Consumer Shopping Habits
Retail marketers are hungry for data that will give them deeper insight into consumers' shopping habits in an omni-channel world and Professor Patrali Chatterjee's research addresses this issue. Her research "Multiple-Channel and Cross-Channel Shopping Behavior: Role of Consumer Shopping Orientations" found that high-thrift customers patronizing a cross-channel retailer are less likely to search for competitive offerings than customers patronizing a multiple-channel retailer. Cross-channel retail strategy acts as a simple signal of competitive or "best" price to consumers.
For retailers, these findings provide valuable insight into consumer behavior that could have a significant impact on their bottom lines. Multiple-channel retailers operate various channels as separate entities (i.e. order and pick up in-store; order online or by telephone and have product delivered), while cross-channel retailers integrate channels by moving products, money, and information across channels (i.e. order online and pick up in-store; order in-store and have product delivered).
Using multiple data sources, Chatterjee examined the benefits and costs inherent in channels, the influence of consumer shopping orientations on cross-channel usage, and differential impact of a retailer's cross-channel strategy on purchase outcomes.
In addition to finding that customers of cross-channel retailers are less likely to search for competitive prices, the study also revealed that retailer satisfaction is higher for cross-channel compared to multi-channel retailers no matter which transaction channel was used by consumers.
Chatterjee's research was an invited presentation last year at the Payment Innovation Institute at Harvard University.