MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY ────────────────── Nguyen Le Xuan Doanh HOW DOES CHANNEL INTEGRATION QUALITY ENRICH CUSTOMER EXPERIENCES WITH OMNICHANNEL RETAILERS? AN EXAMINATION OF MEDIATING AND MODERATING MECHANISM MASTER BY RESEARCH THESIS Ho Chi Minh City – 2019 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY ────────────────── Nguyen Le Xuan Doanh HOW DOES CHANNEL INTEGRATION QUALITY ENRICH CUSTOMER EXPERIENCES WITH OMNICHANNEL RETAILERS? AN EXAMINATION OF MEDIATING AND MODERATING MECHANISM Specialization: Commercial Business Specialization code: 8340121 MASTER BY RESEARCH THESIS SUPERVISOR: Dr. LE NHAT HANH Ho Chi Minh City - 2019 Declaration I, Nguyen Le Xuan Doanh, declare that the Master by Research thesis entitled “How does channel integration quality enrich customer experiences with omnichannel retailers? An examination of mediating and moderating mechanisms” has been composed solely by myself, with the enduring support, instruction, and insight from my supervisor Dr. Le Nhat Hanh. Except where states otherwise by reference or acknowledgment, the work presented is entirely my own. Signed: Nguyen Le Xuan Doanh Date: Acknowledgements I owe a debt of gratitude to my supervisor, Dr. Le Nhat Hanh, for her enduring support, instruction, and insight. She helped direct my interests towards relevant topics and methodological innovations in retailing, and made my experience as a master by research student truly memorable. Besides, I am grateful to all of my teachers at School of International Business - Marketing, University of Economics Ho Chi Minh City for their help and support throughout my studies. Table of contents Declaration Acknowledgements Table of contents List of abbreviations List of tables List of figures Abstract CHAPTER 01: INTRODUCTION ..........................................................................1 1.1. Research background and statement of the problem .....................................1 1.2. Research objectives .......................................................................................4 1.3. Subject and scope of research ........................................................................5 1.4. Research method............................................................................................5 1.5. Research contribution ....................................................................................6 1.6. Research structure..........................................................................................6 CHAPTER 02: LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT .....................................................................................................8 2.1. Omnichannel retailers ....................................................................................8 2.2. Channel integration quality with omnichannel retailers ................................9 2.3. Customer experience with omnichannel retailers........................................11 2.4. Prior relevant studies ...................................................................................14 2.5. Research framework and hypothesis development .....................................21 2.5.1. Stimulus-Organism–Response (SOR) framework ............................21 2.5.2. The influences of channel integration quality (CIQ) on customer experience .........................................................................................................21 2.5.3. The mediating mechanism: CIQ – customer empowerment – the customer experience ..........................................................................................24 2.5.4. The moderating effect of internet usage ............................................25 2.5.5. The influence of the customer experience on patronage intention ...26 2.6. Summary ......................................................................................................29 CHAPTER 03: RESEARCH METHOD ..............................................................30 3.1. Research process..........................................................................................30 3.2. Measurement scale ......................................................................................32 3.3. Questionnaire design ...................................................................................36 3.4. Sample and data collection ..........................................................................36 3.5. Sample characteristics .................................................................................38 3.6. Summary ......................................................................................................39 CHAPTER 04: DATA ANALYSIS AND RESULTS ..........................................40 4.1. Assessment of measurement scales .............................................................40 4.2. Test for common method bias .....................................................................44 4.3. Assessment of structural model ...................................................................46 4.4. FIMIX analysis for data heterogeneity ........................................................50 4.5. Summary ......................................................................................................50 CHAPTER 05: DISCUSSION AND CONCLUSION..........................................52 5.1. Discussion of results ....................................................................................52 5.2. Research implications ..................................................................................53 5.3. Limitations and futher research ...................................................................56 LIST OF PUBLICATIONS REFERENCES APPENDICES List of abbreviations SOR: Stimulus-Organism-Response CIQ: Channel integration quality (CSC: Channel-service configuration, BCSC: Breadth of channel-service choice, TCSC: Transparency of channel-service configuration, InI: Integrated interactions, CC: Content consistency, PC: Process consistency) CCI: Cross-channel integration BOPS: Buy online, pick up in-store HCM: Ho Chi Minh PLS-SEM: Partial least squares Structural equation modeling CMB: Common method bias VIF: Variance inflation factor SRMR: Standardized root mean square residual FIMIX-PLS: Finite mixture PLS HTMT: Heterotrait-Monotrait Ratio AVE: Average Variance Extracted SMEs: Small and medium-sized enterprises RFID: Radio frequency identification SOP: Standard operating procedure List of tables Table 2.1. Definitions and examples of the sub-dimensions of CIQ…………….....9 Table 3.1. Measurement scales……………………………………………………..33 Table 3.2. Sample demographic characteristics…………………………………….38 Table 4.1. Scale accuracy analysis………………………………………………….42 Table 4.2. Scale accuracy analysis: Discriminant validity assessment……………..43 Table 4.3. Test for common method bias (CMB)…………………………………..44 Table 4.4. Inner VIF value………………………………………………………….46 Table 4.5. Significance testing results of the structural model path coefficients…...47 Table 4.6. Significance testing results of the total indirect effects…………………48 Table 4.7. FIMIX-PLS results for the relative segment sizes and retention criteria..50 List of figures Figure 2.1. Research model of Lee et al. (2019)……………………………………15 Figure 2.2. Research model of Zhang et al. (2018)…………………………………16 Figure 2.3. Research model of McLean et al. (2018)……………………………….17 Figure 2.4. Research model of Shen et al. (2018)…………………………………..19 Figure 2.5. Research model of Li et al. (2018)……………………………………...20 Figure 2.6. Research framework and hypotheses…………………………………...28 Figure 3.1. Research process……………………………………………………….31 Figure 4.1. Research model in Stage I………………………………………………40 Figure 4.2. Research model in Stage II……………………………………………..41 Figure 4.3. Analysis results…………………………………………………………49 How does channel integration quality enrich customer experiences with omnichannel retailers? An examination of mediating and moderating mechanisms Abstract While omnichannel has been a bloated retail buzzword for years, little is known about the dynamic mechanism of forming customer experience and the subsequent patronage behavior in the context of omnichannel retailers. Drawing upon the stimulus-organismresponse (SOR) framework, this thesis fills this important research gap by examining the effects of channel integration quality (CIQ) on customer experience through the mediating role of customer empowerment as well as the moderating role of internet usage, which in turn results in patronage intention. Structural equation model with two-stage approach is employed to test the research framework with 312 customers of the omnichannel retailers in Vietnam. The findings reveals that two dimensions of CIQ (i.e., channel-service configuration and integrated interactions) significantly affect customer experience, which in turn leads to patronage intention. Moreover, customer empowerment complementarily mediates the impacts of CIQ dimensions on customer experience, while internet usage strengthens the positive relationships between customer experience and its precursors. The current thesis was concluded with the meaningful practical implications for omnichannel retailers. Keywords: Omnichannel retailers; Channel integration quality; Customer experience; Customer empowerment. 1 1. CHAPTER 01: INTRODUCTION 1.1. Research background and statement of the problem Over the last few years, retailing has advanced dramatically, while technological advancement has enabled retailers to connect and conduct transactions with their customers through various channels such as websites, mobile apps, social media, and so on. The way retailers interact with their customers has also been reshaped completely. For instance, with artificial intelligence, it is predicted that 90% of traditional human retail interactions will be replaced by online shopbots; meanwhile, virtual and augmented reality will allow customers to see and touch merchandise virtually (Pilkington, 2019). With multiple channels and interactive touchpoints during customer shopping journeys, it is crucial for retailers to apply omnichannel strategies to serve customers with seamless switching among all available channels and across every touchpoint (Shen et al., 2018). According to Walk-Morris (2019), about 67% of U.S. retailers consider the omnichannel strategy to be a top priority, as it helps them capture the contemporary showrooming and webrooming shopping trends of customers while maintaining competitive advantages (Graham, 2017; Radial, 2016; Lee et al., 2019). A recent report by IDC Retail Insights indicates that retailers have gained an increase in 15–35% in average transaction size and 5–10% in loyal customer profitability by using the omnichannel strategy (Winkler, 2019). In Vietnam, according to We Are Social’s report, the number of internet users has reached 64 million, equivalent to 67% of the population. Meanwhile, the rate of owning internet access devices among Vietnamese consumers has increased (i.e., 72% of the Vietnamese adult population use smartphone, 43% use laptop or desktop computer, and 13% use tablet) (Kemp, 2018). Along with these rapid development, omnichannel retailing is recently emerging as a new trend in Vietnam (Anh Hoa, 2017). According to a recent study conducted by Sapo – an omnichannel retailing platform operating in Vietnam, 97% retail store owners applied omnichannel strategy to their business in 2018 (Tuyet An, 2019). Omnichannel approach is also considered 2 as a new weapon to help retailers maintain and expand market share (Vietnamnet, 2017). Omnichannel retailers refer to those businesses using the retailing business model which operates in a number of channels and touchpoints with synergetic management that excludes natural borders among channels (Lee et al., 2019; Verhoef et al., 2015; Zhang et al., 2018). Creating a well-integrated and unified customer experience at anytime, anywhere, through any channel is the ultimate aim of omnichannel retailers (Frazer and Stiehler, 2014; Jocevski et al., 2019). Historically, the concept of customer experience has been studied in different contexts of retailing, from physical-store retailing (Bäckström and Johansson, 2017; Jones et al., 2010; Sachdeva and Goel, 2015; Terblanche, 2018) to e-retailing (Martin et al., 2015; Pandey and Chawla, 2018; Rose et al., 2012), m-retailing (McLean et al., 2018; Tseng and Yazdanifard, 2015), and even multichannel retailing (Blázquez, 2014; Lemon and Verhoef, 2016). However, in the context of omnichannel retailers, the seamless customer experience in which customers cognitively and affectively respond to an omnichannel retailer (McLean et al., 2018) continues to be a challenge for both practitioners and academia. Nearly 80% of retailers admit their lack of success in offering customers a unified experience across channels (Periscope, 2016). According to a recent survey conducted by TNS, 61% of U.S. customers have difficultly switching from one channel to another when interacting with omnichannel retailers (Dreyer, 2014); while 87% of global customers think that brands need to put more effort into delivering a seamless experience (Zendesk, 2013). With respect to the academic side, research on the omnichannel experience remains scant and the mechanisms that underpin the seamless customer experience are not fully understood (Lemon and Verhoef, 2016). To our best knowledge, the few existing studies attempt to conceptualize and describe the omnichannel experience have been qualitative and exploratory in nature (Cook, 2014; Frazer and Stiehler, 2014; Melero et al., 2016; Parise et al., 2016; Peltola et al., 2015). Thus, much uncertainty still exists about the 3 formation of the omnichannel customer experience as well as subsequent behavioral outcomes such as patronage intention. Channel integration quality (CIQ hereafter) is regarded as a key factor determining the ability of omnichannel retailers to manage customer relationships across channels and deliver customers with a seamless purchasing experience throughout their shopping journey (c.f., Lee et al., 2019). According to Sousa and Voss (2006), CIQ is comprised of two components: channel-service configuration and integrated interactions. The former refers to the wide range and flexible combination of various online and offline channel services, while the later describes the consistency and uniformity of both content and process attributes through different channels provided by omnichannel retailers. In recent years, a number of novel service combinations and functional attributes with regard to CIQ have been implemented by omnichannel retailers. For instance, big-box omnichannel retailers like Walmart and Target have been successful in launching the “buy online, pick up in-store” (BOPS) or “click and collect” service (Walk-Morris, 2019b). Moreover, in order to excluding the natural boundaries between channels and providing customers with a seamless experience, many of the in-store technologies (e.g., in-store interactive digital kiosks, interactive fitting rooms, price-checkers) as well as the robust mobile app features (e.g., scan-and-go, push notifications for in-store, online promotions) have been invested in by omnichannel retailers (Grant, 2018; Jocevski et al., 2019; Sopadjieva et al., 2017). Tesco’s Scan Pay Go app allows customers to scan and pay for their purchase by using their smartphones without visiting the store cashier, while the Amazon Go offers shoppers a brick-and-mortar shopping experience without the checkout line (Reuters, 2018; Wood, 2018). In Vietnam, VinMart and Co.opmart are vanguard retailers in scan-and-go technology, which helps customers save time when shopping by offering a prompt payment option (Dantri, 2019; Hai Kim, 2019). With these tremendous efforts to improve CIQ, it is important to evaluate the effectiveness of CIQ on enhancing the seamless customer experience in the context of omnichannel retailers. 