Cross-channel free-riding consumer behavior in a multichannel environment: An investigation of shopping motives, sociodemographics and product categories

Sandrine Heitz-Spahn ()
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Sandrine Heitz-Spahn: CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine

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Abstract: Cross-channel free-riding, in which consumers use one retailer′s channel to prepare a purchase and then switch to another retailer′s channel to purchase, can substantially erode profit margins. This research aims to understand such free-riding from a consumer empowerment perspective, investigating shopping motives and sociodemographic covariates, as well as how this behavior might differ across product categories. A survey study of decision-making behavior shows that cross-channel free-riders mainly seek to fulfill price comparison, convenience and flexibility needs. The likelihood of free-riding is higher when consumers adopt cross-channel rather than single-channel behavior, which highlights a negative outcome of multichannel retailing. The likelihood of cross-channel free-riding differs across products but not sociodemographic covariates. The findings can be used to develop recommendations for managing retention strategies.

Date: 2013-11
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Citations: View citations in EconPapers (48)

Published in Journal of retailing and consumer services, 2013, 20 (6), pp.570-578. ⟨10.1016/j.jretconser.2013.07.006⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03010102

DOI: 10.1016/j.jretconser.2013.07.006

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