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Name: Sukanya Punchhi
Student ID: PUN13379764
Degree: BA Fashion Management, Year 3
Title: The Dissertation
Tutor: Jenny Wilson
2	
THE IMPORTANCE OF OMNI-CHANNEL
RETAIL IN CREATING VALUE FOR 35-44
MALE LUXURY CUSTOMERS IN THE UK
Sukanya Punchhi
A dissertation submitted in partial
fulfilment of the requirements for
the award of the degree
BA (Hons) Fashion Management
The London College of Fashion
University of the Arts London
10th
May 2016
3	
DECLARATION
No portion of work referred to in this dissertation has been submitted in support of an
application for another degree or qualification of this institution or any other university
or institution of learning. Also no portion of this work has been plagiarised.
4	
ACKNOWLEDGEMENTS
I would like to thank my supervisor, Ms. Jenny Wilson for her guidance throughout this
dissertation.
I would also like to thank Mr. Vaishnav Amba for providing me assistance with finding
research participants for qualitative research.
5	
ABSTRACT
Purpose
The following dissertation aims to understand the importance of omni-channel retailing
in creating value for the 35-44 male luxury customer in the UK
Design
The research begins with an introduction to the digital UK market, the luxury market,
and menswear segment. It then studies theories between omni-channel, consumer’s
shopping process and co-creating perceived value. The primary research follows a
deductive process and mixed methods approach. Both quantitative and qualitative
research questions are formed by the prior secondary research.
Findings
All secondary and primary findings have been displayed and analysed in the form of
charts, comparison tables and figures, along with an in-depth analysis on important
issues raised.
Practical implications
The research implies that omni-channel technologies can create value for the chosen
target during luxury shopping experiences, and further create competitive advantage
for luxury brands in this segment.
Originality
The research topic is a relatively new topic and focuses on a niche segment like
menswear. The methodology used is similar to other research projects; however, the
application of theory and further analysis provides originality to the document.
Keywords
Omni-channel retail, Luxury, Males, In-store, Online, Innovations, Consumers’
Shopping Process, Perceived Value
Total number of words – 19, 290
Own words – 10, 876
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TABLE OF CONTENTS
Contents Page number
Cover Page…………………………………………………………………………..2
Declaration…………………………………………………………………………...3
Acknowledgements………………………………………………………………….4
Abstract……………………………………………………………………………….5
Table of contents…………………………………………………………………….6
Chapter 1 – Introduction…………………………………………………………….10
1.1 – Research Background – The Digital UK Market…………………………..11
1.2 – Research Rationale – The UK luxury market……………………………...12
1.2.a – UK Menswear Market………………………………………………………13
1.2.b – The online shopper………………………………………………………....14
1.3 – Aims and Objectives…………………………………………………………..15
1.4 – Research Methodology…………………………………………………….....16
1.5 – Research Outline……………………………………………………………...17
Chapter 2 – Literature Review……………………………………………………...18
2.1 – Definition and Significance of Omni-Channel………………………………19
2.1.a – Difference between Multichannel and Omni-Channel…………………..20
2.2 – Aspects of Omni-Channel…………………………………………………….21
2.2.a – Channel Integration………………………………………………...……….21
2.2.b – Impact of mobile technologies……………………………………………...22
2.2.c – Influential Role of Social Media…………………………………………….23
2.2.d – Changing role of physical brick and mortar store………………………...23
2.2.e – Diverse customer requirements…………………………………………….25
2.2.f – Personalisation vs. Privacy…………………………………………………..25
2.2.g – Supply Chain Redesign……………………………………………………...25
2.3 – Consumer decision-making process………………………………………….26
2.4 – Co-creating Value……………………………………………………………….28
2.4.a – Atmospherics………………………………………………………………….29
2.4.b – Value Chain Control…………………………………………………………..30
2.5 – Theory Conclusion………………………………………………………………31
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Chapter 3 – Research Methodology…………………………………………….....32
3.1 – Research Approach…………………………………………………………...33
3.2 – Epistemological and Ontological Considerations…………………………..34
3.3 – Mixed Methods Approach……………………………………………...……..35
3.4 – Quantitative Research………………………………………………………...36
3.4.a – Sampling……………………………………………………………………...36
3.4.b – Interview………………………………………………………………………37
3.4.c – Data analysis…………………………………………………………………37
3.5 – Qualitative Research…………………………………………………………..38
3.5.a – Interview………………………………………………………………………38
3.5.b – Sampling……………………………………………………………………...38
3.5.c – Transcribing…………………………………………………………………..39
3.5.d – Analysis……………………………………………………………………….40
3.6 – Research Ethics………………………………………………………………..42
Chapter 4 – Research Findings and Analysis……………………………………..43
4.1 – Quantitative Research Findings and analysis………………………………44
4.1.a – Quantitative Research Conclusion………………………………………...67
4.2 – Qualitative Research Findings and analysis………………………………..70
4.2.b – Qualitative Research Conclusion…………………...……………………..73
Chapter 5 – Conclusions and Limitations…………………………………………..74
5.1 – Conclusions……………………………………………………………………..75
5.1.a – Competitive Advantage……………………………………………………...77
5.2 – Limitations……………………………………………………………………….78
5.2.a – Research Limitations…………………………………………………………78
References……………………………………………………………………………..79
Appendices……………………………………………………………………………..81
Appendix A – Shopping habits and opportunities for 35-44 male shoppers…….81
Appendix B – In-store mobile apps for Walmart……………………………………82
Appendix C – Quantitative research information sheet for participants………....83
Appendix D – Qualitative research information sheet for participants…………...85
Appendix E – Sample consent form for participants……………………………….87
Appendix F – Research Ethics Approval Form……………………………………..88
Appendix G – Quantitative Research Survey……………………………………….90
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Appendix H – Qualitative Research Interview Questions………………………...94
Appendix I – Qualitative Research Interview Transcripts………………………...95
Appendix J – Reflective Statement………………………………………………….100
List of Tables
Table 2.1 – Consumer’s shopping process…………………………………………27
Table 3.1 – Fundamental differences between qualitative and quantitative
research strategies………………………………………………………34
Table 3.2 – Advantages and Disadvantages of quota sampling………………….36
Table 3.3 – Advantages of recording and transcribing…………………………….39
Table 4.1 – Crosstabulation 1………………………………………………………...58
Table 4.2 – Crosstabulation 2………………………………………………………...59
Table 4.3 – Crosstabulation 3………………………………………………………...60
Table 4.4 – Crosstabulation 4………………………………………………………...62
Table 4.5 – Pearson’s Correlation Test 1……………………………………………65
Table 4.6 – Pearson’s Correlation Test 2……………………………………………66
Table 4.7 – Quantitative Research Conclusion……………………………………..68
List of Figures
Figure 1.1 – Total online market and year-on-year change (%) 2010-20e……….11
Figure 1.2 – UK attitudes, by where they shopped…………………………...….....12
Figure 1.3 – Time spent browsing by male shoppers online……………...…….....13
Figure 1.4 – Shopping habits and opportunities 35-44 males……………......…....14
Figure 2.1 – Multichannel vs. Omni-channel management………………...……....20
Figure 2.2 – Aspects of Omni-channel retail………………………………………....21
Figure 2.3 – Innovations men are most interested in……………………………......24
Figure 2.4 – Consumer’s buying process……………………………………………..26
Figure 2.5 – Konus’s six psychographic stated………………………………………29
Figure 3.1 – Deduction process………………………………………………………..33
Figure 3.2 – Mixed methods in order of sequence and priority……………………..35
Figure 3.3 – Process of analytic induction…………………………………………….40
Figure 4.1 – Topic 1…………………………………………………………………......44
Figure 4.2 – Topic 2………………………………………………………………...…...45
Figure 4.3 – Topic 3……………………………………………………………………..46
Figure 4.4 – Topic 4……………………………………………………………………..47
Figure 4.5 – Topic 5……………………………………………………………………..48
Figure 4.6 – Topic 6……………………………………………………………………..49
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Figure 4.7 – Topic 7……………………………………………………………………50
Figure 4.8 – Topic 8…………………………………………………………………...51
Figure 4.9 – Topic 9……………………………………………………………………52
Figure 4.10 – Topic 10………………………………………………………………...53
Figure 4.11 – Topic 11………………………………………………………………...54
Figure 4.12 – Topic 12………………………………………………………………...55
Figure 4.13 – Topic 13…………………………………………...……………………55
Figure 4.14 – Topic 14………………………………………………………………...56
Figure 4.15 – Topic 15………………………………………………………………...57
Figure 4.16 – Topic 16………………………………………………………………...61
Figure 4.17 – Topic 17………………………………………………………………...62
Figure 4.18 – Topic 18………………………………………………………………...63
Figure 4.19 – Topic 19………………………………………………………………...64
Figure 5.1 – Analysis of established relations………………………….…………...76
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Chapter One – Introduction
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1.1– RESEARCH BACKGROUND – The digital UK market
With the advent of technology, the fashion industry has changed, as it has been a rapid
adopter of e-commerce (McColl & Moore, 2013 in Pantano, 2015). The UK market in
particular has been influenced with consumer online expenditure growing tremendously
in the last five years (Fig. 1). Despite this growth it is found that online sales growth will
slow down (Verdict, 2015). Consultants from A.T. Kearney (2013) state that brick and
mortar stores and store networks are driving customer loyalty and sales for brands in
the UK, and will continue to do so. Hence, the significance of this point of physical
contact between stores and customers has driven the attention of many fashion brands
towards integrating technological innovation into their stores. This integration has been
termed as omni-channel retailing (Cummins, Peltier & Dixon, 2016). Omni-channel
retailing creates an opportunity for a consistent shopping experience by integrating all
retail channels (Rigby, 2011 in Breidbach, Brodie & Hollebeek, 2014).
Figure 1.1: Total online market (£m) and year-on-year change (%), 2010-20e (Source: Verdict, 2015)
Several luxury brands such as Burberry and Gucci, and department stores like John
Lewis have adopted a seamless omni-channel retailing system in the UK. This is
perhaps a way to stay relevant in the digital world. Moreover, the 2016 Omni-Channel
Summit discussed that retailers need to think more about the entire customer shopping
journey, rather than thinking about individual channels, as British shoppers are taking
control of the omni-channel shopping environment (The Retail Bulletin). This is possibly
a way by which customers are looking for added value created by shopping
experiences helping them to reach their goal along with entertainment (Babin, 1994 in
Pantano, 2015). Hence the importance of this growing retail channel will be discussed
with further specification to relevant segments.
