E-shopping in a multiple channel environment

In the present study, the authors propose a segmentation schema based on patterns of e-browsing and e-purchasing. We examine self-reports of browsing and purchasing using five specific non-store channels: the Internet, television infomercials, advertising that accompanies regular television programming, television shopping channels , and print catalogs. Our findings indicate that shoppers who browse and/or purchase on the Internet differ in their use of multi-channel options related to their perceptions of convenience . Some shoppers clearly want to purchase in the store setting and reject multiple forms of non-store shopping. Others like to browse various non-store media and have extended their browsing to the Internet, yet maintain their loyalty to in-store purchases. Retailers who attempt to `̀ convert’’ such shoppers to Internet-only purchasing may alienate the shoppers who rely on the Internet solely for information. Introduction The explosive growth of the Internet has revolutionized many aspects of daily life (Fetto, 1999; Rutledge, 2000). Recent statistics tell us that people the world over are using the Internet in ever-increasing numbers, with estimates ranging from 505 million (Global Reach, 2001) to 513.41 million people online throughout the world (NUA Ltd, 2001). There is much to be learned about how the Internet fits in people’s lives, how they use it as part of a set of choices, and what deters them from using it for certain purposes, such as making purchases. Despite increased use of the Web, recent industry studies have documented problems such as an ongoing trend in online shopping cart `̀ abandonment’’ in which apparent planned purchases are never completed online (Hurwicz, 1999). In fact, substantial numbers of online shoppers return to physical stores after experiencing problems with slow load times, an inability to locate items, incomplete information, lack of human interaction, and missed or late deliveries (Mardesich, 1999; McCarthy, 2000). Failures with account setups and confusing error messages also caused about 40 percent of shoppers to have problems during checkout (Enos, 2000). While consumers have verified these reasons, we argue that another reason may explain the apparent abandonment that takes place. That is, some Internet browsers may have never intended to complete their purchases online, preferring to shop in a bricks and mortar setting. Perhaps the notion of `̀ abandonment’’ is an oversimplification. Some consumers may simply use shopping carts to investigate and tally possible future purchases, with no intent to purchase at the specific time that they are online. The research register for this journal is available at http://www.emeraldinsight.com/researchregisters The current issue and full text archive of this journal is available at http://www.emeraldinsight.com/0736-3761.htm Explosive growth Failure to complete purchases JOURNAL OF CONSUMER MARKETING, VOL. 19 NO. 4 2002, pp. 333-350, # MCB UP LIMITED, 0736-3761, DOI 10.1108/07363760210433645 333 An executive summary for managers and executive readers can be found at the end of this article The purpose of the present study is to empirically investigate the connections among Internet `̀ use’’ and other non-store media options in a multi-channel environment. In the present study, the authors propose a segmentation schema based on patterns of e-browsing and e-purchasing, including browsing on the Internet with planned purchasing in an offline channel. Using that schema, our study examines the self-reports of browsing and purchasing of 250 Internet users with respect to five specific non-store media: the Internet, television infomercials, advertising that accompanies regular television programming, television shopping channels, and print catalogs. Our findings indicate that shoppers who browse and/or purchase on the Internet differ in their use of multi-channel options related to their perceptions of convenience. Some shoppers clearly want to purchase in the store setting and reject multiple forms of non-store shopping. Others like to browse various non-store media and have extended their browsing to the Internet, yet maintain their loyalty to in-store purchases. Background The growth and potential of the Internet There is a need for a `̀ better understanding of the Web user’’ and e-shopping (Korgaonkar and Wolin, 1999). Current studies vary in predicting the characteristics of Web users, ranging from male, well-educated, middle income and middle-aged or younger (Emmanouilides and Hammond, 2000; Korgaonkar and Wolin, 1999; Wilson, 2000), to substantial increases among women and the elderly (Harris, 1998; Rosen and Howard, 2000; Rosen and Weil, 1995). Recent studies by Media Metrix and Jupiter Communications indicate that more women are online than men, with the greatest increases among teenaged girls and women over 55 (Hamilton, 2000). Many studies have found that typical online buyers have used