Showrooming phenomena
its more than the price
introduction
popular behavior
68% of US internet users indicate that they showroom at least occasionally
strategies to avoid being on the losing end
offer price matching guarantee
offering exclusive products to avoid price comparisons
shoowrooming
competitive shoowrooming
satisfy information need at brick and mortar but making purchase through a competitors online channel
conceptual framework
assumption
consumers decide to showroom if the perceived benefits outweigh the perceived costs
benefits
costs
the costs of searching online
delay in obtaining the product
contextual variables
consumer related
shopper related
product related
perceived time pressure
shopping enjoyment
mavenism
internet experience
product knowledge
anticipated regret
more prone to switching since it is a less of a burden
mavens more likely
has the knowledge to effectively search the internet for the best deal
can effectively evaluate offers
retailer loyalty
focal product category
product price
product performance risk
a proxy for fiancial risk
higher price = higher risk
increase showrooming
click to edit
discussion
results
negative correlations
positive correlations show rooming and
perceived higher quality online
online serach costs
greater availability of in-store sales personnel
consumer time pressure
perceived higher price dispersion
might be because there is a belief that there are really good deals online
no correlation
quality of sales personnel
perceived lower prices online
management implications
non-price factors that drive showrooming provide offline retailers with ways to compete beyond price
availability of in store personnel, reducing percieved waiting times
two ways of adressing
increasing perceptions of online search costs
advertising campaign emphasizing the convenience of shopping at the store
increase perceived price dispersion at the store
High low pricing strategy
might invite competitive reactions and start a promotional price war