Sylvain Sénécal, Ph.D.

October 2014

DTLQC

Showrooming, webrooming

and outshopping:

How to address these new

consumer behaviors

In the next 30 minutes…

What are showrooming, webrooming, and

outshopping?

Are they important phenomena in Canada?

What can retailers do about them?

Concluding remarks

www.adexchanger.com

Price Check (by Amazon)

Bizzreport.com

From a competitor

Outshopping:

Online cross border shopping

So what?

Are they important

phenomena in Canada?

In order to answer these questions…

Survey of Canadian consumers in 2012 and 2014

Samples: 1501 (2012) and 1507 (2014)

Showrooming evolution in Canada

Purchase (n=242/363)

SP in store

(n=617/805)

Smartphone (SP)

(n= 1501/1507)

Data plan

41%→53%

Yes

39%→46%

In store

52%→58%

Retailer’s website

11%→13%

Competitor’s website

5%→5%

Competitor’s store

9%→6%

No purchase

23%→17%

No

61%→54%

63%→71%

14%→11%

23%→17%

2012→2014

Price, service, and product aavailability (2014)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Better price

Better service

Product availability

Other reasons

Reasons for Showrooming (or not)

Purchase from competitor

Purchase from retailer

Product prices and showrooming (2012)

Any price; 46%

At least 50$;

24%

At least 100$;

24%

At least 200$;

6%

Webrooming in Canada (2014)

Webrooming

- Purchase

from same

retailer

40%

Webrooming

- Purchase

from a

competitor

9%

No

51%

Webrooming

Outshopping

62% of $ spent online by Canadians

31%

7%

38%

Younger shoppers

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

18-24 25-34 35-44 45-54 55-64 65-74 75+

Outshopping and Age

Paypalobjects.com

What can Canadian retailers do?

About outshopping

Competitive offering (relative to US retailers)

Product assortment

Price + Service = Value

Trust & ethnocentrism

« Buy from a trusted and local retailer »

Secondary costs

« No additional costs or surprises »

About showrooming & webrooming Attract:

Multichannel strategy « web-to-store » and « store-to-web »

Same prices and assortment across channels

Sales promotions linking web and stores

In-store pickup, in-store ordering

Convert : Competitive prices and price matching guaranty

Service

Mobile coupons

Free Wi-Fi!

Retain Product returns across channels

Loyalty program

Exclusive brands

Strong private brands/labels

Concluding remarks

Consumers are well-equipped to compare products and services when and where they want to. Focus: Competitive offering

Consumers want seamless experiences within and across channels;

They will select the most efficient channel for their current needs. Focus: Customer experience

You can forget these buzzwords, but not

that…

It’s called SHOPPING (in 2014)

25

Your Channels Your Competitors’

Consumer

Decision-

making

stage

Website

(Non-

mobile

device)

Store Call Center Website or

App

(Mobile

device)

Website

(Non-

mobile

device)

Store Call Center Website or

App

(Mobile

device)

Information

search

Evaluation

Purchase

Good old days!

Outshopping (if international)

Webrooming

Showrooming

Thank you!

ss@hec.ca

chairerbc.com

imarklab.com

Commerce: Outshopping

H2b

.57 (15.19)

H1

.15 (3.27)

H4

.15 (4.65)

H2a

.45 (12.77)

H6b

- .15 (4.70)

H6a

- .11 (2.69)

Skills in Foreign

e-Retailers Language

Ethnocentrism

Trust in the

Foreign E-Retailers

Offer

Competitiveness of

Foreign E-Retailers Intention to Perform

Online International

Outshopping

H3b

- .13 (3.32)

H5b

.16 (4.99)

.25 (7.83)

H3a

- .46 (11.79)

H5a

.08 (2.66)

.13(3.92)

Secondary Costs

Susceptibility to

Interpersonal

Influence

Sénécal, Bœuf et Aljukhadar (2014)