Omni-Channel Shopper Analysis: Effect of Mobile Search, Belief Structure, and Salesperson Input on Shopper Purchase Intention in Retailing Market

Omni-Channel Shopper Analysis: Effect of Mobile Search, Belief Structure, and Salesperson Input on Shopper Purchase Intention in Retailing Market Nguyen Thi Hoang Mai Ho Nhut Quang Ng

Omni-Channel Shopper Analysis: Effect of Mobile Search, Belief Structure, and Salesperson Input on Shopper Purchase Intention in

Retailing Market Nguyen Thi Hoang Mai

Ho Nhut Quang Nguyen Tan Minh

International University, Vietnam National University HCMC, Vietnam

Abstract

It is undeniable that shoppers these days are more empowered, demanding, interactive, collaborative, and diverse which all thanks to the globalization and internet of thing development Therefore, retailing market is

in stronger competition than ever To deeply understand the shoppers who access full of different channels before purchase decision (omni channel shoppers), this research aims to explore what determinants influence the shoppers purchase intention by proposing the conceptual framework and quantify the degree of these affects by applying Statistical Package for the Social Science (SPSS) software and analyzing the data through Confirmatory Factor Analysis (CFA) as well as Structural Equation Modelling (SEM)

After analyzing the data sample from 466 omni channel shoppers in Ho Chi Minh city, shoppers purchase intention is strongly and positively affected by Attitude, Subjective Norm, Mobile Search, and Predisposition

to Comply with Salesperson Input, meanwhile there are three components indirectly influencing purchase intention, comprising of Mobile Dependence, Predisposition to Comply with Mobile Divide Input, and Adaptive Selling

Therefore, retailers are suggested to utilize and broaden the product information both in online and offline, yet the important thing is how to gain the trust and reliable sensation from shoppers through salesperson adaptive selling and prestigious online information from social network or information accessibility in everywhere, every time, and everyplace that shoppers are able to search and look for

Keywords: Omni-channel Shopper, Mobile Search, Belief Structure, Salesperson Input, Shopper purchase

intention

1 Introduction

The global retailing market trends are composed by new technology adaptation, convenience format demand, booming of E-commerce, artificial intelligent & virtual reality and prospective omni-channel It is, hence understand that though shoppers are busier in daily life, still fully utilizing the remarkable development

of shopping means by various choices, more accessible at different channels Shoppers, additionally, have higher demands, empower more diversity of selections, obtain numerous knowledge, and always keep the dated movement

Verhoef et al (2015, p176) dedicates omni-channel retailing as “the synergetic management of the numerous available channels and customer touchpoints, in such a way that the customer experience across channels and the performance over channels is optimized” Indeed, omni-channel provides seamless experiences toward shoppers in different channels, yet, they are united structure and available accessibility Additionally, based on (Fairchild, 2014), omni-channel retailing combines traditional with e-commerce through the integration of business management, aiming to well serve customer demand, regardless of place

or time, and create a seamless shopping experience Undoubtedly, following to the technology development, things are integrated in portal devices, shopping is no exception Omni-channel allows shopper to collect information in one channel, experience products from other channel and even make purchasing decision in other retailing means

In order words, omni-channel customer experience occurs when customers can order or book in advance from one channel (eg online), pick up at brick and mortar shop, and return in another third channel (Solomon, 2005)

Each retailer, for detail, should get on well with the shoppers’ trend and their shopping wisdom in other

to win shopper in every channel where optimize the most approachable selling methods Besides, brick and mortar retail owners are competing with ecommerce platform, this paper will illustrate clearer reasons why brick and mortar retailers are better to unite with technology competencies, hence bring the outstanding outcomes “Online and physical stores are complementary, not rivals They must unite together to increase turnover which is the key to a successful Omni-channel strategy.” By Philippe Humeau, CEO, NBS System (2014)

Aiming to explore which attributes influence the shopper purchase intention in the current retailing market, then analysis the relationship and correlation among these factors are two fundamental research purposes Retailers, therefore, are inevitably able to apply in their business and sales strategies to boost up the net profit