4 Customer empowerment refers to the level of control over where, when and how to shop and to get delivery that customers receive during their shopping journey (Zhang et al., 2018). According to Prentice et al. (2016), the internet and advanced technologies increasingly provide business firms with the opportunity to empower customers at their fingertips. Indeed, a number of customers today are avid users of touchpoints (Sopadjieva et al., 2017) and are technology-savvy (Azhari and Bennett, 2015); as such, empowering customers with the ability to shape their own consumption experiences has become an inevitability for online businesses. In the context of omnichannel retailers, we expect the important role of customer empowerment in influencing the omnichannel experience and presume that the process of integrating various online and physical channels should provide an increasing autonomy for customers to make their own choices at all stages of their shopping journey. In other words, customer empowerment is predicted to play a mediating role on the linkage from CIQ to a seamless omnichannel experience. This proposition will be explored in this study. In addition, according to Chang and Chen (2008), customers who spend more time online tend to accumulate more internetrelated knowledge and skills, and consequently they should be more familiar with omnichannel retailers’ available offerings. Thus, we contend that internet usage exhibits a contingency role in affecting customer perception and evaluation in the context of omnichannel retailing settings. 1.2. Research objectives Given the above voids in the extant literature, the current study aims to contribute to the scarce literature on customers’ seamless experience with omnichannel retailers by offering relevant insights into the dynamic mechanisms of forming the omnichannel experience and its subsequent patronage behavior. In particular, this empirical study attempts to: (1) Examine the effects of the two components of CIQ (i.e., channel-service configuration and integrated interactions) on the customer experience. 5 (2) Explore the mediating role of customer empowerment on the relationship between CIQ and the customer experience. (3) Identify the moderating role of internet usage on the effects of CIQ and customer empowerment on the customer experience. (4) Assess exactly how this customer experience results in patronage intention. The findings of this work offer important practical knowledge for omnichannel retailers to optimize their channel management that delivers a seamless shopping experience to their customers. 1.3. Subject and scope of research The subject of this research is the customer experiences with omnichannel retailers. Data were collected from HCM’s customers who used to have experiences of shopping with the omnichannel retailers and aged 25 - 34; with a purposive sampling based on gender (i.e., 60% women and 40% men). Participants either chose one of the listed well-known omnichannel retailers (i.e., Nguyen Kim, FPT Shop, The Gioi Di Dong, Concung) - or self-declared the omnichannel retailer they were most familiar with. The survey was conducted at the five busiest shopping mall and office buildings in the metropolitan area of Ho-Chi-Minh City (i.e., Vincom Center, Saigon Square, Takashimaya Vietnam; Diamond Plaza; Parkson Plaza). Data were collected over a five-week period in 2019 (from 8 July 2019 to 11 August 2019) at different times of day and on both weekdays and weekends. 1.4. Research method A combination of qualitative and quantitative approaches was used in this thesis. In the first stage, the measurement scales for all studied constructs were adopted from prior studies and were translated into Vietnamese. Next, the questionnaire was designed, pre-tested with 20 customers and then modified to ensure its clarity before distribution. 6 The second stage was quantitative study which including the main survey and data analysis. The survey was conducted at the five busiest shopping mall and office buildings in the metropolitan area of HCM City over a five-week period. After collection, the dataset was analyzed using SmartPLS 3.2.8 and consisted of the following steps: assessment of measurement scales, test for common method bias (CMB), assessment of the structural model with hypotheses testing, and the FIMIX analysis for data heterogeneity. 1.5. Research contribution This project provided an important opportunity to advance the understanding of customer experience with omnichannel retailers. First of all, the current thesis empirically demonstrates the centrality of a well-integrated experience in omnichannel strategies. In addition, while previous researches on customer experience in omnichannel retailing contexts are generally qualitative and exploratory in nature, this study makes a major contribution to the existing literature by quantitatively examining the dynamic mechanisms of forming customer experience and its subsequent patronage behavior. And finally, the findings of this work offer some important insights into optimizing the channel management to help omnichannel retailers delivering a seamless, consistent and unified shopping experience to their customers. 1.6. Research structure After Chapter 01 – Introduction, the current thesis is composed of four themed chapters: Chapter 02 - Literature review and hypothesis development: This section (1) gives a brief overview of the recent history of omnichannel retailers and customer experience, as well as defining the term “channel integration quality” (CIQ) and its dimensions/ sub-dimensions; (2) reviews the studies relevant to this thesis; (3) introduces stimulus - organism – response (SOR) framework; and finally (4) presents the research model and the associated hypotheses. 7 Chapter 03 – Research method: This chapter is concerned with the method used for the current thesis, including the research process, measurement scale, questionnaire design, sample and data collection, as well as the sample characteristics. Chapter 04 – Data analysis and results: This section analyzes the dataset of the research. It consists of the following steps: assessment of measurement scales, test for common method bias, assessment of structural model, and FIMIX analysis for data heterogeneity. Chapter 05 – Discussion and conclusion: This final chapter briefs the important results of the current thesis and provides actionable insights for omnichannel retailers to optimize their channel management. Moreover, the research limitations and recommendations for further research are also mentioned. 8 2. CHAPTER 02: LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT 2.1. Omnichannel retailers Omnichannel retailers refer to those with retailing business model of operating in numerous channels and touchpoints with a synergetic management that excludes the natural borders among channels (Lee et al., 2019; Verhoef et al., 2015; Zhang et al., 2018). Although omnichannel is shifted from multichannel (Shen et al., 2018), these two concepts are definitely different in a number of respects. First of all, in constrast to multichannel retailers which mainly focus on physical store, website and direct marketing (e.g., catalog) (Verhoef et al., 2015); the channel scope of omnichannel is broader, including brick-and-mortar store, website, mobile app, social media, as well as all other customer touchpoints (Shen et al., 2018). Morever, multichannel retailers usually design and manage the channels separately, with a limited integration between channels (Shen et al., 2018). On the other hand, omnichannel retailers try to co-ordinate all their management activities across areas of information exchange, joint operations, logistics, pricing, promotion, inventories, order fulfillment and even after sales services (Li et al., 2018; Lee et al., 2019). Finally, whereas multichannel retailers gear towards optimizing customer experience with each channel (Shen et al., 2018), the ultimate aim of omnichannel retailers is serving customers with a seamless, consistent and well-integrated experience at anytime, anywhere, through any channels (Frazer and Stiehler, 2014; Jocevski et al., 2019). According to Lee et al. (2019), omnichannel studies can be categorized into two streams: organizational-level studies and individual-level studies. Organizationallevel studies approach this topic from the point of view of firm’s management, such as examining the impact of channels on retailer’s performance (Cao and Li, 2015); how to measure and manage channel distribution (Ailawadi and Farris, 2017); or related marketing issues that retailers must to care (Melero et al., 2016). Individuallevel studies, on the other hand, focus on customer behavior. Most studies in the field 9 of omnichannel customer behavior have concerned the purchase intention (Cook, 2014; Juaneda-Ayensa et al., 2016) as well as the channel choice (Park and Lee, 2017; Xu and Jackson, 2019). However, regarding omnichannel customer experience, researchers have not treated it in much detail. Although the few of prior studies have dealt with the impact of channel integration quality on customer respones to omnichannel retailers (Shen et al., 2018; Zhang et al., 2018; Lee et al., 2019), research on the relationship between channel integration quality and customer experience has been still deficient, especially the empirical studies with fully mechanism. 2.2. Channel integration quality with omnichannel retailers Channel integration quality (CIQ) is regarded as a key factor that determine omnichannel retailers’ ability to manage customer relationships across channels and deliver customers with a seamless purchasing experience during their entire shopping journey (c.f., Lee et al., 2019). In their major study, Sousa and Voss (2006) propose a conceptual framework for CIQ in general context with two dimensions: channelservice configuration and integrated interactions. Each of them has two subdimensions as shown particularly in Table 2.1. Table 2.1. Definitions and examples of the sub-dimensions of CIQ Dimension Sub- Definition dimension Example The degree to which Channelservice configuration Breadth of channelservice choice customers can choose alternative channels for a given service accomplish tasks or can preferred through individual channel. an It’s very easy for customers to know the product details through both the online channels. and retailer’s offline 10 The degree to which Transparency of channelservice confguration customers are aware of Customers can come to the existence channels physical stores to find and services as well as the and evaluate products differences between such but finish the purchase service attributes across online. channels. The consistency of offered by content retailers across channels, Price and promotion Content which allows customer to are consistent for both consistency receive the same response the retailer’s online and to an enquiry posted offline channels. through Integrated different channels. interactions The degree of consistency of relevant Process consistency and comparable process attributes across channels (e.g., the feel, image, and delivery services). speed of When customers call the hotline on the website or meeting the staff in-store to ask for product warranty, they are served similarly. Sources: Sousa and Voss (2006); Shen et al. (2018); Lee et al. (2019) To date, serveral studies have attempted to examine the critical role played by CIQ in different contexts such as multichannel banking service (Hsieh et al., 2012; Seck and Philippe, 2013), multichannel retailers (Lee and Kim, 2010; Wu and Chang, 2016), omnichannel catering service (Shen et al., 2018), omnichannel retailing (Lee et al., 2019). Drawing upon Sousa and Voss (2006)’s framework and in line with 11 these previous studies, the current thesis defines channel-service configuration and integrated interactions as two components of CIQ. The former refers to the wide range and flexible combination of various online and offline channel services, while the later describes the consistency and uniformity of both content and process attributes through different channels provided by onnichannel retailers. 