Customers’ Tolerance for Validation in Omnichannel Retail Stores: Enabling Logistics and Supply Chain Analytics

The International Journal of Logistics Management, Vol. 29, No. 2, pp. 704-722, 2018

33 Pages Posted: 14 Jan 2021

See all articles by Hartmut Hoehle

Hartmut Hoehle

University of Arkansas - Department of Information Systems

John Aloysius

University of Arkansas - Department of Supply Chain Management

Frank K. Y. Chan

ESSEC Business School

Viswanath Venkatesh

Virginia Polytechnic Institute and State University - Pamplin College of Business

Date Written: August 27, 2018

Abstract

Mobile technologies are increasingly used as a data source to enable big data analytics that enable inventory control and logistics planning for omnichannel businesses. The purpose of this paper is to focus on the use of mobile technologies to facilitate customers’ shopping in physical retail stores and associated implementation challenges. First, the authors introduce three emerging mobile shopping checkout processes in the retail store. Second, the authors suggest that new validation procedures (i.e. exit inspections) necessary for implementation of mobile-technology-enabled checkout processes may disrupt traditional retail service processes. The authors propose a construct labeled “tolerance for validation” defined as customer reactions to checkout procedures. The authors define and discuss five dimensions – tolerance for: unfair process; changes in validation process; inconvenience; mistrust; and privacy intrusion. The authors develop a measurement scale for the proposed construct and conduct a study among 239 customers. The results show that customers have higher tolerance for validation under scenarios in which mobile technologies are used in the checkout processes, as compared to the traditional self-service scenario in which no mobile technology is used. In particular, the customers do not show a clear preference for specific mobile shopping scenarios. These findings contribute to our understanding of a challenge that omnichannel businesses may face as they leverage data from digital technologies to enhance collaborative planning, forecasting, and replenishment processes. The proposed construct and measurement scales can be used in future work on omnichannel retailing.

Keywords: North America, survey, information technology, omnichannel, retail logistics

Suggested Citation

Hoehle, Hartmut and Aloysius, John and Chan, Frank K. Y. and Venkatesh, Viswanath, Customers’ Tolerance for Validation in Omnichannel Retail Stores: Enabling Logistics and Supply Chain Analytics (August 27, 2018). The International Journal of Logistics Management, Vol. 29, No. 2, pp. 704-722, 2018, Available at SSRN: https://ssrn.com/abstract=3681693

Hartmut Hoehle (Contact Author)

University of Arkansas - Department of Information Systems ( email )

United States

John Aloysius

University of Arkansas - Department of Supply Chain Management ( email )

AK
United States

Frank K. Y. Chan

ESSEC Business School ( email )

3 Avenue Bernard Hirsch
CS 50105 CERGY
CERGY, CERGY PONTOISE CEDEX 95021
France

Viswanath Venkatesh

Virginia Polytechnic Institute and State University - Pamplin College of Business ( email )

VA
United States

HOME PAGE: http://vvenkatesh.com

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