This paper presents a Swedish case study focusing on online shopping and impulse purchases of fashion. The paper contributes by bringing new light on the bored-state-of-mind's importance in impulse shopping, and provides insights for further research to examine the topic on a greater scale. Results reveal that young con- sumers’ impulse purchases of fashion items online are often motivated by boredom, and described in two di- mensions: 1) Consumers are often responding to triggers that can break monotony and 2) Boredom occurs in a contextualized totality. When consumers are bored they are easily triggered by stimulus like price, easy access, and free delivery, and it is perceived as easy to click the boredom away. It is suggested that retailers choose a strategy based on customer value and satisfaction, as there is a lot to win by stepping away from price com- petition and instead satisfy customers by providing an opportunity to become less bored.

EXTENDED ABSTRACT: 

Research Question 

This research focuses on the potential impact of various cultural, economic, psychological and social factors on the consumer decision whether to buy or to steal music. Relevant theories applied to the research question include: Reasoned Action, Planned Behaviour, and Theory of Time Allocation. 

Method and Data 

The sample for this study consists of 4618 college students across 26 countries. Data was collected regarding the respondents last acquired music. The variables included the method of acquisition (legal, illegal), cultural measures (Rule Orientation and Uncertainty Avoidance), aspects related to the music (value, quality), channel characteristics (time to download and selection), respondent characteristics (ability) and respondent attitudes (toward music industry, ethics of downloading, perceptions of channel and copying risk). The data was analysed using SEM LOGIT in MPlus to test the hypotheses. 

Summary of Findings 

Results indicate that culture has a significant and prevalent impact on consumer attitudes toward the purchase/pirate decision. The Rule Orientation of a culture impacts consumers’ attitude toward the music industry, ethical views of downloading music illegally, and the potential risks of copying music. Likewise, Uncertainty Avoidance also affects the potential risk of copying music along with the overall view of the channel risk of downloading music from the internet. Interestingly, impacts of value, downloaded music quality, ease of Internet use, attitudes toward music industry and ethical perception of music downloading on consumer purchase or pirate decision.

Ethical perceptions of downloading had the highest impact on the respondents choice to purchase or pirate music. Interestingly, the relative odds ratios suggest that the largest direct impact of whether a consumer chooses to download music is their ethical views, followed closely by the relative selection of music available for download. Thus, consumer ethical attitudes drive much of the decision. However, respondents attitude toward the music industry were not a significant factor. Thus, it might be a post decision justification for piracy to blame the industry or artists, rather than an inherent part of the decision process itself. 

The economic rationale for downloading was based on value rather than the respondents’ time. Unlike typical channel choice, whereas convenience plays a central role, the decision to purchase/pirate does not appear as much convenience related. The impact of channel risks (viruses and payment risks) were much higher than personal risks (prosecution). It is apparent that respondents see very little risk (except in Germany) of being prosecuted for pirating intellectual property. The ability to find and download music also had a significant impact on the decision to pirate. 

Key Contributions 

Results indicate significant impact of price on consumer buying decision, which can in current circumstances download music from the Internet with impunity, to be more price-sensitive. Therefore, music companies need to find a way to decrease the differential cost of music illegally acquired from the Internet and that acquired legally. It is unsurprising that a high correlation exists between consumer’s attitudes about ethics of downloading the music from the Internet and decision to steal. Hence, it would be necessary for music industry to affect consumer’s attitudes through marketing campaigns and education initiatives with regard to ethics of on-line music downloading, not necessarily focused on punishment for infringement. Music industry should develop diverse customized pricing models for different 

customer segments in order to increase the attractiveness of a legal offer together with ethical incentives reflected through the education of potential customers about the benefits of buying and consequences of the infringement of copyright law.

Introduction

Technology-facilitated transactions have become an increasing part of retail encounters and customers, in some instances, are interacting with technology more than firm employees to create service encounters. Acceptance and adaption of new technology in store is dependent on several factors such as personality. Previous studies (Demirkan & Spohrer, 2014) suggest that product information and search process in store can be supported with the help of digital technology. It is suggested the infusion of technology can enhance service encounters by making them more expedient and efficient and thus, satisfying (Bitner, Ostrom, and Meuter 2002; Meuter et al. 2000). Giebelhausen et.al. (2014) suggest that the interplay between frontline technology use and service encounter evaluations may be more complex than it seems, and it is also suggested that technology-enriched retail environments affects relations between consumers, employees, and retailers (Pantano, and Migliarese, 2014).

