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Consumer
The effects of integrated omnichannel
information & service, adoption
behavior
institutional mechanism and need
for cognition (NFC) on consumer
omnichannel adoption behavior Received 7 June 2018
Revised 10 November 2018
10 January 2019
Joonyong Park and Renee Boyoung Kim 14 January 2019
1 February 2019
School of Business, Hanyang University, Seoul, The Republic of Korea Accepted 10 March 2019
Abstract
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Purpose – The purpose of this paper is to examine the antecedents of consumers’ omnichannel (OC) adoption
intention and explore how consumers’ personality trait affects their OC adoption behavior.
Design/methodology/approach – A total of 227 Korean consumers were invited to participate in a survey
study, and partial least squares–structural equation modeling was performed to analyze the measurement
and structural models.
Findings – The results show that three consumer groups by “Need for Cognition (NFC)” show different
response to four identified OC attribute/benefits. Finally, the authors hypothesize and find that shed light on
the possible ways to differentiate OC marketing for different target consumers and provide implications for
practice and further research.
Research limitations/implications – This study provides empirical evidence that OC is an expanded
retail format of e-commerce, which is predominantly affected by how information on the cross-channel
marketing mix/retail strategies is delivered to consumers. From communication perspective, findings suggest
that retail communication strategy need more careful attention in dealing with individual difference of
consumers. In addition, the significant role of NFC on consumers’ OC adoption process validates the
importance of customization and differentiation in retailers’ message to different consumer groups. In order to
do so, comprehensive analysis on consumer database may be necessary to develop personalized OC service.
In-depth analysis of consumer profile may enable more specific methods for marketing and managing
consumers in the OC context. Although the study provides additional empirical findings for consumers’
perception on selected characteristics of OC (i.e. delivery approach of information and service in OC and
institutional mechanism of OC), there may be additional extrinsic motivation factors which affect consumers’
OC adoption behavior. Extrinsic factors such as web design, convenience, assortment, moving saving which
trigger positive perception of OC, may be important determinants to consider. Furthermore, situational factor
such as social media (Huseyinoglu et al., 2018) and behavioral factors such as platform use habit (Chen, 2018)
may also be significant in assessing consumers’ OC adoption behavior. Finally, this study has been conducted
on a particular culture setting, and the generalizability of study findings, particularly about the role of NFC
may need to be improved by cross-culture evaluation.
Practical implications – NFC-high and medium consumers are likely to use the four OC service options in
future, while a larger proportion of the NFC-low consumers shows negative response to the OC service usage.
This evidently shows that innovative features of OC service are not homogenously adopted by consumers,
and subject to their experience and intrinsic difference, adoption rate was found to vary. This suggests that
companies need to pay careful attention in implementing innovative OC service, and may approach
communication of information strategically for different consumer groups. For high-NFC consumers with
previous BOPIS experience, retailers may effectively engage them by enhancing and expanding the BOPIS
service features, yet for low-NFC consumers, raising awareness and initiating interest among unexperienced
consumers may be more imminent issue. Indirect communication using peripheral cues may be necessary to
draw less motivated consumer group.
Social implications – The OC retailers may need to set the scope and range of information into in-depth
information and simplified/unified information, and address the different type of information to different
consumer groups in order to facilitate consumers’ OC adoption. For consumers with medium and high NFC,
it may be necessary to provide in-depth, detailed information relevant to product quality and promotional
Asia Pacific Journal of Marketing
and Logistics
This work was supported by the Ministry of Education of the Republic of Korea and the National © Emerald Publishing Limited
1355-5855
Research Foundation of Korea (NRF-2016S1A3A2924243). DOI 10.1108/APJML-06-2018-0209
APJML items consistently both in on/offline channels to gain their trust. Consumers with low NFC are found to prefer
unified and simplified messages on information for price, delivery, inventory in on/offline channels.
Originality/value – This study addresses the perceived value of unique and fundamental features and
specificity of OC service by consumers with different personality trait. The authors develop consumers’ OC
adoption model based on the theory of reasoned action, which depicts relationship between four extrinsic
motivation factors and consumers’ intention for the OC usage, which is further differentiated by an intrinsic
factor. We segment consumers based on individual difference of “NFC” and investigate how different
consumer groups value different aspect of the selected OC attributes and benefits. Findings validate the
importance of customization and differentiation in retailers’ message to different consumer groups and in
facilitating consumers’ OC adoption.
Keywords Need for cognition, Retail management, Consumer behaviour, Integrated information and service,
Omnichannel, Information consistency, Omnichannel institutional mechanisms, Service integration
Paper type Research paper
1. Introduction
Retailing has changed dramatically in the last two decades due to the emergence of the
online channel and digitalization (Verhoef et al., 2015). In the retail markets, the online
channel has become very dominant and can be considered a disruptive development
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(Christensen and Raynor, 2003). With the advent of mobile channels, tablets and social
media channels and the integration of online and offline channels, the retail environment
continues to evolve, shifting from a multichannel to an omnichannel (OC) retailing model
(Rigby, 2011).
