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

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  • Heitz-Spahn, Sandrine

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.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:joreco:v:20:y:2013:i:6:p:570-578
    DOI: 10.1016/j.jretconser.2013.07.006
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