2 Literature Review and Hypothesis Development

Ajzen & Fishbein, 1980 suggest that attitude means a person feels of favorableness or unfavorableness toward the behavior People are willing to carry out the behavior in case they are belief in their evaluation of expected results, in other words, attitude is a function of perceived outcomes weighted by a judgement of the desirability consequences In this research context, shoppers are likely to buy one product, when they evaluate their behavior of purchasing which is good and will bring a beneficial result as their wishes

According to Shirley Taylor &Peter Todd, 1994, when a person has strong self confidence in their desirability results, they are likely to perform their behavior intention Also, customers whose perspective contains more trust toward firm, sales staff, or both (Doney and Cannon (1997), the trust obtains a positive and direct effect on consumer attitude in purchasing intention (Pavlou & Fygenson, 2006) Importantly, based

on Theory of Reasoned Action one’s attitude has been concluded to influence on behavior performance (Ajzen

& Fishbein, 1980) Therefore, leading to the first hypothesis,

H1: A consumer’s high self-evaluation in purchasing outcomes is positively related to their purchase intention

A person is affected or perceived by social pressure (Ajzen & Fishbein, 1980), especially, by who is considered important In order words, people tend to implement the behavior if they belief in particular references which are weighted by the encouragement to perform with these recommendations Following with the study about omni-channel shopper, shoppers are inclined to purchase goods or not which likely depends

on their trust on related references, others’ acts, and social influence

A consumer’s personal community tends to apply social pressure in other to make decision in purchase (Young&Kent, 1985) Additionally, from Engels at Al (2001) shows that shoppers who get or receive advice

from friends or parents to buy one product are likely to purchase following the advices comparing to one who has no information or suggestion (Conner et al., 2001) Hence, the second hypothesis,

H2: A consumer’s subjective norm from respectful references is positively related to their purchase intention

Perceived behavior control reveals one’s belief in relation to access to capabilities or resources and opportunities needed to execute the behaviors It includes two main components (Ajzen, 1991; Taylor & Todd, 1995)

The first mentioned component is availability facilitation comprising of time, money, location, and so on Omni-shopper, specifically, are likely to purchase if the surrounding conditions are convenient and advantageous to shoppers’ perception in that case

The second component is the focal person’s self-confidence in the competence to control and conduct the behavior For instance, one person will be more determined to drive a car, unless he is doubt about the driving difficulty In sales situation, shoppers will have more belief and confidence to purchase their desirability products when they believe in self-efficacy to easily use or operate these goods

Following Ajzen, 1991, 2002, controlling perception is able to motive action when shoppers have enough time, money, information, etc also their self-confidence in carry out the purchasing behavior It is an apparent fact that consumers have more perceived behavior control which is observed linked with multi/omni channel consumers purchase decision (Rippé at al., 2015; Rippé, Weisfeld-Spolter, Yurova, Hale, &Sussan, 2016) The third testing hypothesis,

H3: A consumer’s perceived behavior control in their facilitation and self-efficacy is positively related to their purchase intention

These days, retail industry have been empowered by consumer’s technology usage, especially, Mobile-Commerce (M-commerce) Following Balasubramanian, Peterson, & Javenppa, 2002, M-commerce allows interaction and communication between people and smart devices Mobile device input, literally, is informational provider, yet, it also a clever device which suggest a number of helpful recommendation from social network or connected integration

Predisposition to comply with mobile input play an important role in shoppers’ purchase intention It represents how strong an individual tends to consider and apply the information from mobile devices, hence influencing shopper’s buying decision Or simply understand mobile device input as social recommendation assist shoppers in gaining information, price, place, delivery, quality, and so on

According to Hubert at al.,2017; Rippé at el., 2015, using mobile technology to stronger engage customers during searching effort is a potential opportunity for retailers Aiming to search more efficient in mobile devices, application usage has been proved to influence on purchase behavior (Kowatsch&Maass,2010) The more shoppers are willing to make use of technology, the more searching information they know Kim, Wang, and Malthouse (2015) found that the number of interactive app functional features, the higher purchase intention spending rate, following by,

H4: A consumer’s predisposition to comply with device input is positively related to mobile search

Following Jun&Park (2016), search using a mobile device is rising significantly and continuingly, Bachrach, Ogilvie, Rapp, & Calamusa, 2016 show that consumers are replacing traditional searches from magazine, newspaper, guidebooks, etc with smart phone optimized searching Some consumers prefer to search deals, compare prices, and probe the previous reviews in advances, before visiting a retail shop (Gundlach, Manning,

