An Information‐Processing Approach for Evaluating In‐Store Retail Operational Design Strategies

We develop a model to evaluate retail store operational design strategies using an information‐processing perspective of organizational design. We propose that three model constructs pertaining to in‐store shopper task uncertainty—the product mix complexity, the service production complexity, and the product mix changeover—create shopper encounter information requirements (IR). These requirements can be met using specific retail service operational design choices for managing shopper encounters, namely, designing layouts for self‐service (SS) and providing employees with task empowerment (TE). The model is then operationalized using a two‐stage approach to develop new multi‐item, measurement scales. The psychometric properties and predictive validity of the scales and model are then confirmed by using structural equation modeling with survey data from 175 merchandise retail store managers. We find that our model can be generically applied across the retail industry to understand how shopper encounter IR motivate retailer store design choices and can be used to determine whether to design stores for SS or to provide store employees with TE. We then evaluate the efficacy of the studied store design choices on customer delivery satisfaction, and offer some suggestions for future research.     

Self‐Service Operations at Retail Stores: The Role of Inter‐Customer Interactions

Inter‐customer interactions are important to the operation of self‐services in retail settings. More specifically, when self‐service terminals are used as part of customers’ checkout processes in retail operations without the explicit involvement of retailers as the direct service providers, inter‐customer interactions become a significant managerial issue. In this article, we examine the impact of inter‐customer interactions at retail self‐service terminals on customers’ service quality perceptions and repeat purchase intentions at retail stores. We conduct a scenario‐based experimental design (N = 674) using a 2 × 2 factorial design in which inter‐customer interactions are divided into “positive” vs. “negative” and occur during the “waiting” or during the actual “transaction” stages of self‐services at a retail store. We use attribution theory to develop the hypotheses. The results demonstrate that, through their interactions, fellow customers can exert influences on a focal customer's quality perceptions and repeat purchasing intentions toward a retail store. Furthermore, these influences were impacted by how customers attribute blame or assign responsibility toward the retail store. Service operations managers should leverage these interactions by designing into self‐service settings the capacities and interfaces that are best suited for customers’ co‐production of their self‐service experiences.     

Impact of customer loyalty and service operations on customer behaviour and firm performance: empirical evidence from UK retail sector

Abstract

Retail networks are striving to achieve competitive advantage by increasing value through loyalty and efficiency with a focus on service operations. As sales promotions have become an integral part of the retail supply chain planning, customer behavioural aspects based on loyalty and service operations have been challenged greatly. Subsequently, management capabilities, such as planning and timely replenishment, have become complicated tasks for many retail store managers. This study develops a model integrating retail network value and efficiencies with customer behaviour and performance. We validate the model using survey data from prominent U.K. retail store customers. Our data analysis shows that both loyalty and service operation attributes have positive significant impact on customer behaviour, while the service operation mediates the relationship between loyalty and customer behaviour. This result gives a new outlook to build managerial capability based on customer loyalty and service operations. Our results specifically show that the service operation attributes will indirectly influence the customers’ buying behaviour even in the presence of loyalty attribute such as promotion schemes. This result sends a strong signal to retail supply chain managers to offer customised promotions considering local community rather than having uniform sales promotion nationwide.     

The Effects of Graphic Feedback,Goal Setting,and Manager Praise on Customer Service Behaviors

Abstract

The current study used a multiple baseline design to investigate the effects of graphic feedback, goal setting, and manager praise on customer service behaviors in a large retail setting. Direct observation of customer greeting, eye contact, and smiling was used to collect data. After baseline data were collected feedback graphs were posted twice each week in the employee break room. A second intervention phase included goal setting and manager praise. Goals were developed based on employees' prior performance and were posted on the graphs. Managers then delivered immediate, verbal praise to employees. Graphic feedback produced slight increases in the customer interaction variables in the front of stores 1 and 2. Another small increase in performance was seen in the back of store 1 and the front and back of store 2 with the implementation of the interventions.     

