IDEAS home Printed from https://ideas.repec.org/a/eee/joinma/v38y2017icp29-43.html
   My bibliography  Save this article

The Showrooming Phenomenon: It's More than Just About Price

Author

Listed:
  • Gensler, Sonja
  • Neslin, Scott A.
  • Verhoef, Peter C.

Abstract

This paper examines the factors that influence competitive showrooming, whereby consumers visit an offline retail store to gather information but make their purchase online at a competing retailer. We survey 556 respondents to study how the benefits and costs of showrooming influence the consumer's decision to showroom. Not surprisingly, we find that expected average price savings from showrooming are positively associated with showrooming. In addition, however, the perceived dispersion in online prices is also positively related to showrooming. Moreover, we find that non-price factors play a key role in consumers' showrooming decisions: perceived gains in the quality of the product purchased when showrooming (measured as the fit with a consumer's need) and waiting time for service in the brick-and-mortar store are positively associated with showrooming. Online search costs are negatively related to showrooming. Time pressure that consumers face when shopping is negatively associated with their propensity to showroom. We discuss implications for researchers and retail managers. For example, managers of offline retail stores can curtail showrooming by increasing the number of sales personnel available in-store instead of providing currently employed personnel with more training. To encourage showrooming, managers of online retailers should make it easier for the customer to search online.

