A regulatory focus theory approach to understanding cross-channel free-riding behaviour

In a competitive omni-channel retail environment, consumers can easily compare products and prices across retailers and channels, thus adopting cross-channel free-riding behaviors such as “showrooming" and "webrooming". This study examines the similarities and differences between showrooming and webrooming by investigating the higher-order motivations that drive individuals' decisions. Two components of consumer regulatory orientation are considered: the intensity of regulatory orientation and the type of regulation (promotion/prevention). The results of a questionnaire survey of 700 respondents show, firstly, that high intensity of regulatory orientation explains channel and retailer switching. Secondly, while showroomers and webroomers share the same level of prevention orientation, they differ in their promotion orientation. Showroomers are more promotion-oriented than webroomers, which means that they take more risks to achieve their goal, may delay their purchase if this allows them to find a more suitable offer, and break the rules more than webroomers. Finally, this study identifies a segment of consumers who are accustomed to adopting both behaviors. These findings have several relevant managerial implications for omnichannel retailers in terms of customer segmentation and communication strategy.