& Cannon, 2011)

Thanks to high technology application, smart phone is more and more playing a key role in people lives With an appeal platform, user feels easy to search for needed information everywhere, every time and with a low cost of searching, shoppers have more reasons to choose mobile as their shopping assistant who is fast, durable, various information, and even can connected socially

Increasingly, consumers rely more on their mobile devices (Shoham & Pesämaa, 2013) It is thought that mobile devices allow omni-channel shoppers to interact and personalize the product information in

high-speed, various knowledge sources, and accessibility in everywhere, every time “Mobile optimized and search engine friendly retail sites are likely to accelerate search and discovery” from Shankar at al (2016, p.41) Based

on that, the hypothesis is built,

H5: A consumer’s mobile dependence is positively related to mobile search

Purchase intention is defined by Shabbir, M S., Kirmani, S., Iqbal, J., & Khan, B.2009 that purchase intention

is an individual’s consciousness to make an effort to buy a brand While Park,J.2002 defines purchase intention

is “what we think we will buy” Another researcher explains purchase intention as an acting decision or psychology process showing person’s behavior based on purchased products (X.Wang &Yang, 2008)

Shopper may be the one who will use the product, or they may simply just purchase for the other’s usage Shoppers decide to buy something when their intention towards the purchasing behavior or when their action inclines desirably to owning products for satisfying their using purposes

As discuss above, consumers search online information for comparing price/product/place/promotion/etc, checking previous reviews, and so on which is searching around, yet in one place and in one mobile device Thanks to a great number of convenient function on mobile search, customers are likely to rely more on searching in advance by their smart devices, then they are able to easily make purchasing decision instore Next, hypothesis is,

H6: A consumer’s mobile search is positively related to their purchase intention

Weitz, Sujan, & Sujan, 1986, p.175 define adaptive selling as “altering of sales behavior during a customer interaction or across customer interactions based on perceived information about the nature of the selling situation Selling methods should be adjusted in real time toward shoppers’ purchasing process in other to satisfy shoppers’ expectation as well as retail stores

A scholar demonstrates that consumer satisfaction is higher when retail salespersons adapt their behavior

or selling techniques to shopper’s reference for interaction or further relationship (Olsen & Skallerud, 2011)

In addition, Yurova, Pippé, Weisfeld-Spolter, Sussan, and Arndt (2016) figured out that interactive adaptive selling performance comprises of adjusting selling skills, solutions, appearance, presentations which are influencing omni-channel shopper

How flexible and modifying in selling method in retail store are likely to affect on shoppers’ purchasing behaviors, in deed, customers are easier to discuss on their desirability or demand with the understanding or professional employees since it is believed that good interaction and conversation lean on effective influences Adaptive selling efforts perhaps show the tempt of salesperson inputs which is positively considered by customers that they receive a good recommendation and value- added through product by in person interaction Rippé, 2015 concluded that retail salesperson can apply adaptive selling in their selling methods

in other to boost up omnichannel shoppers’ feeling of perceived behavior control Therefore,

H7: A salesperson’s use of adaptive selling is positively related to a consumer’s predisposition to comply with salesperson input

Salesperson input or predisposition to comply with salesperson input is consumer’s tendency to rely on salesperson’s consult during the buying process or shopping journey Based on Goff & Jackson (2003), the more consumer recognizes the salesperson has high customer-oriented while less salesperson-oriented In order way to explain the idea, shoppers are easily influenced by the salesman only if he puts himself as a customer and give helpful advices rather than simply want to sell products Additionally, salesperson input includes provided information, sharing skills, creating further relationship with shoppers

Besides, Sun et al (2009) expressed as much as consumer’s interdependence in self-construal which supports to explain their inclination toward salesperson effect on public self-consciousness

Experts’ power is strong when product information and salesperson knowledge are shown in-store and effectively approach to shoppers perceive (Harris&Spiro,1981) When customer is impressed by salesperson’s expertise and professional as well as positive performance, they are more likely to influenced and want to interact or develop relationship, hence shoppers are capable of receive trustworthy consultant The trust is set

up adding with salesperson’s expertise, credibility and relationship between shopper and salesperson can influence customer’s purchase intention in-store Thus, the final hypothesis is,