2.3. Customer experience with omnichannel retailers Modern customers’ behavior become even more complex and sophisticated nowadays. Instead of shopping in a single channel, they move across channels anytime, anywhere, at any stages during their purchasing process (Zhang et al., 2018). For instance, they may search for information on websites, check prices on their mobile apps, and order products at physical stores, or they can do things the other ways around. Customers are expected to obtain services from any channel with the same customer identity/account (Zhang et al., 2018), and all of the supports and offerings require consistency in multiple touchpoints across channels (Ieva and Ziliani, 2018). These changes in customer behavior and expectations require retailers to integrate all their channel activities across areas of information exchange, joint operations, logistics, pricing, promotion, inventories, order fulfillment and even aftersales services through their omnichannel strategy (Lee et al., 2019; Li et al., 2018). Delivering customers with seamless, consistent, and unified experiences regardless of the channel or purchasing stage is cited as a top priority of omnichannel retailers (Frazer and Stiehler, 2014; Lee et al., 2019). Historically, the concept of customer experience have been studied in different contexts of retailing, from physical stores retailing (Jones et al., 2010; Sachdeva and Goel, 2015; Bäckström and Johansson, 2017; Terblanche, 2018) to e-retailing (Rose et al., 2012; Martin et al., 2015; Pandey and Chawla, 2018) and m-retailing (Tseng and Yazdanifard, 2015; McLean et al., 2018). For example, McLean et al. (2018) developed a “Mobile Application Customer Experience Model” which highlighted the impact of utilitarian factors of technology on customer experience during use of 12 retailers’ mobile applications. On the other hand, a number of authors have recently considered customer experience in the context of multichannel retailing (Blázquez, 2014) and multichannel marketing (Lemon and Verhoef, 2016; Brun et al., 2017). Standing out among these studies, Lemon and Verhoef (2016) conceptualized customer experience throughout the customer journey with a firm across multiple touch points, as customer behavior have become more complex in multichannel context. Despite practitioners’ consistent emphasis on the crucial role of creating and managing customer experience throughout the entire shopping journey, according to Lemon and Verhoef (2016) the extant customer experience literature is still in its nascent stage; as such, the customer experience will be one of the most challenging research topics in the coming years. In the context of omnichannel retailers, the empirical works directly related to the customer experience are even scarcer. The few existing studies attempt to conceptualize and describe the customer experience, thus being qualitative and exploratory in nature. In particular, Melero et al. (2016) approach this phenomenon from marketing’s viewpoint and point out key challenges to develop an integrated omnichannel customer experience, including adopting a customer centric approach, unifying all touchpoints across all channels, delivering personalized customer experiences, integrating the available channels and delight customers across channels. Similarly, some other studies such as Cook (2014), Frazer and Stiehler (2014), Parise et al. (2016), Peltola et al. (2015) qualitatively explore the customer experience from different perspectives, such as in-store experience, experiential marketing, operational management and digital technology. The literature review also reveals two quantitative studies by Azhari and Bennett (2015) and Ieva and Ziliani (2018) on the omnichannel experience. Using the descriptive statistics method, Azhari and Bennett (2015) explore the role of digital technology in physical stores to create an emotional and sensory experience; while Ieva and Ziliani (2018) focus on the customer experience management perspective, using latent class cluster analysis to segment customers. Overall to date, what we know about the 13 omnichannel experience comes from qualitative perspectives; while a few quantitative studies focus solely on the individual channel experience (Azhari and Bennett, 2015) or examined it from one of management perpsectives (Ieva and Ziliani, 2018). Such approaches, however, fail to empirically address a seamless experience cross all available channels, as well as to understand the dynamic mechanisms of forming customer experience and its subsequent patronage behavior in the context of omnichannel retailers. Although a number of definitions of customer experience exist in the literature (also see, Lemon and Verhoef, 2016; McLean et al., 2018; Rose et al., 2012), the major stream of research advocates that the customer experience is holistic in nature and defined as a multidimensional psychological perspective (Azhari and Bennett, 2015; Brun et al., 2017; Frazer and Stiehler, 2014; Ieva and Ziliani, 2018; Lemon and Verhoef, 2016; McLean et al., 2018). According to McLean et al. (2018), customer experience is comprised of cognitive and affective dimensions that customers have with a company through all cues and touchpoints among the entire customer journey. Customer satisfaction with an experience reflects their cognitive component of the experience (Lemke et al., 2011; Lemon and Verhoef, 2016), while customer emotions can represent the affective aspect of the experience (Oliver, 1993). A number of authors have considered customer satisfaction to be a central element in understanding the customer experience (Lemon and Verhoef, 2016; McLean et al., 2018). Furthermore, customer emotions have been also studied as a dimension to measure customer experience in various retailing settings such as physical store retailing (Grace and O’Cass, 2005), e-retailing (Kim et al., 2007) and m-retailing (McLean et al., 2018). Consistent with the prior relevant retailing research, in the current study, we define the omnichannel experience as a secondorder construct of two dimensions, satisfaction with experience and positive emotions. This approach allows us to not only investigate customers’ cognitive evaluation about the overall experience that omnichannel retailers offer to them (referring to the “satisfaction with experience” dimension), but also examine 14 customer affections/emotions during the purchase journey across all available touchpoints with omnichannel retailers (referring to the “positive emotions” dimension). 2.4. Prior relevant studies (1) Customer engagement through omnichannel retailing: The effects of channel integration quality (Lee et al., 2019) This study explores the influences of channel integration quality (CIQ) on customer engagement in omnichannel retailing context, as well as the positive outcomes resulting from such engagement. Based on social exchange theory, Lee et al. (2019) posit two dimensions of CIQ (i.e., channel-service configuration and integrated interactions, with two sub-dimensions for each of them) as the antecedents of customer engagement; while customer engagement is a second-order construct (including conscious attention, enthused participation, and social connection). The outcomes are repurchase intention and positive word-of-mouth (see Figure 2.1). Data analysis from 490 U.S. shoppers reveals that all the CIQ dimensions positively affect customer engagement, which in turn leads to repurchase intention and positive word-of-mouth. However, the effects are definitely different between high-involvement products (represented by Apple) and low-involvement products (represented by Kroger). These findings make an important contribution to the field of customer engagement in the context of omnichannel retailing and at the individual level; and also provide useful ideas for retailers to engage customers across channels. 15 Enthused participation Channel integration quality BCSC Conscious attention Social connection CSC Repurchase intention H1 TCSC H3 Customer engagement CC H2 InI PC H4 Positive WOM Control variables: Physical store quality Virtual store quality Demographics Note: CSC: Channel-service configuration, BCSC: Breadth of channel-service choice, TCSC: Transparency of channel-service configuration, InI: Integrated interactions, CC: Content consistency, PC: Process consistency, WOM: word-of-mouth. Figure 2.1. Research model of Lee et al. (2019) (2) The impact of channel integration on consumer responses in omnichannel retailing: The mediating effect of consumer empowerment (Zhang et al., 2018) The purpose of this paper is to examine the impact of channel integration on consumer respones in the context of omnichannel retailing; and the mediating role of consumer empowerment in this relationship. Drawing upon the stimulus – organism - response (SOR) framework, Zhang et al. (2018) defines channel integration as a second – order formative construct which promotes consumer empowerment; in turn 16 leads to increased trust and satisfaction and improved patronage behavior (see Figure 2.2.). Data analysis from 155 Chinese shoppers demonstrates that channel integration has a positive relationship with consumer patronage intention and this relationship is mediated by consumer empowerment. Moreover, consumer empowerment is positively related to perceived trust and satisfaction. This study makes a major contribution to research on omnichannel retailing by not only demonstrating the critical role of channel integration but also explaining how it can enhance positive consumer respones and patronage behavior. Trust H2 Consumer perceptions of channel integration H1 Consumer empowerment H5 Patronage intention H4 H3 H6 Satisfaction Figure 2.2. Research model of Zhang et al. (2018) (3) Developing a Mobile Applications Customer Experience Model (MACE) Implications for Retailers (McLean et al., 2018) This research attempts to examine customer experience in the context of mcommerce by developing a Mobile Applications Customer Experience Model. Based 17 on Technology Acceptance Model, Flow Theory and Expectancy Confirmation Theory with Information Technology, McLean et al. (2018) posits utilitarian factors of technology (including three dimensions: ease of use, convenience and customisation), timeliness and enjoyment as the key variables influencing customer experience, which in turn results in customers’ frequency of use (see Figure 2.3). Data are collected from 1024 UK consumers, in the context of shopping with the four retailers’ mobile applications (i.e., H&M, Next, John Lewis and Marks & Spencer). The results highlight the importance of utilitarian factors in delivering an excellent customer experience. Moreover, this paper reveals that customers have a negative experience if they perceive to spend longer time than necessary when using the mobile application. On the other hand, gender and smartphone screen-size play a moderating role on the customer experience. This project provides an important opportunity to advance the understanding of customer experience in m-retailing through Mobile Applications Customer Experience Model and provide the key insights for retailers on how to enrich their customer experience with mobile application channel. Moderators: Gender, Screen size Enjoyment Utilitarian factors of technology + Ease of use + Convenience + Customisation Customer experience + Satisfaction with the experience + Positive emotions Timeliness Figure 2.3. Research model of McLean et al. (2018) Frequency of use 18 (4) Channel integration quality, perceived fluency and omnichannel service usage: The moderating roles of internal and external usage experience (Shen et al., 2018) This paper investigates the factors that affect omnichannel service usage. Following Wixom & Todd framework, Shen et al. (2018) develop a research framework including object-based beliefs (which is represented by channel integration quality with four dimensions: channel choice breadth, channel service transparency, content consistency and process consistency) and behavioral beliefs (which is represented by perceived fluency). Besides, behavior-based traits (i.e., internal and external usage experience) are considered as moderators for the relationship between behavioral beliefs and usage behavior (see Figure 2.4). Data are collected from 401 users of an omnichannel catering service platforms in Mainland China. The findings indicate that channel integration quality significantly affects customers’ perceived fluency across channels, which in turn leads to omnichannel service usage. Moreover, internal usage experience weakens, while external usage experience strengthens the positive relationship between perceived fluency and usage behavior. This project provided an important opportunity to advance the understanding of omnichannel service from customer behavior’s viewpoint and also suggests several insights for omnichannel service providers to optimize their channel management for delivering a smooth service experience for the customers. 19 Channel choice breadth Internal usage experience H2a,b,c,d Channel service transparency H3a Omnichannel service usage Perceived fluency Content consistency H1 H3b Behavioral beliefs External usage experience Process consistency Object-based beliefs Behavior-based traits Figure 2.4. Research model of Shen et al. (2018) (5) Customer's reaction to cross-channel integration in omnichannel retailing: The mediating roles of retailer uncertainty, identity attractiveness, and switching costs Yang (Li et al., 2018) This paper gives an account of the mechanisms through which customers react to cross-channel integration (CCI) in the context of omnichannel retailing. Following the Push-Pull-Mooring framework, Li et al. (2018) develop a research framework which retailer uncertainty, identity attractiveness, and switching costs play pushing, pulling, and mooring roles in shaping customers’ respones to CCI (i.e., customer retention and interest in alternatives); while showrooming behavior acts as a moderator in these relationships (see Figure 2.5). 