Suggested Citation

  • Gensler, Sonja & Neslin, Scott A. & Verhoef, Peter C., 2017. "The Showrooming Phenomenon: It's More than Just About Price," Journal of Interactive Marketing, Elsevier, vol. 38(C), pages 29-43.
    • Handle: RePEc:eee:joinma:v:38:y:2017:i:c:p:29-43
    DOI: 10.1016/j.intmar.2017.01.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1094996817300142
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.intmar.2017.01.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dmitri Kuksov & Yuanfang Lin, 2010. "Information Provision in a Vertically Differentiated Competitive Marketplace," Marketing Science, INFORMS, vol. 29(1), pages 122-138, 01-02.
    2. Rapp, Adam & Baker, Thomas L. & Bachrach, Daniel G. & Ogilvie, Jessica & Beitelspacher, Lauren Skinner, 2015. "Perceived customer showrooming behavior and the effect on retail salesperson self-efficacy and performance," Journal of Retailing, Elsevier, vol. 91(2), pages 358-369.
    3. Heitz-Spahn, Sandrine, 2013. "Cross-channel free-riding consumer behavior in a multichannel environment: An investigation of shopping motives, sociodemographics and product categories," Journal of Retailing and Consumer Services, Elsevier, vol. 20(6), pages 570-578.
    4. Verhoef, Peter C. & Kannan, P.K. & Inman, J. Jeffrey, 2015. "From Multi-Channel Retailing to Omni-Channel Retailing," Journal of Retailing, Elsevier, vol. 91(2), pages 174-181.
    5. Sandrine Heitz-Spahn, 2013. "Cross-channel free-riding consumer behavior in a multichannel environment: An investigation of shopping motives, sociodemographics and product categories," Post-Print hal-01369291, HAL.
    6. repec:cup:judgdm:v:3:y:2008:i::p:87-99 is not listed on IDEAS
    7. Pradeep K. Chintagunta & Junhong Chu & Javier Cebollada, 2012. "Quantifying Transaction Costs in Online/Off-line Grocery Channel Choice," Marketing Science, INFORMS, vol. 31(1), pages 96-114, January.
    8. Kopalle, Praveen K. & Lehmann, Donald R., 1997. "Alpha Inflation? The Impact of Eliminating Scale Items on Cronbach's Alpha," Organizational Behavior and Human Decision Processes, Elsevier, vol. 70(3), pages 189-197, June.
    9. Brucks, Merrie, 1985. "The Effects of Product Class Knowledge on Information Search Behavior," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 12(1), pages 1-16, June.
    10. repec:bla:jindec:v:49:y:2001:i:4:p:541-58 is not listed on IDEAS
    11. Dazhong Wu & Gautam Ray & Xianjun Geng & Andrew Whinston, 2004. "Implications of Reduced Search Cost and Free Riding in E-Commerce," Marketing Science, INFORMS, vol. 23(2), pages 255-262, November.
    12. Srinivasan, Narasimhan & Ratchford, Brian T, 1991. "An Empirical Test of a Model of External Search for Automobiles," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 18(2), pages 233-242, September.
    13. Weitzman, Martin L, 1979. "Optimal Search for the Best Alternative," Econometrica, Econometric Society, vol. 47(3), pages 641-654, May.
    14. Michael D. Smith & Erik Brynjolfsson, 2001. "Consumer Decision-making at an Internet Shopbot: Brand Still Matters," NBER Chapters, in: E-commerce, pages 541-558, National Bureau of Economic Research, Inc.
    15. Fernando Branco & Monic Sun & J. Miguel Villas-Boas, 2012. "Optimal Search for Product Information," Management Science, INFORMS, vol. 58(11), pages 2037-2056, November.
    16. Moorthy, Sridhar & Ratchford, Brian T & Talukdar, Debabrata, 1997. "Consumer Information Search Revisited: Theory and Empirical Analysis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 23(4), pages 263-277, March.
    17. Ulf Böckenholt & Donald Lehmann, 2015. "On the limits of research rigidity: the number of items in a scale," Marketing Letters, Springer, vol. 26(3), pages 257-260, September.
    18. Sandrine Heitz-Spahn, 2013. "Cross-channel free-riding consumer behavior in a multichannel environment: An investigation of shopping motives, sociodemographics and product categories," Post-Print hal-03010102, HAL.
    19. Konuş, Umut & Verhoef, Peter C. & Neslin, Scott A., 2008. "Multichannel Shopper Segments and Their Covariates," Journal of Retailing, Elsevier, vol. 84(4), pages 398-413.
    20. Joshua J. Clarkson & Chris Janiszewski & Melissa D. Cinelli, 2013. "The Desire for Consumption Knowledge," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 39(6), pages 1313-1329.
    21. Anantaram Balakrishnan & Shankar Sundaresan & Bo Zhang, 2014. "Browse-and-Switch: Retail-Online Competition under Value Uncertainty," Production and Operations Management, Production and Operations Management Society, vol. 23(7), pages 1129-1145, July.
    22. Sonja Gensler & Peter Verhoef & Martin Böhm, 2012. "Understanding consumers’ multichannel choices across the different stages of the buying process," Marketing Letters, Springer, vol. 23(4), pages 987-1003, December.
    23. Soumya Ray & Sung S. Kim & James G. Morris, 2012. "Research Note ---Online Users' Switching Costs: Their Nature and Formation," Information Systems Research, INFORMS, vol. 23(1), pages 197-213, March.
    24. Adam Duhachek & Anne T. Coughlan & Dawn Iacobucci, 2005. "Results on the Standard Error of the Coefficient Alpha Index of Reliability," Marketing Science, INFORMS, vol. 24(2), pages 294-301, July.
