- Title
- Investigating touchpoint use in omnichannels, and influence of company control on consumer judgements
- Creator
- Hartsuyker, Suzanne
- Relation
- University of Newcastle Research Higher Degree Thesis
- Resource Type
- thesis
- Date
- 2023
- Description
- Research Doctorate - Doctor of Philosophy (PhD)
- Description
- Retailing is crucial to both economic growth and employment worldwide. It has been estimated that global sales in 2022 will exceed USD27 trillion, representing 31% of the world’s gross domestical product. In addition, the retail sector employs billions of people across the globe. However, the introduction of digital technologies has resulted in changes in the retail environment, which is creating challenges for retailers as well as marketers. Omnichannels have emerged, integrating previously independent sales channels to provide consumers with a more customised, enhanced experience. Meanwhile, touchpoints (i.e. a short episode of direct or indirect contact with a brand or firm) have also been introduced, and digital, mobile and social technologies are used to integrate offline and online options to create new choices for the consumer. Although these touchpoints provide novel ways to engage with products and brands, there is limited understanding, both of consumer perceptions of these touchpoints and of the effects of these perceptions on consumer behaviour in omnichannels. Therefore, this research explores behaviour within omnichannels by considering consumers’ touchpoint choices across their purchase journey. In addition, because consumers can now interact with a range of touchpoints that are under varying degrees of company control (i.e. some directly controlled by the company, and others with shared control through partner organisations, in addition to touchpoints outside the control of the retailer), it also explores the influence of consumers’ perceptions of company control on their judgements. Furthermore, this research examines the believability of a touchpoint to determine whether it explains the degree of usefulness and usage intention a consumer attributes to a touchpoint. Moreover, given that people with high power distance (HPD) have been found to respond differently from those with low power distance (LPD) beliefs to work conditions and other stimuli with varying degrees of authority or autonomy, this research explores whether an individual’s power distance influences the believability of a touchpoint’s message. Considering that the marketing literature has paid limited attention to the touchpoint journey and company control of touchpoints, this research employs two studies and uses qualitative as well as quantitative methods to investigate touchpoint consumer behaviour within the omnichannel. First, to gain knowledge about touchpoint choice and use across the consumer purchase journey, in Study 1, using exploratory research, 52 individual participants were observed as they undertook a purchase task. Touchpoint interactions—more specifically the number, the variety and the order of touchpoint use—were examined. The findings reveal that consumers use both a large number and a wide variety of touchpoints across their purchase journey. On average, they interacted with 30 touchpoints, but only 10 of these were distinct or different, which indicates that they return to previous touchpoints or repeat interactions. Touchpoints were also classified into 23 different categories, and further grouped according to the entity that controls them. This study identified and distinguished between three sources of control—the retailer, a third party and the consumer—each of which has varying degrees of control and connection to the retailer or the company. Study 1 also highlighted how the expansion and the availability of many new touchpoints in the omnichannel have created a shift in control away from the company, given that the findings indicate that a large portion of touchpoints interacted with were outside the retailer’s control. Yet, prior research has not examined consumer perceptions regarding the varying degrees of company touchpoint control and the associated impact on consumer judgements, such as usefulness and usage intention. However, gaining insight on such aspects is important for retailers and marketers because understanding consumer preferences about touchpoint choice may be useful in enhancing and creating more effective omnichannel strategies. Next, in Study 2, the Study 1 results, along with those from the literature, were used to develop hypotheses and a conceptual model was designed to test ‘company control’ as a source variable. The second study comprised three experiments. Experiment 1 examined the influence of company touchpoint control across the three control categories (i.e. retailer/high control, third-party/shared control and independent/low control) on consumer judgements of touchpoint usefulness and usage intention. Experiment 2 extended from the findings of the first experiment and measured the mediating effect of believability, and Experiment 3 examined the moderating effect of power distance beliefs. For all three experiments, data were collected from a randomised sample of consumers aged more than 18 years recruited through the online research company Qualtrics. The key findings across these experiments are as follows: • Higher perceived company control of a touchpoint led to greater attribution of both usefulness and usage intention for that touchpoint. • Believability explains the relationship between company control and consumer judgements. • Consumers with HPD beliefs attributed greater believability to high company control touchpoints, which increased the usefulness and the usage intention of these touchpoints. • LPD beliefs moderated the believability of high company control (retailer) touchpoints, with LPD participants attributing the lowest usefulness and usage intention to retailer touchpoints (high control). In contrast to HPD, LPD participants also attributed higher usefulness and usage intention to independent (low control) and third-party (shared) touchpoints. Thus, through the initial observational study, this research provides foundational insight into the choice, the type and the number of touchpoints used across the broader touchpoint journey. In addition, unlike existing touchpoint and omnichannel studies, Study 2 offers a quantitative perspective that examines novel variables affecting touchpoint choice and judgement within the omnichannel. Significantly, this research contributes to the omnichannel and touchpoint literature by introducing company touchpoint control as a factor that influences the consumer touchpoint choice. It establishes an understanding about the perceived company control of touchpoints, and the impact of the degree of such control on the consumer judgements regarding usefulness and usage intention. This research also demonstrates the novel explanatory role of believability in the relationship between company control and consumer judgements, and the moderating role of power distance in this relationship. From an applied perspective, this research has managerial implications for retailers, marketers and for other organisational decision-makers involved in budgeting, resource allocation and strategic directions. It gives insight into consumer touchpoint choice and behaviour, providing guidance for more effective allocation of resources and better targeted touchpoint marketing strategies. Given the novel understanding gained into the perceptions of company control across different types of touchpoints, it is suggested that companies evaluate where they create their content and identify the most effective way to communicate specific messages to different types of consumers. For example, as touchpoints higher in perceived company control attracted stronger usefulness and usage intention, it is recommended that retailers and marketers focus their efforts in the first instance on touchpoints within their control, such as their own social media, website, physical stores and catalogues. In addition, with believability found to explain positive consumer judgements, and the greatest believability attributed to high company control touchpoints (e.g. retailer touchpoints), it is proposed that marketers and retailers explore likely ways to boost the believability of non-retailer touchpoints. For example, it is suggested that by increasing the perceptions of company involvement through enhancing the retailer’s branding and visual presence on touchpoints outside the retailer’s control (e.g. third-party touchpoints that operate under shared control between the retailer and third-party), believability may also be enhanced as the retailer is more prominent, leading to greater usefulness and usage intention. In addition, because independent touchpoints are perceived as low in company control and appeal to LPD consumers, it is recommended that companies targeting these consumers diversify their touchpoint mix to include a broader range of ‘low company control’ touchpoints. This may include establishing a range of alliances with independent people, such as celebrities or influencers, who are relevant to the specific industry but ‘distant’ to the company market. In addition, when using company-owned touchpoints, believability among LPD individuals may be enhanced by prominently displaying visuals and testimonials from independent people on these retailer touchpoints. In summary, this research offers theoretical contributions to academia and also provides practical implications to guide marketing practitioners and management when building touchpoint and omnichannel strategies.
- Subject
- touchpoint; omnichannel; consumer; influence
- Identifier
- http://hdl.handle.net/1959.13/1478618
- Identifier
- uon:50205
- Rights
- Copyright 2023 Suzanne Hartsuyker
- Language
- eng
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