In a multichannel retail environment, channels have different characteristics and are not
necessarily direct substitutes for one another, thus shoppers exploit channels’ distinctive
characteristics and take advantages of the opportunities offered by a multichannel
environment (Harris et al., 2018). However, Wilding (2013) argues that multichannel systems
usually consist of detached channels, developed by retailers in response to the rapidly
shifting world of e-commerce and information technology. When channels work
independently of each other, they create fragmented supply chains, and struggle to
deliver a consistent and reliable consumer experience (Saghiri et al., 2017). OC retailing
accommodates this downside of multichannel system by coordinating processes and
technologies across all channels, to provide seamless, consistent and more reliable services
for consumers (Verhoef et al., 2015). This retailing model operates in all of the available
channels and eliminates the distinctions among them (Zhang et al., 2018).
In OC retailing, firms are involved in selling merchandise or services to consumers
through more than one retail channel (Levy and Weitz, 2009), such as the physical store,
catalog, telephone, online shop and mobile shop. The OC consumer can trigger full channel
interaction and/or the retailer controls full channel integration (Beck and Rygl, 2015).
The concept of the OC is focused on integrating activities within and across channels to
correspond to how consumers shop (Ailawadi and Farris, 2017). Integration of multiple
channel activities requires consistent service offering such as retailing, price and product
information across online and offline channel, and development of such infrastructure may
incur substantial resources and investment. Thus, the OC retailing is an integrated sales
experience that melds the advantages of the physical stores with the information-rich
experience of online shopping, where the distinctions between physical and online vanish
and provide an integrated shopping experience to consumer (Rigby, 2011; Brynjolfsson
et al., 2013). As retailers develop more touch points for consumers, consumers exhibit more
complex shopping behaviors and the number of touch points used by consumers is
increasing concomitantly (Ailawadi and Farris, 2017).
In response to this transformation, consumers are adopting progressively, and consumer
behavior is becoming complex and versatile (Crittenden et al., 2010). Consumers increasingly
use more than one retail format, such as brick-and-mortar retailers, websites and mobile
apps to shop for products and services, and this consumer group is defined as OC consumer
(Verhoef et al., 2015). Unlike single channel consumers buying in an offline retail, OC Consumer
consumers learn about product specifications and pricing from a wide variety of sources omnichannel
(Tanner et al., 2005), and exhibit appreciably different search and buying behaviors from adoption
non-OC consumers (Verhoef et al., 2015). Consumers can easily switch from one channel to
another in their buying experience, where they may find a product in one channel (e.g. the behavior
manufacturer’s website), place the order via another channel (e.g. an online retailer), and
have the product delivery from a third channel (e.g. home delivery) (Saghiri et al., 2017).
Thus, consumer behavior is evolving vastly with a synergistic use of channels and touch
points, namely, OC shopping (Rigby, 2011), posing a disruptive market pressure on retailers.
Researchers reported numerous findings on difference in consumer behavior for
multichannel adoption, choices and channel usage for different stages of shopping, and
identified various factors for determining consumers’ online shopping behavior. These
studies primarily focused on topics relevant to effects of multichannel on performance;
consumers’ choice for different retail channels and retail mix across channels. (Avery et al.,
2012; Pauwels et al., 2011; Van Nierop et al., 2011). Some researchers have extensively
studied consumers online shopping behavior using theoretical model such as the TAM
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(Ashraf et al., 2014; Sin et al., 2012; Shen et al., 2016), which proposes instrumental
performance of using technology (i.e. perceived use of technology and perceived ease of use)
as an extrinsic motivational factor explaining consumers’ adoption of online shopping (Lee
et al., 2012). Thus, combinative technological and behavioral factors have been identified
and tested under theoretical and conceptual models to predict and understand consumers’
shopping in multichannel environment (Faqih, 2016; Srinivasan, 2015; Lim et al., 2016;
Cervellon et al., 2015; Frasquet et al., 2015).
However, from the perspective of OC service, these studies have an evident limitation: OC
service provides multifaceted value to consumers, and there likely to be interaction effects
which may arise when consumers shop in multiple touch points (Melero et al., 2016).
Many studies have neglected the importance of the multifaceted value of OC service.
Hure et al. (2017) describe multichannel as a siloed strategy that operate channels as
independent entities (Yan et al., 2010) and cross-channel as multiple channels which allow
consumers to move and collaborate through channels and touch points (Chatterjee, 2010;
Schramm-Klein et al., 2011). On the other hand, OC has a feature of complete alignment of
the different channels and touch points, leading to an optimal-brand customer experience,
and customer lock-in within the retail brand ecosystem. This prompt further study in
specificity of OC service values which are perceived by consumers. Disentangling the effects
of OC on consumers has been acknowledged as a critical but underexplored topic in the
context of OC retailing, and prior research do not yield adequate understanding of how OC
drives consumer reaction (Li et al., 2018). In this regard, we propose an assessment of the
impact of OC specific attributes (i.e. integration of information and service across channels)
on consumer’s OC adoption behavior.
