful references is positively related to their purchase intention Perceived behavior control reveals one’s belief in relation to access to capabilities or resources and opportunities needed to execute the behaviors It includes two main components (Ajzen, 1991; Taylor & Todd, 1995) The first mentioned component is availability facilitation comprising of time, money, location, and so on Omni-shopper, specifically, are likely to purchase if the surrounding conditions are convenient and advantageous to shoppers’ perception in that case The second component is the focal person’s self-confidence in the competence to control and conduct the behavior For instance, one person will be more determined to drive a car, unless he is doubt about the driving difficulty In sales situation, shoppers will have more belief and confidence to purchase their desirability products when they believe in self-efficacy to easily use or operate these goods Following Ajzen, 1991, 2002, controlling perception is able to motive action when shoppers have enough time, money, information, etc also their self-confidence in carry out the purchasing behavior It is an apparent fact that consumers have more perceived behavior control which is observed linked with multi/omni channel consumers purchase decision (Rippé at al., 2015; Rippé, Weisfeld-Spolter, Yurova, Hale, &Sussan, 2016) The third testing hypothesis, H3: A consumer’s perceived behavior control in their facilitation and self-efficacy is positively related to their purchase intention These days, retail industry have been empowered by consumer’s technology usage, especially, Mobile-Commerce (M-commerce) Following Balasubramanian, Peterson, & Javenppa, 2002, M-commerce allows interaction and communication between people and smart devices Mobile device input, literally, is informational provider, yet, it also a clever device which suggest a number of helpful recommendation from social network or connected integration Predisposition to comply with mobile input play an important role in shoppers’ purchase intention It represents how strong an individual tends to consider and apply the information from mobile devices, hence influencing shopper’s buying decision Or simply understand mobile device input as social recommendation assist shoppers in gaining information, price, place, delivery, quality, and so on According to Hubert at al.,2017; Rippé at el., 2015, using mobile technology to stronger engage customers during searching effort is a potential opportunity for retailers Aiming to search more efficient in mobile devices, application usage has been proved to influence on purchase behavior (Kowatsch&Maass,2010) The more shoppers are willing to make use of technology, the more searching information they know Kim, Wang, and Malthouse (2015) found that the number of interactive app functional features, the higher purchase intention spending rate, following by, H4: A consumer’s predisposition to comply with device input is positively related to mobile search Following Jun&Park (2016), search using a mobile device is rising significantly and continuingly, Bachrach, Ogilvie, Rapp, & Calamusa, 2016 show that consumers are replacing traditional searches from magazine, newspaper, guidebooks, etc with smart phone optimized searching Some consumers prefer to search deals, compare prices, and probe the previous reviews in advances, before visiting a retail shop (Gundlach, Manning, & Cannon, 2011) Thanks to high technology application, smart phone is more and more playing a key role in people lives With an appeal platform, user feels easy to search for needed information everywhere, every time and with a low cost of searching, shoppers have more reasons to choose mobile as their shopping assistant who is fast, durable, various information, and even can connected socially Increasingly, consumers rely more on their mobile devices (Shoham & Pesämaa, 2013) It is thought that mobile devices allow omni-channel shoppers to interact and personalize the product information in high- 845 speed, various knowledge sources, and accessibility in everywhere, every time “Mobile optimized and search engine friendly retail sites are likely to accelerate search and discovery” from Shankar at al (2016, p.41) Based on that, the hypothesis is built, H5: A consumer’s mobile dependence is positively related to mobile search Purchase intention is defined by Shabbir, M S., Kirmani, S., Iqbal, J., & Khan, B.2009 that purchase intention is an individual’s consciousness to make an effort to buy a brand While Park,J.2002 defines purchase intention is “what we think we will buy” Another researcher explains purchase intention as an acting decision or psychology process showing person’s behavior based on purchased products (X.Wang &Yang, 2008) Shopper may be the one who will use the product, or they may simply just purchase for the other’s usage Shoppers decide to buy something when their intention towards the purchasing behavior or when their action inclines desirably to owning products for satisfying their using purposes As discuss above, consumers search online information for comparing price/product/place/promotion/etc, checking previous reviews, and so on which is searching around, yet in one place and in one mobile device Thanks to a great number of convenient function on mobile search, customers are likely to rely more on searching in advance by their smart devices, then they are able to easily make purchasing decision instore Next, hypothesis is, H6: A consumer’s mobile search is positively related to their purchase intention Weitz, Sujan, & Sujan, 1986, p.175 define adaptive selling as “altering