Academic literature has very much focused on the interpersonal dynamics of service-encounters (Bettencourt and Gwinner 1996; Bitner, Booms, and Tetreault 1990; Fischer, Gainer, and Bristor 1997; Goodwin 1996; Hartline and Ferrell 1996) that has extensively been explored, but to a lesser extent has research investigated customer interactions with technological interfaces (Bitner, Brown, and Meuter 2000; Dabholkar 1996). In their extensive exploration of a wide range of SSTs Meuter et.al. (2000) called for further research examining what motivates people to use an SST, how people would go about learning their role as it relates to interacting with an SST, and also what factors that limit perceived ability to interact with SSTs.The purpose of this study was to evaluate the value added by retail in-store self service technology for consumers. Important aspects of the SST interaction include the perceived service, the purchase intentions and interaction with the sales personnel.

Experimental design and methodology

Depending on their complexity, certain products are perceived as more difficult to buy than others. Within a retailing context complexity dimensions regarding products is not so often heard of, however, many customers perceive products as difficult. This is due to the fact that consumption of the product is important and mistakes are often made. In a research program within the University of Borås and Swedish Institute for Innovative Retailing, the Academic environment gather retailers that strive to innovate and help raise customer perceived value in the fixed store setting. While significant investments in innovative technology systems such as self-scanning, mobile platforms or digital payment methods, continue to transform the customer’s experience it also help retailers being more effective. One of the Swedish retailers (a large retail chain within home textiles) wanted to develop a new tool for customers in store, helping them to decide on what product to buy. The system developer connected to the research institute programmed an IT-pilot designed to help customers decide the right product, with the help of a decision tree-model. Products chosen to be a part of the decision tree were pillows and duvets/covers. For most people this may sound like an easy product to choose, but studies made within SIIR contradict this opinion, showing that these kind of products are perceived as very difficult to decide upon. You need to know how your pillow must be in terms of filling, material, size etc. You also need to know how warm your cover should be compared to how you sleep at night and how the temperature is in your bedroom among other things. The IT-pilot was programmed into a touch-screen based self-service computer station, and the layout was made according to the retailer’s format and colour.

The overall design of the field study was a structured three day in-store experiment with a touch-screen based self-service device aiming for three groups of respondents. These were 1) loyalty card members 2) voluntary participants in the SIIR survey registry and 3) Walk-in customers. The respondent were either assigned to the SST-based IT-pilot, or the sales clerk, to simulate a purchase in a real retail environment. When the respondents had selected and located the chosen merchandise the mock purchase was interrupted, and the structured interviews were conducted.

The IT-pilot was a computer with touch screen, where a software prototype of a SST-program was installed. The customers made choices on the screen and the software gave them appropriate recommendations based on a hierarchy of choices the customer made on the touch screen. The IT-pilot was placed centered on a wall, by duvets and pillows. When the customer had gotten a recommendation from the IT-pilot they searched for the item of preference in the store, without help from sales personnel. The simulated purchase was concluded and the respondents were asked questions from a questionnaire with different design depending on whether the respondent had experienced a SST-encounter or a sales clerk encounter. Two research assistants, collecting the data and reporting it to the researchers in the study, performed the questionnaires. The research design was experimental in the sense that the respondent never actually performed a real purchase; they were invited and asked to participate in a fictional purchase, going through the different phases in the purchasing process. Total sample in the experiment was 78 customers contributing to the data set.

Results

The average respondent in the study was a woman 47.1 years-old. Two respondents were male, thus reflecting the age and sex of the store’s targeted segment. Most respondents were relatively frequent visitors to the retail chain. 75.6 of the population visit a store one to two times every month, indicating an interest in the category. Less than 4% were highly infrequent visitors. Some used the internet regularly, but mobile platforms were seldom used, indicating a low internet maturity in the population.

When asked how they perceived the importance of personal service, a majority of the respondents claimed it was high. However, the willingness to pay for better service was low. The self-stated computer literacy was high but their experience and willingness to use the internet retail options was low. The respondents were reluctant to try the SST-device, or at least hesitating, however, when educated they wanted to test the service. When asked which service was the best, the sales clerk or the SST, they preferred pre-purchase information sources such as employee encounters, and signs (including hang tags).

The expected service level at the fixed store setting was high or very high before the experiments were carried out. Both the sales clerk and the SST, proving that both SST and sales personal delivered customer perceived value, fulfilled these expectations. The service experience, information quality and the match with preference were very good with the sales clerk. The SST received a somewhat lower rating compared to the personal encounter. The likelihood that the subject would actually purchase the product was slightly higher for the respondents who received service from sales personnel.