H8: A consumer’s predisposition to comply with salesperson is positively related to their purchasing intention

Figure 1: Conceptual Framework

3 Methodology

Conceptual Framework

The above model is proposed by collecting from secondary data and researching from the previous works Since combining a number of related papers through continual periods, research gap is found and modified

to add Attitude and Subjective Norm together with Perceived Behavior Control, then create Belief Structure which comply with Ajzen theory of planned behavior

Measurement Scale

The measurement scale used in this thesis covers by 7 - point Likert type scale since their reliability and consistency for the whole survey (Lietz, 2010), besides following by two main reasons Firstly, belief structure scale is based on Ajzen and Fishbein (1980) theory which used 7 – point Likert scale to obtain the truthful degree of opinion toward shoppers’ attitudes, subjective norm, and perceived behavior control Secondly, precedent paper comprising of original conceptual model tested the latent variables through 7 – point Likert scale

Strongly

disagree Disagree Somewhat disagree

Neither agree nor disagree

Somewhat agree Agree Strongly agree

Data Collection

Within 50 correspondents participated in the pilot test to make sure the questionnaire comprehensive, coherence and understandable before delivering a large quantity of survey Applying snow-balling sample

H6(+)

H5(+) H4(+)

H3(+)

H2(+)

H1(+)

Purchase Intention

Mobile Search

Predisposition to comply

with device input

Mobile Dependence

Predisposition to comply with salesperson input

Adaptive Selling

Attitude

Subjective Norm

Perceived Behavior Control

method in Ho Chi Minh areas comprising of supermarket, coffee shop, park, university, office, etc., 466 validity surveys are accepted and analyzed

Data Analysis

Statistical Package for the Social Science (SPSS) software supports this research to examine descriptive statistics, reliability test, validity, items correlation, and model testing by AMOS function In additional, all the latent variables correlation is measured by Confirmatory Factor Analysis to measure the data fit

The collected data is analyzed by Structural Equation Modeling (SEM) which dedicates the relationship between each latent variable as well as degree of influence on shopper purchase intention Besides, there are several different reliability tests which guarantee the collected data is able to generate the population and verified enough for SEM testing

4 Results

The sample size is 466 which include shoppers from above 18 years old and diversified occupations with the income range from $45 to $500 per month

Factor Analysis and Reliability

Table 1: Summary of Reliability Test

Total Variance Explained

0.855 66.368

Predisposition to Comply with Mobile Device Input

Predisposition to Comply with Salesperson Input

All items obtain factor loading ≥ 05

All sig of Bartlett’s test = 000

After removing unappropriated latent variables all the Cronbach’s Alpha numbers are all higher 0.8 as well

we greater than Cronbach's Alpha if Items deleted figures, thus, it is noticeable that the inter-correlations are highly consistency and reliability In addition, it is implied that the measurement scale is well designed, and the respondents clearly understand the questions and measurable statements

Additionally, the KMO indices are 0.855 and 0.809 (>0.5) together with the sig.of Bartlett’s test is 000 (<0.05) which indicate the data is appropriate for Exploratory Factor Analysis test From the data analyses, there are 66.368% explains the variance in the 38 variables and 61,123% illustrates the variance in the 4 variables in Purchase Intention factor

Confirmation Factor Analysis (CFA)

To measure if the data fits or consist with hypothesis measurement model In order to examine measurable model, there are various criteria based on Joreskog et al (1969), showing in the table below

It is noticeable that the CMIN/DF is 2.008 (< 3), the data, hence, is proved to be good fit with the model Furthermore, the P value of Chi-Squared has the figure at 0.000 (<0.05) showing the strong significance of the conceptual model

Comparative Fix Index (CFI) is 0.863, illustrating that it is traditional degree when the same data analysis

is compared with other models Similarly, the Goodness of Fit Index (GFI) obtains 0.923 the traditional range traditional fit or acceptable fit based on Doll, Xia, and Torkzadeh (1994)

Root Mean Square Error of Approximation (RMSEA) measures the model fit, comparing with this model current fit at 0.047 which means the model well fits

Table 2: Model Fit for CFA

CFI > 0.95 great; > 0.9 traditional; > 0.8 sometimes permissible 0.863 – Acceptable