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1.2– RESEARCH RATIONALE – The UK luxury market
Re-emphasising from section 1.1, multi-channel experience is a key desire emerging
amongst luxury customers in the UK, and it is proposed that luxury retailers could do
well by offering their customers a more ‘integrated multi-channel experience’ (Mintel,
2015). A survey conducted at standalone luxury stores suggests that 42% of
consumers shopping online for luxury products said that they would like to see a more
joined up experience when buying luxury products online and in-store (Fig. 2) (Mintel,
2015). Moreover, the UK consumer is continuously shifting engagement and buying
habits in the digital direction very swiftly (Deloitte, 2015). Thus, luxury brands need to
respond and exploit the omni-channel model. Using the example of non-luxury
markets, it is clear that adopting this ‘joined-up channel’ approach is leading to more
footfall, higher conversion rates and bigger order values (Deloitte, 2015). These
benefits come along with one most crucial for luxury brands – brand loyalty. Thus, the
following sections explore what luxury segments can potentially be targeted with omni-
channel.
Figure 1.2: UK, attitudes by where they shopped online and in stores in UK, May, 2015 (Source: Mintel,
2015)
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1.2.a.) UK menswear market
A UK menswear trend report suggests that online competition is increasing within the
menswear segment (Verdict, 2016). It could be interesting to explore an integrated
shopping experience in-store and online for the menswear luxury customer due to the
following:
1.) Over 45% of menswear shoppers are found to spend less than 30 minutes
browsing products online (Fig. 1.3) and,
2.) Only 2.9% are shopping on smart phones
This perhaps means that multichannel retailers need to look for ways to prevent male
customers from abandoning the purchase online (Verdict, 2016). So, it is imperative
that luxury brands in the UK understand who their online male shopper is and how they
can retain this customer loyalty through omni-channel (Verdict, 2016).
Figure 1.3: Time spent browsing by male online menswear shoppers before purchasing an item (%), 2014
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1.2.b.) The Online Shopper
To be precise, while studying age brackets, it is found that e-retail expansion in store is
a big opportunity amongst the 35-44 year old male bracket (Fig. 1.4). In this bracket,
due to work and family commitments, there is less time and more pressure. As a
response, multichannel retailers like the luxury department store – John Lewis are
adopting omni-channel services by providing their customers with multiple fulfilment
options (Verdict, 2016) (Appendix A). Moreover online pure plays are accounting for
65.4% of this bracket’s shopping destinations (Appendix A). Hence, it is important to
discuss how luxury brands can develop strategies for this segment that make their
shopping experience more seamless and entertaining, and finally add value.
Figure 1.4: Shopping habits and opportunities for 35-44 male shoppers, 2015 (Source: Verdict, 2016)
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1.3– AIMS & OBJECTIVES
As discussed in section 1.2, there is an identified opportunity in digital expansion to
serve 35-44 year old male luxury customers (Verdict, 2016). This finding has posed the
following aim and objectives for research.
AIM - To understand the importance of omni-channel retail in creating customer value
for male luxury customers in the UK falling in the age bracket of 35-44
OBJECTIVES –
1.) To explore the technologies that have evolved in omni-channel retail
2.) To identify the gaps in the shopping process of 35-44 year old luxury male
customers in the UK
3.) To critically analyse the opportunities and challenges for luxury retailers in
adopting omni-channel
4.) To evaluate how these methods will make luxury brands gain competitive
advantage amongst 35-44 year old male customers in the UK
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1.4– RESEARCH METHODOLOGY
The literature review and market research will form a theory, which will lead to
formation of hypotheses. Therefore the nature of research will be deductive with
priority given to quantitative research in terms of sequence and importance. However,
a mixed methods approach with qualitative research will help to reiterate findings of,
and cover gaps in the quantitative research. Due to its quantitative nature, the research
will acquire an epistemological approach of positivism and ontological approach of
objectivism. (Bryman & Bell, 2011)
The quantitative research will be done through a structured interview conducted in
luxury department stores, luxury flagship stores and luxury malls. Findings will be
gathered and analysed with the help of SPSS software using pie charts,
crosstabulations and correlation analysis. Moreover, statistical significance will also be
tested on this software through Pearson’s correlation test. (Bryman & Bell, 2011)
On the other hand, qualitative research will be done through a semi-structured
interview, which will be developed with the formulation of topics from quantitative
research findings. Analytic induction will be used to analyse the findings. (Bryman &
Bell, 2011)
All interviews will concede with Diener & Crandall’s (1978 in Bryman & Bell, 2011)
ethical principles, and an ethics form signed by the supervisor (Appendix F), a research
information sheet (Appendices C & D), and a candidate’s consent form (Appendix E)
also comply with the University’s research ethics.
The research methodology will be discussed in detail in section 3.
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1.5– RESEARCH OUTLINE
Chapter 1: Introduction
The research opens with research into the digital UK market, and how the menswear
and luxury segments are being affected by it. It goes on to identify the prospective
growth of omni-channel retail due to the forecasted importance of physical stores.
Chapter 2: Literature Review
The next chapter studies the theories and trends in omni-channel retailing, consumer’s
shopping process and co-creating value. These three topics are then correlated to form
a basis for primary research.
Chapter 3: Research Methodology
This chapter explains and justifies the use of particular methods used in primary
research. It also considers the advantages and drawbacks of using these methods.
Chapter 4: Findings and Analysis
Chapter 4 demonstrates an in-depth analysis of all the research findings, along with
conclusive sections, which aid to raise topics and further understand how omni-channel
creates value in each step of the shopping process.
Chapter 5: Conclusions and Limitations
The last chapter provides an overview of the basis and findings of the research. It also
opens up prospects into evaluating how the omni-channel methods discussed can help
to gain competitive advantage. Finally, some limitations for luxury brands in adopting
this, and limitations of research are also mentioned.
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Chapter 2 – Literature Review
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2.1 – DEFINITION AND SIGNIFICANCE OF OMNI-CHANNEL
One of the latest shifts in retail is from the store being the centre of activity to
consumers demanding the store to come to them (Lewis & Dart, 2010). This shift
seemingly places consumers in the centre, which compels businesses to heighten their
level of retailing expertise (Pantano, 2015). Moreover, customers are expecting a
‘holistic shopping experience’, which they can gain through the shopping environment,
atmosphere, and additional entertainment (Kim, 2014). Hence, industry reports suggest
that retailers can improve their in-store experiences by integrating the physical and
virtual by bringing modern and interactive technology into their stores (Pantano, 2015).
American futurist and visionary John Naisbitt forecasted in the 1980’s - “the more high
the technology (is) around us, the more the need for (a) human touch.” (Breidbach,
Brodie & Hollebeek, 2014:52). Omni-channel, a potential response to this forecast is
seen as a means by which customer engagement can be enhanced through
communication synergy (Rigby, 2011 in Cummins, Peltier & Dixon, 2016). This makes
it essential to understand what omni-channel retailing is. Cummins (2016) defines
omni-channel as ‘the synergetic integration of customer touch points and
communication opportunities for the purpose of creating a unified brand experience
regardless of channel, platform, or stage in the selling process.’ Furthermore, Burghin
(2013) suggests that retailers should identify where these ‘interactive touch points’ can
stimulate engagement as expectations of interactions between digital and physical
grow (Breidbach, Brodie & Hollebeek, 2014). Moreover, the evaluation of brand touch
points and integration of channels has been asserted as a crucial success factor
(Baine, 2011 in Pantano, 2015). This integration in omni-channel retailing provides
consumers with the services available to them online, which include personal
recommendation, reviews, price transparency, videos and products mixed with the
physical experience that e-retail cannot fulfil (Pantano, 2015). Thus this omni-channel
experience blurring lines between physical and online turns the retail world into a
showroom (Brynjolfsson, Hu & Rahman, 2014 in Cummins, Peltier & Dixon, 2016),
where consumers can start the shopping journey in one channel and complete
transaction through a ‘continuous stream of activity’ without any barriers (Kim, 2014).
Like any other engagement ecosystem, an omni-channel retailing system aids retailers
to incorporate the advantages of the physical store with the ‘information-rich
experience’ of e-retail (Breidbach, Brodie & Hollebeek, 2014). Hence, omni-channel
has been recognised as the final step of evolution, from a single channel to a full and
holistic experience, which combines various touch points (Dorman, 2013).
20	
Since the traditional division of communication channels becomes blurred, it becomes
important to study the scope of channels by analysing the consumer touch points.
These include interactions between consumers and the brand, and also
communications through mediums like social media (Verhoef, Kannan & Inman, 2015).
The several consumer touch points and aspects of omni-channel will be discussed in
section 2.2.
2.1.a.) Difference between multichannel and omni-channel
IDC Retail Insights reveal that while multichannel consumers spend 15-30% more than
a single channel consumer, omni-channel customers will outdo them by spending an
increased 20% on an average (WGSN, 2013). Hence, in order to fully understand how
omni-channel retailing is capable of this, it is vital to know the differences between
omni-channel and multichannel retailing.
While multichannel retailing has a division between physical and online stores, omni-
channel retailing helps customers to move between online, mobile devices and
physical seamlessly in a single shopping process (Piotrowicz & Cuthbertson, 2014).
Verhoef, Kannan & Inman (2015) provide an informative comparison between the two
types (Fig. 2.1).
Figure 2.1: Multi-channel versus omni-channel management (Source: Verhoef, Kannan & Inman, 2015)
It is clear from Fig. 2.1 that omni-channel retailing aims at the overall retail customer
experience, with its main focus on brand experience being consistent through all
21	
channels. Due to the nature of research focusing on customer experience, the different
aspects of omni-channel enhancing this experience will be explored in section 2.2.