Some studies stress the importance of individual characteristics (i.e. personality traits) as a
major determinant for technology adoption tendency (Lian and Lin, 2008). Bosnjak et al. (2007)
examined the role of personality constructs on online purchase intention with a hierarchical
model of personality. “Need for cognition (NFC)” is one of the important personality traits
identified in their framework, which can be described as “need for activity or stimulation”
which often shaped during socialization or by external influences, and also by interaction of
one’s learning experiences (Cacioppo and Petty, 1982). Previous studies have mainly identified
the impact of personality trait on consumers’ behavior in a single channel setting; however,
the implicit impact of consumers’ personality traits on their adoption behavior of OC service is
yet to be explored. For this reason, we develop a framework that validates the distinct
mechanisms which dictate the impact of OC service attributes on consumers’ OC adoption
behavior by causing variation in their personality traits.
APJML Consumers may perceive a seamless customer experience through the provision of a
borderless cross-channel service system (Verhoef et al., 2015), reducing uncertainty (Gao and
Su, 2016), providing attractive offers (Li et al., 2018) and engendering switching costs
(Brynjolfsson et al., 2013). Thus, a consumer’s perception for consistency and integration of
cross-channel activities in the OC retail service system is proposed to be determining drive
for their OC adoption. Concurrently, NFC is a consumers’ personality trait which is
considered as an intrinsic motivation factor, affecting the relationship between the extrinsic
determinants and consumers’ OC adoption intention. In this study, the effects of both
extrinsic motivation factors (i.e. attributes of OC services) and intrinsic motivation factor
(i.e. personality traits) are assessed together in order to have a better understanding of
consumers’ OC adoption behavior.
The remainder of this paper proceeds as follows. Section 2 presents a theoretical
background, Section 3 proposes the research model and hypothesis development with a
review of related literature, and Section 4 describes the research method. Section 5 reports
the data analysis and results, and Section 6 provide discussions on the findings, followed by
theoretical and practical implications and limitations.
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2. Research background
2.1 Conceptual framework
The adoption theory is the theoretical framework of this study, which aims to explain the
important factors that drive consumers to perform specific behaviors (Shen et al., 2016;
Dang and Pham, 2018). The theory of reasoned action (TRA) is the first model of adoption
theory which was proposed by Fishbein and Ajzen, with an assumption that a person’s
positive attitude together with the individual’s thought constituted to the behavioral
intention of one person (Lim et al., 2016). This theoretical framework provides an
explanation of behavioral model that a person is assumed to perform certain behavior when
he/she has a favorable attitude or perceive benefits. According to the TRA, people elicit and
use available information in most efficient and systematic way to make a beneficial choice
for themselves, and this choice selection process can be controlled by decision makers
through conscious efforts. (Ajzen, 1991).
In this study, we develop consumers’ OC adoption model based on the TRA framework,
which depicts the relationship between four extrinsic motivation factors and consumers’
intention for the OC usage, which is further differentiated by an intrinsic motivation factor
(Figure 1). The concept of motivation is incorporated in our theoretical framework to
describe consumers’ behavior as it has been found to influence a broad range of cognitive
SVIT
H1
IFIT H2
H5
UIT UBH
H3
PEOIM
H4
Figure 1. H6
Proposed omnichannel IFCs
(OC) adoption model
NFC Group
processes, including perception, attention, learning and memory (Yee and Braver, 2018). Consumer
It is generally assumed that providing incentives (e.g. rewards or benefits) can induce a omnichannel
motivational state, which then lead to dynamic adjustments in cognitive processing, and adoption
consequently influence behavior. Thus, when an external or internal incentive alters the
biological system of an individual, generating a “motivated state,” change in his/her behavior
behavior can be observed (Yee and Braver, 2018).
One’s action (i.e. change in behavior) is the outcome which indicate an individual’s
intentional behavior influenced by his/her freedom of choice (e.g. internal factor) and
controlled agents (e.g. external factors), and both internal and external factors are known as
intrinsic and extrinsic motivation (Lee et al., 2005). The motivation theory is widely applied
in psychology field to explain human behavior (Lee et al., 2015), and researchers claim that
people’s motivations are centered on the value that they can potentially gain from
consumption behavior (Ozturk et al., 2016). When consumers are motivated, the extrinsic
and intrinsic rationale determines individual’s behaviors and they are more likely to persist
and have engagement in activities that satisfy these needs (Ryan et al., 2013).