Even if the recommended product is a good match for the customers’ preferences, we cannot conclude that there will be a purchase to finalize the sale. The product may not be important enough, or it can be difficult to find in the store. The product category in our experiment was considered very important by both the group serviced by the sales clerk and the SST group. However, those serviced by the sales clerk stated it was easier to locate the shelf where the recommended item was located, and to locate it n the shelf, than the group serviced by

Discussion and Conclusions

The study shows that customers perceive the SST as both simple and logical with a good layout and as a good basis for decision making. This is in line with previous research that suggests that customers can perceive an added value if SST is present in-store. Given the results it is also indicated that acceptance for SST such as the IT-pilot in this case is dependent upon both outcome and expectations. Customers in this study, who are customers of the home textile company that was the setting require high service but are not willing to pay for the higher service level. Their focus is on value for them personally as customers (i.e. price and service related to price), more than the ultimate shopping experience. It was also revealed that the SST-based IT-pilot used in this study was best utilized when used in combination with personal selling and was most appreciated when the store was very busy. This indicating that consumers appreciate having the option of customizing their own service experience given the variables of time, access to sales personnel and readiness and willingness to use SST devices. Further research should view the combination of SST and personal service in order to view consumer choice of medium for service encounters, particularly when purchasing so called complex products. Methodologically further research should view the results when a SST device is placed in-store and respondents are not invited to an experiment but interview after having used the device uninitiated by researchers.

References

Bettencourt, Lance and Kevin Gwinner (1996), “Customization of the Service Experience:

The Role of the Frontline Employee,” International Journal in Services Industry Management, 7 (2), 2–20.

Bitner, MJ. and Mary Stanfield Tetreault (1990), “The Service Encounter: Diagnosing

Favorable and Unfavorable Incidents,” Journal of Marketing, 54 (January), 71–84.

Bitner M.J., Brown S.W., Meuter M.L., (2000) Technology Infusion in Service Encounters,

Journal of the Academy of Marketing Science, vol. 28, n. 1, pp. 138-149.

Bitner M.J., Ostrom A.L., Meuter M.L., (2002) Implementing Successful Self-Service

Technologies, Academy of Management Executive, vol. 16, n. 4, 2002, pp. 96-109.

Dabholkar P.A., (2003) Understanding Consumer Motivation and Behavior Related to Self-

Scanning in Retail, International Journal of Service Industry Management, vol. 14, n. 1, pp. 59-95.

Demirkan, H., Spohrer, J. (2014) Developing a framework to improve virtual shopping in

digital malls with intelligent self-service systems, Journal of Retailing and Consumer Services, Volume 21, Issue 5, pp. 860-868.

Giebelhausen, Michael, Stacey G. Robinson, Nancy J. Sirianni, and Michael K. Brady (2014)

Touch Versus Tech: When Technology Functions as a Barrier or a Benefit to Service Encounters. Journal of Marketing: July 2014, Vol. 78, No. 4, pp. 113-124.

Meuter, Matthew L., Amy L. Ostrom, Robert I. Roundtree, Mary Jo Bitner (2000) Self-

Services Technologies: Understanding Customer Satisfaction with Technology-Based Service Encounters. Journal of Marketing: July, Vol. 64, No. 3, pp. 50-64.

Dahlberg et al. (2008:165) in their paper proposed a definition for mobile payments as "payments for goods, services, and bills with a mobile device by taking advantage of wireless and other communication technologies", this in order to clarify the concept of mobile payments in particular, that had been subject to different interpretations. In this paper mobile payments are not specifically distinguished from other types of payments that occur online.

After Dahlberg et als review (2008) several other literature reviews about mobile payments have been written. Such as Slade et al. (2013), de Albuquerque et al. (2014) and Dennehy and Sammon (2015) but the literature on relationships between payment provider and customer in an online context is quite scares.

Asymmetrical relationships have been identified in the context of online payment solutions. Providers are turning more to service and debating how to offer better service and how to keep the customer as a customer for longer and how the customer can benefit more from the payment provider. The question of when a customer is converted into an actual customer arises. Some claiming it is when the transaction is completed, others that it is long after payment has been made. In light of this it is hard to see how the role online payment providers can expand but also how it will change when moving into a cashless society. The aim of this paper is to view online payment solutions in light of the relationships payment providers wish to establish and strengthen with their customer.

Data has been generated through two focus groups, an online questionnaire and individual interviews. The in depth focus groups (2 with 5 participants in each) were analyzed and key areas were identified and a questionnaire was developed and distributed to customers of a provider of payment solutions (394 responses were gathered). After the questionnaire was analyzed and conclusions drawn, areas that needed to be further explored in-depth were identified. These areas were further explored through individual interviews. The methodology is characterized by using both qualitative and quantitative approaches to generate data.