2.2 – ASPECTS OF OMNI-CHANNEL
Piotrowicz & Cuthberston (2014) study the main areas in which technology is impacting
retail (Fig. 2.2). According to this study, the following areas have been considered
essential, and have been explored further:
Fig 2.2: Aspects of omni-channel retail (Source: Piotrowicz & Cuthberston, 2014)
2.2.a.) Channel Integration
In omni-channel retailing, since the channels are managed together, the perceived
customer engagement is more to do with the brand rather than the channel (Piotrowicz
& Cuthberston, 2014). In the case of luxury brands, the brand equity is usually high,
which shows that omni-channel could be of advantage to them. The changes in
channel integration have been affected by new technologies like smart mobile devices,
IT provision and access to technology, new in-store technologies like virtual screens
and aisles. Moreover, customers can access anything, anywhere, anytime (Piotrowicz
& Cuthberston, 2014).
Channel integration has been perceived as a big challenge for retailers. Retail analysts
forecast that omni-channel retailing strategies will eventually lead towards
communicating a single marketing message, and at the moment very few retailers are
22	
able to implement this successfully (WGSN, 2013). Furthermore, the integration in
pricing, promotion, marketing, brand building, supply chain management, and
experience provided across all channels is inadequate (Piotrowicz & Cuthberston,
2014). This challenge can be overcome with improvements in data analysis and more
targeted advertisements with a unified message (WGSN, 2013). Marketers can also
use experience enhancers like visual identity, communication, product presence,
websites, atmospherics and services to meet this challenge (Pantano, 2015). The
technologies for practising effective channel integration will be discussed from section
2.2.b. on.
2.2.b.) Impact of mobile technologies
Research indicates that the future of shopping is going to be purely mobile and tablet-
based with shoppers ‘hopping’ between mobile, tablets, web and physical stores
(WGSN, 2013). Further, mobile has also become the current rage as results show that
56% customers use mobile technology for research on shopping, and 71% expect to
see the in-store merchandise online (Hansen & Sia, 2015 in Cummins, Peltier & Dixon,
2016). The demand for mobile technology is a concern of omni-channel as customers
can now use their own smartphone to research and compare products and prices
online (Piotrowicz & Cuthberston, 2014). However, in the case of luxury brands, price
comparison might not be a big threat due to customers’ disposable income, but product
comparison could be a potential threat. Luxury omni-channel retailers can respond to
this by adopting integration to deliver marketing materials via mobile channels such as
apps, texts, advertisements, coupons, and other encouraging deliveries (Fulgoni, 2014
in Cummins, Peltier & Dixon, 2016). Retailers can also offer customers services such
as mobile notifications about orders, or discount coupons for popular items (WGSN,
2013).
An example of mobile technologies is called in-store apps, which successfully mix the
online and offline experience while shopping in-store in a seamless manner (WGSN,
2013) (Appendix B). Moreover in the future, there will be “over the top” apps in which
consumers can use just one app to consolidate throughout many stores and offer
‘intelligent functionality’ (WGSN, 2013). This can give luxury customers a more
personalised shopping experience with the convenience of digital technologies.
23	
2.2.c.) Influential role of social media
With the growth of social media, consumers are increasingly sharing information about
their choices in fashion. These consumers are sharing evaluations of goods and
services on social media, which is taking over product and service branding through
‘cyber-branding’ structures (Javed, 2009 in Piotrowicz & Cuthberston, 2014). This
poses opportunities for brands allowing them to research more into their customers
and identifies their omni-channel shopper (WGSN, 2013). The one-to-one relationship
between the retailer and customer has become more important as the customer is now
serving as an intermediary between himself and social media (Piotrowicz &
Cuthberston, 2014). Omni-channel retailers can take advantage of this relationship in
the following ways:
• Employing customers as brand advocates
• Involving them at various stages of product design
• Getting target customers to try and test new products
• Using social media as a transactional channel (Piotrowicz & Cuthberston, 2014)
These methods could make the customer experience more personalised and add value
to the purchasing process. Hence, retailers must understand that social media is a
channel that is credible for the omni-channel experience (WGSN, 2013).
2.2.d.) Changing role of the physical brick-and-mortar store
Several omni-channel retailers are placing their store as the main hub for representing
their brand (WGSN, 2013). In-store technologies such as digital signage and
interactive walls have created an additional dimension to the physical stores
(Piotrowicz & Cuthberston, 2014). Luxury brands like Gucci and Burberry are found to
have advanced omni channel strategies (Fig. 8) (drapersonline.com). These
technologies can be perceived by customers as ‘experiential cues’ as customers
picture them as ‘high-tech. modern and attractive’ (Newman & Dennis, 2010 in
Pantano, 2015). Other than digital signage, customers can be offered free Wifi to
access merchandise information and video demonstrations. In-store apps can also be
developed to smoothly mix the online and offline experience within the store (WGSN,
2013). This could help the customer to receive real-time messages from the retailer like
deals, events and products directly to devices (Kim, 2014).
Hence these will be analysed in relation to the customer in section 4.
24	
Fig 2.3: Innovations men are most interested in when buying clothes in-store or online, December 2015
(Source: Mintel, 2016)
Mintel (2016) identifies some of the key innovations that men are becoming
increasingly interested in while shopping (Fig. 2.3). The most relevant to in-store
technology are:
• Sizing technologies that help with buying clothes online that fit
• Smart fitting rooms in-store
• Options to personalise clothes
• Latest payment technology
• Styling tips
• Personalised campaigns or special offers sent to smartphones while in-store
• Personal shopper or stylist to help decide what to buy
Some of these innovations could be ones that the target customer is looking for.
25	
2.2.e.) Diverse customer requirements
The purpose of any new technology is to enhance the customer’s experience, rather
than being a barrier for those unfamiliar with it (Piotrowicz & Cuthberston, 2014). This
shows that there is diversity in customer requirements, which can be overcome by
many in-store options. These include digital seamless touchpoints, sales assistants,
and availability of the physical product (Piotrowicz & Cuthberston, 2014). In the case of
luxury brands, customer expenditure is high, which shows that customers are willing to
pay more for a premium service. Therefore, luxury brands can use this as a
differentiating factor in omni-channel. However, in order to satisfy these customers,
retailers need to be careful that the same content is able to flow across all channels,
and customers must be provided with all the information required to make a purchase
decision (Lewis & Dart, 2010).
2.2.f.) Personalisation vs. Privacy
Advances in CRM technology have aided detailed customer segmentation and
improved the salesforce performance by specialising customer experiences (Cummins,
Peltier & Dixon, 2016). This is because it allows the collection of larger data on
customers, which can be assessed to ensure reflex responses to individual customer
needs and ultimately engage them more (Ramaswamy & Gouillart, 2010 in Cummins,
Peltier & Dixon, 2016). Hence sales assistants can provide the customer with a more
personalised and consistent experience (WGSN, 2015). But, while this collection of
data creates opportunities, it could be perceived as a breach of privacy as customers
are increasingly interested in being aware of information others have about them
(Piotrowicz & Cuthberston, 2014). Hence retailers need to be careful while using these
technologies.
2.2.g.) Supply chain redesign
In order to build an “anywhere, anytime, any product” experience, retailers need to be
aware of what they have in store, distribution center and supply chain (Hardgrave,
2012). Contrary to this, online and in-store channels have always been operated
separately. However, omni-channel requires an integration of all channels. For
example, products can be ordered in-store and delivered to the customer’s home
address (Piotrowicz & Cuthberston, 2014). Hence an assimilation of physical and
information flows is essential for omni-channel (Piotrowicz & Cuthberston, 2014).
Further, it is important to study the consumer’s buying process so as to understand
how the aspects of omni-channel discussed above can create value for the shopper.
26	
The significance of consumer buying process in omni-channel will be discussed in
section 2.3.
2.3 – CONSUMER DECISION-MAKING PROCESS
Varley & Rafiq (2004) suggest that the retailer has a major role to play in the
consumer’s buying process. Figure 9 demonstrates the different steps involved in this.
Figure 2.4: Consumer’s buying process (Source: Varley & Rafiq, 2004)
27	
The 5 phases in this process can be related to Pantano’s (2015) shopping process
(Table 2.1).
Table 2.1: Consumer’s shopping process – Varley & Rafiq (2004) vs. Pantano (2015)
Step Varley & Rafiq (2004) Pantano (2015)
1 Needs recognition Stimulation – consumers become
inspired by a product
2 Search for information Consumer knows what they’re looking
for because they are already inspired
3 Evaluate product Consumer determines which product
or service is actually purchased for
what price and from which supplier
4 Select and purchase product Delivery – Few options depending on
the channel where the product is
bought
5 Post-Purchase evaluation After sales service
From section 2.2 it is clear that consumers are making use of different omni-channel
technologies in their shopping process. According to Pantano (2015), retailers must
focus on the service aspect of consumer experience through the use of relevant
technology that gives real value to these consumers. Therefore, to find out the effect of
these technologies on each step in the buying process, the co-creation of value will be
studied in section 2.4.
28	
2.4 CO-CREATING VALUE
In the case of shopping process, perceived value does not portray an object, but rather
an ‘interactive relativistic preference experience’ (Holbrook, 1999 in Pantano, 2015).
While value is ideally between a consumer and a product, this interaction concerns a
‘distanced appreciation of products’ (Pantano, 2015). Hence, this perceived value
could be considered as preferential as it is a consequence of a judgement (Pantano,
2015).
Lewis & Dart (2010) explain that due to customer expectations today, businesses need
to create an interaction that leads to neurological connectivity:
“It must be a holistic experience consisting of pre-shopping anticipation, shopping
ecstasy and consumption satisfaction, and it must be so emotionally compelling that
the customer wants to repeat upon the mere mention of the brand or retailer’s name.”
(Lewis & Dart, 2010:231)
Hence one of the suggested rules for transforming retail is to change one’s value
proposal become becoming a ‘branded neurological experience’ (Lewis & Dart, 2010).
This experience can provide consumers with two types of benefits: utilitarian and
hedonic, which can explain perceived shopping value (Babin, 1994 in Nsairi, 2012).
Both informational and recreational motivations are found to influence hedonic and
utilitarian values. Thus, in order to create such value, retailers need to build an
environment that stimulates senses, provokes interaction between consumers and
salespersons, and imaginations (Nsairi, 2012).
Schmitt (1999) gives a list of experience providers while shopping (Pantano, 2015).
Some examples of this include visual identity, communication, product presence,
websites, atmospherics, and services. While thinking about these providers in the case
of luxury brands, when consumers will perceive the brand to be the source of all these
experiences, it adds more perceived value to their overall experience (Pantano, 2015).
Hence while transforming retail strategies, providing a branded experience in omni-
channel can prove beneficial for luxury brands.