Motivation constitutes a basic need for competence, and consumers are intrinsically and
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Gender
Male 120 52.9
Female 107 47.1
Experience with pickup service
Used pick up service before 120 52.9
Do not use 107 47.1
Age
20s 146 64.3
30s 44 19.4
40s 27 11.9
50s over 10 4.4
Job
Student 98 43.2
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theory of planned behaviorTPB (Ajzen, 1991), TAM (Davis, 1989) model postulate a causal
relationship between attitude, intention and behavior for measuring technology acceptance
(Davis et al., 1989; Kim et al., 2008). Several recent studies on consumer behavior for retail
shopping with mobile application and personal computer have shown significant
relationship between intention and behavior (Groß, 2015; Chopdar et al., 2018; Venkatesh
et al., 2012). Purchase behavior has been treated in the literature as the main construct
describing the determinants of computer use behavior (UBH) (Davis et al., 1989), and the
main antecedent of purchase behavior in the TAM is framed as the behavioral intention,
having a single direct effect on individual’s actual use of a given technology (Venkatesh
et al., 2012). Groß (2015) states that consumers’ m-shopping behavior are significantly
determined by their behavioral intention to use m-shopping, confirming previous empirical
findings (Aldas-Manzano et al., 2009). In this study, we postulate this causal relationship in
explaining consumers’ acceptance for the OC service, and expect a positive link between
UIT for a certain OC vendor and consumers’ actual purchase behavior:
H5. OC consumers’ UIT positively influences purchase behavior of OC consumers.
4. Method
A survey questionnaire was developed, incorporating 41 items compiled from the literature
(Appendix 1). In total, 5 items were included for SVIT; 4 items for IFIT; 4 items for PEOIM;
5 items for IFCS; 5 items for UIT; 3 items for UBH; and 14 items for NFC. These indirect
measures were empirically tested and used by various researchers (Appendix 1). The survey
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had 49 items in total, including eight socio-demographic questions. All the variables were
measured on a Likert scale, using 1–5 points (strongly disagree to strongly agree; Appendix 2).
The survey questionnaire was designed to be clear and pertinent with detailed instructions,
definitions and examples. The questions were designed in sections, and an introductory
statement about each section was provided to minimize confusion among the respondents
(Neuman, 2013). Convenient sampling was applied to collect the data from general shoppers in
Korea with a survey questionnaire, and the survey yielded a total of 241 respondents’ answers.
A total of 14 questionnaires were excluded, and 227 clean responses were used for further
analysis. The sample data were further divided into three groups: high, medium- and low-NFC
groups for comparative analysis among three groups.
To measure NFC, a shortened version of the NFC scale was used based on Kim (1994)’s
study. NFC scale consisted of 14 items, including items such as “I prefer my life to be filled
with puzzles I must solve” or “I really enjoy a task that involves coming up with new
solutions to problems.” All items were rated on a five-point Likert-scale ranging from 1
(completely disagree) to 5 (completely agree) (Appendix 2).
The NFC scale showed internal consistency (α ¼ 0.712). We used the principal
component analysis and scree plot of the factor analysis using SPSS 21.0. Initial eigenvalues
of each items were examined and the NFC factor was found to contain ten NFC items (with
eigenvalue W1), explaining 42.05 percent of variance. Scores from the ten items were
averaged to develop a single NFC indicator. The NFC indicator with higher scores indicates
high in NFC, whereas lower scores indicate low in NFC (Table I). In order to divide
participant, distribution of the NFC scores was checked and found to approximate a normal
distribution rather than a bimodal distribution. Participants were divided into three groups:
low NFC (1–3.09; n ¼ 40), medium NFC (3.10–3.56; n ¼ 100) and high NFC (3.57–5; m ¼ 87).
5. Results
Partial least squares–Structural equation modeling (PLS–SEM) was used to test the
proposed research model. The PLS–SEM method has been designed as a prediction-oriented
approach to SEM that relaxes the demands on data and specification of relationships set by
CB-SEM (Dijkstra, 2010; Rigdon et al., 2010; Hair et al., 2014). PLS–SEM provides
researchers with more flexibility in terms of data requirements, model complexity and
relationship specification (Sarstedt et al., 2014). The statistical software used in this study is
Smart-PLS (v 3.2.7).
To assess construct reliability, Cronbach’s α (Cronbach, 1951) was computed. Nunnally
(1978) suggested that a value of at least 0.70 indicates adequate reliability. Cronbach’s α value
of our finding showed a value between 0.716 and 0.930 in all items and all NFC groups, Consumer
exceeding recommended thresholds. To improve reliability of the constructs, three measures omnichannel
were omitted from the following constructs: SVIT (SVIT4), UIT (UIT1) and IFCS (IFCS3). We adoption
considered the composite reliability (CR) of constructs and the outer loads of the measures
with PLS–SEM guidelines, and the six constructs had adequate reliability. behavior
If the CR is more than 0.7, internal consistency reliability is secured (Hair et al., 1998), and
average variance extracted (AVE) is more than 0.5, the measurement model has convergent
validity (Fornell and Larcker, 1981). Findings show that the CR is greater than 0.7, the AVE
is greater than 0.5 and the square root of AVE is greater than the correlation coefficient.