20 The analysis results of 259 Chinese shoppers reveal that retailer uncertainty, identity attractiveness, and switching costs partially mediate the effect of CCI on customer retention, while fully mediating the relationship between CCI and interest in alternatives. Furthermore, the showrooming behavior is found to strengthen the negative relationship between CCI and retailer uncertainty. The empirical work presented here provides the investigation into how customers react to CCI through the dynamic mechanisms and provides insights for omnichannel retailers to implement their CCI strategy. Push-pull effects Showrooming Retailer uncertainty H4a,b,c Crosschannel integration H3a,b,c H1a,b,c Customer retention Identity attractiveness Service investment Interest in alternatives Switching costs H2a,b,c Mooring effect Figure 2.5. Research model of Li et al. (2018) 21 2.5. Research framework and hypothesis development 2.5.1. Stimulus-Organism–Response (SOR) framework The SOR framework (Mehrabian and Russell, 1974) is one of the most extensively adopted theoretical frameworks for explaining customer shopping behaviors in various contexts of retailing such as offline retailing (Morin et al., 2007), e-retailing (Eroglu et al., 2001; Wang et al., 2011; Wu et al., 2013), multichannel retailing (Hsieh et al., 2012; Pantano and Viassone, 2015) and omnichannel retailing (Lazaris et al., 2017; Zhang et al., 2018). This framework points out the relationship among the stimulus (S), consumers’ internal states (O) and subsequent behavior (R). The stimulus affects consumers’ internal states, which in turn results in their respones. In particular, stimulus refers to the retail environmental stimuli, such as in-store music, store atmosphere, channel availability, channel integration (Morin et al., 2007; Pantano and Viassone, 2015; Zhang et al., 2018). In line with Lee et al. (2019), in the current thesis, two components of CIQ (i.e., channel-service configuration and integrated interactions) are considered to be the stimulus. In addition, according to Zhang et al. (2018), organism represents customers’ internal states, which consist of not only internal activities (e.g., perception, feeling and thinking) but also affective, emotional and cognitive states (e.g., pleasure and satisfaction). Thus, customer empowerment and customer experience are regarded as the organism in the research framework. Finally, customer patronage intention is proposed to stand for the behavioral response in the SOR framework. In summary, the current study’s research framework (Figure 2.6) is primarily drawn from the SOR framework that serves as a basis for the development of the following hypotheses. 2.5.2. The influences of channel integration quality (CIQ) on customer experience Channel integration quality refers to the degree to which a retailer coordinates operations and interactions across its multiple channels to provide a unified shopping journey for its customers (Zhang et al., 2018). Based on the SOR framework, CIQ as 22 an environmental stimulus is expected to affect customers’ internal states, such as customer experience. Since CIQ of omnichannel retailers are comprised of channelservice configuration and integrated interactions (Sousa and Voss, 2006), customer experience should be determined by these two characteristics. Channel-service configuration reflects the structure of available channels and flexible combinations across all channels provided by omnichannel retailers (Lee et al., 2019). A good configuration of channel integration exhibits a high degree to which customers can choose alternative channels for a given service and can accomplish the preferred tasks of a service through certain channels of their own choice (Shen et al., 2018). According to Sousa and Voss (2006), with a broad number of available channels that retailers offer to their customers, it is convenient for them to shop flexibly with alternative channels. In addition, customers can enjoy hasslefree choice at all shopping stages and freely switch among available channels according to their preferences; operating as such, the chosen service or shopping combinations are the best fit to fulfill their needs (Lee and Kim, 2010). As a result, customers will experience positive emotions like pleasure, encouragement and satisfaction through their shopping journey with these broad-choice omnichannel retailers. In addition to the wide range of alternative channels, the transparency of similarities and differences of alternative channels and combination options will provide rich information and round comprehensiveness to customers (Shen et al., 2018). Customers are well-informed and feel certainty during their shopping journey with a good channel-service configuration retailer (Lee et al., 2019). Indeed, they offer a valued experience for their customers compared to omnichannel retailers who do not provide such wide breadth of choices and transparency of channel-service configuration, . Thus, we hypothesize: H1a. Channel-service configuration is positively associated with the customer experience. 23 Integrated interactions refer to the consistency and uniformity of a retailer’s content and process attributes through different channels (Lee et al., 2019; Sousa and Voss, 2006). The more retailers offer consistent content (e.g., price, product information, promotion) across all available channels, the less their customers feel doubtful or confused during their shopping journey. In the context of omnichannel retailers, a large assortment of products and wide range of pricing are usually the case; thus, consistent content will help remove barriers towards purchases by reducing the time spent and eliminating the hassle of comparing products and prices, which can in turn improve customer experience (c.f., Li et al., 2018). Furthermore, the uniformity in process attributes (e.g., the feel, image, and delivery speed of services) can offer customers a frictionless purchase journey through different channels, consequently resulting in their satisfaction with the shopping experience. Recently, shoppers have been able to interact with omnichannel retailers to get consistent content via a number of channels, such as calling a call center or communicating online through live chat systems (Rae, 2017). With online live chat systems, omnichannel retailers provide online-based synchronous media with a human service representative who provides answers through such media (McLean and Osei-Frimpong, 2017). Customers are served in real-time, much like the way a store’s staff communicate in brick-and-mortar locations, leading to a high level of customer satisfaction (Rae, 2017). In addition, virtual and augmented reality technologies can help omnichannel retailers ameliorate the limitations of natural boundaries and provide a consistent feeling of services between online-offline channels by allowing customers to see and touch merchandise virtually (Brynjolfsson et al., 2013; Pilkington, 2019). Previous empirical evidence shows that process consistency between online and offline channels of land-based retailers positively impact online perceived value (Wu and Chang, 2016). Li et al. (2018) also identified that the integrated information and functions of multiple channels significantly enhances identity attractiveness while diminishing retailer uncertainty. In the same 24 vein, we posit that omnichannel retailers with a high level of integrated interactions can bring a better experience to their customers. H1b. Integrated interactions are positively associated with the customer experience. 2.5.3. The mediating mechanism: CIQ – customer empowerment – the customer experience Customer empowerment is defined as the extent to which customers have control during their shopping journey (Zhang et al., 2018). As mentioned earlier, compared with omnichannel retailers with low CIQ, those with high CIQ can serve customers with not only more shopping choices (referring to channel-service configuration), but also consistent content and processes (referring to integrated interactions). According to Broniarczyk and Griffin (2014), choice freedom and extensive information are the two key factors influencing customer empowerment. In addition, when customers can freely utilize any channels suited to their need at their convenience, they feel strongly empowered (Lee and Kim, 2010). Li et al. (2018) also point out that cross-channel integration in a multichannel context empowers customers to shop freely among channels. In practice, omnichannel retailers can apply new technologies like scan-and-go as a part of their strategy to enhance CIQ (Wallis, 2017). Scan-and-go is a self-check-out form that allows shoppers to scan, pack and pay for products based on smartphone apps without visiting the store cashier; thus, omnichannel customers are able to gain full control over their shopping experience (Grewal et al., 2017). Therefore, high level of CIQ in omnichannel retailers can provide customers with increased empowerment. As noted by Lemon and Verhoef (2016), as human beings are continually trying to pursue autonomy, customer empowerment is thus deemed an important driver of their perceived experience. Prior empirical studies also confirm that customer empowerment will enhance customers’ perception of a satisfactory experience (Castillo, 2018, 2017; Hunter and Garnefeld, 2008). Retailers that focus on customer 25 empowerment will try to provide more personalized services and customized options that make customers feel like the retailers offer them exactly what they need. The high level of control can give rise to close matching between customer demand and the offerings of retailers (Zhang et al., 2018). This fit can leave customers with positive emotions and satisfied shopping outcomes, endowing the shopping journey with an overall positive experience. Taken all together, we posit that omnichannel retailers with a higher level of CIQ can provide customers with greater empowerment, which in turn leads to a higher level of positive customer experience. Thus, the next hypothesis is stated as follows: H2. Customer empowerment mediates the influences of CIQ (consisting of (a) channel-service configuration and (b) integrated interactions) on the customer experience. 2.5.4. The moderating effect of internet usage Internet usage is understood here as the length of time customers spend online (Park and Jun, 2003). The knowledge and experience customers have with the internet might depend on their use of internet. To date, internet experience has typically been studied as a moderator in different contexts such as website shopping behavior (Chang and Chen, 2008), and online/offline channel preference and usage during a customer’s shopping journey (Frambach et al., 2007). Compared to customers who spend less time online, those with a larger amount of online time may accumulate more online experiences, manifesting different perceptions as well as judgements pertaining to online and offline marketing channels accordingly (cf. Chang and Chen, 2008). Internet usage, therefore, can be a potential moderating variable in studies focusing on the evaluation of omnichannel retailers. According to Daunt and Harris (2017), customers with less frequent internet usage are likely to feel low confidence with regard to their ability to navigate the alternative channels of omnichannel retailers. In contrast, customers who have had a 26 longer time exposure to interactive interfaces and various touchpoints provided by omnichannel retailers can better understand the availability and possible combinations of the salient features, functions, and attributes of various online and physical channels. This will increase customers’ ability to take advantage of the omnichannel integration so as to fit their own needs (i.e., a given shopping task). Internet experienced customers will feel comfortable and fully in control during the interaction and communication processes with omnichannel retailers (Frambach et al., 2007). As a result, they will value the benefits that the high omnichannel integration quality bring to them and become satisfied with their omnichannel retailer experiences. Based on the above arguments, internet usage is expected to positively moderate the effects of CIQ, itself comprised of channel-service configuration and integrated interactions as well as customer empowerment regarding customer experience in the context of omnichannel retailers. Thus, we propose the following hypothesis: H3. Customer internet usage strengthens the positive influence of (a) channelservice configuration, (b) integrated interactions, and (c) customer empowerment regarding the customer experience. 2.5.5. The influence of the customer experience on patronage intention According to the SOR framework, customers’ internal states (i.e., customer experience) could result in their response to omnichannel retailers (i.e., patronage intention). Previous studies demonstrate that experiential values positively affect website patronage intentions in the e-retailing context (Shobeiri et al., 2015), while overall customer experience significantly enhances the frequency of using retailers’ mobile apps in m-retailing (McLean et al., 2018). As mentioned above, the current study defines customer experience as a second-order construct of two dimensions: satisfaction with the experience and positive emotions. A number of supportive arguments and extensive empirical evidence are found for the positive impacts of these two dimensions on the behavioral intentions of customers. For example, 27 Anderson and Sullivan (1993) argue that a higher level of satisfaction will lead to a higher level of customer retention. This view is also confirmed by Ranaweera and Prabhu (2003) who declare that satisfaction significantly enhances customer retention. Similarly, several studies have shown that satisfaction is an important antecedent of customer repurchase behavior (Fang et al., 2011; Lee et al., 2009; Olsen, 2002). In the retailing industry, a large number of research projects have been conducted to confirm the positive impact of satisfaction on patronage intention (Chang et al., 2015; Grace and O’Cass, 2005; Wang, 2009). With respect to another component of customer experience, positive emotions, according to Grace and O’Cass (2005), consumption feelings/emotions such as pleasure or excitement in physical store retailing have a significant positive effect on patronage intentions. Similarly, Wang (2009) confirms that a positive attitude will lead to customer patronage intentions. In an e-retailing context, data from the research of Kim et al. (2007) indicate that a higher level of shopping enjoyment will lead to a higher level of patronage intention. Based on the aforementioned arguments and evidence, we posit that the greater the degree to which customers experience satisfaction and positive emotions, the higher their intention to patronize an omnichannel retailer. Overall, we hypothesize: H4. The customer experience is positively associated with patronage intention. 