29	
2.4.a.) Atmospherics
Amongst the experience providers discussed in section 2.4, atmospherics are most
recognised for manipulating perceived value by consumers (Babin, 1994 in Pantano,
2015). Atmospherics can be divided into three cues: design, ambient and social cues
(Puccinelli, 2009 in Pantano, 2015). One example of design and ambient cues in omni-
channel is digital signage, which was analysed in section 2.2.d. While consumers are
attracted to digital signage due to its high-tech and modern feel, it is helpful to think
about the message it sends to consumers. Hedonic messages are found to be more
affective than utilitarian messages (Pantano, 2015). However, utilitarian messages can
be beneficial while consumers search for information to be inspired.
Furthermore, while these cues can create value, to fully understand shopping
behaviour in an omni-channel setup, Konus (2008) considers six psychographic states,
which suggest what channels consumers are likely to use (Fig. 2.5) (Pantano, 2015).
The most apt characteristic for the researched target customer between 35-44 years of
age is time pressure (Verdict, 2016). According to Konus (2008), online shopping
saves time for them, but the relation between omni-channel and time pressure is
unclear (Pantano, 2015). Hence all aspects of omni-channel need to be analysed in
relation to each step in the consumer’s buying process to understand how to create
value in tight time situations.
Figure 2.5: Konus’s six psychographic states (Source: Konus, 2008 in Pantano, 2015)
30	
Moreover, there needs to be a certain control over the value chain, which can help
brands to transform their shopping experience models (Lewis & Dart, 2010). Section
2.4.b. will consider the importance of value chain control.
2.4.b.) Value Chain Control
Lewis & Dart (2010) discuss 3 steps in the principled cycle of value chain:
1.) Define – Luxury brands need to identify what their consumer desires, which
includes research like sales tracking, in-store interaction and testing. This can
be possible by making use of advances in CRM technologies discussed earlier
in section 2.2.f. The right execution of this step can guide brands towards
innovation and finally value creation
2.) Develop – This includes developing on the knowledge received from the first
step and making a plan to improve the neurological experience
3.) Delivery – This is when the brand has maximum control of the final step, its
presentation and experience at point-of-sale
Therefore, luxury brands must have full control of their value chain as:
“The key objective of value chain control is to create and control pre-emptive
distribution of a neurologically connective experience all the way through to its
consumption, including the all-important point-of-sale.” (Lewis & Dart, 2010:103)
Hence this control can provide luxury customers with a neurologically branded
experience and conclusively add value to their shopping process.
31	
2.5 THEORY CONCLUSION
It is clear that the targeted customer, i.e. 35-44 year old male luxury customers in the
UK, falls into the psychographic state of time pressure, which does not have a clear
relation with omni-channel retailing.
Therefore, the assumed theory for research will be:
“Omni-channel retailing technologies can create value for the time-constrained 35-44
year old male luxury customer through their shopping process.”
Two hypotheses can be derived from this theory:
1.) Omni-channel retailing is useful to 35-44 year old UK male luxury customers while
shopping
2.) Omni-channel retailing can create value for these customers in situations of
constrained time
The first hypothesis is about which omni-channel innovations are useful, while the
second is about how and why these innovations can create value. Three concepts can
be derived from the theory and hypotheses:
1.) Aspects of Omni channel retail
2.) Consumer’s buying process
3.) Co-creation of value
These concepts will be used in correlation while data collection. Hence the research
will first focus on which aspects of omni-channel are used for each step in the shopping
process. Consequently, these findings will further configure how omni-channel can
create value for the time-constrained consumer.
The next section (3) will elaborate on methods used for research.
32	
Chapter 3 – Research Methodology
33	
3.1 RESEARCH APPROACH
It is clear from section 2.5 that secondary research and existing theory have led to a
formulation of hypotheses, which makes the nature of primary research deductive
(Bryman & Bell, 2011). The two hypotheses have concepts embedded in them, which
need to be converted into researchable systems in order to be regulated to ‘empirical
scrutiny’ (Bryman & Bell, 2011). These theory and hypotheses will drive the process of
gathering data. Bryman & Bell’s (2011) process of deduction will be followed along the
course of research (Fig). In this process, studying different theories successfully
generates one or more hypotheses, which can be converted into surveys or
questionnaires to guide data collection. The findings are then used to confirm whether
the hypotheses are confirmed or rejected. The last step of research will involve
induction, where these quantitative research findings will be fed back into the theory
and expand on this correlation (Bryman & Bell, 2011).
Figure 3.1: Deduction process (Source: Punchhi, 2016 derived from Bryman & Bell, 2011)
Theory Hypothesis
Data
Collection
Findings
Hypothesis
confirmed or
rejected
Revision of
Theory
34	
3.2 EPISTEMOLOGICAL AND ONTOLOGICAL
CONSIDERATIONS
Table 3.1: Fundamental differences between qualitative and quantitative research strategies (Source:
Punchhi, 2016 derived from Bryman & Bell, 2011)
Quantitative Qualitative
Principle orientation to the
role of theory in relation to
research
Deductive; testing of
theory
Inductive; generation of
theory
Epistemological
orientation
Natural science model in
particular positivism
Interpretivism
Ontological orientation Objectivism Constructionism
Table 3.1 shows the fundamental differences between quantitative and qualitative
research strategies. Due to the deductive nature of research, data will be gathered in a
quantitative manner. The research orientation will be as follows:
1.) Epistemological Considerations:
This questions what is or should be considered as an acceptable judgement in
a discipline (Bryman & Bell, 2011). According to table 3.1, quantitative research
acquires a positivist approach. This approach applies methods of natural
sciences to social reality and beyond. The theory has generated a hypothesis
that will be tested in order to further aid assessment of laws (Bryman & Bell,
2011). While this method will study the relation between natural sciences and
social reality, there will be a clear division between what is scientific and
normative.
2.) Ontological Considerations:
While epistemology is about acceptable knowledge, ontology considers
whether social bodies can be entities that have an existing reality other than
social phenomenon, or whether they are simply built up from social perceptions
and actions (Bryman & Bell, 2011). Bryman & Bell (2011) suggest that a
deductive approach represents an objectivist orientation. This ontological
position claims that social phenomenon has an existence that is separate from
social actors. These exist as external facts that are beyond social influence
(Bryman & Bell, 2011). Thus it can be assumed that there is a probability of
35	
value creation (fact) through omni-channel for the time-pressured target
segment (social phenomena).
3.3 MIXED METHODS APPROACH
A mixed method approach in which quantitative research facilitates qualitative research
will be devised due to the following:
1.) Quantitative research and analysis will give a generic understanding of what
technologies are apt for each particular step in the shopping process and how
these can create value
2.) This will be followed by qualitative research, which will look at the more
personal aspect of how these technologies can create value for these
customers, and simultaneously reiterate the findings of quantitative research
This approach has an added advantage as it helps to shortlist interviewees for
qualitative research. These candidates will be used as case studies through an in-
depth semi-structured interview, which will give a more qualitative understanding of the
theory in reality. (Bryman & Bell, 2011)
In terms of priority and sequence this approach will take on a concurrent structure (Fig
3.2). In this mixed methods structure, quantitative research is followed by qualitative
research, and it is also given more priority over the latter (Bryman & Bell, 2011).
Figure 3.2: Mixed methods in order of sequence and priority (Source: Punchhi, 2015 derived from Bryman
& Bell, 2011)
36	
3.4 QUANTITATIVE RESEARCH
3.4.a) Sampling
The representative sample size of quantitative research will be 100. It will adopt quota
sampling, which is a non-probability sampling method. The aim of this is to produce a
sample that is representative of the chosen target population characteristics such as
age, gender, location and socio-economic status in this case. In this, the interviewer
asks people available about their characteristics in order to form a subgroup, and the
choice of candidates is in the interviewer’s hands. (Bryman & Bell, 2011)
This research will be carried out near the following locations:
! Luxury department stores – Harrods and Selfridges
! The village at Westfield mall, Shepherd’s Bush
! Luxury flagship stores – Gucci, Burberry
Table (3.2) interprets advantages and disadvantages of quota sampling.
Table 3.2: Advantages and disadvantages of quota sampling (Source: Punchhi, 2016 derived from Bryman
& Bell, 2011)
ADVANTAGES DISADVANTAGES
It is cheaper and quicker than an
interview survey on a comparable
probability sample
The proponents of probability sampling
argue that a quota sample cannot be
representative as interviewers may be
unduly influenced by how approachable
people are
Interviewers do not have to keep calling
back on people who were not available at
the time they were first approached
People who are in an interviewer’s
vicinity at the time of conducting
interviews may not be typical
It is easier to manage since candidates
do not need to be recontacted
Judgements made about whether or not
to approach someone in terms of
interpreting their age, etc. may
sometimes be incorrect
It is valuable in terms of speed when
compared to the cumbersome probability
sample
Widespread use of social class as a
quota control can introduce difficulty
It is useful for conducting development It is not permissible to calculate a
37	
work on new measures or on research
instruments
standard error of the mean from a quota
sample, because the non-random
method of selection makes it impossible
to calculate the range of possible values
of a population
The researcher can calculate the amount
of sampling error and does not have to
be concerned about its potential impact
While drawbacks such as quota sampling not being representative are unavoidable,
the research will be carried out in locations where UK receives a large amount of luxury
footfall. Moreover, social class will not be used as a quota control, which helps
overcome some of the disadvantages in table 3.2.
3.4.b) Interview
A structured interview will be formed (Appendix G), in which all interviewees will be
given exactly the same questions. It will be a face-to-face interview with possible target
customers walking in and out of the stores mentioned in section 3.4.a. The aim of this
is to aggregate interviewee replies, which will be achieved accurately only with identical
questioning. The questions will be read out in exactly the same order and will be very
specific. Further there will be no probing or prompting. (Bryman & Bell, 2011)
3.4.c) Data analysis
The data will be collected using coding in SPSS. It will be analysed using pie charts
and bar charts. Further bivariate analysis will be done through crosstabulations,
which will aid to study several relationships. The statistical significance and proving of
hypotheses will be done via Pearson’s correlation test. The significance of this test will
be discussed in section 4.1.