Thus, construct validity is ensured, and the measurement model has convergent validity
and discriminant validity (Tables II and III). According to Hair et al. (2012), the cut-off value
for VIF (collinearity) should be smaller than 0.5, and our VIF results were smaller than 0.5
(from 1.292 to 4.750), as shown in Appendix 1.
To determine construct validity and interaction effects, factor loadings of the principal
component analysis were examined (Table IV ). The significance probability of Bartlett’s
sphericity was 0.000, so the correlations of the variables were generally significant. The
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Kaiser–Meyer–Olkin measure was also higher than the reference value of 0.50, exceeding
the recommended values. Factor analysis yielded six components with eigenvalues above 1,
and these six components corresponded to the six constructs (Table II).
We also examined correlation between the constructs with Pearson correlation
coefficients to determine occurrence of multi-collinearity. The correlation coefficient values
were less than 0.7 (the maximum value: 0.536), showing no presence of multi-collinearity
between the constructs (Table V ).
To validate the hypotheses, the bootstrapping PLS method was used upon three group
(NFC-high, NFC-medium, low) sample data. The values of the f2 values and the R2 values are
individual measures of the explanatory power of the model. The f2 values for the five variables
involved in the hypothesized significant relationships ranged from 0.024 to 0.398. The R2
values for these relationships ranged from 0.076 to 0.636. The Q2 is considered as a measure of
out of sample prediction, and the Q2 values larger than zero for an endogenous construct
indicate that the path model’s predictive accuracy is acceptable for that particular construct
(Ringle et al., 2014). In this study, all Q2 values were larger than zero (see Appendix 2).
Overall, this analysis suggests a good explanatory power for the proposed model.
The results of the hypothesis test were in Table VI and Figure 2, demonstrating the
differences among the results of the three NFC groups. Two constructs – PEOIM and
UIT – were statistically significant for all three NFC groups. In the NFC-H and NFC-M
groups, the construct IFCS and the construct SVIT were supported, while the construct IFIT
was excluded. In contrast, the construct IFIT was significant for the NFC-L group, and the
two constructs – IFCS and SVIT – were rejected.
IFCS 0.793 0.752 0.767 0.724 0.854 0.866 0.780 0.663 0.684 0.567
IFIT 0.771 0.826 0.778 0.716 0.892 0.870 0.838 0.734 0.691 0.634
PEOIM 0.774 0.790 0.784 0.745 0.860 0.857 0.836 0.612 0.601 0.562
SVIT 0.868 0.837 0.842 0.795 0.902 0.904 0.879 0.756 0.758 0.708
UBH 0.907 0.899 0.860 0.930 0.936 0.931 0.955 0.829 0.818 0.877
UIT 0.901 0.895 0.886 0.845 0.935 0.929 0.906 0.828 0.813 0.763
Notes: SVIT, Omnichannel service integration; IFIT, omnichannel information integration; IFCS, omnichannel Table II.
information consistency; PEOIM, perceived effectiveness of omnichannel institutional mechanism; UIT, Construct reliability
use intention; UBH, use behavior and validity
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Table III.
APJML
Discriminant validity
IFCS IFIT PEOIM SVIT UBH UIT
H M L H M L H M L H M L H M L H M L
Considering the path coefficients of the three groups (NFC-H, NFC-M and NFC-L), SVIT
(0.442) of the NFC-H, IFCS (0.340) of the NFC-M and PEOIM (0.249) of the NFC-L had the
highest values.
6. Discussion
6.1 Theoretical contribution
Retail digitalization enables consumers to leverage various channels for shopping
activities simultaneously, raising their expectation for seamless shopping experience.
APJML Path coefficients t-statistics (|O/STDEV|) p-values
Hypothesis H M L H M L H M L
IFCS→UIT 0.311 0.340 0.033 2.129 2.930 0.216 0.017** 0.002*** 0.414
IFIT→UIT 0.053 −0.057 0.180 0.457 0.433 1.437 0.324 0.333 0.076*
PEOIM→UIT 0.232 0.185 0.249 1.761 1.416 1.633 0.039** 0.079* 0.051*
SVIT→UIT 0.442 0.234 −0.016 4.161 2.726 0.134 0.000*** 0.003*** 0.447
UIT→UBH 0.275 0.517 0.444 1.554 6.602 4.358 0.060* 0.000*** 0.000***
Notes: SVIT, Omnichannel service integration; IFIT, omnichannel information integration; IFCS, omnichannel
Table VI. information consistency; PEOIM, perceived effectiveness of omnichannel institutional mechanism; UIT,
PLS–SEM results use intention; UBH, use behavior. *po0.05; **po0.01; ***po0.001
NFC High
NFC Medium
SVIT NFC Low
(H)0.442***
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(M)0.234***
IFIT
(L)0.180*
(H)0.275*
(H)0.232** (M)0.517***
UIT UBH
(M)0.181*
PEOIM (L)0.444***
(L)0.249*
(H)0.311**
IFCS (M)0.340***
Figure 2.