GFI > 0.95 great; > 0.9 traditional; > 0.8 sometimes permissible 0.923 – Acceptable

RMSEA

0.06 – 0.08: acceptable fit

≥ 0.1: poor fit

0.047 – Good fit

Discriminant Test

The Composite Reliability (CR) and Average Variance Extracted (AVE) are measured for the questionnaire validity From the table below, all the CR indices are larger than 0.7 which mean there is good internal consistency from the data results Meanwhile, the AVE measures the discriminant validity between unrelated latent variables Since all the AVE figures are higher than 0.5, showing that there is no correlation among different latent items in the questionnaire structure Besides, all the items are measured by their own measurement scale

Table 3: Composite Reliability, Average Variance Extracted and Correlation

PBC 0.793 0.562 0.749

PCSI 0.892 0.542 0.064 0.736

MD 0.894 0.628 0.143 0.193 0.792

AS 0.860 0.553 0.450 0.193 0.264 0.743

SN 0.854 0.542 0.186 0.357 0.305 0.240 0.736

PI 0.842 0.516 0.190 0.503 0.425 0.394 0.315 0.718

A 0.819 0.531 0.601 0.091 0.177 0.477 0.175 0.260 0.729

MS 0.808 0.513 0.545 0.160 0.409 0.614 0.269 0.420 0.463 0.716

PCMDI 0.780 0.542 0.219 0.413 0.601 0.220 0.367 0.406 0.246 0.344 0.736

Structural Equation Modelling (SEM)

Analyzing the conceptual framework correlation by connecting the independent and dependent variables, the SEM model fit indices are appropriate and good RMSEA figure, additionally, is 0.051 showing the good fit of conceptual framework

Table 4: Model Fit for SEM

CFI > 0.95 great; > 0.9 traditional; > 0.8

sometimes permissible

0.915 – Acceptable

GFI > 0.95 great; > 0.9 traditional; > 0.8

sometimes permissible

0.861 – Acceptable

RMSEA < 0.06: good fit

0.06 – 0.08: acceptable fit 0.08 – 0.1: mediocre fit

≥ 0.1: poor fit

0.051 – Good fit

As proposed, five items directly affect shopper purchase intention, yet the SEM results dedicates that the relationship between Perceived Behavior Control and Purchase Intention is insignificant Owing to reply more

on emotion and habit or lack of strong logic or past purchase experience, S¨ oderlund et al (1999), Vietnamese consumers are likely to neglect their critical thinking in purchase decision, instead of following their habit and peer influences

Table 5: SEM Standardized Regression Weights

Estimate PCSI < - AS 220

MS < - PCMDI 252

MS < - MD 323

PI < - A 112

PI < - MS 363

PI < - PCSI 468

PI < - SN 098

Noticing from table 5, Purchase Intention is clearly defined by four components including Subjective Norm (10%), Attitude (11.2%), Mobile Search (36.3%), and the highest percentage at 46.8% from Predisposition to Comply with Salesperson Input

Furthermore, Adaptive Selling is one of the important factor influencing the Shopper Predisposition to Comply with Salesperson Input While, Mobile Dependence and Predisposition to Comply with Mobile Dependence add approximately 57% of shopper Mobile Search value

5 Implications for Retailers

Attitude and Subjective Norm

Following the revised research model as well as data analysis, shoppers purchase intention is directly influenced by the belief attitude and subjective norm toward product quality, expected using results and

recommendation from important relatives Therefore, not only manufacturing qualified products, but also

showing and creating the belief in shoppers’ perception even more important

Since belief provides a reason and motivation to make a purchase, do not always talk about the product quality, rather than retailers are better to let shopper experience the product themselves By truly experience the product, gain certain using feelings, shoppers are more confident in purchasing after their good trial results

Furthermore, continuously improving the product standard by market research, qualitative examine, exhibition, market fair, and so on is extremely essential By in-dept interview what shopper needs, shopper expectation, manufacturers and retailers have more useful and accurate information to serve make gain the

trust from shoppers

Doing marketing campaign with experts is inevitably trustworthy Indeed, talk shows with experts not only provide reliable specialist information, but also build up shopper trust by experts’ knowledge and guarantees instead of one-way information from retailers only