of sales behavior during a customer interaction or across customer interactions based on perceived information about the nature of the selling situation Selling methods should be adjusted in real time toward shoppers’ purchasing process in other to satisfy shoppers’ expectation as well as retail stores A scholar demonstrates that consumer satisfaction is higher when retail salespersons adapt their behavior or selling techniques to shopper’s reference for interaction or further relationship (Olsen & Skallerud, 2011) In addition, Yurova, Pippé, Weisfeld-Spolter, Sussan, and Arndt (2016) figured out that interactive adaptive selling performance comprises of adjusting selling skills, solutions, appearance, presentations which are influencing omni-channel shopper How flexible and modifying in selling method in retail store are likely to affect on shoppers’ purchasing behaviors, in deed, customers are easier to discuss on their desirability or demand with the understanding or professional employees since it is believed that good interaction and conversation lean on effective influences Adaptive selling efforts perhaps show the tempt of salesperson inputs which is positively considered by customers that they receive a good recommendation and value- added through product by in person interaction Rippé, 2015 concluded that retail salesperson can apply adaptive selling in their selling methods in other to boost up omnichannel shoppers’ feeling of perceived behavior control Therefore, H7: A salesperson’s use of adaptive selling is positively related to a consumer’s predisposition to comply with salesperson input Salesperson input or predisposition to comply with salesperson input is consumer’s tendency to rely on salesperson’s consult during the buying process or shopping journey Based on Goff & Jackson (2003), the more consumer recognizes the salesperson has high customeroriented while less salesperson-oriented In order way to explain the idea, shoppers are easily influenced by the salesman only if he puts himself as a customer and give helpful advices rather than simply want to sell products Additionally, salesperson input includes provided information, sharing skills, creating further relationship with shoppers Besides, Sun et al (2009) expressed as much as consumer’s interdependence in selfconstrual which supports to explain their inclination toward salesperson effect on public selfconsciousness Experts’ power is strong when product information and salesperson knowledge are shown in-store and effectively approach to shoppers perceive (Harris&Spiro,1981) When customer is impressed by salesperson’s expertise and professional as well as positive performance, they are more likely to influenced and want to interact or develop relationship, hence shoppers are capable of receive trustworthy consultant The trust is set 846 up adding with salesperson’s expertise, credibility and relationship between shopper and salesperson can influence customer’s purchase intention in-store Thus, the final their purchasing intention hypothesis is, H8: A consumer’s predisposition to comply with salesperson is positively related to Belief Structure Attitude Norm Perceived Behavior Predisposition to comply with device input Figure 1: Conceptual Framework Methodology Conceptual Framework The above model is proposed by collecting from secondary data and researching from the previous works Since combining a number of related papers through continual periods, research gap is found and modified to add Attitude and Subjective Norm together with Perceived Behavior Control, then create Belief Structure which comply with Ajzen theory of planned behavior Measurement Scale The measurement scale used in this thesis covers by - point Likert type scale since their reliability and consistency for the whole survey (Lietz, 2010), besides following by two main reasons Firstly, belief structure scale is based on Ajzen and Fishbein (1980) theory which used – point Likert scale to obtain the truthful degree of opinion toward shoppers’ attitudes, subjective norm, and perceived behavior control Secondly, precedent paper comprising of original conceptual model tested the latent variables through – point Likert scale Strongly disagree Data Collection Within 50 correspondents participated in the pilot test to make sure the questionnaire comprehensive, coherence and understandable before delivering a large quantity of survey Applying snow-balling sample 847 When users frequently comply with their mobile searching information, the more searching habit they have By positive correlation between predisposition to comply with mobile divide input and mobile search, products obtain higher chance of knowing and purchasing by shoppers found on searching divide Once again, this factor emphasizes the strong power of information on mobile search, hence, the most essential keyword is to make the information broaden yet have to be reliable In order make information trustful, retailers are advisable to publish positive rating votes from previous buyers, post product information feedbacks on prestigious websites, and others In summary, shoppers tend to reply and commit with mobile searching input when they emotionally believe in the online information they get from diversified sources in the internet Predisposition to Comply with Salesperson Input Regarding to the data analysis, predisposition to comply with salesperson input plays the highest level of influence on shopper purchase intention which means salesperson recommendation and advices are highly considered by shoppers Therefore, retailers should pay significant attention on delivering