Research model
results
Notes: *p < 0.05; **p < 0.01; ***p < 0.001
consistency of the marketing mix across channels) plays when consumers’ individual
difference take into account.
Thus, this study extends findings from previous studies and assesses whether the
information and service consistency and integration plays differentially for consumers with
different personality trait (i.e. NFC). Our study shows that not all consumers find IFIT to be
critical in their adoption intention; the effect of IFIT on consumer behavior was found only
for low-NFC individuals, but not for high- and medium-NFC individuals, while IFCS was
found to be significant for high- and medium-NFC individuals. This study provides
empirical evidence that OC is an expanded retail format of e-commerce, which is
predominantly affected by how information on the cross-channel marketing mix/retail
strategies is delivered to consumers. From a communication perspective, findings suggest
that retail communication strategy need more careful attention in dealing with individual
difference of consumers.
Furthermore, perceived effectiveness of the institutional mechanism, ensuring privacy,
product/service guarantee for OC, is a proxy for consumers’ trust in OC, which was found to
be essential in successful acceptance of OC by consumers regardless of their individual
differences. This supports Sunil’s (2015), suggestion which emphasizes the importance of
after-sale service (e.g. return policy, payment policy); see Hsiao et al.’s (2007) finding on the
value of safety (i.e. information asymmetry reduction and boosting confidence). Li et al. (2018)
also conceptualized consumer’s online shopping behavior with trust/risk factor or uncertainty
avoidance as an important determinant, yet Wen et al.’s (2011) model is framed based on the
TAM, technology-based theory and Liu and Forsythe’s (2010) analysis propose risk as part of
innovation attributes (i.e. channel risk, product risk). This study looks into the trust factor
from an institutional perspective, and assess whether consumers value OC institutional
mechanism as protective function in a multiple transaction environment.
This study further advances the understanding of the role of NFC in the evolving OC
environment. General findings on NFC research support that as NFC increases,
information processing would increase, and individual differences in NFC determine
people’s motivation to engage in information processing (See et al., 2009). Overall, the
findings of this study are consistent with existing research in marketing: consumers with
high NFC tend to be more engaged in information processing (Chaiken, 1980) and the ones
with low NFC tend to avoid effortful cognitive activities and rely more on heuristic
information processing (Cacioppo and Petty, 1982). Our study finding shows that three
consumer groups with different NFC levels perceived different extrinsic factors to be
important for their OC adoption decision. This stresses the importance of developing a
APJML differentiated communication strategy, regarding the attributes and benefits of the OC
service, for different consumer groups. Cacioppo and Petty (1982) report that NFC-high
consumers found the simple version of a task to be more unpleasant than the complex
version, whereas NFC-low consumers found the complex version more unpleasant than
the simple (less cognitively demanding) version of the task. Thus, individual difference
in consumers’ tendency to enjoy complex problem-solving activities is reflected in
differential impact of the selected five determinants of our model.
who needs to provide ubiquity across all channel types, stages, and agents with channel
visibility (i.e. integrated promotion, transaction, pricing, product information, customer
service, delivery), yet this may come at an expensive logistical design, realignment of
multiple channels. Thus, it is necessary to have good understanding of key elements of an
OC retail system which are valued by consumers, and building a cost effective OC supply
chain. Development of channel synchronization which enables innovative shopping values
to consumers is crucial as it allows OC consumer journey, which could be highly valued
across touch points, and drives customer satisfaction and brand equity compared to other
shopping alternatives (Kumar & Reinartz, 2016).
Findings evidently show that different aspect of OC service system was found to play an
important role for OC adoption of consumer group with different level of NFC. SVIT
construct was perceived to be substantially significant for the high-NFC group’s OC
adoption. IFCS was found to be second most influential factor, affecting the medium-NFC
group. Perceived effectiveness of institutional mechanism (PEOIM) was third most
significant factor, affecting the low-NFC group’s OC adoption behavior. This suggests that
individual difference is an underlying factor impacting consumers’ behavioral intent, which
could not be underestimated. This study suggests that firms should pay more attention to
concreteness of market efforts highlighted according to individual difference of consumers.
Thus, the OC retailers may need to set the scope and range of information into in-depth
information and simplified/unified information and address the different type of information
to different consumer groups in order to facilitate consumers’ OC adoption. Hence, this
study addresses the perceived value of unique and fundamental features and specificity of
OC service by consumers with different personality traits.