Managing big data in the retail industry of Singapore: Examining the impact on customer satisfaction and organizational performance

Much of the research on big data analytics has been centered on technical or system development. Research has been carried out on the usage of big data analytics to understand customer relationships and experience, amongst others. Still, there is a lack of research in the retail industry considering big data management, examining the impact on customer satisfaction and organizational performance in the retail sector. Retailers explore analytics to gain a unified picture of their customers and operations across the store or online channels and make strategic decisions contributing to the growth of the retail industry. Thereof, this study has been conducted by majorly focusing on the Singapore retail industry to clarify the feasibility of big data management analytics. Quantitative research method was employed involving 500 participants from the retail industry of Singapore. The results of the study stated that amongst the different big data analytics utilized within the retail industry of Singapore, social media analytics had been majorly answered by the participants. Future researchers can study about the upcoming retail trends in Singapore and how the effects of big data analysis changed in the past few years and deal with the unexpected future recessions in the retail industry within Singapore.     

Impact of Value‐Added Service Features in e‐Retailing Processes: An Econometric Analysis of Web Site Functions

We examine the impact of three classes of Web site functions (foundational, customer‐centered, and value‐added) upon e‐retailer performance. Using secondary panel data for 2007–2009 on operating characteristics of over 600 e‐retailers, our econometric analysis finds that only the value‐added service functions are positively associated with changes in e‐retail sales revenues across time. We also observe a decreasing marginal impact of deploying additional value‐added service features. To account for possible alternate explanations, we control for firm‐ and time‐specific fixed effects, merchant types, merchandise categories, and order fulfillment strategies. By further decomposing e‐retail sales revenues into Web site traffic, conversion rate, and average order value, we find that Web site functions affect e‐retail sales revenues mainly through their impact on Web site traffic. Our investigation demonstrates the empirical research usefulness of the Voss conceptual e‐service sand cone model. Our results identify for managers where to focus ongoing e‐retailing system development efforts, yet suggest that focusing too many retailing capabilities on exploratory and experimental value‐added service features may backfire, potentially leading to worsening e‐retailer performance.     

Assessing Markups,Service Quality,and Product Attributes in Music CDs' Internet Retailing

We investigate trade‐offs among markups, service quality, and product attributes across customer, Internet retailer, and wholesaler echelons. Research has documented the reality of retail price dispersion, but little is known about how retail markups, in particular, are related to service quality and product attributes. For example, do Internet retailers deliver superior service in return for high markups? Do product characteristics affect the relationship between service and markups for retailers? To examine these issues, we first developed a model of Internet retail profitability that separates revenues and costs related to sales from other profit sources. This framework allowed us to position our work alongside the extant literature about Internet retailing. Moreover, it led us to synthesize service quality dimensions found in Internet retailing studies. We subsequently developed a critical‐event study based on the profit model and the synthesis of service quality dimensions to delineate service aspects that retailers should emphasize to address buyers' utility. Finally, we collected data from Internet purchases across retailers to isolate markup‐service quality trade‐offs along our delineated service aspects. We find that high markups are associated with superior performance across service quality dimensions. Furthermore, this trade‐off becomes more acutely defined when products with variable popularity are transacted.     

多渠道零售环境下消费者渠道选择意愿形成机理研究——产品类别特征的调节作用

传统与网络结合的多渠道正成为零售业的标准模式,多渠道零售环境下,消费者渠道决策发生了根本变化,在不同购买决策过程阶段运用不同渠道的行为日益普遍,但尚未有文献基于搜索信息和产品购买两个阶段,引入产品类别特征对消费者渠道选择意愿形成机理展开研究。运用感知价值理论、信任转移理论构建了消费者搜索意愿和购买意愿形成机理概念模型,分析了渠道属性、渠道内锁定、渠道间协同对消费者搜索与购买意愿的影响及产品搜索性与风险性对其的调节作用,运用联立方程建模并求解发现：渠道属性、渠道内锁定、渠道间协同显著影响消费者搜索意愿和购买意愿;购买高风险搜索产品（如计算机、手机）、低风险搜索产品（如书、文具）、高风险体验产品（如服装、化妆品）、低风险体验产品（如玩具、零食）时,渠道属性、渠道内锁定、渠道间协同对消费者渠道选择意愿的影响存在明显差异;渠道搜索属性如信息有效性、搜索便利性、品种丰富性、社会互动性正向影响消费者搜索意愿,搜索努力负向影响消费者搜索意愿,渠道购买属性如服务质量、购买便利性、享乐性正向影响消费者购买意愿,购买努力、购买风险负向影响消费者购买意愿;传统渠道具有锁定性,网络渠道缺乏锁定性,但购买低风险搜索产品时,网络渠道具有锁定性;购买高风险产品时,传统渠道与网络渠道存在协同性,对于高风险搜索产品,消费者网络渠道搜索意愿正向影响其传统渠道购买意愿,而对于高风险体验产品,还存在消费者传统渠道搜索意愿正向影响其网络渠道购买意愿的协同性,但对于低风险产品,传统渠道与网络渠道缺乏协同性。     

