SHOPPING EXPERIENCE AND OMNICHANNEL STRATEGY: A STUDY OF CONSUMER SHOPPING BEHAVIORS IN RELATION TO THE OMNICHANNEL SUPPLY CHAIN STRUCTURE
Open Access
- Author:
- Czerwinski, Chelsea Amanda
- Area of Honors:
- Project and Supply Chain Management
- Degree:
- Bachelor of Science
- Document Type:
- Thesis
- Thesis Supervisors:
- Dr. Ozgun Caliskan Demirag, Thesis Supervisor
Dr. Michael Edward Brown, Thesis Honors Advisor - Keywords:
- Omnichannel stratgey
generational consumer shopping behaviors
supply chain structures - Abstract:
- As technology continues to advance, consumers are increasingly demanding to communicate and transact with corporations in more efficient and convenient ways during their shopping. This has led the companies in various industries to develop and offer sophisticated distribution strategies. The omnichannel supply chain structure is one example where corporations strive to offer a seamless shopping experience to customers across multiple retail channels. Since its introduction, the omnichannel supply chain structure has continued to evolve and enhance the consumer shopping experience by improving the consistency and convenience across retail channels. This has been possible primarily due to the advances in technology and demands from the customers. However, implementing the omnichannel structure requires a large investment and high workforce flexibility in order to operate effectively. In some cases, the costs might not be justified; therefore, it is important for the companies to understand whether an omnichannel retail strategy would be a profitable investment for their specific business. This research aims to provide insights for the companies to assist in their omnichannel retail strategy implementation. Research questions posed in this project are focused on consumers’ shopping behavior characteristics in relation to the omnichannel distribution strategy. In what specific retail sector are the customers demanding the capabilities of the omnichannel structure? Would the size of a corporation make an impact on the consumers’ expectations of omnichannel capabilities? What kind of path does the average customer take when transacting with a corporation and what omnichannel service and capabilities are deemed most important by the shoppers? This exploratory research attempts to explain and answer these questions from the results obtained from a consumer shopping behavior survey that was created and distributed to students at Penn State Behrend for the purpose of this research. The survey results have shown that consumers rely on multiple retail channels throughout their purchase making decision process; however most of the consumers tend to make their final purchase in-store or online. In particular, an overwhelming majority of the consumers who participated in this research claimed that they prefer to make their transactions in-store, but due to limited financial abilities these consumers are willing to use other channels if they can save money. The survey results have also revealed that consumers are more demanding of the omnichannel services from corporations, especially those that operate national retail chains. These services include being able to transact across multiple channels and having the flexibility in making returns and in order fulfillment. All of these expectations require data to be transparent across the various retail channels and necessitate reconfigurations in the supply chain structure. Given the large investments needed to both implement and operate an omnichannel structure, this research has focused on trying to gain a deeper understanding of consumers’ needs, expectations, preferences, shopping paths, next steps after finding a product of interest, and the consumer’s price sensitivity. The results and discussions shed light on the importance of the omnichannel retail strategy for corporations to meet customer needs in some industries.