The results of the empirical material shows a desire, on the part of the provider of the payment solution to prolong the relationship but also that the customer has no wish to have a relationship with the provider or in some cases, doesn’t even view the provider as a partner/brand/etc. but merely as a means to and end or a facilitator of receiving a good or a service.

This study is a comprehensive empirical framework on customer insight into online payments and issues connected to purchase as well as payment and potential relationships with payment solutions providers.

References

Dahlberg, T., Mallat, N., Ondrus, J., Zmijewska, A., 2008b. Past, present and future of mobile payments research: {A} literature review. Electronic Commerce Research and Applications 7 (2), 165–181.

de Albuquerque, J. P., Diniz, E. H., Cernev, A. K., 2014. Mobile payments: A scoping study of the literature and issues for future research. Information Development, 1–27.

Dennehy, D., Sammon, D., 2015. Trends in mobile payments research: A literature review. Journal of Innovation Management 3 (1), 49–61.

Slade, E. L., Williams, M. D., Dwivedi, Y. K., 2013. Mobile payment adoption: Classification and review of the extant literature. The Marketing Review 13 (2), 167–190

Detta White Paper är en del av Collectors White Paper Series. Innehållet är resultatet av ett forskningsarbete mellan Collector Bank och Swedish Institute for Innovation Retailing vid Högskolan i Borås. Syftet är att förmedla kunskap till en bredare publik när det gäller handelns digitalisering och konsumentinsikt. Handeln i Sverige står inför stora utmaningar och det är med all sannolikhet inte ”hotet från e-handeln” som är skälet. Snarare är det kunskaper från bland annat e-handelskanalen som kan bidra till en snabbare omställning av hela handelssektorn och därmed en ökad konkurrensförmåga. Det är därför mycket medvetet som vi denna White Paper Series inte kommer att betrakta e-handel och detaljhandel som två motstridigheter. Vår utgångspunkt är att e-handel och detaljhandel är handel och bör betraktas ur ett konsumentperspektiv. Konsumenter lägger nämligen ingen energi på att hålla isär olika försäljningskanaler. De vill lösa sina problem. De handlar där det passar bäst just här och nu. Vi menar att det som är relevant att förstå och söka kunskap om är de konsekvenser som en digitaliserad handel kommer att medföra. Vi menar också att konsumentinsikt är en relevant ingrediens för att nå förståelse. Det är via konsumentinsikt som många frågor kan få svar. Det är via konsumentinsikt som företag kan omprioritera, utveckla bättre erbjudanden och öka sin konkurrenskraft. Samarbetet mellan Collector och SIIR innebär också att forskare gör en särskild studie om svenska konsumenters köp- och betalningserfarenheter där syftet är att förstå vad konsumenter värdesätter i köpprocessen och utifrån de resultaten, föreslå nya erbjudanden och tjänster som kan öka det upplevda värdet av ett köp. Denna studie presenteras i valda delar i denna White Paper Series. Vi hoppas att du som läsare följer med oss på en spännande kunskapsresa där vi nu presenterar White Paper Series 2 med rubriken ”Konsumentens betalresa – vad händer när man klickat på köpknappen?”

Mikael Anstrin 

Head of Retail 

Collector Bank 

Malin Sundström

Föreståndare

Swedish Institute for Innovative Retailing

Dahlberg et al. (2008:165) in their paper proposed a definition for mobile payments as "payments for goods, services, and bills with a mobile device by taking advantage of wireless and other communication technologies", this in order to clarify the concept of mobile payments in particular, that had been subject to different interpretations. In this paper mobile payments are not specifically distinguished from other types of payments that occur online. After Dahlberg et als review (2008) several other literature reviews about mobile payments have been written. Such as Slade et al. (2013), de Albuquerque et al. (2014) and Dennehy and Sammon (2015) but the literature on relationships between payment provider and customer in an online context is quite scares.

Asymmetrical relationships have been identified in the context of online payment solutions. Providers are turning more to service and debating how to offer better service and how to keep the customer as a customer for longer and how the customer can benefit more from the payment provider. The question of when a customer is converted into an actual customer arises. Some claiming it is when the transaction is completed, others that it is long after payment has been made. In light of this it is hard to see how the role online payment providers can expand but also how it will change when moving into a cashless society. The aim of this paper is to view online payment solutions in light of the relationships payment providers wish to establish and strengthen with their customer.

