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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
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)