In short, the initial elements turn shoppers into purchase is the attitude of belief By adapting real emotional experience, introducing products through famous and prestigious exhibition, or holding expert talk shows, omni channel shoppers obtain diversified channels and reliable evaluation for their purchase intention

Mobile Search

Following the research findings and data analysis above, mobile search is significantly vital for before and after purchasing Most of the respondents agree with the searching on their mobile supporting them have a better and easier selection Thus, there are several methods to approach omni channel shoppers

Firstly, information accessibility is always available in the internet so that shoppers find accessible to the products everywhere and every time they are convenient and needs The research findings show that before any purchase, shoppers tend to look for different types of products by mobile search which is saved-time and saved-money as well as boost up the shoppers’ interest in shopping process

Secondly, develop interactive marketing which provides platforms where shoppers are able to truly involve in their positive and recommended feedbacks Playing as e-word of mouth, interactive marketing enhances the products fame naturally by previous users, besides retailers provide more promotion or grant to loyal and recommended shoppers or mobile apps where shoppers and retailer attain closer connection everywhere, everyplace and every time Indeed, information from the retailers is not fully reliable enough to shoppers, instead they need more broaden information from previous buyers Products, thus, gain more attention from the shoppers since there are a number advised reviews online that shoppers are willing to try

rather than buying a product without information at all

Mobile Dependence

Since mobile dependence positively affects the mobile search frequency and purposes The more shoppers depend on their mobile, the more searching needs they get, therefore, information strongly ought to be accessible on company websites, google recommendation, google map, social network, online news, and so

on Thanks to a powerful function of internet, products are easier in term of marketing, yet should be expanded

as broad as possible to increase the awareness as well as interaction with buyers In short, product information and promotion program should be appeared on every channels (email, tracking online shopping list, online

cart)

Predisposition to Comply with Mobile Divide Input

When users frequently comply with their mobile searching information, the more searching habit they have By positive correlation between predisposition to comply with mobile divide input and mobile search, products obtain higher chance of knowing and purchasing by shoppers found on searching divide

Once again, this factor emphasizes the strong power of information on mobile search, hence, the most essential keyword is to make the information broaden yet have to be reliable In order make information trustful, retailers are advisable to publish positive rating votes from previous buyers, post product information feedbacks on prestigious websites, and others

In summary, shoppers tend to reply and commit with mobile searching input when they emotionally

believe in the online information they get from diversified sources in the internet Predisposition to

Comply with Salesperson Input

Regarding to the data analysis, predisposition to comply with salesperson input plays the highest level of influence on shopper purchase intention which means salespersonrecommendation and advices are highly considered by shoppers Therefore, retailers should pay significant attention on delivering salesperson values towards shoppers

Specifically, rather than paying too much effort on selling products, salespersons are better to spend time

on understand what customers’ needs and their consideration Since well understanding, salespersons not only provide good and suitable solution but also connect with shoppers as closer relationship

Besides, retailers are better to train salesperson skills on how to increase the loyalty that shoppers would like to come back and make another purchase by delivering reason to believe, company and product quality commitment, showing real previous shoppers recommendation, applying sample testing before purchase, and

so on

Furthermore, shoppers highly desire to get more involvement and support from salesperson who should

be the one understands the different kinds of products the most

Adaptive Selling

The data analysis show that adaptive selling is one of the factor positively affecting the predisposition to comply with salesperson input, which illustrates the importance of being flexible and adaptive of salesperson

in different shoppers, contexts, and expectation

These days in Vietnam retailing market, shoppers have more power and accessibility to make purchase decision, hence, salespersons need to add more value from relationship connection, useful advices, and adaptive as well as responsive in shoppers’ requests

By adapting suitable selling methods, shoppers are easily to engage more with salesperson input

6 Conclusion

In general, the fundamental paper purpose is to explore which factors and their relationship effect on omnichannel shoppers purchase intention in retailing market by survey method with 466 Ho Chi Minh shoppers and SEM data analysis test Additionally, retailers should be aware of the shopping journey changings as well as shopper’s intention on using all available channels (brick – mortar stores, online shopping, catalogue, and so on), thus suggesting the retailers widen reliable information and accessible

approaches toward shoppers

7 Limitation and Future Research

Regarding toward the limitation, some statement in the measurement scales are originally in English, hence

it is undeniable there are some limits in translation part where the original meanings are transferred in another