Perceived Consumer Value of Omni-Channel Service Attributes in Japan and Korea

Abstract

Digitization of retail platform and integration of various retail channel is coupled with rapid change in consumer shopping behavior and their expectation for retail experience. Consumers expect retailers to be able to provide seamless, consistent and personalized service in which they also have enriched retail experience (Picot Coupey et al., 2016). Omni-channel retailing has emerged to provide integrated retail service of various channels which enable consumers to use various channels and touch points synergistically. In this study, we investigated the effect of perceived value of attributes of the OC service on consumers' decision process for omni-channel usage in Japan and Korea. The AHP method is applied to assess hierarchical process of consumers' decision making in using omni-channel service. In the AHP framework, consumers' decision making is structured hierarchically, and framed to have three levels of process in which consumers make decision on omni-channel usage based on three constructs: 'Customer Value (CV), 'Touch Point (TP)' and 'Payment System (PS)'. The AHP survey was administered to individual shoppers in Japan and Korea, and 240 respondents and 229 respondents answered the AHP survey in Korea and Japan, respectively. Findings reveal that 'Customer Value (CV)' is perceived to be more important than 'Touch Points (TP)' and the 'Payment System (PS)', affecting consumers' decision for using the omni-channel service. Furthermore, consumers in two countries show different preferences for specific aspects of the CV attributes. The authors also discuss the methodological and managerial implications of the findings.