Impact of Customer Traffic and Service Process Outsourcing Levels on e‐Retailer Operational Performance

Many service firms deliver services via a mix of internally developed and delivered (i.e., insourced) and externally developed and delivered (i.e., outsourced) service processes. Service process outsourcing is especially common in e‐retailing. Portions of e‐retail customer ordering processes and delivery processes can be digitized and contracted to third‐party vendors. Via outsourcing, service systems change from dyadic to triadic. Prior research examines consumer perceptions of dyadic (consumer to e‐retailer) outcomes, but little research considers service co‐delivery with outsourcing partners (i.e., triadic systems). Literature also does not focus on joint associations of service process outsourcing and customer traffic with e‐retailer operations. We analyze several years of data on North American e‐retailers. We first examine factors associated with e‐retailer outsourcing levels, for front‐end and back‐end service processes. We observe customer traffic is positively associated with future outsourcing. We then examine how outsourcing moderates associations between contemporaneous customer traffic and e‐retailer operational performance, as measured by numbers of processed orders, website response times, and customer satisfaction. Results suggest outsourcing levels are associated with operational outcomes, yet surprisingly, high outsourcing and high traffic jointly may not benefit e‐retailers.     

Servant leaders inspire servant followers: Antecedents and outcomes for employees and the organization

Despite widespread adoption of servant leadership, we are only beginning to understand its true utility across multiple organizational levels. Our purpose was to test the relationship between personality, servant leadership, and critical follower and organizational outcomes. Using a social influence framework, we proposed that leader agreeableness and extraversion affect follower perceptions of servant leadership. In turn, servant leaders ignite a cycle of service by role-modeling servant behavior that is then mirrored through coworker helping behavior and high-quality customer service, as well as reciprocated through decreased withdrawal. Using a multilevel, multi-source model, we surveyed 224 stores of a U.S. retail organization, including 425 followers, 110 store managers, and 40 regional managers. Leader agreeableness was positively and extraversion was negatively related to servant leadership, which was associated with decreased follower turnover intentions and disengagement. At the group-level, service climate mediated the effects of servant leadership on follower turnover intentions, helping and sales behavior.     

Managing Retail Budget Allocation between Store Labor and Marketing Activities

The performance of a retail store depends on its ability to attract customer traffic, match labor with incoming traffic, and convert the incoming traffic into sales. Retailers make significant investments in marketing activities (such as advertising) to bring customers into their stores and in‐store labor to convert that traffic into sales. Thus, a common trade‐off that retail store managers face concerns the allocation of a store's limited budget between advertising and labor to enhance store‐level sales. To explore that trade‐off, we develop a centralized model to allocate limited store budget between store labor and advertising with the objective of maximizing store sales. We find that a store's inherent potential to drive traffic plays an important role, among other factors, in the relative allocation between advertising and store labor. We also find that as advertising instruments become more effective in bringing traffic to stores, managers should not always capitalize this effectiveness by increasing their existing allocations to advertising. In addition, we discuss a decentralized setting where budget allocation decisions cannot be enforced by a store manager and present a simple mechanism that can achieve the centralized solution. In an extension, we address the budget allocation problem in the presence of marketing efforts to shift store traffic from peak to off peak hours and show that our initial findings are robust. Further, we illustrate how the solution from the budget allocation model can be used to facilitate store level sales force planning/scheduling decisions. Based on the results of our model, we present several insights that can help managers in budget allocation and sales force planning.     

