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Customer Supercharging in Experience-Centric Channels

We conjecture that for online retailers, experience-centric offline store formats do not simply expand market coverage, but rather, serve to significantly amplify future positive customer behaviors, both online and offline. We term this phenomenon “supercharging” and test our thesis using data from a digital-first men’s apparel retailer and a pioneer of the so-called zero inventory store (ZIS) format—a small-footprint, experience-centric retail location that carries no inventory for immediate fulfillment, but fulfils orders via e-commerce. Using a risk-set matching approach, we calibrate our estimates on customers who are “treated,” that is, have a ZIS experience, and matched with identical customers who shop online only. We find that after the ZIS experience, customers spend more, shop at a higher velocity, and are less likely to return items. The positive impact on returns is doubly virtuous as it is more pronounced for more tactile, higher-priced items, thus mitigating a key pain point of online retail. Furthermore, the ZIS shopping experience aids product discovery and brand attachment, causing sales to become more diffuse over a larger number of categories. Finally, we demonstrate that our results are robust to self-selection and potentially confounding effects of unobservable factors on the matched pairs of customers. Implications for retailing practice, including for legacy, offline-first retailers, are discussed.

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Informasi Detail

Judul Seri

MANAGEMENT SCIENCE; Vol.66 No.9 September 2020

No. Panggil

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Penerbit

: .,

Deskripsi Fisik

p. 4096 - 4107

Bahasa

English

ISBN/ISSN

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Klasifikasi

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Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

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Subjek

MARKETING-OPERATIONS INTERFACE
RETAIL OPERATIONS
EXPERIENCE ATTRIBUTES
OMNICHANNEL RETAILING
QUASI-EXPERIMENTAL METHODS

Info Detail Spesifik

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Pernyataan Tanggungjawab

David R. Bell, Santiago Gallino, Antonio Moreno

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