28 Channel Integration Quality Breadth of channelservice choice Transparency of channelservice configuration Internet usage Channelservice configuratio n H3c Positive emotion Satisfaction w. exp. Customer experience Customer empwerment Patronage intention H4 Content consistency Integrated interaction Process consistency First-order constructs Second-order constructs Control var.: Trust, Seek Indirect effects Stimulus (S) Organism (O) Figure 2.6. Research framework and hypotheses Respone (R) 29 2.6. Summary Overall, this chapter presented the research framework which be drawn upon the SOR framework and the literature review on each construct of the model, as well as five studies relevant to this thesis. Futhermore, four hypotheses were proposed. First, CIQ’s dimensions (i.e., (a) channel-service configuration and (b) integrated interactions) are positively associated with the customer experience. Second, customer empowerment mediates the influences of CIQ (consisting of (a) channelservice configuration and (b) integrated interactions) on the customer experience. Third, customer internet usage strengthens the positive influence of (a) channelservice configuration, (b) integrated interactions, and (c) customer empowerment regarding the customer experience. And finally, the customer experience is positively associated with patronage intention. The next chapter would be concerned with the method used for the current thesis. 30 3. CHAPTER 03: RESEARCH METHOD 3.1. Research process In the current thesis, the mixed method was chosen, including both qualitative (step 1 – 4 in Figure 3.1) and quantitative (step 5 – 9 in Figure 3.1) methods. Qualitative methods offer an effective way of modifying and ensuring the plausibility as well as the clarity of the questionnaire. The first step in this process was to review the literature and prior relevant papers to adopt the measurement scale for all studied constructs (i.e., breadth of channel-service choice, transparency of channel-service configuration, content consistency, process consistency, customer empowerment, satisfaction with experience, positive emotions, patronage intention, internet usage, trust on retailer, and variety seeking); with some minor modifications to fit the current research context. All the items of these constructs were then translated into Vietnamese, the official language of the current research context. Following the measurement scale, a questionnaire was designed and pre-tested with 20 customers (i.e., 10 MBA students and 10 office staffs). The questionnaire was then modified to ensure its clarity before finalization and distribution. The second stage of the study comprised a paper-based interview with participants who used to have experience of shopping with omnichannel retailers and aged 25 - 34; with a purposive sampling based on gender (i.e., 60% women and 40% men). The survey was conducted at the five busiest shopping mall and office buildings in the metropolitan area of Ho-Chi-Minh City (i.e., Vincom Center, Saigon Square, Takashimaya Vietnam; Diamond Plaza; Parkson Plaza). After collection, the dataset was analyzed using SmartPLS 3.2.8. To begin this process, a two-stage approach was applied to assess the measurement model. The reliability of the studied constructs was represented by Cronbach’s alpha and composite reliability, while the convergent validity was represented by indicator reliability and average variance extracted (AVE). Furthermore, cross loadings, Fornell-Larcker criterion, and the Heterotrait-Monotrait Ratio (HTMT) were used to assess the discriminant validity of the measurement model. The next step was checking whether the common method 31 bias (CMB) could threaten the research results. After that, the structural model was assessed through a number of different criteria, such as: the VIF values for checking the collinearity issues, the SRMR value to evaluate the model fit, the R2 and Q2 of the endogenous constructs to assess the predictive power and predictive relevance of the proposed research model, respectively. On testing the hypotheses of the current thesis, a bootstrapping procedure of 5,000 samples was applied to test the direct effects, the mediating effects, as well as the moderating effects. Finally, the FIMIXPLS approach was applied to evaluate whether the research findings were distorted by the unobserved heterogeneity. Research process includes the following steps as illustrated in Figure 3.1. - 1. Literature 2. Measurement scale 3. Pre-test review & Draft questionnaire (n = 20) 5. Main survey 4. Modified (n = 312) questionnaire 6. Assessment of the measurement 7. Test for common model (two-stage approach) method bias (CMB) Reliability (cronbach’s alpha and 8. Assessment of the structural composite reliability) model - Convergent validity (indicator reliability and average variance extracted - AVE) - The collinearity issues (VIF value) - Discriminant validity (cross loadings, - The model fit (SRMR value) Fornell-Larcker - The predictive power (R2) and predictive criterion, and Heterotrait-Monotrait Ratio - HTMT) the relevance (Q2) - Hypotheses testing (bootstrapping 5,000): 9. FIMIX analysis for data heterogeneity direct effects, mediating effects, and the moderating effects. Figure 3.1. Research process 32 3.2. Measurement scale The current study consists of three multi-dimensional constructs, two singledimensional constructs, one single-item construct, and two control variables. The measurements for these constructs were adopted from prior studies with some minor modifications to fit the current research context (see Table 3.1). Specifically, the two multi-dimensional constructs that belong to CIQ (channel-service configuration and integrated interactions) had two dimensions for each, with scales were adopted from Lee et al. (2019). In particular, channel-service configuration was comprised of breadth of channel-service choice and transparency of channel-service configuration, while integrated interactions encompassed both content consistency and process consistency. Each of these constructs was measured by four items. Another multidimensional construct, customer experience, consisted of satisfaction with experiences and positive emotions that were measured by three- and ten-item indices taken from McLean et al. (2018). Unidimensional constructs of customer empowerment and patronage intention were adapted from Zhang et al.’s scales (2018) of five and three items, respectively. Internet usage was assessed based on Gross's (2004) single-item construct. Regarding control variables, trust in retailers was measured with four items adopted from Chiu et al. (2012), while variety-seeking was measured with seven items taken from Adjei and Clark (2010). All items were measured with a seven-point Likert scale (1 = strongly disagree, 7 = strongly agree) and were translated into Vietnamese, the official language of the current research context. 33 Table 3.1. Measurement scales Constructs Items 1. I can purchase products via the online or physical stores of X. (BCSC1) Breadth of channelservice choice (BCSC) Channel- 2. I can get support through the online or physical stores of X. (BCSC2) 3. I can give feedback about the products through the online or physical stores of X. (BCSC3) 4. I can get detailed product description from the online or physical stores of X. (BCSC4) service 1. I am aware of available services of the online and configuration physical stores of X. (TCSC1) (CSC) Transparency 2. I am familiar with available services of both the of channelservice online and physical stores of X. (TCSC2) 3. I know how to utilize available services of the configuration online and physical stores of X. (TCSC3) (TCSC) 4. I know the differences of available services between the online and physical stores of X. (TCSC4) 1. X provides consistent product information across the online and physical stores. (CC1) Integrated Content interactions consistency (InI) (CC) 2. The product prices are consistent across the online and physical stores of X. (CC2) 3. X provides consistent promotion information across the online and physical stores. (CC3) 4. X provides consistent stock availability across the online and physical stores. (CC4) 34 1. The service images are consistent across the online and physical stores of X. (PC1) 2. The levels of customer service are consistent Process consistency (PC) across the online and physical stores of X. (PC2) 3. The feelings of service are consistent across the online and physical stores of X. (PC3) 4. The online and physical stores of X have consistent performance in the speed of service delivery. (PC4) 1. In my dealings with X, I feel I am in control. (Cemp1) 2. During the shopping process at X, I can select products and services freely. (Cemp2) Customer empowerment (Cemp) 3. I can influence the choice-set offered to me by X. (Cemp3) 4. The ability to influence the goods and services of X is beneficial to me. (Cemp4) 5. My influence over X has increased relative to the past. (Cemp5) How many hours do you use the internet per day? Internet usage (IU) Less than 2h; 2h to < 5h; 5h to < 8h; 8h and more 1. I am satisfied with the shopping experience at X. Customer experience (Cexp) Satisfaction with experience (SE) (SE1) 2. The shopping experience at X is exactly what I needed. (SE2) 3. The shopping experience at X has worked out as well as I thought it would. (SE3) 35 1. I feel encouraged when shopping at X. (PE1) 2. I feel confident when shopping at X. (PE2) 3. I feel sure when shopping at X. (PE3) 4. I feel unconfused when shopping at X. (PE4) Positive emotions (PE) 5. I feel optimistic when shopping at X. (PE5) 6. I feel certain when shopping at X. (PE6) 7. I feel content when shopping at X. (PE7) 8. I feel relieved when shopping at X. (PE8) 9. I feel undoubtful when shopping at X. (PE9) 10. I feel satisfied when shopping at X. (PE10) 1. I am likely to continue to purchase products from X. (PI1) Patronage intention (PI) 2. I am likely to recommend X to my friends. (PI2) 3. I am likely to choose X as a preferred retailer if I need the products that I will buy. (PI3) 1. X is a trustworthy retailer. (Trust1) Trust in retailer (Trust) 2. X cares about its customers. (Trust2) 3. X keeps its promises to its customers. (Trust3) 4. X is not opportunistic. (Trust4) 1. When shopping, I find myself spending a lot of time checking out new websites/apps/physical stores. (Seek1) Variety-seeking (Seek) 2. I take advantage of the first available opportunity to find out about new websites/apps/physical stores. (Seek2) 3. I like to investigate information about new websites/apps/physical stores. (Seek3) 36 4. I like information source that introduce new websites/apps/physical stores. (Seek4) 5. I frequently look out for new websites/apps/physical stores. (Seek5) 6. I seek out situations in which I will be exposed to new and different sources of websites/apps/physical store information. (Seek6) 7. I am continually seeking out new websites/apps/physical stores. (Seek7) Note: X refers to the listed well-known or the self-declared omnichannel retailer by the respondent. Sources: Lee et al. (2019); Zhang et al. (2018); McLean et al. (2018); Chiu et al. (2012); Adjei and Clark (2010). 3.3. Questionnaire design The paper-based questionnaire was designed in three sections. Section 1 contained an explanation of omnichannel retailers and screening questions to identify eligible respondents. The second section included measurement of the research constructs. Finally, the last section contained the respondent’s demographic information. We pre-tested the questionnaire with 10 MBA students at a well-known public university and 10 office staffs. The questionnaire was then modified to ensure its clarity before finalization and distribution. 3.4. Sample and data collection In the omnichannel retailing context, customers use both online (e.g., websites, mobile apps) and physical stores to complete their purchasing journey. Li et al. (2018) also note that omnichannel shoppers are online customers. According to Picodi (2018), a global e-commerce platform operating in Vietnam, half of Vietnamese online customers (49%) were aged between 25 and 34 years old. Moreover, 60% of them were women, and 40% were men. Similarly, a report from Nielsen Vietnam also pointed out that 60% of Vietnamese online customers were women and 40% were 37 men, with the age bracket of 25 – 29 totaling 55% (Uyen Phuong, 2018). Thus, the respondents of the current study were limited to those aged 25 – 34, and purposive sampling based on gender (see Table 3.2) was employed. The data collection was conducted in Ho-Chi-Minh (HCM) City, where the retail business activities are striking. According to Tran (2019), HCM’s retail sales and service revenue reached more than 4.07 billion USD in April 2019, up 14.4% from the same time last year. In the first five months of 2018, statistical data from General Statistics Office of Vietnam also pointed out that HCM was the city with the fastest growth of retail goods sales (13.5%) in Vietnam (Thuy Mien, 2018). Moreover, all of the well-known Vietnamese omnichannel retailers do business in HCM City. Therefore, the current study employs HCM City for data collection. The survey was conducted at the five busiest shopping mall and office buildings in the metropolitan area of HCM City (i.e., Vincom Center, Saigon Square, Takashimaya Vietnam; Diamond Plaza; Parkson Plaza) to approach potential respondents (aged 25 – 34). After presenting the definition of omnichannel retailers in the survey questionnaire, participants either chose one well-known omnichannel retailer - Nguyen Kim (electronic appliances), FPT Shop/The Gioi Di Dong (mobile carriers and devices), or Concung (mother and baby products) - or self-declared the omnichannel retailer they were most familiar with. Next, to be included in the survey, filtering questions were used to ensure that the person: (1) has visited both the online (websites/mobile apps) and physical stores of one of the four omnichannel retailers; (2) has made at least one purchase either online or physical store of this omnichannel retailer; and (3) was aged 25 – 34. If any of these three conditions were not met, the questionnaire was not given. A small souvenir was also offered to them in appreciation of their support. The data were collected over a five-week period in 2019 (from 8 July 2019 to 11 August 2019) at different times of day and on both weekdays and weekends. 