Satisfying and Retaining Customers through Independent Service Representatives

The degree of leverage possessed by manufacturers who outsource their customer service function to channel partners over customer satisfaction and loyalty is assessed empirically. Data provided by independent service representatives are linked with data from their customers. Results indicate that a manufacturer's support of its representatives increases their job satisfaction which, in turn, is indirectly linked to the customer satisfaction through shared perceptions of service performance and quality. However, the strength of the effects is modest, suggesting that manufacturers may need to consider direct customer contact strategies or contractual means of assuring customer satisfaction when independent service representatives “own the customer.” Conceptually, the hypothesized shared mindset model is tested against the competing affect transfer model, resulting in support for the former. Job satisfaction moderates the degree of agreement between representatives' and customers' perceptions of service performance and quality such that greater agreement occurs when job satisfaction is high.     

店铺形象和店铺位置在O2O环境中还重要吗？

O2O模式，因为其能够通过渠道间的整合充分发挥线上和线下渠道各自的优势，为企业带来更高的利润和客户保留率，而受到很多企业的追捧。而渠道整合的过程中店铺形象、店铺位置是否还会发挥作用等问题还没有明确的答案。本研究应用网络数据爬虫和问卷调查的方法，收集了北京市西城区、朝阳区、海淀区、东城区的148家开展了在线外卖服务的餐馆数据，利用Smart PLS2.0对数据分析后发现，在O2O环境中，店铺形象尤其是线上店铺形象对渠道整合、企业绩效都发挥着重要的作用，而店铺位置是调节渠道整合的一个重要因素。这些研究发现不仅增加了我们对渠道整合环境中店铺形象、线下店铺位置作用的认识和理解，对开展O2O业务的企业也有着重要的借鉴和参考价值。     

A non-queueing model to predict teller requirements in retail bank branches

Two models are developed in this paper to determine optimum teller scheduling at bank branches. The first is a parametric model consisting of three phases: predicting the aggregate number of transactions for the bank based on the factors influencing customer demand and arrival rates; determining the percent of the aggregate transactions volume performed at each retail branch based on customer profiles and branch locations; formulating a transaction sensitive teller staffing model for each retail branch based upon predetermined customer service time and personnel utilization criteria. The second model is an integer programming model to determine the optimum teller staffing requirements based on the results of the first model and constrained by traditional current banking practices.     

RFID for Better Supply‐Chain Management through Enhanced Information Visibility

Mostly fueled by mandates, adoption, and implementation of the RFID, technology in the retail industry is growing rapidly. At these early stages of adoption, one puzzling issue for retailers and suppliers is the compelling business case for RFID. In order to explore the potential business case for RFID, we conducted a case study using actual RFID data collected by a major retailer for the cases shipped by one of its major suppliers. We show the physical layout of the RFID readers on a partial supply‐chain covering product movement from distribution centers to retail stores. First, in the analysis phase, we identify several performance metrics that can be computed from the RFID readings. Next, using this RFID data, we compute the values of those performance metrics. These values represent mean time between movements at different locations. Then, we discuss how these measures can assist in improving logistical performance at a micro supply chain level of operations between a distribution center and a retail store. We present how such information can be valuable to both the retail store operator and the supplier. We also discuss the initial lessons learned from actual RFID data collected in the field, in terms of data quality issues.     

基于东方管理的服务创新与服务利润链实证研究:以通信服务业为例

创新已经成为国内通信服务企业的竞争利器,探讨创新影响企业内部运作、外部顾客满意度和企业绩效的路径和模式.本文以河南省新联通为例,运用调查研究方法和案例研究方法,探讨基于东方管理的服务创新与员工满意、顾客满意和绩效之间的关系.本文得到如下结论:(1)基于东方管理思想的"内部服务创新-员工满意-顾客满意-企业绩效"的服务利润链路径得到验证,但强度较弱,这表明东方管理思想和服务创新理论在国内通信服务企业的应用是有效的,但其作用有待提升;(2)内部和外部服务创新通过直接和间接两条路径影响企业绩效;(3)内部创新影响路径(内部服务创新→员工满意→顾客满意→企业绩效)的强度小于外部创新影响路径(外部服务创新→顾客满意→企业绩效)的强度,表明针对员工的内部服务创新还未成为当前国内通信服务企业创新的重点;(4)除了创新对绩效的间接影响外,内部服务创新和外部服务创新会直接影响企业绩效,这表明国内通信服务企业的创新可能仍倾向于绩效导向,而非顾客导向,即表现出行为短期化.     