38	
3.5 QUALITATIVE RESEARCH
3.5.a) Interview
A semi-structured interview will facilitate qualitative research (Appendix H). Findings
from quantitative research will help develop a list of topics to be covered, which will act
as an ‘interview guide’. The interviewee will have a great deal of margin in how he or
she wants to reply. This will provide a personal account of how the target customers
feel about omni-channel retail. Moreover, the questions do not have to be in the same
order and can be modified during the course of the interview. (Bryman & Bell, 2011)
Additionally, Bryman & Bell (2014), discuss some of the advantages of qualitative
interviewing over carrying out participant observations. The ones relevant to this
research project are:
• Issues resistant to observation – When there is a wide range of issues that
are not possible to analyse through observation, qualitative interviewing fits in
better
• Ethical considerations – Some areas cannot be observed due to ethical
reasons. For example, observing shopping behaviours of customers in luxury
stores could be an invasion of privacy
• Reactive effects – Moreover, if people are aware that they are being observed
they might act differently
• Less intrusive in people’s lives – Observation can be very intrusive.
Qualitative interviewing might take more time but the impact on the participants’
lives will be lesser than having to deal with observers
• Greater breadth of coverage – Unlike participant observation, the research is
not constricted to interactions and observations of people, incidents and
localities, hence it can allow research into more variety of situations
3.5.b) Sampling
The sample size for qualitative research will be three. These structured interviews will
follow a convenience non-probability sampling method. This is due to its simple
availability. The chances of a good response rate are high and the problem of
population being unrepresentative is eliminated, as candidates will be picked from the
sample used in quantitative research. Conjointly, the participants used for this research
will not be working in the fashion industry, which will eliminate any kind of bias in
responses.
39	
3.5.c) Transcribing
The responses of the interview will be transcribed in order of each participants reply to
each question. This will be put together as 3 different replies under each question
(Appendix I). Transcribing the interview responses will have many advantages
mentioned in table 3.3.
Table 3.3: Advantages of recording and transcribing (Source: Punchhi, 2016 derived from Heritage, 1984
in Bryman & Bell, 2011)
1. It will help to correct the natural limitations of our memories and of the intuitive
glosses that we might place on what people say in interviews
2. It allows more thorough examination of what people say
3. It permits repeated examinations of the interviewee’s answers
4. It opens up the data to public scrutiny by other researchers, who can evaluate
the analysis that is carried out by the original researchers of the data (that is,
secondary analysis)
5. It therefore helps to counter accusations that an analysis might have been
influenced by a researcher’s values or biases
6. It allows data to be reused in other ways from those intended by the original
researcher, for example, in the light of new theoretical ideal or analytic
strategies
40	
3.5.d) Analysis
The qualitative rsearch analysis will follow the process of analytic induction (Fig.3.3).
“Analytic induction is an approach to the analysis of data in
which the researcher seeks universal explanations of
phenomena by pursuing the collection of data until no
cases that are inconsistent with a hypothetical explanation
(deviant or negative cases) of a phenomenon are found.”
(Bryman & Bell, 575:2011)
Figure 3.3: Process of Analytic induction (Source: Punchhi, 2016 derived from Bryman & Bell, 2011)
41	
Analytical induction will be a good method for this research, as it will encounter each
single case discussed in qualitative research that is either inconsistent or insufficient
with the hypothesis (Bryman & Bell, 2011). However, this method does have some
disadvantages too. These are:
• The final results arrived at through this process do specify the conditions that
are sufficient for the phenomenon, but the necessary conditions are rarely
specified. However, this qualitative analysis will only be followed after
quantitative analysis, hence the necessary conditions would have already been
specified
• It does not aid the researcher with guidelines as to the number of cases that
need to be investigated prior to the absence of negative cases and how far is
the validity of the hypothesis to be confirmed (Bryman & Bell, 2011). But, as
mentioned above, quantitative research would have already determined and
collected the required number of responses in order for the hypothesis to be
valid. Thus, this analytical induction will only provide further validity of the
hypothesis by addressing issues that were brought up through quantitative
research
42	
3.6 RESEARCH ETHICS
Both quantitative and qualitative research interviews will abide by Diener & Crandall’s
(1978:128 in Bryman & Bell, 2011) ethical principles. These are classified into four
main areas:
1.) Harm to participants – There will no physical harm, no harm to self esteem, no
stress, harm to career prospects or subjects inducing disgraceful acts
2.) Informed consent – For both quantitative and qualitative research, candidates
will be signing a consent form (Appendix E), and they will be provided with a
research background. Further they will be made aware that they are free to
withdraw from the interview at any time
3.) Privacy – ‘Privacy is very much linked to the notion of informed consent’
(Bryman & Bell, 2011). Hence none of the research questions will in any
manner try to breach privacy of candidates
4.) Deception – The interview will not be deceptive in nature, as it will purely
represent none other than the research topic. For this purpose, candidates will
be given a research information sheet (Appendices C & D), which provides
them with concise details of the interview and research topic.
Additionally, prior to carrying out the research, a research ethics form conceding with
University of the Arts, London’s College Research body and the Research Ethics Sub-
Committee (Appendix F) will be signed both by the research supervisor and
researcher.
Moreover, all participants will be offered anonymity according to the ‘Code of Conduct’
by the United Kingdom Market Research Society. As these guidelines state, research
will not be used for the purpose of marketing. (MRS, 2014)
43	
Chapter 4 – Research Findings and Analysis
44	
4.1 QUANTITATIVE RESEARCH FINDINGS AND ANALYSIS
100 candidates were interviewed in a structured format (Appendix G) in several luxury
market locations as mentioned in section 3.4.a. All candidates from the research were
luxury male customers fitting into the target of 35-44 years of age. Gucci (14%),
Burberry (13%) and Salvatore Ferragamo (10%) were found to be the most popular
luxury brands, and department stores like Selfridges (7%), Harrods (7%) and John
Lewis (9%) had a significant number of candidates too. Other luxury brands included
Versace (6%), Hugo Boss (6%), Balmain (5%), Armani (4%), Ralph Lauren (4%),
Zegna (3%), Bally (2%), Givenchy (2%), Dolce & Gabbana (2%), and Lanvin, Paul
Smith, Tom Ford, Thom Browne, Canali and Pal Zileri constituting 1% each (Fig.4.1).
This showed that there was a wide spread in candidates and locations chosen for the
survey. Moreover, since a significant number of participants shopping at omni-channel
adopters like Burberry and Gucci, the research was able to give credible views on the
topic.
Figure
4.1: Topic 1: What luxury brands candidates shop at most (Source: Punchhi, 2016)
45	
Figure 4.2: Topic 2: Do candidates find it hard to find time to shop (Source: Punchhi, 2016)
Taking into consideration that time pressure was one of the key psychographic states
of the target customer, when interviewed, a majority of 82% agreed that they find less
time to shop (Fig. 4.2). Hence the following survey questions focused on their shopping
patterns, and how their buying process can be made quicker and more seamless.
46	
Figure 4.3: Topic 3: Which platform customers use for shopping research and whether they follow luxury
brands on social media (Source: Punchhi, 2016)
As the research aimed to follow a consumer’s shopping process, the next question was
about one of the first steps, which includes research. A majority of 69% were found to
do this on brands’ own websites or department store websites. This was followed by
18% using mobile apps for brands, and 13% using social media (Fig. 4.3). Moreover, a
minority of only 35% follow a luxury brand on social media. This shows that the target
generation is less prone to using social media, and brand websites are perhaps more
reliable. Luxury brands could engage with these customers through social media more
proactively by using Piotrowicz and Cuthberston’s (2014) suggestions as mentioned in
section 2.2.c. Due to time pressure, the most apt out of these could be to get these
customers to try and test new products through social media, or use social media as a
transactional channel.
47	
Figure 4.4: Topic 4: Whether inspirational or collections on social media have led candidates to shop
(Source: Punchhi, 2016)
Social media posts about the design process have influenced further only 19% of the
participants (Fig. 4.4). Hence these types of posts would not appeal to this market.
48	
Figure 4.5: Topic 5: Have candidates searched online and eventually visited stores to look at the physical
product (Source: Punchhi, 2016)
Further, 78% were found to eventually visit the store after doing online research (Fig.
4.5). Hence it can be said that these customers are interested in feeling and seeing the
physical product prior to making a purchase. This relates back to the importance and
changing role of bricks and mortar stores discussed in section 2.2.d. Luxury brands
using an integrated omni-channel experience in store can provide these customers
with both online and the physical product on one platform.
49	
Figure 4.6: Topic 6: Would candidates find personal tablets in-store useful to look for a product, and would
they compare products (Source: Punchhi, 2016)
As was indicated by research in section 2.2.b, the future of shopping will be completely
mobile and tablet-based. It can be said that this will be true of 35-44 year old male
luxury customers as 66% agreed that if they were given a personal tablet in a store, it
would be easier for them to look for a new product (Fig. 4.6). Conjointly, 53% of the
candidates tend to compare products on these tablets (Fig. 4.6), and a majority of 48%
would rate this service at 9 on a scale of 1 to 10 (Fig. 4.7). Further according to market
research, mobile technology could be a threat to brands as customers may use this for
product and price comparison (Section 2.2.b.) (Piotrowicz & Cuthberston, 2014).
Reiterating from section 2.2.b, luxury retailers could deliver marketing material via
mobile channels such as apps, texts, personal advertisements, coupons, and other
encouraging deliveries, so as to overcome this threat.
50	
Figure 4.7: Topic 7: Candidates’ rating on the usefulness of tablets on a scale of 1-10 (Source: Punchhi,
2016)
51	
Figure 4.8: Topic 8: Would candidates use an in-store app to navigate, find and learn about products, and
would this save their time and energy (Source: Punchhi, 2016)
Taking the in-store journey into consideration, 63% of the shoppers would use an in-
store app to navigate, find and learn about products (Fig. 4.8). This means that luxury
brands could launch these navigation apps to make this time-bound customer’s
shopping process quicker. Additionally, these apps could add value to these customers
as 72% think that they would save time and energy (Fig.4.8).
52	
Figure 4.9: Topic 9: Do candidates compare prices on websites or mobile apps (Source: Punchhi, 2016)
According to a WGSN (2013) report, “over the top” apps will be developed in the future
where customers can use just one app throughout numerous stores, offering intelligent
functionality (section 2.2.b). This could be a threat as 73% of the candidates use
mobile apps and websites to make price comparisons (Fig.4.9). With new apps,
customers could abandon their purchase, as they are able to find more reasonable
luxury products at ease. As discussed earlier, brands can send coupons and other
attractive deliveries through mobile technologies in order to sustain their customer and
add value to their purchase.