Institutional mechanism (i.e. PEOIM) is found to be an important determinant for all
three groups of consumers’ OC adoption. This suggests the critical role of OC institutional
mechanism alleviating consumer concerns and perceived risk of using OC. Consumers may
have trust in the OC’s institutional mechanism since large conglomerate and branded
retailers (e.g. Walmart, Macy’s) are the early adopters of the OC platform with sufficient
resources and capacity, and their brand reputation as a retailer may have a positive
spillover effect on the institutional arrangement of the OC. Institutional trust has received
considerable discussion in several branches of the social science literature where scholars
have recognized trust as a key relational principle in buyer–seller relationships (Ebert, 2006;
Schoorman et al., 2007). Thus, the institutional mechanism of the OC play a critical role in
shaping consumer behavior toward the OC retail service and for a successful transition
toward this new retail format, and this study validates such point.
We performed crosstab analysis (Table VII and Figure 3), and demonstrate the difference Consumer
in perceived value of OC service options among consumers with different NFC levels. The omnichannel
results show that two groups of NFC-high and medium consumers are likely to use the four adoption
OC service options in future, while larger proportion of the NFC-low consumers show
negative response to the OC service usage. This evidently shows that innovative features of behavior
OC service are not homogenously adopted by consumers, and subject to their experience
and intrinsic difference, the adoption rate was found to vary. This suggests that companies
need to pay careful attention in implementing innovative OC service, and may approach
communication of information strategically for different consumer groups.
Buy-online-pickup-in-store (BOPIS) is one of the latest popular OC services which are
rapidly implemented by major retailers to promote their OC service. Table VII shows
significant difference in the extent of experience with BOPIS among three consumer groups.
Yes No M F Disagree Neutral Agree Disagree Neutral Agree Disagree Neutral Agree
Table VII.
NFC Preference for
Low (%) 39.1 60.9 43.7 56.3 41.4 23.0 35.6 56.3 23.0 20.7 41.4 28.7 29.9 OC service options
Medium (%) 58.0 42.0 64.0 36.0 30.0 14.0 56.0 38.0 16.0 46.0 35.0 22.0 43.0 by three
High (%) 70.0% 30.0 87.5 12.5 25.0 10.0 65.0 45.0 7.5 47.5 27.5 10.0 62.5 consumer groups:
Pearson χ2
0.002 0.000 0.014 0.002 0.011 crosstab analysis
EXP Yes
90.0%
BMAIS Agree EXP No
80.0%
70.0%
60.0%
BMAIS Neutral Gender Male
50.0%
40.0%
30.0%
20.0%
BMAIS Disagree 10.0% Gender Female
0.0%
Figure 3 also shows different preferences for OC service by three consumer groups. The
high-NFC group is predominantly male, has experience with OC service, and willing to try
various types of OC services: BISD, BOPIS, BMAIS, while the low-NFC group has female
consumers, with high percentage of no OC experience and less willing to try the specific OC
services. This finding suggests that personal experience with OC service tend to facilitate
consumers’ OC adoption intention, and also socio-demographic factor plays a role in
adoption approach.
6.3 Limitations
Although the study provides additional empirical findings for consumers’ perception on
selected characteristics of OC (i.e. delivery approach of information and service in OC and
institutional mechanism of OC), there may be additional extrinsic motivation factors which
affect consumers’ OC adoption behavior. For instance, Dang and Pham (2018) applied the
adoption theory and TAM to investigate interrelationships among consumer perceptions of
web design, reliability, privacy and customer service and their effect on purchase intention.
Extrinsic factors, such as web design, convenience, assortment, moving saving which
triggers a positive perception of OC, may be important determinants to consider.
Furthermore, situational factor such as social media (Huseyinoglu et al., 2018) and
behavioral factors, such as platform use habit (Chen, 2018), may also be significant in
assessing consumers’ OC adoption behavior. Finally, this study has been conducted on a
particular culture setting, and the generalizability of study findings, particularly about the
role of NFC, may need to be improved by a cross-culture evaluation.
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APJML Appendix 1
Service integration SVIT1 Integration of omnichannel services to Cummins et al. (2016), Teo and Liu (2007)
(SVIT) SVIT2 customers, such as promotions,
SVIT3 points, discount, payment, shipping,
SVIT4 pickup, customer service, after service,
SVIT5 refund, etc.