    25. Shankar, Venkatesh & Kleijnen, Mirella & Ramanathan, Suresh & Rizley, Ross & Holland, Steve & Morrissey, Shawn, 2016. "Mobile Shopper Marketing: Key Issues, Current Insights, and Future Research Avenues," Journal of Interactive Marketing, Elsevier, vol. 34(C), pages 37-48.
    26. Stahl, Dale O, II, 1989. "Oligopolistic Pricing with Sequential Consumer Search," American Economic Review, American Economic Association, vol. 79(4), pages 700-712, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Schneider, Patricia J. & Zielke, Stephan, 2020. "Searching offline and buying online – An analysis of showrooming forms and segments," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).
    2. Tueanrat, Yanika & Papagiannidis, Savvas & Alamanos, Eleftherios, 2021. "A conceptual framework of the antecedents of customer journey satisfaction in omnichannel retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    3. Flavián, Carlos & Gurrea, Raquel & Orús, Carlos, 2019. "Feeling Confident and Smart with Webrooming: Understanding the Consumer's Path to Satisfaction," Journal of Interactive Marketing, Elsevier, vol. 47(C), pages 1-15.
    4. Neslin, Scott A., 2022. "The omnichannel continuum: Integrating online and offline channels along the customer journey," Journal of Retailing, Elsevier, vol. 98(1), pages 111-132.
    5. Flavián, Carlos & Gurrea, Raquel & Orús, Carlos, 2020. "Combining channels to make smart purchases: The role of webrooming and showrooming," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).
    6. Kim, Jikyung (Jeanne) & Song, Hyeasinn & Choi, Jeonghye & Kim, Yongseob & Hong, Jeonghan, 2021. "Channel stickiness in the shopping journey for electronics: Evidence from China and South Korea," Journal of Business Research, Elsevier, vol. 130(C), pages 506-516.
    7. Li, Yanran & Li, Bo & Zheng, Wei & Chen, Xue, 2021. "Reveal or hide? Impact of demonstration on pricing decisions considering showrooming behavior," Omega, Elsevier, vol. 102(C).
    8. Sun, Shuzhen & Liu, Tieming, 2023. "Pricing and sales-effort coordination facing free riding behaviors between a brick-and-mortar retailer and a platform store owned by the manufacturer," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).
    9. Barwitz, Niklas & Maas, Peter, 2018. "Understanding the Omnichannel Customer Journey: Determinants of Interaction Choice," Journal of Interactive Marketing, Elsevier, vol. 43(C), pages 116-133.
    10. Viejo-Fernández, Nuria & Sanzo-Pérez, María José & Vázquez-Casielles, Rodolfo, 2020. "Is showrooming really so terrible? start understanding showroomers," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    11. Aw, Eugene Cheng-Xi, 2020. "Understanding consumers’ paths to webrooming: A complexity approach," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    12. Hult, G. Tomas M. & Sharma, Pratyush Nidhi & Morgeson, Forrest V. & Zhang, Yufei, 2019. "Antecedents and Consequences of Customer Satisfaction: Do They Differ Across Online and Offline Purchases?," Journal of Retailing, Elsevier, vol. 95(1), pages 10-23.
    13. Heitz-Spahn, Sandrine & Belaud, Lydie & Ferrandi, Jean-Marc, 2024. "A regulatory focus theory approach to understanding cross-channel free-riding behaviour," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    14. Zhuang, Hejun & Popkowski Leszczyc, Peter T.L. & Lin, Yuanfang, 2018. "Why is Price Dispersion Higher Online than Offline? The Impact of Retailer Type and Shopping Risk on Price Dispersion," Journal of Retailing, Elsevier, vol. 94(2), pages 136-153.
    15. Rezaei, Sajad, 2015. "Segmenting consumer decision-making styles (CDMS) toward marketing practice: A partial least squares (PLS) path modeling approach," Journal of Retailing and Consumer Services, Elsevier, vol. 22(C), pages 1-15.
    16. Maity, Moutusy & Dass, Mayukh & Malhotra, Naresh K., 2014. "The Antecedents and Moderators of Offline Information Search: A Meta-Analysis," Journal of Retailing, Elsevier, vol. 90(2), pages 233-254.
    17. Shakir Goraya, M. Awais & Zhu, Jing & Akram, Muhammad Shakaib & Shareef, Mahmud Akhter & Malik, Aneela & Bhatti, Zeeshan Ahmed, 2022. "The impact of channel integration on consumers’ channel preferences: Do showrooming and webrooming behaviors matter?," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    18. Kalayci, Eda & Becker, Jan U. & Barrot, Christian, 2024. "Understanding customers’ choice for digital D2C versus multi-brand operations," Journal of Retailing, Elsevier, vol. 100(2), pages 256-273.
    19. Herhausen, Dennis & Kleinlercher, Kristina & Verhoef, Peter C. & Emrich, Oliver & Rudolph, Thomas, 2019. "Loyalty Formation for Different Customer Journey Segments," Journal of Retailing, Elsevier, vol. 95(3), pages 9-29.
    20. Acquila-Natale, Emiliano & Iglesias-Pradas, Santiago, 2021. "A matter of value? Predicting channel preference and multichannel behaviors in retail," Technological Forecasting and Social Change, Elsevier, vol. 162(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joinma:v:38:y:2017:i:c:p:29-43. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-interactive-marketing/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.