Data has been generated through two focus groups and an online questionnaire.The in depth focus groups (2 with 5 participants in each) were analyzed and key areas were identified and a questionnaire was developed and distributed to customers of a provider of payment solutions (394 responses were gathered). After the questionnaire was analyzed and conclusions drawn, areas that needed to be further explored in-depth were identified. The methodology is characterized by using both qualitative and quantitative approaches to generate data.

The results of the empirical material shows a desire, on the part of the provider of the payment solution to prolong the relationship but also that the customer has no wish to have a relationship with the provider or in some cases, doesn’t even view the provider as a partner/brand/etc. but merely as a means to and end or a facilitator of receiving a good or a service.

This study is a comprehensive empirical framework on customer insight into online payments and issues connected to purchase as well as payment and potential relationships with payment solutions providers.

References

Dahlberg, T., Mallat, N., Ondrus, J., Zmijewska, A., 2008b. Past, present and future of mobile payments research: {A} literature review. Electronic Commerce Research and Applications 7 (2), 165–181.

de Albuquerque, J. P., Diniz, E. H., Cernev, A. K., 2014. Mobile payments: A scoping study of the literature and issues for future research. Information Development, 1–27.

Dennehy, D., Sammon, D., 2015. Trends in mobile payments research: A literature review.

Journal of Innovation Management 3 (1), 49–61.

Slade, E. L., Williams, M. D., Dwivedi, Y. K., 2013. Mobile payment adoption: Classification and review of the extant literature. The Marketing Review 13 (2), 167–190.

special session Information

We are witnessing the beginning of a seismic shift in retail due to digitalization. However, what is meant by digitalization is less clear. Sometimes it is understood as means for automatization and sometimes it is regarded as equal to e-commerce. Sometimes digitalization is considered being both automatization and e-commerce trough new technology. In recent years there has been an increase in Internet and mobile devise usage within the retail sector and e-commerce is growing, encompassing both large and small retailers. Digital tools such as, new applications are developing rapidly in order to search for information about products based on price, health, environmental and ethical considerations, and also to facilitate payments. Also the fixed store settings are changing due to digitalization and at an overall level; digitalization will lead to existing business models being reviewed, challenged and ultimately changed. More specifically, digitalization has consequences for all parts of the physical stores including customer interface, knowledge creation, sustainability performance and logistics. As with all major shifts, digitalization comprises both opportunities and challenges for retail firms and employees, and these needs to be empirically studied and systematically analysed. The Swedish Institute for Innovative Retailing at University of Borås is a research centre with the aim of identifying and analysing emerging trends that digitalization brings for the retail industry.

In a transforming retail sector, digitization has boosted innovation and new self-service technologies within stores all over the world. However, innovations within retailing are seldom successful if they are not built on true consumer value. This paper investigates consumer attitudes toward using mobile devices in a retail setting, with specific focus on QR-codes and how they might deliver customer value. The data consists of 150 in-store surveys conducted at two different Swedish retailers. The results of the empirical material show significant differences between age groups with regard to how they value QR-codes but also indicates what would make consumers actually use one. While the consumer group of 40-years old and upward stated they would pick up their mobile phone and scan the QR-code if given a discount, the younger group (up to 40 years old) did not place value on a discount but would scan a QR-code if there was entertainment value in doing so. Except for these differences, the material also reveals low consumer knowledge of QR-codes and that the actual use of them is low. These results, in light of the increased attention from retailers in using mobile devices to communicate with consumers, as well as investment in other digital aids to increase profits, show discrepancies in the perceived value of digital aids on the part of the retailer and the value experienced by the consumer. It is of outmost importance, therefore, to remember consumer value when managing innovations within the retail context.

In a transforming retail sector digitization has boosted innovation and new self-service technologies within stores all over the world. However, innovations within retailing are seldom successful if they are not built on true consumer value. This paper investigates consumer attitudes toward using mobile devices in a retail setting, with specific focus on QR-codes and how they might deliver customer value. The data consists of 150 in-store surveys conducted at two different Swedish retailers. The results of the empirical material show significant differences between age groups with regard to how they value QR-codes but also what would make them actually use one. While the consumer group of 40-years old and upward expressed that they would pick up their mobile phone and scan the QR-code given a discount, the younger group (up to 40 years old) did not value a discount but would scan a QR-code if there was entertainment value in doing so. Except from these differences the material also reveals low consumer knowledge of QR-codes and that the actual use of them is also low. These results, in light of, the increased attention from retailers in using mobile devices for communicating with consumers, as well as investing in other digital aids in order to increase profits, show discrepancies in perceived value of digital aids on the part of the retailer and the value experienced by the consumer. It is of outmost importance not to forget consumer value when managing innovations within the retail context.