53	
Figure 4.10: Topic 10: Do candidates find digitally interactive walls useful in a store to understand product
features? (Source: Punchhi, 2016)
The next result found that 68% of the customers found digitally interactive walls useful
in a store to understand product features (Fig. 4.10). Like it was said in section 2.2.d,
customers can view these innovations as ‘experiential cues’ that are ‘high-tech,
modern and attractive’ (Newman & Dennis, 2010 in Pantano, 2015). Therefore digitally
interactive walls can probably create value for these customers.
54	
Figure 4.11: Topic 11: Would candidates find it useful to scan through products on a wall? (Source:
Punchhi, 2016)
Likewise, 68% of these customers would find it useful to scan through products on
these walls, but they would still like to touch and feel a physical product (Fig. 4.11).
This shows that the integration of online to a physical store through digitally interactive
walls could prove very successful to create value for this market in the UK. Conjointly,
atmospherics are considered to be most popular for creating perceived value for
consumers, and digital signage is an ambient cue that customers are attracted to
(section 2.4.a).
Section 2.2.d mentioned some of the key innovations that men in the UK are becoming
interested in while shopping. These revolve around services like personal styling,
sizing technologies online or other ways to help with sizing and personal shoppers or
stylists. Hence the next few questions were based on this.
55	
Figure 4.12: Topic 12: Would candidates like to have the option of having their purchases recorded for
future in case of repeat purchase? (Source: Punchhi, 2016)
In order to save customers the inconvenience of looking for their constant basic
products every time they shop, the candidates were asked whether they would like to
have their purchases recorded for future in case of a repeat purchase. An outstanding
62% approved of this service (Fig. 4.12). This is perhaps related to the target
customer’s psychographic state of time pressure. Hence this service probably can
create value for this customer.
Figure 4.13: Topic 13: Would candidates like to have their size details recorded for personal advice and
styling tips on a tablet? (Source: Punchhi, 2016)
56	
According to the Mintel (2016) report discussed in section 2.2.d, 47% males wanted to
see sizing technologies to help buying clothes online that would fit, 33% wanted
options to personalise clothes and 24% wanted a personal shopper or stylist to assist
with shopping. Hence candidates were questioned about an innovative service, which
could have their size details recorded on an online system in order to get personal
advice and styling tips. The response was in favour of this service with 67% of the
candidates wanting to avail it (Fig. 4.13). Also, 71% of the candidates agreed that this
would give customers a more personalised experience (Fig. 4.14). While there was a
missing 4% that would not avail the service, they still did agree that it would be a more
personalised experience. Therefore, UK luxury brands can promote this service well to
ensure that customers use it in order to save time and create value through their
shopping journey.
Figure 4.14: Topic 14: Would recording size details for personal advice and styling tips give candidates a
personalised experience? (Source: Punchhi, 2016)
57	
Figure 4.15 Topic 15: Could the process of personalisation be a breach of privacy? (Source: Punchhi,
2016)
One of the issues raised on personalisation in section 2.2.f was that while CRM
technologies in omni-channel can improve and personalise sales assistants’ services
to customers, it could also be perceived as a breach of privacy as customers have a
growing interest in information others have about them (Piotrowics & Cuthberston,
2014). However, on being asked, majority (68%) of them said that this would not be an
invasion of privacy (Fig. 4.15). Hence if luxury brands are able to initiate this very
carefully, the personalisation services discussed can be beneficial in creating value for
these customers.
58	
Table 4.1: Crosstabulation 1 – Would recording size for personal advice give a personal experience, and
would it be a breach of privacy (Source: Punchhi, 2016)
Would this kind of service give you a more personalised
experience? * Do you think this personalised experience could be
a breach of privacy if companies use an overall analysis with
anonymity? Crosstabulation
Count
Do you think this
personalised experience
could be a breach of privacy
if companies use an overall
analysis with anonymity?
Yes No Total
Yes 32% 39% 71%Would this kind of
service give you a
more personalised
experience?
No 0% 29% 29%
Total 32% 68% 100%
Furthermore, on carrying out a crosstabulation, it was found that 39% of the candidates
who would make use of service think that it would not be a breach of privacy, while
32% think that it would (Table 4.1). So, as mentioned above, luxury brands will have to
implement such personal services in a very cautious manner in order to provide
perceived value to the target research customer.
59	
Table 4.2: Crosstabulation 2 – Would candidates like to have the option of having their purchases
recorded for future in case of repeat purchase, and if they find it hard to find time to shop (Source:
Punchhi, 2016)
Crosstab
Would you like to
have the option of
having your
purchases recorded
for future in case of
repeat purchases?
Yes No Total
% within Do you find it hard to find time
to shop?
75.6% 24.4% 100.0
%
% within Would you like to have the
option of having your purchases
recorded for future in case of repeat
purchases?
100.0% 52.6% 82.0
%
Yes
% of Total 62.0% 20.0% 82.0
%
% within Do you find it hard to find time
to shop?
100.0% 100.0
%
% within Would you like to have the
option of having your purchases
recorded for future in case of repeat
purchases?
47.4% 18.0
%
Do you
find it
hard to
find time
to shop?
No
% of Total 18.0% 18.0
%
% within Do you find it hard to find time
to shop?
62.0% 38.0% 100.0
%
% within Would you like to have the
option of having your purchases
recorded for future in case of repeat
purchases?
100.0% 100.0% 100.0
%
Total
% of Total 62.0% 38.0% 100.0
%
60	
Another crosstabulation was carried out, which was with the aim to find out how many
time-bound candidates would like to benefit from the service of having their purchase
history stored. 75.6% of the time-constrained participants said that they would use this
(Table 4.2). This perhaps means that such a service could indeed give value to their
shopping process in luxury stores.
Table 4.3: Crosstabulation between – Would candidates like to have their size details recorded for
personal advice and styling tips on a tablet, and if they find it hard to find time to shop (Source: Punchhi,
2016)
Crosstab
Would you like to have
your size details
recorded for personal
advice and styling tips on
a tablet?
Yes No Total
% within Do you find it hard to find time to
shop?
81.7% 18.3% 100.0%
% within Would you like to have your size
details recorded for personal advice and
styling tips on a tablet?
100.0% 45.5% 82.0%
Y
e
s
% of Total 67.0% 15.0% 82.0%
% within Do you find it hard to find time to
shop?
100.0% 100.0%
% within Would you like to have your size
details recorded for personal advice and
styling tips on a tablet?
54.5% 18.0%
Do you
find it
hard to
find time
to shop?
N
o
% of Total 18.0% 18.0%
% within Do you find it hard to find time to
shop?
67.0% 33.0% 100.0%
% within Would you like to have your size
details recorded for personal advice and
styling tips on a tablet?
100.0% 100.0% 100.0%
Total
% of Total 67.0% 33.0% 100.0%
61	
Crosstabulation analysis also showed that 81.7% of the candidates who find it hard to
make time to shop are interested in having their size details recorded for personal
advice and styling tips on mobile technology (Table 4.3). In consequence, it can be
said that luxury brands can benefit by providing their customers such personalised
services, which adds value to the customer journey.
Figure: 4.16: Topic 16 Would candidates like smart fitting rooms in luxury or department stores? (Source:
Punchhi, 2016)
Another innovation desired by 37% of the male customers in the UK was smart fitting
rooms (section 2.2.d). On being surveyed, 52% customers said that they would like to
have these in luxury stores and department stores (Fig. 4.16). Thus, this is another in-
store aspect that could be taken into consideration while understanding how omni-
channel technologies can create value for these luxury customers in the UK.
62	
Figure 4.17: Topic 17: Have candidates used click & collect service before? (Punchhi, 2016)
The survey progressed on to the next step in a consumer’s shopping process, which
was selecting and purchasing a product or service. This involves choosing delivery
options depending on the channel where the product is bought. When questioned, 69%
were found to have used ‘click and collect’ service before (Fig. 4.17). Hence it can be
stated that this service is popular amongst this market. Further, the candidates were
asked whether this service saves time or not.
Table: 4.4: Crosstabulation 4 – Have candidates used click and collect service, and do they think it saves
time (Source: Punchhi, 2016)
Have you used click & collect service before? * Do you find that this
service saves time? Crosstabulation
Count
Do you find that this service
saves time?
Yes No Total
Yes 69% 0 69%Have you used click &
collect service before?
No 13% 18% 31%
Total 82% 18% 100%
On carrying out a crosstabulation analysis, 69% of the candidates who have used this
service agreed that it saves time, and 13% who haven’t availed this service feel that it
could save their time (Table 4.4). Hence click and collect could be an important
delivery service for this age group of luxury male customers. Moreover, luxury brands
63	
will need to redesign their supply chain in order to deliver a complete omni-channel
experience. This would include combining online and in-store (section 2.2.g).
Piotrowicz & Cuthberston (2014) give an example of this discussed in section 2.2.g.
According to them, customers can order products in-store and have them delivered to
their home address.
Hence, the next question was about whether the customers would adopt such a
service. It was discovered that 37% of the customers have used this before (Fig. 4.18).
However, 67% customers feel that not many luxury brands offer this service (Fig 4.18).
Ergo, if luxury brands in the UK can redesign their supply chain by integrating online
and in-store in an efficient manner, this service can become more widespread and
benefit 35-44 year old male customers who are constricted due to time. This will
perhaps create perceived value for these customers during the last stage of their
shopping process, which is after sales service.
Figure 4.18: Topic 18: Have candidates purchased something in store and had it delivered home, and do
they think that many luxury stores offer this service? (Source: Punchhi, 2016)
64	
Moreover, an exceptional 78% of the candidates said that they would avail the service
if they had the option (Fig. 4.19). Consequently, as Pantano (2015) suggests, luxury
consumers will view the brand as the source of this overall seamless experience
offered to them, which will add more perceived value to their shopping procedure
(section 2.4).
Figure 4.19: Topic 19: Would candidates avail the service of ordering something in store and delivering it
home? (Source: Punchhi, 2016)
65	
In order to test the hypothesis, two correlations were done through Pearson’s
correlation test on SPSS. The first was based on the crosstabulation between
customers using click and collect, and whether it saves time for them or not. Both the
variables had only two values, i.e. yes and no, hence they were dichotomous.