38 3.5. Sample characteristics After close scrutiny, 312 valid responses were used for further analysis. The majority of respondents (82.4%) had graduated from a college or university. The most common monthly income level bracket was from 9,000,000 VND and up. In terms of omnichannel shopping, nearly half of the respondents (47.4%) made purchases a few times per month, with the value for each order most commonly less than 1,000,000 VND (41.3%). Furthermore, the most common daily internet usage range was from 2 hours to just under 5 hours. More details about respondents’ profiles and purchase behaviors are presented in Table 3.2. Table 3.2. Sample demographic characteristics Gender Realized Planed Purchase frequency quota % quota % (webs/apps/stores) 126 40.4 40.0 Several times a week 186 59.6 60.0 A few times a month A few times a year 312 100.0 100.0 Rarely (only once or twice) Total Average order value Freq. % (webs/apps/stores) (*) 3 1.0 Less than VND 1,000,000 VND 1,000,000 to < 257 82.4 3,000,000 VND 3,000,000 to < 51 16.3 5,000,000 1 0.3 VND 5,000,000 and more 312 100.0 Total Freq. % Daily internet usage 9 2.9 Less than 2h 77 24.7 2h to < 5h Freq. Freq. % 29 148 100 35 312 Freq. 9.3 47.4 32.1 11.2 100.0 % 129 41.3 92 29.5 44 14.1 47 312 Total Monthly income (*) Freq. Less than VND 5,000,000 51 VND 5,000,000 to < 131 9,000,000 VND 9,000,000 to < 116 37.2 5h to < 8h 68 15,000,000 VND 15,000,000 and more 110 35.3 8h and more 62 312 100.0 312 Total Total (*) US$ 1 = Vietnamese Dong (VND) 23,215 at the time of the survey 15.1 100.0 % 16.3 Male Female Total Education High school College or university Post graduate and above Others 42.0 21.8 19.9 100.0 39 3.6. Summary This chapter dealt with the method used for the current thesis, including the research process, measurement scale, questionnaire design, sample and data collection, as well as the sample characteristics. In particular, the study consisted of three multi-dimensional constructs (i.e., channel-service configuration, integrated interactions and customer experience), two single-dimensional constructs (customer empowerment and patronage intention), one single-item construct (internet usage), and two control variables (trust in retailers and variety seeking). All measurements for these constructs were adopted from prior studies of Lee et al. (2019); McLean et al. (2018); Zhang et al. (2018); Gross’s (2004); Chiu et al. (2012); and Adjei and Clark (2010). Data was collected from customers who used to have experience of shopping with the omnichannel retailers and aged 25 - 34, with a purposive sampling based on gender; at five busiest shopping mall and office buildings in the metropolitan area of HCM City. After close scrutiny, 312 valid responses would be used for further analysis in the next chapter. 40 4. CHAPTER 04: DATA ANALYSIS AND RESULTS This research employed SmartPLS 3.2.8 (Ringle et al., 2015) and applied the partial least square–structural equation model (PLS-SEM) to test the accuracy of measurement scales and the structural model. The analysis results are shown below. 4.1. Assessment of measurement scales The research framework had unidimensional, multidimensional, and even single-item constructs (see Figure 2.6); then, as recommended by Becker et al. (2012), a two-stage approach was applied. In Stage I, the repeated indicators approach was applied to obtain the latent variable scores (see Figure 4.1). These scores were saved in the dataset for further analysis in Stage II. Then, in Stage II, the scores of Stage I became the indicators for their corresponding constructs (see Figure 4.2). The results of scale accuracy (i.e., reliability and validity) of the studied constructs were presented in Table 4.1 and Table 4.2. Note: See Table 3.1 for all abbreviations of the respective constructs in the model Figure 4.1. Research model in Stage I 41 Note: See Table 3.1 for all abbreviations of the respective constructs in the model Figure 4.2. Research model in Stage II To assess the reliability of the constructs, the thresholds of Cronbach’s α (0.7) and composite reliability (0.7) (Hair et al., 2017) were applied; the data in Table 4.1 indicates the satisfactory level of scale reliability. Convergent validity for the studied constructs were also verified, with the minimum requirement of indicator loadings (0.5) and average variance extracted (AVE) values above the cut-off point of 0.5 being satisfied (i.e., the AVE values: CSC - 0.800, InI – 0.805, Cemp - 0.586, Cexp - 0.871, PI - 0.828, Trust - 0.661 and Seek - 0.763). In addition, to assess the discriminant validity of the measurement model, cross loadings, Fornell-Larcker criterion, and the Heterotrait-Monotrait Ratio (HTMT) were used. Each indicator’s loading on its corresponding construct was higher than all of its cross-loadings on the other constructs. Also, as can be seen from Table 4.2, the square root of the AVE of each construct was higher than the construct’s highest correlations with the other constructs. Moreover, all HTMT values fell below the conservative maximum level 42 of 0.85. Overall, both the reliability and validity of the measurement model were assured. Table 4.1. Scale accuracy analysis Assessment Stage I Hierarchical measurement model Studied constructs (Dimensions) Breadth of channelChannelservice choice service configuration Transparency of (CSC) channel-service configuration Content consistency Integrated interactions (InI) Process consistency No of scale itemsa 4 Item loading/ highest cross-loading .800/.581, .833/.440, .843/.484, .804/.476 .806/.534, .893/.578, .879/.530, .705/.370 Alpha CRb AVEc .837 .891 .672 4 .841 .894 .679 4 .822 .883 .655 4 .815 .880 .648 5 .822 .876 .586 3 .894 .934 .826 10 .932 .943 .623 Patronage intention (PI) 3 .896 .935 .828 Internet usage (moderator) Control variables Trust on retailer (Trust) 1 n.a n.a n.a 4 .829 .886 .661 Variety Seeking (Seek) 7 .950 .958 .763 Alpha CRb AVEc .751 .889 .800 Dimension loading/ highest cross-loading .903/.473, .886/.481 .759 .852 .892 .931 .805 .871 .879/.491, .915/.612 .934/.489, .932/.667 Customer empowerment (Cemp) Customer experience (Cexp) Satisfaction with experience Positive emotions Assessment Stage II Hierarchical measurement model Studied constructs Channel-service configuration (CSC) Integrated interactions (InI) Customer experience (Cexp) No of scale dimensiona 2 2 2 .810/.499, .858/.497, .849/.479, .711/.504 .673/.501, .856/.576, .851/.487, .826/.504 .715/.486, .714/.494, .764/.438, .840/.527, .785/.490 .870/.650, .933/.676, .923/.707 .784/.624, .764/.577, .811/.617, .690/.433, .785/.540, .749/.553, .787/.605, .836/.640, .822/.598, .852/.646 .912/.619, .917/.625, .901/.590 n.a .778/.536, .836/.509, .838/.539, .797/.520 .836/.315, .908/.332, .934/.323, .890/.302, .881/.416, .821/.316, .840/.367 Note: a based on a 1-7 Likert scale; b Composite Reliability; c Average Variance Extracted; n.a.: not applicable 43 Table 4.2. Scale accuracy analysis: Discriminant validity assessment Assessment Stage Studied constructs (dimensions) Transparency of channelservice Channelconfiguration service confgurati Transparency on (CSC) of channelservice configuration Content Integrated consistency interaction Process s (InI) consistency Customer empowerment (Cemp) Satisfaction with Customer experience experience (Cexp) Positive emotions Patronage intention (PI) Internet usage (IU) (moderator) CSC BCSC TCSC InI CC PC Stage I Cexp Cem p SE PE PI IU Tru st See k .820 .700 .468 .486 .534 .545 .471 .538 .070 .511 .115 .601 .824 .550 .503 .486 .471 .459 .457 .064 .443 .280 .388 .454 .809 .752 .567 .561 .502 .408 .087 .561 .276 .396 .414 .611 .805 .626 .685 .622 .516 .038 .744 .334 .448 .408 .468 .514 .765 .721 .694 .497 .043 .632 .443 .467 .406 .480 .588 .620 .909 .810 .730 .090 .735 .308 .415 .409 .437 .542 .612 .742 .789 .728 .037 .707 .316 .465 .403 .651 .086 .667 .014 .910 .075 .080 .681 .143 -.058 .442 .033 .434 -.065 .351 .080 n.a .030 .055 Trust on retailer (Trust) .431 .378 .461 .611 .528 .632 .625 .592 .813 .228 Variety Seeking (Seek) .112 .243 .238 .292 .381 .289 .299 .148 .203 .874 CSC Stage II InI .895 -.031 .005 .042 Cem p Cexp PI IU Tru st See k .681 .541 .635 .560 .079 .516 .220 .512 .897 .625 .760 .506 .072 .687 .349 .469 .547 n.a .710 .421 .034 .520 .400 .509 .486 .616 .445 .656 .421 .933 .707 .058 .076 .728 .588 .341 .130 -.069 -.060 -.034 -.054 .765 n.a .076 n.a .006 .057 Trust on retailer (Trust) .448 .605 .520 .672 .588 n.a .202 Variety Seeking (Seek) .187 .307 .400 .315 .130 .202 n.a Studied constructs Channel-service confguration (CSC) Integrated interactions (InI) Customer empowerment (Cemp) Customer experience (Cexp) Patronage intention (PI) Internet usage (IU) (moderator) .006 .057 Note: The lower and upper of the diagonal are bivariate correlations and HTMT ratios, respectively; diagonal bold values are the square root of AVE (average variance extracted); n.a.: not applicable 44 4.2. Test for common method bias Since the data was collected based on respondents’ self-reported subjective perceptions, it was important to assess whether the common method bias (CMB) could threaten the research results. In this regard, two statistical tests were used to check the seriousness of CMB. First, Harman’s one-factor test was applied by putting all indicators together into an exploratory factor analysis, while the principal component analysis without rotation was used to determine the number of extracted factors. The results showed that the largest factor accounted for only 34.98% of the total variance. Thus, there is no single factor emerging, nor could one general factor explain the majority of the covariance among the scale indicators. Second, following Liang et al. (2007), a PLS model with a common method factor was supplemented. The results indicated that 90% (45/49) of the method factor loadings were insignificant, while the substantive factor loadings of the principal constructs’ indicators were all significant (see Table 4.3). Moreover, the average substantivelyexplained variance of the indicators was 0.673, while the average method-based variance was only 0.005. The ratio of substantive variance to method variance was about 135:1. According to the above two tests, there was no problem with CMB in this study. Table 4.3. Test for common method bias (CMB) Construct BCSC TCSC CC Indicator BCSC_1 BCSC_2 BCSC_3 BCSC_4 TCSC_1 TCSC_2 TCSC_3 TCSC_4 CC_1 CC_2 Substantive Factor Loadings (R1) .079c .839 c .845 c .806 c .799 c .889 c .878 c .722 c .811 c .863 c R1 2 .624 .703 .715 .649 .638 .790 .770 .521 .657 .744 Method Factor Loading (R2) -.076 -.032 -.006 .115a -.071 .014 .061 -.013 .114a -.080 R2 2 .006 .001 .000 .013 .013 .006 .011 .008 .005 .000 45 PC Cemp SE PE PI Trust Seek Internet Usage (moderator) Average CC_3 CC_4 PC_1 PC_2 PC_3 PC_4 Cemp_1 Cemp_2 Cemp_3 Cemp_4 Cemp_5 SE_1 SE_2 SE_3 PE_1 PE_2 PE_3 PE_4 PE_5 PE_6 PE_7 PE_8 PE_9 PE_10 PI_1 PI_2 PI_3 TRUST_1 TRUST_2 TRUST_3 TRUST_4 Seek_1 Seek_2 Seek_3 Seek_4 Seek_5 Seek_6 Seek_7 .853 c .700 c .658 c .853 c .859 c .834 c .690 c .687 c .788 c .851 c .802 c .975 c .937 c .924 c .782 c .763 c .810 c .693 c .787 c .750 c .787 c .835 c .822 c .852 c .910 c .916 c .903 c .743 c .831 c .858 c .819 c .810 c .886 c .931 c .873 c .895 c .863 c .883 c .728 .490 .432 .728 .739 .695 .476 .471 .621 .725 .644 .951 .877 .854 .612 .582 .657 .480 .619 .562 .620 .698 .675 .725 .828 .839 .816 .552 .690 .737 .671 .656 .784 .867 .762 .802 .745 .780 -.103a .089 .041 .087 -.081 -.040 .126 .125 .182c -.003 -.046 -.008 -.056 .019 .157a .074 -.001 -.078 -.001 .075 -.112 -.032 -.048 -.030 .031 .006 -.038 .131 -.018 -.068 -.033 -.009 .024 -.033 -.002 .063 -.030 -.014 .004 .000 .002 .008 .006 .002 .016 .016 .033 .000 .002 .000 .003 .000 .025 .005 .000 .006 .000 .006 .012 .001 .002 .001 .001 .000 .001 .017 .000 .005 .001 .000 .001 .001 .000 .004 .001 .000 IU .006 .000 -.064 .004 .809 .673 -.001 .005 Note: p: a < .05, b ≤ .01, c ≤ .001; see Table 3.1 for all abbreviations of the respective constructs. 46 4.3. Assessment of structural model Following the procedure to evaluate the structural model as proposed by Hair et al. (2017), the collinearity issues among each set of predictor variables were firstly checked; all VIF values (see Table 4.4) of less than 5.0 demonstrated that collinearity was unlikely to be a concern. Table 4.4. Inner VIF value Antecedents Channel-service configuration Integrated interactions Customer empowerment Customer experience Trust in retailer Variety-seeking Customer Customer Patronage empowerment experience intention 1.355 1.459 1.355 1.621 1.532 1.944 1.826 1.110 To assess the quality of the structural model, the SRMR value of 0.079 – less than the threshold (0.08) – asserted a good fit of the model for theory testing (see Figure 4.3). In addition, the predictive power and predictive relevance of the proposed research model were assessed through the R2 and Q2 of the endogenous constructs, respectively. The R2 values of 0.26, 0.13 and 0.02 represent substantial, moderate and weak levels of predictive accuracy, respectively (Cohen, 1988), while the predictive relevance of Q² values should be higher than zero. As can be seen from Figure 4.3, the R2 values of customer empowerment (0.347), customer experience (0.541) and patronage intention (0.532) all reached the substantial level. The Q2 values of three endogenous were above zero. These indicate that the exogenous constructs had substantial explanatory capability and adequate predictive relevance for the three endogenous constructs in the model. Overall, the quality of the structural model was assured. Next, the hypotheses testing results comprised of direct effects, mediating effects and moderating effects are presented below. Direct effects: A t-test calculated from the bootstrapping procedure of 5,000 samples was applied to test the direct effects in the research model, while Cohen’s 47 Indicator (f2) was used to measure the effect sizes with the values of 0.02, 0.15, and 0.35 representing small, medium, and large effects, respectively (Hair et al., 2017). Table 4.5 and Figure 4.3 illustrates how all of the three direct hypotheses (H1a, H1b and H4) were supported at at least 95% confidence level. The effect sizes of channelservice configuration and integrated interactions on customer experience were between small and medium (0.036 and 0.129, respectively), while the effect of customer experience on patronage intention was rather large (0.395). Table 