Information IFIT1 The degree of integration of platform and Brynjolfsson et al. (2013), Gao and Su
integration (IFIT) information between OCR affiliates (2016), Rigby (2011), Bell et al. (2014),
All related information such as product Beck and Rygl (2015), Yang et al. (2014),
inventory, product launch and arrival Wang et al. (2013)
IFIT2 date, price, pick-up and delivery
IFIT3 information are provided in an integrated
IFIT4 and be interlocked
Perceived effectiveness PEOIM1 PEOIM refers to omnichannel consumer Fang et al. (2014), Gallino and Moreno
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of omnichannel perceptions that omnichannel retails and (2014), Gao and Su (2016), Joseph (2015),
institutional mechanisms related vendors safeguarding Sundaram and Taylor (1998)
(PEOIM) mechanisms, such as online credit card
guarantees, escrow services, product
warranties, refunds, payment and
privacy protection exist to protect them
PEOIM2 against potential risks in the
PEOIM3 omnichannel environment
PEOIM4
Information IFCS1 The degree of consistency of product Brynjolfsson et al. (2013), Gao and Su
consistency (IFCS) IFCS2 information. Such as, Product quality, (2016), Rigby (2011), Bell et al. (2014),
IFCS3 composition, color, reputation, consumer Beck and Rygl (2015), Zhang et al. (2010),
IFCS4 evaluation and review information Joseph (2015)
IFCS5
Use intention (UIT) UIT1 Behavioral intention, or more Davis (1989), Fishbein and Ajzen (1975),
UIT2 specifically intention to purchase (UIT) Ajzen (1991), Kim et al. (2008), Pavlou
UIT3 from a certain vendor through the and Fygenson (2006), Ajzen and
UIT4 omnichannel Fishbein (1980)
UIT5
Use behavior (UBH) UBH1 Consumer’s actual behavior or purchase Davis (1989), Fishbein and Ajzen (1975),
decision (UBH) Ajzen (1991), Kim et al. (2008), Pavlou
UBH2 and Fygenson (2006), Ajzen and
UBH3 Fishbein (1980)
Need for cognition (NFC) NFC1 As an internal motivation to encourage Cacioppo and Petty (1982), Cohen et al.
NFC2 information processing behavior, (1955), Priester and Petty (1996)
NFC3 individual differences in the degree of
NFC4 cognitive elaboration that enjoys
NFC5 thinking and cognitive effort
NFC6
NFC7
NFC8
NFC9
NFC10
NFC11
NFC12
NFC13
NFC14
Table AI. Notes: SVIT, Omnichannel service integration; IFIT, omnichannel information integration; IFCS, omnichannel infor-
List of items mation consistency; PEOIM, perceived effectiveness of omnichannel institutional mechanism; UIT, use intention; UBH,
by construct use behavior
Appendix 2 Consumer
omnichannel
adoption
Construct Items Measures behavior
5-point Likert scale: “1” Disagree Strongly and “5” Agree Strongly
Service integration (SVIT) SVIT1 I think that Omnichannel service is integrated because I can freely
choose to pick up or delivery at the desired place after purchasing
the product
SVIT2 With omnichannel service, I think that online and offline services
are integrated because I can buy online and pick up products in
offline stores
SVIT3 I think that service is integrated, because omnichannel service’s
online and offline payment are interlinked
SVIT4 I think that omnichannel services are integrated because the same
services (e.g. mileage usage/credits, coupons, discounts) are
provided in online and offline stores
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Use intention (UIT) UIT1 I will intent to recommend omnichannel service to others
UIT2 I intent to purchase products through omnichannel service in the
future
UIT3 I will make purchases through omnichannel service whenever
possible
UIT4 I will use the omnichannel service in the future
UIT5 I intend to use omnichannel services in purchasing
Use behavior (UBH) UBH1 I usually use omnichannel service
UBH2 I often use omnichannel services
UBH3 I use omnichannel service when shopping
Not always: 0 point, Generally not: 1 point, Average: 2 points, Usually so: 3 points, Always: 4 points
Reverse (R): Not always: 4 points, Generally not: 3 points, Average: 2 points, Usually so: 1 point, Always: 0
points
Need for cognition (NFC) NFC1 I like to discuss
NFC2 I do not usually think about the problems that others think are
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tricky (R)
NFC3 I solve complex problems well
NFC4 When I come into contact with an unfamiliar task, I think it is more
annoying than I think I should solve (R)
NFC5 I am excited to learn new solutions to some problems
NFC6 I think I want to analyze it for some kind of complex problem
NFC7 I want to know more about what I do not know well
NFC8 I try to solve difficult and time-consuming problems as far as
possible
NFC9 I am more active in what I need to think
NFC10 I tend to accept whatever it is, rather than try to understand why it
is so (R)
NFC11 I try to avoid situations that I have to think deeply (R)
NFC12 I like to challenge my thinking skills
NFC13 I hear that I am a logical from others
NFC14 I am more enjoyable while solving difficult problems than simple
Table AII. problems
Appendix 3 Consumer
omnichannel
adoption
Collinearity statistics (VIF)
H M L behavior
IFCS1 1.711 1.667 1.659
IFCS2 1.683 2.262 1.522
IFCS5 1.333 1.544 1.292
IFIT1 1.992 1.649 1.308
IFIT2 1.894 1.928 1.621
IFIT4 1.768 1.486 1.447
PEOIM1 2.960 1.909 1.525
PEOIM2 3.469 2.065 1.543
PEOIM3 1.670 1.551 1.412
PEOIM4 1.556 1.523 1.358
SVIT1 1.731 1.895 1.826
SVIT2 2.424 2.360 1.751
Downloaded by Boston College At 04:50 15 May 2019 (PT)
Appendix 4
R2 Q2 f2
Measures H M L H M L H M L
Corresponding author
Renee Boyoung Kim can be contacted at: kimrby@gmail.com
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