Effects of Increased Omnichannel Integration on Customer Satisfaction and Loyalty Intentions

ABSTRACT

We examine how the integration of retail channels affects crucial firm outcomes, such as customer satisfaction and loyalty intentions, with a particular focus on the impact of different levels of offline-to-online channel integration. Across three experimental studies, one of them in an operating physical store, accommodating comparisons of several omnichannel configurations, increasing the level of omnichannel integration positively influences customer satisfaction and loyalty intentions. Flow experience mediates the effects. The impact of increasing the level of omnichannel integration on customer satisfaction and loyalty intentions is more pronounced among consumers who perceive the channels as complementary and for consumers with a goal-directed shopping orientation. This article contributes to extant omnichannel literature by experimentally investigating the impact of increasing levels of omnichannel integration—as compared to adopting a binary, “either-or” approach—and by demonstrating that omnichannel retail environments provide a fertile ground for flow experiences in physical stores. Furthermore, this article establishes the role of perceived channel complementarity and shopping orientation as boundary conditions for the realization of flow in omnichannel retail environments.

KEYWORDS:

• omnichannel retailing
• channel integration
• customer satisfaction
• online loyalty
• flow experience
• online retail
• e-retail

Supplemental data

Supplemental data for this article can be accessed on the publisher’s website.

Acknowledgments

The authors thank Aristeidis Theotokis, Abhijit Guha, Amanda Montoya, and Heiner Evanschitzky for their valuable comments and suggestions on earlier versions of the manuscript. The authors also express their gratitude to the collaborating retailer who wishes to remain anonymous. This research was funded by Athens University of Economics and Business Research Center, as part of the Action 2 Initiative (Strengthening Research at the Athens University of Economics and Business with a view to Extroversion and Excellence).

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1. Brand familiarity and involvement are not significant; their inclusion or exclusion does not statistically change the analysis, so we do not discuss them further.

2. Brand familiarity and involvement again are not significant, and their inclusion or exclusion does not statistically change the analysis, so we do not discuss them further.

3. Brand familiarity and involvement are not significant, and their inclusion or exclusion does not statistically change the analysis, so we do not discuss them further.

Additional information

Notes on contributors

Chris Lazaris

Chris Lazaris ([email protected]) is a member of the Laboratory Teaching Faculty in the Department of Management Science and Technology at the Athens University of Economics and Business (AUEB). He is senior researcher at the eBusiness Research Center of AUEB and the Interactive Marketing & Electronic Services research group, having participated in numerous EU funded R&D projects. He holds a Ph.D. from AUEB, achieving distinctions and honors. Dr. Lazaris’s research interests lie in the areas of retailing, digital marketing, e-commerce, and information systems. In the past, he worked as a business consultant in retailing and information technology companies.

Panagiotis Sarantopoulos

Panagiotis Sarantopoulos ([email protected]) is Assistant Professor of Marketing at University of Manchester’s Alliance Manchester Business School. He holds a Ph.D. in Management Science from AUEB. His research interests lie in the areas of Retail and Pricing, Digital Marketing, and Marketing Analytics. Dr. Sarantopoulos’s work has received recognition in the form of best paper awards and industry funding from Fortune 500 companies, and appears in the leading journals such as Journal of Marketing Research, International Journal of Electronic Commerce, and Journal of Business Research.

Adam Vrechopoulos

Adam Vrechopoulos ([email protected]) is Associate Professor of Digital Marketing in the Department of Management Science and Technology, at the Athens University of Economics and Business (AUEB). He holds a Ph.D. from Brunel University. Dr. Vrechopoulos’s research interests focus on store atmosphere, user/consumer experience in omnichannel retailing, integrated marketing communications, and personalized services through digital technologies.

Georgios Doukidis

Georgios Doukidis ([email protected]) is Professor of eBusiness in the Department of Management Science and Technology, at the Athens University of Economics and Business. He holds a Ph.D. from the London School of Economics and Political Science. Dr. Doukidis has acted as guest editor for the Journal of the OR Society, European Journal of Information Systems, International Journal of Electronic Commerce, Journal of Information Technology, and Supply Chain Management: An International Journal.