salesperson values towards shoppers Specifically, rather than paying too much effort on selling products, salespersons are better to spend time on understand what customers’ needs and their consideration Since well understanding, salespersons not only provide good and suitable solution but also connect with shoppers as closer relationship Besides, retailers are better to train salesperson skills on how to increase the loyalty that shoppers would like to come back and make another purchase by delivering reason to believe, company and product quality commitment, showing real previous shoppers recommendation, applying sample testing before purchase, and so on Furthermore, shoppers highly desire to get more involvement and support from salesperson who should be the one understands the different kinds of products the most Adaptive Selling The data analysis show that adaptive selling is one of the factor positively affecting the predisposition to comply with salesperson input, which illustrates the importance of being flexible and adaptive of salesperson in different shoppers, contexts, and expectation These days in Vietnam retailing market, shoppers have more power and accessibility to make purchase decision, hence, salespersons need to add more value from relationship connection, useful advices, and adaptive as well as responsive in shoppers’ requests By adapting suitable selling methods, shoppers are easily to engage more with salesperson input Conclusion In general, the fundamental paper purpose is to explore which factors and their relationship effect on omnichannel shoppers purchase intention in retailing market by survey method with 466 Ho Chi Minh shoppers and SEM data analysis test Additionally, retailers should be aware of the shopping journey changings as well as shopper’s intention on using all available channels (brick – mortar stores, online shopping, catalogue, and so on), thus suggesting the retailers widen reliable information and accessible approaches toward shoppers Limitation and Future Research Regarding toward the limitation, some statement in the measurement scales are originally in English, hence it is undeniable there are some limits in translation part where the original meanings are transferred in another 852 language In addition, this study scopes into Ho Chi Minh shoppers thus, less likely to represent the big population in Vietnam (around ninety-five million people) Besides, total correlation between independent (Attitude, Mobile Search, Predisposition to Comply with Salesperson Input) and dependent factors (Purchase Intention) is approximately 94% which means there are others auxiliary factors can support the conceptual model to be improved There are two main other aspects that future researches are able to complete Firstly, based on the SEM analysis, these correlations are significant without being tested in this research ( Mobile Dependence and Adaptive Selling, Adaptive Selling and Attitude, Attitude and Predisposition to Comply with Mobile Divide Input) Further research should extend the sample size as well as test in another data collection methods Furthermore, the future researches are advised to re-measure the un-supported hypothesize in this paper The future research, hence, is prominent to reconfirm the hypothesize as well as comparing the results with antecedent studies References 853 Ajzen, I (2002) Perceived behavioral control, self-efficacy, locus of control, and the theory of planned behavior Journal of Applied Social Psychology, 32(4), 665–683 Ajzen, I., & Fishbein, M (1980) Understanding attitudes and predicting social behavior Englewood Cliffs, NJ: PrenticeHall Ajzen, Icek, 1985 From Intentions to Actions: A Theory of Planned Behavior, in 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Bring a seamless shopping experience to the customers I plan to shop through the “omni-channel” (noted above) Even though there are a number of different shopping channels, I still prefer and choose omni-channel I will advise friends and relatives shopping through omnichannel I will proactively purchase through omni-channel Measurement Scale 858 CFA Model 859 SEM Model 860 Hypothesis A consumer’s high self-evaluation in purchasing outcomes is H1 positively related to their purchase intention A consumer’s subjective norm from respectful references H2 positively related to their purchase intention A consumer’s perceived behavior control in their facilitation and H3 self-efficacy is positively related to their purchase intention A consumer’s predisposition to comply with device input H4 positively related to mobile search A consumer’s mobile dependence is positively related to mobile H5 search A consumer’s mobile search is positively related to their purchase H6 intention A salesperson’s use of adaptive selling is positively related to a H7 consumer’s predisposition to comply with salesperson input A consumer’s predisposition to comply with salesperson H8 positively related to their purchasing intention Hypothesis testing following SEM analysis 861 ... with salesperson input, which illustrates the importance of being flexible and adaptive of salesperson in different shoppers, contexts, and expectation These days in Vietnam retailing market, shoppers... moderating effect of adaptive selling on the purchase intention of the multichannel consumer Journal of Consumer Marketing, 33(6), 469-478 Rogers, Everett M., 1983 Diffusion of Innovations: Third... credibility and relationship between shopper and salesperson can influence customer’s purchase intention in- store Thus, the final their purchasing intention hypothesis is, H8: A consumer’s predisposition