the Web for several years, and because of their familiarity, they search online for product information and purchase options (Bellman et al., 1999). In many cases, convenience and time-management are the key drivers among e-shoppers (Chang and McFarland, 1999), while some `̀ wired but wary’’ use the Internet for e-mail, but do not shop online. Still others have no regular Internet access at all. Many studies examine Internet shopping exclusively in determining consumer usage and satisfaction (Szymanski and Hise, 2000; VanTassel and Weitz, 1997). However, it is not likely that shoppers view the Internet as separate and distinct from other more familiar forms of shopping. We argue that it is more realistic to examine e-shopping in the context of multi-channel alternatives that are also available to shoppers (Grant, 2000; Greco, 1996). The interrelationships among various types of non-store methods are not well understood, nor are their impacts on `̀ bricks and mortar’’ retail outlets (Achenbaum, 1999). We also contend that insights can be gained by organizing the study of e-shopping based on sound theoretical relationships that have been used to describe other components of the multiple channel environment. We turn to the literature on recreational shopping and convenience in order to build a foundation for the study. Browsing and purchasing Some studies have attempted to understand whether browsing on the Internet is correlated with purchasing on the Internet (Lindquist and KaufmanScarborough, 2000). It is questionable whether a perfect match is possible, since some shoppers enjoy browsing as a separate activity, while others buy without browsing if their choice is clear and determined in advance. Because of problems like security fears, lack of skill with computers, slow response time by e-tailers, and confusing Web sites, studies report that numerous Segmentation schema Convenience and time management 334 JOURNAL OF CONSUMER MARKETING, VOL. 19 NO. 4 2002 shoppers use non-store methods to search and compare, while going to the `̀ bricks and mortar’’ setting to make their purchases (Koprowski, 2000; Levy and Nilson, 1999). Earlier pre-Internet studies investigated why people shop, why they go to the store, and why they look but do not buy. For instance, Tauber (1972, 1995) went beyond retail patronage and demonstrated that people have numerous motives for shopping that are unrelated to the actual purchasing of products. The shoppers in his sample reported that their shopping trips included carrying out expected roles, diversion from daily routine, self-gratification and response to moods, learning about new trends, physical activity, sensory stimulation, meeting others with similar interests, interaction with peer groups, and the pleasure of bargaining. Such motives are likely to result in browsing that does not necessarily lead to purchasing. Other studies have identified persons as `̀ recreational shoppers’’, who enjoy shopping as a leisure activity and tend to browse in retail outlets `̀ without an upcoming purchase in mind’’ (Bellinger and Korgaonkar, 1980; Ohanian and Tashchian, 1992). Such shoppers report being interested in gaining knowledge about specific product classes and actively seek information about topics such as merchandise, prices, and quality. Such shoppers do not generally gather such information in preparation for an upcoming purchase, but instead appear to enjoy gathering information for its own sake. They engage in word-of-mouth activities more than other shoppers (Bloch and Richins, 1983), and enjoy giving advice and influencing other consumers. These earlier researchers explicitly considered browsing and shopping behaviors in the `̀ bricks and mortar’’ setting. We suggest that `̀ recreational e-shoppers’’ are also likely to virtually `̀ stroll’’ through online shopping sites for learning, social, or diversion-related purposes. Recreational e-shoppers may also enjoy gathering online information and share their knowledge through online chat rooms and buyer forums. If a comparable pattern of information gathering and sharing exists, browsers who do not `̀ convert’’ to purchasers may be found to exhibit similar characteristics to in-store recreational shoppers who may be lonely, bored, or simply curious. Browsing convenience versus purchasing convenience Surveys of customers indicate their frustration with the lack of convenience provided by `̀ bricks and mortar’’ stores. They report problems with crowded store conditions, out of stock merchandise, and poorly-trained salespersons, prompting shoppers to search for more favorable ways to browse and to purchase. In fact, retailers have been criticized for developing in-store strategies based on their own convenience, rather than that of their customers (Seiders et al., 2000). Convenience is a more complex notion than simply providing quick checkouts or locations close to home. In fact, shoppers are thought to clearly differentiate among various dimensions of conve