Focusing on Customer Time in Field Service: A Normative Approach

Although customer convenience should be rightfully considered a central element in field services, the customer experience suggests that service enterprises rarely take the customer's preferred time into account in making operational and scheduling decisions. In this paper we present the results of our exploratory research into two interrelated topics: the explicit inclusion of customer time in nonemergency field service delivery decisions and the analysis of trade‐off between the customer's convenience and field service provider's cost. Based on prior research in service quality we identify and illustrate two time‐based performance metrics that are particularly appropriate for assessing service quality in nonemergency field services: performance and conformance quality. To determine vehicle routes, we develop a hybrid heuristic derived from the existing and proven heuristic methods. A numerical example closely patterned after real‐life data is generated and used within a computational experiment to investigate alternate policies for promise time windows. Our experiment shows that over a reasonable range of customer cost parameters the policy of shorter promise time windows reduces the combined total cost incurred by the provider and the customers and should be considered a preferred policy by the field service provider. Managerial implications of this result are discussed.     

Sequence Matters: Shelf‐Space Allocation under Dynamic Customer‐Driven Substitution

Customers who face a stockout situation often decide to purchase a different product in the same category. We analyze the resulting dynamic substitution problem in a retail environment, where customers serve themselves from the store shelves, such that the sequence of customer arrivals affects how scarce products are allocated to customers. We consider a setting with constrained shelf space, and we study how a retailer should optimally allocate such space between substitute products. We characterize environments where the sequence of customer arrivals can have a substantial impact on profitability.     

顾客策略行为下差异产品两阶段定价模型研究

互联网和信息技术的发展,为零售商收集顾客信息带来方便的同时,也使得消费者变得越来越具有策略性和选择性。首先,构建零售商只销售一种高质量产品的情形,研究其两阶段的定价策略,并分析产品的跨期折扣因子对产品的零售价格、销售量和零售商利润的影响。然后,考虑零售商可提供高质量和低质量两种产品的情形,顾客在第一销售期、第二销售期都可以选择两种产品。构建两阶段的定价决策模型,并分析产品的跨期折扣因子、顾客对低质量产品的接受度等参数对产品两阶段的零售价格、销售量的影响。最后,用数值算例分析了第二种模型下顾客对低质量产品的接受度等模型参数对零售商两阶段总利润的影响,然后比较了第一种和第二种模型下高质量产品的零售价格和销售量。研究结论较全面的分析了顾客策略行为对差异产品两阶段销售期的定价决策的影响,为零售商进行定价优化决策提供了十分重要的参考。     

Analyzing the Efficient Execution of In‐Store Logistics Processes in Grocery Retailing—The Case of Dairy Products

In this article, we examine in‐store logistics processes for handling dairy products, from the incoming dock to the shelves of supermarkets and hypermarkets. The efficient execution of the in‐store logistics related to such fast‐moving, sensitive, and essential items is challenging and crucial for grocery retailers' sales, profits, and image. In our empirical study, we survey in‐store logistics processes in 202 grocery supermarkets and hypermarkets belonging to a major retail chain in central Europe. Using a data envelopment analysis (DEA) and simulation, we facilitate process benchmarking. In particular, we identify ways of improving in‐store logistics processes by showing the performance impacts of different managerial strategies and tactics. The DEA results indicate different efficiency levels for different store formats; the hybrid store format of the small hypermarket exhibits a comparatively worse performance in the analyzed execution of in‐store logistics processes. The process simulation analysis reveals that the strategic and tactical design of in‐store logistics processes (such as store locations/layouts, capacity management, reorder time, order period, and safety stock factors) lead to substantial service performance improvements (such as higher on‐shelf availability combined with reduced inventory obsolescence costs). The results also show marginal improvements in the performance figures when delivery delays and damage to products are reduced.