Therefore this test seemed most appropriate (Pallant, 2010). As a result of the test it
was found that the correlation coefficient was 1, which means that it is a perfect
correlation (Table 4.5). Moreover, table 4.5 shows that the correlation is significant at
the 0.01 level.
Table 4.5: Pearson’s correlation test 1 – Have you use click & collect service before; Do you find that this
service saves time (Source: Punchhi, 2016)
Correlations
Have you used
click & collect
service before?
Do you find
that this
service saves
time?
Pearson Correlation 1 .699
**
Sig. (2-tailed) .000
Have you used click &
collect service before?
N 100 100
Pearson Correlation .699
**
1
Sig. (2-tailed) .000
Do you find that this
service saves time?
N 100 100
**. Correlation is significant at the 0.01 level (2-tailed).
66	
The second correlation studied the relationship between whether customers would like
a personalized service and whether they think that it is a breach of privacy or not.
Similar to the previous test, these two variables are also dichotomous. The result
showed a coefficient of 1 resulting in a perfect correlation, and the correlation was
significant at the 0.01 level as well. (Table 4.6)
Table 4.6: Pearson’s correlation test 2 – Would a service of recording size details for personal advice and
styling tips give candidates a personalised experience; Would it be a breach of privacy if companies use
an overall analysis with anonymity (Source: Punchhi, 2016)
Correlations
Would this kind
of service give
you a more
personalised
experience?
Do you think this
personalised
experience
could be a
breach of
privacy if
companies use
an overall
analysis with
anonymity?
Pearson Correlation 1 .438
**
Sig. (2-tailed) .000
Would this kind of service
give you a more
personalised experience?
N 100 100
Pearson Correlation .438
**
1
Sig. (2-tailed) .000
Do you think this
personalised experience
could be a breach of privacy
if companies use an overall
analysis with anonymity?
N 100 100
**. Correlation is significant at the 0.01 level (2-tailed).
67	
4.1.a. Quantitative research conclusion
From the quantitative research findings and analysis, it is clear that the target 35-44
year old male luxury customers in the UK are interested in a seamless omni-channel
service that will aid them to accelerate their shopping journey. The services discussed
in section 4.1 include the following:
• Personalisation services about size and repeat orders
• Smart fitting rooms
• Mobile vouchers
• Personalised advertising
• Digitally interactive walls for product information
• Mobile technology for navigation
• Trying and testing products through social media
• Delivery services – click and collect
• Integrating online and offline for more delivery options
The response received for all these services was positive, which shows that omni-
channel can perhaps create value for this time-bound shopper. Conjointly, both the
correlation tests were significant. Thus, the two hypotheses that 1.) Omni-channel
retailing is useful to this target; and 2.) It can create value for these time-constrained
customers; have been proved.
As examined in section 2.4.b, luxury brands need to define what this consumer needs,
develop on this knowledge, and deliver at the point of sale, so as to have full control
of their value chain, and provide these customers with a ‘neurologically branded
experience, and finally add value (Lewis & Dart, 2010). As an outcome of quantitative
research, table 4.7 defines which innovative service fits best into each step in the
shopping process derived from Varley & Rafiq (2004) in order to understand what
luxury brands need to focus on in each channel.
68	
Table 4.7: Quantitative research conclusion: Omni-channel services fit into each phase in the Varley &
Rafiq’s (2004) shopping process (Source: Punchhi, 2016)
SR. NO. PHASES IN SHOPPING
PROCESS
OMNI-CHANNEL SERVICES
1. Needs recognition • Test and try through social
media
• Personalised advertising
• Mobile vouchers
2. Search for information • Brands own websites
• Department store websites
• Mobile apps
• Enhancing social media posts
3. Evaluate product/service • Personalisation services about
size and repeat orders
• Smart fitting rooms
• Digitally interactive walls for
product information
• Presence of physical product
• Mobile technology for in-store
navigation
4. Select and purchase product • Click and collect service
• Order in-store and deliver
home
• Integrating online and offline by
redesigning supply for better
delivery options
5. Post-purchase evaluation • Personalised advertising
69	
Apart from proving the hypotheses, the findings also brought about some issues, which
need to be researched upon in more detail in order to fully understand how to create
value for the chosen target customer. These are:
• Improvement in integration of online and offline delivery services - for e.g.
– customers might find it hard to return an online click and collect order in-store.
• Installation of smart fitting rooms – what features customers would like in
these to make their trying on process quicker, and why?
• Online sizing technologies – how these will help the customer to make luxury
purchase online
• Personal advice and styling tips – what details would customers like to give
to luxury brands and how these would help them
• Potential breach of privacy – how far should luxury brands go with recording
customers’ shopping details for this personalised service and at what point it
would be a breach of privacy
• Digitally interactive walls – how would digitally interactive walls help
customers while shopping
• In-store tablets – why and how they would use personal tablets in a store
Based on these 7 points, the qualitative research was carried out. The findings of this
will be analysed in the next section (4.2).
70	
4.2 QUALITATIVE RESEARCH FINDINGS AND ANALYSIS
The interview included 8 questions based on the points discussed in section 4.1.a, and
was carried out with 3 participants individually (Appendices H & I). All three participants
belonged to the category of 35-44 year old male luxury customers in the UK. As
mentioned in section 3.5.b, none of the responses were biased, as the participants did
not work in the fashion industry.
The research findings and analysis have been done through analytical induction
(section 3.5.d). Since the interview comprised of 8 questions, each questions will be
addressed as a different issue.
1.) The first question addressed whether customers find it hard to return products
in a luxury store when they have purchased them online. The responses
recorded showed that interviewee 1 and 3 did not have an issue with returning
products, while interviewee 2 did. According to interviewee 1, the service of
offering to try on click & collect items is lacking, and interviewee 2 feels that
salespeople do not look happy taking online returns in-store, which makes the
customer feel uncomfortable (Appendix I). Hence the following issues should be
addressed by brands:
- Better integration of online and offline supply chain to avoid
disappointments
- Offering to try on click & collect products, which would also require better
integration of the two channels
While the suggestions above can help improve the process, it is clear that it
complies with the hypotheses, as customers would like to see a better
integration as mentioned.
2.) The second question aimed to find out what kind of features these time-
constrained customers would like in a smart-fitting room in luxury flagship or
department stores. The following services were desired by the interviewees:
- Size – checking for another size in-store while in the fitting room
- Fit – Advice and opinion on fit through smart technology in the fitting room
- More in number – Interviewee 1 and 2 expressed that department stores
need more fitting rooms as they have concessions from numerous brands,
and all brands must not share these. Moreover, in seasons of high customer
footfall, these stores could have temporary fitting rooms
- Product features – Interviewee 3 said that they would like these rooms to
help with understanding product features
71	
- Product alternatives – interviewee 3 would also like to see if the fitting
rooms could provide one with ideas on product alternatives
- Calling for assistance – these smart fitting rooms could also have a button
to call for assistance according to interviewee 3 (Appendix I)
Overall, smart fitting rooms were found desirable amongst these responses as
customers felt that this would make the shopping process more personal,
convenient, it would save time, and make it more enjoyable (Appendix I).
Hence it can be said that this further validates the hypotheses, as it will create
perceived value for customers by providing these benefits.
3.) The next question was regarding whether online sizing technologies would help
to improve their understanding of what they’re buying while looking for clothing
or shoes online. Interviewee 1 felt that it would help with clothing online;
interviewee 2 thought it would help with shoes. These two participants said that
it would save time, help with decision-making, help to try many options at
the same time, gives a better understanding of the fit, and could make one
purchase more.
Contrastingly, interviewee 3 thinks that sizing features could be very deceptive
as the fit suggested online might not match ones taste. Moreover, these
technologies are not always accurate, which could result in a bad purchase
(Appendix I). Hence while implementing such a service luxury brands need to
be very careful and have the best features to aid their customers online.
However, this feature still adheres to the hypotheses, as it does give customers
the advantages noted above.
4.) Next the participants were asked about what kind of details they would like to
give to luxury brands in order for them to provide customers with personal
advice and styling tips on an online account that can be accessed in-store,
online and on mobile. Customers were found to face problems like finding the
right size and fit, and the process taking long. Hence they would like to give
details like size, height, colours they prefer, complexion, and other personal
details. They would also like to know how a mixed and matched outfit would
look on them. (Appendix I)
72	
5.) Customers were then asked how these services would help them. The following
were the observed advantages of such a service:
- Saves time
- Makes shopping less stressful
- More enjoyable
- Better for the impatient
- More exciting due to a digital feel (Appendix I)
Hence this service could create value for the customers.
6.) One of the points discussed in quantitative research was that this service could
be a breach of privacy. Interviewees felt that giving these details would not be a
breach of privacy as luxury brands are aware of how far they can go with asking
for details. Moreover, they suggest that as long as this service is kept optional,
it would not invade privacy. (Appendix I)
7.) The next topic inquired about what features customer would like on digitally
interactive walls, and how these would help them. Appendix I indicated the
following:
- Interviewee 1 would like this to aid random browsing. According to them,
this would help to understand products and find them without much difficulty
of having to wait for salespeople. Additionally, it would eliminate the stress
factor in shopping and save time.
- Interviewee 2 would like styling tips especially while shopping for suits.
They would like to mix and match products on these walls to visualise how
these would look as an outfit
- Interviewee 3 said that digitally interactive walls would not help them with
products such as clothing and footwear, as presence of the physical
product is very essential. However, they did find it useful for browsing
through accessories. This would save them time.
Thus it can be said that these innovative walls in store can help the target
customers in luxury brand or department stores
8.) The last question reflects upon a feature where customers would be given a
tablet to navigate in big luxury flagship stores or department stores. The
responses recorded show that this service could be useful, as interviewee 1
would use it to navigate in the store. They feel that modern day staff in luxury
73	
stores is not reliable. Moreover, they suggest that they could use this service in
the form of an app, which they would also use to compare prices within the
store.
Interviewee 2 stated that they would also use it for navigation and it would
save their time. (Appendix I)
Interviewee 3 would also use this for navigating to a particular concession
in department stores. Another suggestion would be to see whether a nearby
fitting room is vacant or not. Most importantly, it would save time. (Appendix I)
4.2.a) Qualitative research conclusion
The qualitative research findings show that there is a gap in luxury services for the
target customer, which can be fulfilled via omni-channel services listed in section 4.2.
