Understanding the Showrooming Phenomenon

Table of contents

1 Introduction

2 Theoretical background of showrooming

2.1 Shopping trends and behaviors related to showrooming

2.1.1 Multi-channel shopping

2.1.2 Research shopping

2.1.3 Free riding

2.2 Findings about showrooming

3 Factors influencing showrooming

3.1 Literature review

3.2 Channel attributes

3.2.1 Enjoyment

3.2.2 Assortment

3.2.3 Purchase convenience

3.2.4 Service

3.2.5 After-sales service

3.2.6 Price

3.2.7 Risk

3.3 Customer characteristics

3.3.1 Attitude towards shopping

3.3.2 Internet experience

3.3.3 Price-consciousness

3.3.4 Attitudes towards free riding

3.3.5 Retailer loyalty

3.4 Conceptual framework

4 Empirical study

4.1 Study design

4.2 Operationalization of variables

4.3 Sample

4.4 Reliability of construct

4.5 Logistic regression

5 Results

5.1 Testing of hypotheses

5.2 Additional analyzes

6 Conclusion

6.1 Summary of findings

6.2 Implications for retailers

6.2.1 Channel attributes

6.2.2 Customer characteristics

6.3 Limitations and future research

Objectives and Topics

This master's thesis aims to investigate the showrooming phenomenon by identifying the channel attributes that encourage or discourage this behavior, and by analyzing how customer characteristics distinguish showrooming consumers from those who complete their purchases within a single channel.

• Impact of channel attributes on the likelihood of showrooming.
• Analysis of customer characteristics influencing showrooming behavior.
• Empirical comparison of showroomers versus non-showroomers.
• Strategic implications for physical retail stores to mitigate showrooming.
• Application of binary logistic regression to evaluate consumer behavior.

Excerpt from the book

Summary of chapters

1 Introduction: Introduces the showrooming phenomenon as a significant challenge for traditional retailers and outlines the research questions and structure of the thesis.

2 Theoretical background of showrooming: Provides an overview of relevant shopping trends, such as multi-channel shopping and research shopping, to establish a foundation for understanding showrooming.

3 Factors influencing showrooming: Details the literature review, hypothesis development, and conceptual framework focusing on channel attributes and customer characteristics.

4 Empirical study: Describes the methodology, including the online questionnaire design, sample selection, and the use of logistic regression for data analysis.

5 Results: Presents the findings from the empirical study, evaluates the hypotheses, and analyzes the significant variables impacting showrooming likelihood.

6 Conclusion: Summarizes the key findings, provides strategic implications for retailers to address showrooming, and acknowledges study limitations alongside future research opportunities.

Keywords

Showrooming, Multi-channel shopping, Research shopping, Free riding, Channel attributes, Retailer loyalty, Consumer behavior, Logistic regression, Online shopping, Physical retail, Customer characteristics, Purchase decision, Price-consciousness, Service quality, Shopping enjoyment

Frequently Asked Questions

What is the core subject of this master's thesis?

The thesis explores the "showrooming" phenomenon, where consumers collect information in a physical store but complete the actual purchase online, and investigates the underlying drivers for this behavior.

What are the central thematic areas?

The work focuses on the intersection of consumer behavior, multi-channel retailing, and the impact of specific channel attributes like price, service, and convenience on the purchase decision.

What is the primary research goal?

The goal is to determine which channel attributes encourage or discourage showrooming and to identify how specific customer characteristics differentiate showroomers from non-showroomers.

Which scientific methodology is applied?

The author conducted an empirical study using an online questionnaire with 334 respondents and utilized a binary logistic regression model to analyze the influence of 12 independent variables.

What does the main part of the paper cover?

The main part encompasses a theoretical foundation, an analysis of factors influencing the phenomenon (literature review), the design and execution of an empirical study, and the statistical evaluation of the results.

Which keywords characterize this work?

The work is characterized by terms such as showrooming, multi-channel shopping, free riding, retailer loyalty, consumer behavior, and retail strategy.

How do showroomers differ regarding their attitude towards free riding?

The study found that consumers with a more positive attitude toward free riding—feeling less guilty about utilizing retail services without purchasing in-store—are significantly more likely to engage in showrooming.

What is the impact of retailer loyalty on showrooming?

Retailer loyalty has a significant negative impact; consumers who are loyal to a specific physical retailer are much less likely to showroom, as they prefer to complete their purchases within the same channel.

Does price-consciousness significantly affect showrooming?

Surprisingly, the study revealed that price-consciousness did not significantly differentiate showroomers from non-showroomers in this specific sample, as both groups were found to be highly price-conscious.

Why are physical retail stores particularly vulnerable to showrooming?

Physical stores are vulnerable because they incur high operational costs for providing services like personal assistance and product trials, which showroomers use without compensating the retailer through a purchase.