4.5. Significance testing results of the structural model path coefficients Path coefficients p Value 95% Confidence intervals Significancea (p < 0.05)? CSC Cexp (H1a) 0.156 0.003 [0.051, 0.264] Yes Cexp PI (H4) 0.600 0.000 [0.491, 0.721] Yes InI Cexp (H1b) 0.310 0.000 [0.215, 0.409] Yes Seek PI -0.100 0.015 [-0.191, -0.029] Yes Trust PI 0.205 0.001 [0.082, 0.321] Yes Moderating effect 1 (H3a) 0.130 0.001 [0.053, 0.205] Yes Moderating effect 2 (H3b) 0.083 0.029 [0.012, 0.159] Yes Moderating effect 3 (H3c) 0.110 0.008 [0.026, 0.188] Yes Note: a The 95% confidience intervals bias corrected not included zero is also considered as a criterion for significance testing Mediating effects: Following Zhao et al., (2010) mediation analysis approach, we used one bootstrap test (5,000 samples) to replace both the Baron-Kenny’s procedure and the Sobel’s test to examine the indirect, mediating effects. The bootstrapping results pointed out that both indirect effects stipulated in H2a and H2b were positive and significant and the 95% bias corrected confidence intervals did not include zero (see Table 4.6 and Figure 4.3); thus, H2a and H2b were supported. Further identifying the typology of mediations was conducted. In addition to the above 48 significant and positive indirect effects, the direct effects of channel service configuration and integrated interactions on customer experience were also positive and significant, thus customer empowerment was identified as a complementary mediation of the proposed direct effects. Table 4.6. Significance testing results of the total indirect effects Total indirect effects p Value 95% Confidence intervals Significancea (p < 0.05)? CSC ---> Cexp 0.106 0.000 [0.054, 0.162] Yes InI ---> Cexp 0.172 0.000 [0.120, 0.239] Yes Note: a The 95% confidience intervals bias corrected not included zero is also considered as a criterion for significance testing Moderating effects: The study examined the moderating effects of internet usage on the positive relationships between customer experience and its precursors (i.e., channel-service configuration, integrated interactions, and customer empowerment). Three interaction terms were created for moderating effect analysis. The results from Table 4.5 and Figure 4.3 asserted that all three moderating effects (H3a, H3b, and H3c) were supported. According to Kenny’s standard, the effect size in tests of moderation might be 0.005, 0.01 and 0.025 for small, medium, and large, respectively (Hair et al., 2017). The interaction term’s f2 effect size in the current study had values of 0.040, plus 0.030 and 0.016, indicating large and medium effects. Control variables: The analysis of control variables suggested that there were significant positive and negative effects of trust in retailers and variety-seeking on patronage intention, respectively (Table 4.5 and Figure 4.3). 49 Internet usage Channel Integration Quality p: a < .05, b ≤ .01, c ≤ .001 H3a, H3b: moderating role SRMR: .079 H3a: .130c f2: .040 Channel-service configuration H3c: .110b f2: .030 Customer empowerment (R2: .347, Q2: .330) Trust in retailer H3b: .083a f2: .016 .205c f2: .049 Customer experience (R2: .541, Q2: .443) Patronage intention 2 (R : .532, Q2: .512) H4: .600c f2: .395 -.100a f2: .019 Integrated interactions First-order constructs Second-order constructs Control variables Indirect effects (H2a, H2b) Figure 4.3. Analysis results Variety seeking 50 4.4. FIMIX analysis for data heterogeneity Unobserved heterogeneity in the selected sample can prevent the derivation of accurate findings (Becker et al., 2013); thus, the current study applied the FIMIXPLS approach to evaluate whether unobserved heterogeneity is explanatory (see Table 4.7). The FIMIX-PLS algorithm was calculated for different numbers of segments (K). The process started with K=1 and stopped at K = 4, as the fourth segment of K = 4 occupied only 3% (9 observations) of the sample, which was lacking in producing reliable statistics. Three solutions (K = 1 to K = 3) were then compared to find the best segmentation solution via two criteria: (1) lowest values of the CAIC, AIC3 and BIC, and (2) EN of at least 0.50 were applied (Hair et al., 2017). The results indicated none of the segmentation solutions were better than the others; consequently, unobservable variables remained unidentified and the research findings were unlikely be distorted by the unobserved heterogeneity. Table 4.7. FIMIX-PLS results for the relative segment sizes and retention criteria K (Number of pre-specified segments) K=1 K=2 K=3 K=4 Segment I 312 (100%) 184 (59%) 184 (59%) 187 (60%) Segment retention criteria (fit indices) CAIC (Consistent Akaike’s Information Criterion) AIC3 (Modified AIC with Factor 3) BIC (Bayesian Information Criteria) EN (Entropy Statistic) Relative segment sizes (%) Segment II Segment III Segment IV 128 (41%) 97 (31%) 97 (31%) 31 (10%) 19 (6%) 9 (3%) Sample Sum 312 (100%) 312 (100%) 312 (100%) 312 (100%) K=1 2,124.28 2,079.36 2,112.28 # K=2 2,142.86 2,049.28 2,117.86 .43 K=3 2,190.28 2,048.05 2,152.28 .57 K=4 2,231.46 2,040.56 2,180.46 .71 4.5. Summary This chapter analyzed the dataset of the research, including: assessment of measurement scales, test for common method bias, assessment of structural model, and FIMIX analysis for data heterogeneity. In summary, the results showed that CIQ components (i.e., channel-service configuration and integrated interactions) significantly affect customer experience, which in turn leads to patronage intention. 51 Moreover, customer empowerment complementarily mediates the impacts of CIQ components on the customer experience, while internet usage strengthens the positive relationships between the customer experience and its precursors. The next chapter, therefore, moves on to discuss the research findings and managerial implications. 52 5. CHAPTER 05: DISCUSSION AND CONCLUSION 5.1. Discussion of results The current thesis examines customer experience with omnichannel retailers. Based on the SOR framework, we propose that CIQ with two components, channelservice configuration and integrated interactions, could enrich customer experience through the mediating role of customer empowerment as well as the moderating role of internet usage, which in turn determine customer patronage behavior. The results show that there is a positive relationship between two CIQ components and customer experience. This finding confirms the view of Lemon and Verhoef (2016) who consider service quality (and its constituent elements) as an antecedent of customer experience. In particular, integrated interactions, in contrast to the channel-service configuration, have a stronger impact on customer experience. This finding implies that customers strongly demand consistent messaging across channels during their purchase journey. If omnichannel retailers try to expand to more channel choices without a high level of uniformity among these channels, they will fail to bring about positive emotions as well as satisfaction for their customers. Another important finding is that customer experience greatly affects patronage intention. This result is consistent with some other research which found the positive influences of satisfaction and emotions (two dimensions of customer experience) on patronage intention (Chang et al., 2015; Grace and O’Cass, 2005; Kim et al., 2007; Wang, 2009). In addition, in this thesis, customer empowerment is found to mediate the impact of CIQ on customer experience. By offering higher levels of CIQ, omnichannel retailers better empower customers, leading to a higher level of satisfaction during the shopping experience (also see Zhang et al., 2018). As mentioned in the literature review and according to the SOR framework, customer empowerment and customer experience are defined as customers’ internal states. This finding broadly supports the work of other studies that link CIQ with customers’ internal states (Lemon and Verhoef, 2016; Li et al., 2018; Shen et al., 2018). 53 Furthermore, the current thesis confirms the moderating effect of internet usage on the positive relationships between customer experience and its precursors (i.e., channel-service configuration, integrated interactions, and customer empowerment). It may be explained by the fact that the more customers use the internet, the greater their familiarity with omnichannel retailers’ online channels (i.e, websites, mobile apps) and/or in-store technologies. Consequently, customers could complete any tasks more easily during the purchase journey, which leads them to experience greater enjoyment in their shopping as well as feeling a deeper sense of satisfaction. This result is in line with those of previous studies regarding the contingency role of internet experience in the multichannel retailing context (Frambach et al., 2007; Verhoef et al., 2007). Control variables, including trust in a particular retailer and variety-seeking, are also found to have significant impacts on patronage behavior. In particular, trust in retailers positively affects patronage intention, while variety-seeking has a negative influence. These results corroborate the ideas of Chiu et al. (2012) and Zhang et al. (2018), who suggested that trust might influence customer patronage intention towards retailers. Moreover, it is encouraging to compare our results with that found by Gountas and Gountas (2007) who found that customer’s personality traits (i.e., variety seeking in our research) might be related to their repurchase intentions. In summary, the combination of findings provides some support for understanding the dynamic mechanisms of forming customer experience and the subsequent patronage behavior in omnichannel retailers context. Consistent with the literature, this research indicates that creating a seamless experience is the aim of omnichannel strategy (Frazer and Stiehler, 2014; Peltola et al., 2015; Ieva and Ziliani, 2018; Jocevski et al., 2019). 5.2. Research implications The current research contributes to the literature on omnichannel retailers and customer experience in two aspects. First, although a number of early research papers 54 on omnichannel retailing have focused on channel integration (Lee et al., 2019; Li et al., 2018; Shen et al., 2018; Zhang et al., 2018), it should be recognized that creating a seamless, consistent and unified experience is the ultimate aim of omnichannel retailers (Frazer and Stiehler, 2014; Jocevski et al., 2019). This thesis empirically demonstrates the centrality of a well-integrated experience in omnichannel strategies. In addition, while previous researches on customer experience in omnichannel retailing contexts are generally qualitative and exploratory in nature, this thesis makes a major contribution to the existing literature by quantitatively examining the dynamic mechanisms of forming customer experience and its subsequent patronage behavior. Based on the empirical findings, meaningful practical implications could be drawn from a managerial standpoint. First, the current thesis points out that omnichannel experience acts as the key determinant of patronage intention. Thus, omnichannel retailers are advised to optimize their channel management to deliver a seamless, consistent and unified shopping experience to their customers. By integrating all available channels, omnichannel retailers make customers feel more empowered, which could enrich their shopping experience and lead to patronage behavior. Second, integrated interactions, compared with channel-service configuration, are found to have a stronger impact on customer experience. Thus, in order to optimize channel management to achieve a great customer experience, this study suggests that omnichannel retailers should focus on the consistency of their content and process. In particular, all retailers’ messaging (e.g., product information, prices, promotion, and stock availability) should be uniform across channels such as physical stores, websites and mobile apps. In the context of omnichannel retailers, customers are served with a wide range of products, thus highly requiring omnichannel assortment and pricing (Verhoef et al., 2015; Li et al., 2018). These two aspects (i.e., assortment and pricing) are related to the retailer’s category management process (Basuroy et al., 2001; Cachon and Kök, 2007). Therefore, omnichannel retailers are 55 advised to improve category management activity to well integrate their assortment and prices across channels. Whereas, for the purpose of serving customers with a synchronized inventory information across channels, it’s essential that omnichannel retailers build a strong and robust order management system (Konczal, 2019; Dang, 2018), as well as apply new technologies for supply chain operations. For instance, with the radio frequency identification (RFID) tags, omnichannel retailers can track and record the movement of inventory among all available channels (Donaldson, 2019). This technology allows omnichannel retailers to ensure the consistency of inventory data across channels and respone to their customers accurately. Moreover, retailers’ processes are also advised to be consistent, either online or in-store, so that customers could perceive the consistency of services across channels during their purchasing journey. Staff should be trained to follow standard operating procedure (SOP) in their daily activities. Besides, the new technologies should also be invested to exclude the natural boundaries with regard to business steps between channels. For instance, live online chat, an emergent form of customer service, allows omnichannel retailers to serve their customers in real-time, much like the way a store’s staff communicate in brick-and-mortar locations. It can help shoppers feel that they are served by the same way, through the same steps at anytime, anywhere, through any channels during their shopping journey. Third, omnichannel retailers should also pay attention to the moderating role of internet usage. As can be seen from the research findings, internet usage strengthens the impacts of channel-service configuration, integrated interactions and customer empowerment regarding enhancing the customer experience. In this regard, for omnichannel retailers, especially those with limits in term of resources (e.g., small and medium-sized enterprises - SMEs), the customer segment who represents a high level of internet usage should be selected as their target market. 56 5.3. Limitations and futher research The current study inherits a few limitations which may provide avenues for future research. First of all, this thesis focus on the main channels, including physical stores, websites and mobile apps. However, the channel scope of omnichannel retailers is growing quickly with the development of social media and modern technologies (Shen et al., 2018). Future research should continue to update new creative channels and provide a more complete picture of CIQ as well as its impact on customer experience. In addition, as the current research framework was empirically investigated in the context of omnichannel retailers, there exists the potential to test the framework in some other contexts such as banking, food and beverage services (F&B), and tourism. Finally, we cannot deny the existence of other factors that may be related to the mechanisms of forming the customer experience in omnichannel models. For instance, customers’ personality traits (e.g., customer innovativeness) can be considered as moderators on the relationships between customer experience and its precursors. Furthermore, it can be argued that other constructs such as commitment (Lemon and Verhoef, 2016) and value co-creation are also related to customer experience in the omnichannel context. 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QUESTIONNAIRE – VIETNAMESE VERSION Số phiếu: ……. BẢNG CÂU HỎI KHẢO SÁT Kính chào Anh/Chị, Tôi tên là Nguyễn Lê Xuân Doanh – Học viên Cao học Trường Đại học Kinh tế TP.HCM. Tôi đang thực hiện nghiên cứu về trải nghiệm mua sắm đa kênh (omnichannel) của người tiêu dùng. Rất mong Anh/Chị dành khoảng 10 phút giúp tôi trả lời phiếu khảo sát này. Sự hỗ trợ của Anh/ Chị có ý nghĩa rất lớn để tôi có thể hoàn thành nghiên cứu. Tôi xin cam kết tất cả thông tin thu thập chỉ được sử dụng cho mục đích học thuật và dữ liệu được xử lý ẩn danh, bảo mật nghiêm ngặt. PHẦN 1: THÔNG TIN CHUNG *Ghi chú: Mua sắm đa kênh (omnichannel) là mua hàng trên nhiều kênh khác nhau (ví dụ: tại cửa hàng, trên website, trên ứng dụng di động – mobile apps…) mà những kênh này được tích hợp và kết nối đồng bộ với nhau; cho Anh/ Chị một trải nghiệm mua sắm liền mạch, nhất quán; KHÔNG có sự khác biệt về giá cả, chất lượng, dịch vụ hậu mãi…giữa các kênh. Anh/ Chị vui lòng chọn MỘT Nhà bán lẻ bên dưới mà Anh/ Chị quen thuộc nhất và thỏa mãn đồng thời cả 3 điều kiện sau: - Anh/ Chị đã từng đến cửa hàng của nhà bán lẻ này. - Anh/ Chị đã từng truy cập vào website/ ứng dụng di động của nhà bán lẻ này. - Anh/ Chị đã từng mua hàng của nhà bán lẻ này ít nhất một lần tại cửa hàng (hoặc trên website/ ứng dụng di động). Nguyễn Kim FPT Shop Thế Giới Di Động Con Cưng (concung.com) Khác: ………………… PHẦN 2: KHẢO SÁT CHÍNH 1. Phần này khám phá trải nghiệm mua sắm của Anh/ Chị đối với Nhà bán lẻ mà Anh/ Chị đã chọn ở trên (sau đây được gọi chung là X). Xin vui lòng cho biết mức độ đồng ý của Anh/ Chị đối với các phát biểu bên dưới bằng cách khoanh tròn vào con số thích hợp theo qui ước sau: 1 2 3 4 5 6 7 Hoàn toàn không Rất không đồng Không đồng ý Trung lập Đồng ý Rất đồng ý Hoàn toàn đồng ý đồng ý ý Hoàn toàn không đồng ý Hoàn toàn đồng ý Khi mua sắm tại X, tôi có thể 1 Mua sản phẩm qua kênh trực tuyến hoặc tại các cửa hàng của X. 1 2 3 4 5 6 7 2 Nhận được sự tư vấn, hỗ trợ qua kênh trực tuyến hoặc tại các cửa hàng của X. 1 2 3 4 5 6 7 3 Phản hồi về sản phẩm qua kênh trực tuyến hoặc tại các cửa hàng của X. 1 2 3 4 5 6 7 4 Có được thông tin chi tiết về sản phẩm qua kênh trực tuyến hoặc tại các cửa hàng của X. 1 2 3 4 5 6 7 Hoàn toàn không đồng ý Hoàn toàn đồng ý Đối với các dịch vụ (vd: đặt hàng, giao hàng, hậu mãi...) mà X cung cấp 5 Tôi biết về các dịch vụ này của X trên kênh trực tuyến và tại các cửa hàng. 1 2 3 4 5 6 7 6 Tôi quen thuộc với các dịch vụ này của X trên kênh trực tuyến và tại các cửa hàng. 1 2 3 4 5 6 7 7 Tôi biết cách sử sụng các dịch vụ này của X trên kênh trực tuyến và tại các cửa hàng. 1 2 3 4 5 6 7 8 Tôi biết về sự khác nhau của các dịch vụ giữa kênh trực tuyến và tại các cửa hàng của X. 1 2 3 4 5 6 7 Hoàn toàn không đồng ý Hoàn toàn đồng ý X cung cấp cho khách hàng 9 Thông tin sản phẩm nhất quán cả trên kênh trực tuyến lẫn tại các cửa hàng của X. 1 2 3 4 5 6 7 10 Giá cả sản phẩm nhất quán cả trên kênh trực tuyến lẫn tại các cửa hàng của X. 1 2 3 4 5 6 7 11 Thông tin khuyến mãi nhất quán cả trên kênh trực tuyến lẫn tại các cửa hàng của X. 1 2 3 4 5 6 7 12 Thông tin lượng tồn sản phẩm nhất quán cả trên kênh trực tuyến lẫn tại các cửa hàng của X. 1 2 3 4 5 6 7 Hoàn toàn không đồng ý Hoàn toàn đồng ý Cảm nhận của tôi về X Hình ảnh của X (thiết kế cửa hàng, màu sắc, logo…) nhất quán cả trên kênh trực tuyến lẫn tại các cửa 13 1 2 3 4 5 6 7 hàng. 14 Dịch vụ chăm sóc khách hàng của X nhất quán cả trên kênh trực tuyến lẫn tại các cửa hàng. 1 2 3 4 5 6 7 15 Tôi có cảm nhận như nhau khi mua sắm trên kênh trực tuyến và tại các cửa hàng của X. 1 2 3 4 5 6 7 16 Tốc độ phục vụ khách hàng của X như nhau cả trên kênh trực tuyến lẫn tại các cửa hàng. 1 2 3 4 5 6 7 17 X là một nhà bán lẻ lớn mà mọi người đều nhận ra. 1 2 3 4 5 6 7 18 X là một nhà bán lẻ nổi tiếng. 1 2 3 4 5 6 7 X có danh tiếng tốt. X là một nhà bán lẻ đáng tin cậy. 21 X quan tâm đến khách hàng của mình. 22 X giữ lời hứa với khách hàng của mình. 23 X không lợi dụng khách hàng của mình. Trong khi mua sắm tại X 24 Tôi cảm thấy mình kiểm soát được tình hình mua sắm. 25 Tôi có thể tự do lựa chọn sản phẩm và dịch vụ như mong muốn. 26 Tôi có thể ảnh hưởng đến các nhóm hàng hóa và dịch vụ mà X cung cấp cho tôi. 27 Khả năng ảnh hưởng đến các hàng hóa và dịch vụ mà X cung cấp mang lại lợi ích cho tôi khi mua sắm. 28 Ảnh hưởng của tôi đến nhà bán lẻ X tăng lên so với trước đây. Cảm nhận của tôi về trải nghiệm mua sắm tại X 29 Tôi hài lòng với trải nghiệm mua sắm tại X. 30 Trải nghiệm mua sắm tại X chính là những gì tôi cần. 31 Trải nghiệm mua sắm tại X tuyệt vời đúng như tôi nghĩ. Khi mua sắm tại X 32 Tôi cảm thấy phấn khởi. 33 Tôi cảm thấy tự tin. 34 Tôi có cảm giác chắc chắn. 35 Tôi KHÔNG cảm thấy phân vân. 36 Tôi cảm thấy lạc quan. 37 Tôi có cảm nhận rõ ràng. 38 Tôi KHÔNG cảm thấy thất vọng. 39 Tôi cảm thấy thoải mái. 40 Tôi KHÔNG cảm thấy nghi ngờ. 41 Tôi cảm thấy thỏa mãn. Dự định của tôi đối với X 42 Rất có thể tôi sẽ tiếp tục mua sản phẩm tại X. 43 Rất có thể tôi sẽ giới thiệu X cho bạn bè của mình. 44 Rất có thể tôi sẽ ưu tiên chọn X khi cần mua sản phẩm trong tương lai. 19 20 1 1 1 1 1 2 2 2 2 2 3 3 3 3 3 4 4 4 4 4 5 5 5 5 5 6 6 6 6 6 7 7 7 7 7 Hoàn toàn không đồng ý Hoàn toàn đồng ý 1 1 1 1 1 2 2 2 2 2 3 3 3 3 3 4 4 4 4 4 5 5 5 5 5 6 6 6 6 6 7 7 7 7 7 Hoàn toàn không đồng ý Hoàn toàn đồng ý 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5 6 6 6 7 7 7 Hoàn toàn không đồng ý Hoàn toàn đồng ý 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6 6 6 7 7 7 7 7 7 7 7 7 7 Hoàn toàn không đồng ý Hoàn toàn đồng ý 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5 6 6 6 7 7 7 2. Xin vui lòng cho biết mức độ đồng ý với những phát biểu sau về chính bản thân Anh/Chị: Khi đang ở tại một cửa hàng mua sắm bất kỳ 45 Tôi vừa ngắm sản phẩm được bày bán vừa sử dụng các thiết bị di động (như điện thoại, máy tính bảng…). 46 Tôi hay dùng thiết bị di động để tìm hiểu các sản phẩm được bày bán tại cửa hàng. 47 Tôi dùng các thiết bị công nghệ để tìm kiếm mức giá tốt hơn trên kênh trực tuyến. 48 Tôi dùng các thiết bị công nghệ trong khi vẫn đang ở tại cửa hàng. Đối với các “website mua sắm-ứng dụng mua sắm trên điện thoại di động-cửa hàng mua sắm mới” (được ký hiệu là “webs-apps-CH mới”) 49 Nói chung, tôi thường là người đầu tiên trong nhóm bạn của mình thử mua sắm tại đó. 50 Khi tôi nghe về các “webs-apps-CH mới”, tôi sẽ rất thích thú được thử mua sắm tại đó. Nói chung, tôi thường là người đầu tiên trong nhóm bạn của mình biết đến tên của các “webs-apps-CH 51 mới”. Tôi sẽ thử mua sắm tại đó ngay cả khi tôi không nghe thấy bất cứ thông tin gì về các “webs-apps-CH 52 mới” từ bạn bè của mình. 53 Thông thường, tôi biết đến tên của các “webs-apps-CH mới” trước mọi người. 54 Khi mua sắm, tôi thấy mình thường dành nhiều thời gian tìm hiểu các “webs-apps-CH mới”. 55 Tôi thường tận dụng cơ hội để tìm hiểu về các “webs-apps-CH mới”. 56 Tôi thích khám phá thông tin về các "webs-apps-CH mới”. 57 Tôi thích những nguồn thông tin giới thiệu về các “webs-apps-CH mới”. 58 Tôi thường xuyên tìm kiếm các “webs-apps-CH mới”. Tôi tìm kiếm các cơ hội/ tình huống để có thể có được các nguồn thông tin mới và đa dạng về các “webs59 apps-CH mới”. 60 Tôi liên tục tìm kiếm các “webs-apps-CH mới”. Hoàn toàn không đồng ý Hoàn toàn đồng ý 1 1 1 1 2 2 2 2 3 3 3 3 4 4 4 4 5 5 5 5 6 6 6 6 7 7 7 7 Hoàn toàn không đồng ý Hoàn toàn đồng ý 1 1 2 2 3 3 4 4 5 5 6 6 7 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 1 1 1 1 1 2 2 2 2 2 2 3 3 3 3 3 3 4 4 4 4 4 4 5 5 5 5 5 5 6 6 6 6 6 6 7 7 7 7 7 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 PHẦN 3: THÔNG TIN CÁ NHÂN Xin vui lòng cho biết một số thông tin cá nhân chung của Anh/ Chị bằng cách đánh dấu vào ô trả lời thích hợp. Giới tính: Nam Độ tuổi: 18 – 24 Trình độ học vấn: Nghề nghiệp: Nữ 25 – 34 35 – 44 Cao đẳng, đại học Trung học phổ thông Học sinh, sinh viên Thu nhập trung bình hàng tháng: 45 – 54 55 – 64 Thạc sĩ, Tiến sĩ Viên chức, nhân viên văn phòng ≥ 65 Khác:………… Khác:………… Nội trợ < 5 triệu đồng Từ 5 – dưới 9 triệu đồng Từ 9 – dưới 15 triệu đồng ≥ 15 triệu đồng Tần suất Anh/Chị mua hàng qua website mua sắm/ứng dụng mua sắm trên điện thoại di động/hay tại cửa hàng mua sắm: Khoảng vài lần 1 tuần Khoảng vài lần 1 tháng Khoảng vài lần 1 năm Rất ít (mới chỉ 1 hoặc 2 lần) Giá trị trung bình cho mỗi đơn hàng Anh/ Chị mua qua website mua sắm/ ứng dụng mua sắm trên điện thoại di động/ hay tại cửa hàng mua sắm: < 1 triệu đồng Từ 1 – dưới 3 triệu đồng Từ 3 – dưới 5 triệu đồng ≥ 5 triệu đồng Từ 5 – dưới 8 tiếng/ ngày ≥ 8 tiếng/ ngày Thời gian trung bình Anh/ Chị sử dụng Internet: < 2 tiếng/ ngày Từ 2 – dưới 5 tiếng/ ngày XIN CHÂN THÀNH CÁM ƠN ANH/ CHỊ! APPENDIX B. RESPONDENT’S DEMOGRAPHIC Gender Frequency Percent Valid Percent Cumulative Age Percent Valid Frequency 1 126 40.4 40.4 40.4 2 186 59.6 59.6 100.0 Total 312 100.0 100.0 Percent Valid Percent Valid 2 312 100.0 100.0 100.0 Occup Valid Percent Cumulative Frequency Percent Valid Percent Percent Valid Cumulative Percent Edu Frequency Percent Cumulative Percent 1 3 1.0 1.0 1.0 1 1 .3 .3 .3 2 257 82.4 82.4 83.3 2 299 95.8 95.8 96.2 3 51 16.3 16.3 99.7 3 1 .3 .3 96.5 4 1 .3 .3 100.0 4 11 3.5 3.5 100.0 312 100.0 100.0 312 100.0 100.0 Total Valid Total Income Frequency Percent Purchase frequency Valid Percent Cumulative Frequency Percent Valid Percent Percent Valid Percent 1 9 2.9 2.9 2.9 2 77 24.7 24.7 27.6 3 116 37.2 37.2 64.7 4 110 35.3 35.3 100.0 Total 312 100.0 100.0 Valid 1 29 9.3 9.3 9.3 2 148 47.4 47.4 56.7 3 100 32.1 32.1 88.8 4 35 11.2 11.2 100.0 312 100.0 100.0 Total Internet Usage Purchase value Frequency Percent Valid Percent Frequency Cumulative Percent Valid Percent Cumulative Percent Percent Valid Cumulative 1 129 41.3 41.3 41.3 1 51 16.3 16.3 16.3 2 92 29.5 29.5 70.8 2 131 42.0 42.0 58.3 3 44 14.1 14.1 84.9 3 68 21.8 21.8 80.1 4 47 15.1 15.1 100.0 4 62 19.9 19.9 100.0 312 100.0 100.0 312 100.0 100.0 Total Valid Total APPENDIX C. BOOTSTRAPPING RESULTS FOR HYPOTHESIS TESTING 1. Path Coefficients Mean, STDEV, T-Values, P-Values Original Sample (O) Standard Deviation (STDEV) Sample Mean (M) T Statistics (|O/STDEV|) P Values Channel-service configuration -> Customer empowerment 0.257 0.259 0.063 4.100 0.000 Channel-service configuration -> Customer experience 0.156 0.157 0.053 2.944 0.003 Customer empowerment -> Customer experience 0.413 0.414 0.048 8.561 0.000 Customer experience -> Patronage intention 0.600 0.599 0.060 10.056 0.000 Integrated interactions -> Customer empowerment 0.415 0.415 0.052 8.028 0.000 Integrated interactions -> Customer experience 0.310 0.307 0.049 6.266 0.000 -0.100 -0.100 0.041 2.444 0.015 0.205 0.207 0.062 3.297 0.001 Seeking -> Patronage intention Trust -> Patronage intention Confidence Intervals Bias Corrected Original Sample (O) Sample Mean (M) Channel-service configuration -> Customer empowerment 0.257 0.259 0.002 0.126 0.370 Channel-service configuration -> Customer experience 0.156 0.157 0.001 0.051 0.264 Customer empowerment -> Customer experience 0.413 0.414 0.000 0.318 0.506 Customer experience -> Patronage intention 0.600 0.599 -0.001 0.491 0.721 Integrated interactions -> Customer empowerment 0.415 0.415 0.000 0.297 0.508 Integrated interactions -> Customer experience 0.310 0.307 -0.003 0.215 0.409 -0.100 -0.100 0.000 -0.191 -0.029 0.205 0.207 0.002 0.082 0.321 Seeking -> Patronage intention Trust -> Patronage intention Bias 2.5% 97.5% 2. Total Indirect Effects Mean, STDEV, T-Values, P-Values Original Sample (O) Channel-service configuration -> Customer empowerment Channel-service configuration -> Customer experience Channel-service configuration -> Patronage intention Customer empowerment -> Customer experience Customer empowerment -> Patronage intention Customer experience -> Patronage intention Integrated interactions -> Customer empowerment Integrated interactions -> Customer experience Integrated interactions -> Patronage intention Sample Mean (M) Standard Deviation (STDEV) T Statistics (|O/STDEV|) P Values 0.106 0.107 0.028 3.791 0.000 0.157 0.159 0.038 4.138 0.000 0.248 0.248 0.039 6.383 0.000 0.172 0.172 0.030 5.629 0.000 0.289 0.287 0.038 7.577 0.000 Internet -> Customer experience Seeking -> Patronage intention Trust -> Patronage intention Confidence Intervals Bias Corrected Original Sample (O) Sample Mean (M) Bias 2.5% 97.5% Channel-service configuration -> Customer experience 0.106 0.107 0.001 0.054 0.162 Channel-service configuration -> Patronage intention 0.157 0.159 0.001 0.083 0.229 Channel-service configuration -> Customer empowerment Customer empowerment -> Customer experience Customer empowerment -> Patronage intention 0.248 0.248 0.000 0.180 0.330 Integrated interactions -> Customer experience 0.172 0.172 0.000 0.120 0.239 Integrated interactions -> Patronage intention 0.289 0.287 -0.002 0.220 0.366 -0.006 -0.006 0.000 -0.051 0.036 Customer experience -> Patronage intention Integrated interactions -> Customer empowerment Internet -> Customer experience Internet -> Patronage intention Seeking -> Patronage intention Trust -> Patronage intention