These were found to benefit the customers by:
• Increase in convenience
• Less stressful
• More personalised
• More interactive
• More exciting due to a digital feel
• And finally save time, which was the key psychographic state the target
customer belonged to (Konus, 2008 in Pantano, 2015)
Due to these added advantages, the customer’s shopping experience could indeed
become a “holistic experience consisting of pre-shopping anticipation, shopping
ecstasy and consumption satisfaction” (Lewis & Dart, 2010) (section 2.4). Therefore,
this further proves the hypotheses as these omni-channel innovations can add value to
the target customer.
74	
Chapter 5 – Conclusions and Limitations
75	
5.1 CONCLUSIONS
According to secondary research and theory, it was found that there is a growing
opportunity to expand e-retail services for the 35-44 year old male shopper in the UK.
With many luxury brands adopting online retail and omni-channel retail, the research
was done with a specific aim to evaluate whether, and how omni-channel can create
perceived value for luxury male customers in the UK falling in this age group. The
research first showed that omni-channel could perhaps be essential for this target due
to their psychographic state of time-pressure, as it is known to seamlessly integrate all
channels by making the shift from one channel to another more convenient. Hence the
aim was to understand its importance in creating customer value for this target.
Following this, the first part of theoretical research explained that the importance of
omni-channel is growing due to the ‘need for a human touch’ (Breidbach, Brodie &
Hollebeek, 2014). This need was identified in particular due to the rise in e-retail.
Further, studying the different aspects of omni-channel in relation to the consumer’s
shopping process aided to carry out primary research through quantitative and
qualitative analysis. The findings show a positive response as it is made clear that
omni-channel can perhaps create value for this target. Fig 5.1 shows the different
aspects and how they were found to create value in each step of the consumer’s
shopping process derived from Varley & Rafiq (2004).
76	
Figure 5.1: Analysis of the established relations: between phases in shopping process, omni-channel innovations and value
creators (Source: Punchhi, 2016)
As is shown in the figure 5.1, all aspects of omni-channel discussed in section 2.2 can
create value for 35-44 year old male luxury customers in the UK (Piotrowicz &
Cuthberston, 2014). While most of the innovations in figure 5.1 include channel
integration, there are mobile solutions like tablets for navigation, mobile vouchers,
mobile apps, etc. Social media could have a role to play by getting customers to test
and try products, changing the physical bricks and mortar store could have an
introduction of smart fitting rooms, with some features discussed in section 4.2.
Moreover, qualitative analysis shows the diversity in customer requirements, which
could be taken care of through personalisation services and CRM technologies.
Personalised services also include personalised advertising, customisations about
size, fit and taste, and personal advice. The last aspect, which was supply chain
redesign, can also create value for these customers by integrating the online and
offline services better through a new supply design.
77	
Hence this seamless integration of retail channels can improve this target’s shopping
experience by making it more convenient, personalising it, helping in decision-making,
making it interactive and attractive, and most of all saving time (Fig. 5.1). Moreover, the
research was able to fulfil all the objectives of exploring the technologies evolving in
omni-channel, identifying the gaps in the shopping process of the chosen target, and
the opportunities and challenges for luxury retailers in adopting omni-channel.
However, as part of the fourth objective, an interesting area to explore further could be
to evaluate how these methods can create competitive advantage for luxury brands,
which will be evaluated in the next section (5.1.1.). Moreover, section 5.2 answers
objective number three in more detail by focusing on some more challenges luxury
brands could face in adopting omni-channel retail.
5.1.a. Competitive advantage
According to Nsairi (2012), it is possible for retailers to gain competitive advantage, by
giving their customers a store image that provides interesting browsing experiences.
This would not be easily imitable by competitors because if a luxury brand is able to
build their store image beyond merchandise, atmosphere and services, and add
entertainment through a seamless omni-channel experience, it will be an added
benefit. This is so as entertainment is a powerful tool to enable learning, and
customers will be able to perceive these features as something that saves their time.
Thus adding entertainment and omni-channel services, for example - digitally
interactive walls can create value for customers, and if executed in the right way can
create competitive advantage. (Nsairi, 2012)
Hence adding entertainment will be a differentiating factor for luxury brands while
offering their customers with omni-channel services. Luxury companies could further
create value and gain competitive advantage in the target market by adding
entertainment services that are sensitive about time.
78	
5.2 LIMITATIONS
While the overall research response was positive there are still a few limitations. Firstly,
channel integration can be very challenging for luxury brands due to the following
reasons:
• Lack of unanimity in regard to the future of digital channels;
• Lack of customers having a unified view across channels;
• Difficulties while managing inventory and mobile access (Verhoef, Neslin &
Vroomen, 2007)
Moreover, while the chosen target customer might find technological changes in-store
very useful for shopping, not all luxury customers might find it appealing. Hence luxury
brands should try and implement the technology in an invisible manner as these could
alienate other customers (Verhoef, Neslin & Vroomen, 2007).
One of the key challenges that luxury brands could also face will be to sustain this
quality of a shopping experience derived from all the channels. For example, luxury
companies may not always be able to offer each customer with a tablet to navigate in-
store. Hence, such a service could be given as an option to customers, or customers
could book it in times of need.
5.2.a. Research Limitations
Although the research fulfilled its aim and objectives, there were some inevitable
limitations. Due to the time limit, only luxury shopping areas in London could be used
as research locations. Likewise, the size of the population for quantitative research was
limited to a 100 people adhering to time-constraint as well. Therefore, to develop a
generalised observation of the chosen target in the UK, the research should have
ideally covered more regions in the country and had a larger population. Also, due to
the word limit, only certain aspects of omni-channel retailing could be covered in the
project, while there are many more. However, the basic essence of the subject was
covered within the research. Thus, the research was able to accomplish the aim with
some minor limitations.
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DISSERTATION

  • 1. Name: Sukanya Punchhi Student ID: PUN13379764 Degree: BA Fashion Management, Year 3 Title: The Dissertation Tutor: Jenny Wilson
  • 2. 2 THE IMPORTANCE OF OMNI-CHANNEL RETAIL IN CREATING VALUE FOR 35-44 MALE LUXURY CUSTOMERS IN THE UK Sukanya Punchhi A dissertation submitted in partial fulfilment of the requirements for the award of the degree BA (Hons) Fashion Management The London College of Fashion University of the Arts London 10th May 2016
  • 3. 3 DECLARATION No portion of work referred to in this dissertation has been submitted in support of an application for another degree or qualification of this institution or any other university or institution of learning. Also no portion of this work has been plagiarised.
  • 4. 4 ACKNOWLEDGEMENTS I would like to thank my supervisor, Ms. Jenny Wilson for her guidance throughout this dissertation. I would also like to thank Mr. Vaishnav Amba for providing me assistance with finding research participants for qualitative research.
  • 5. 5 ABSTRACT Purpose The following dissertation aims to understand the importance of omni-channel retailing in creating value for the 35-44 male luxury customer in the UK Design The research begins with an introduction to the digital UK market, the luxury market, and menswear segment. It then studies theories between omni-channel, consumer’s shopping process and co-creating perceived value. The primary research follows a deductive process and mixed methods approach. Both quantitative and qualitative research questions are formed by the prior secondary research. Findings All secondary and primary findings have been displayed and analysed in the form of charts, comparison tables and figures, along with an in-depth analysis on important issues raised. Practical implications The research implies that omni-channel technologies can create value for the chosen target during luxury shopping experiences, and further create competitive advantage for luxury brands in this segment. Originality The research topic is a relatively new topic and focuses on a niche segment like menswear. The methodology used is similar to other research projects; however, the application of theory and further analysis provides originality to the document. Keywords Omni-channel retail, Luxury, Males, In-store, Online, Innovations, Consumers’ Shopping Process, Perceived Value Total number of words – 19, 290 Own words – 10, 876
  • 6. 6 TABLE OF CONTENTS Contents Page number Cover Page…………………………………………………………………………..2 Declaration…………………………………………………………………………...3 Acknowledgements………………………………………………………………….4 Abstract……………………………………………………………………………….5 Table of contents…………………………………………………………………….6 Chapter 1 – Introduction…………………………………………………………….10 1.1 – Research Background – The Digital UK Market…………………………..11 1.2 – Research Rationale – The UK luxury market……………………………...12 1.2.a – UK Menswear Market………………………………………………………13 1.2.b – The online shopper………………………………………………………....14 1.3 – Aims and Objectives…………………………………………………………..15 1.4 – Research Methodology…………………………………………………….....16 1.5 – Research Outline……………………………………………………………...17 Chapter 2 – Literature Review……………………………………………………...18 2.1 – Definition and Significance of Omni-Channel………………………………19 2.1.a – Difference between Multichannel and Omni-Channel…………………..20 2.2 – Aspects of Omni-Channel…………………………………………………….21 2.2.a – Channel Integration………………………………………………...……….21 2.2.b – Impact of mobile technologies……………………………………………...22 2.2.c – Influential Role of Social Media…………………………………………….23 2.2.d – Changing role of physical brick and mortar store………………………...23 2.2.e – Diverse customer requirements…………………………………………….25 2.2.f – Personalisation vs. Privacy…………………………………………………..25 2.2.g – Supply Chain Redesign……………………………………………………...25 2.3 – Consumer decision-making process………………………………………….26 2.4 – Co-creating Value……………………………………………………………….28 2.4.a – Atmospherics………………………………………………………………….29 2.4.b – Value Chain Control…………………………………………………………..30 2.5 – Theory Conclusion………………………………………………………………31
  • 7. 7 Chapter 3 – Research Methodology…………………………………………….....32 3.1 – Research Approach…………………………………………………………...33 3.2 – Epistemological and Ontological Considerations…………………………..34 3.3 – Mixed Methods Approach……………………………………………...……..35 3.4 – Quantitative Research………………………………………………………...36 3.4.a – Sampling……………………………………………………………………...36 3.4.b – Interview………………………………………………………………………37 3.4.c – Data analysis…………………………………………………………………37 3.5 – Qualitative Research…………………………………………………………..38 3.5.a – Interview………………………………………………………………………38 3.5.b – Sampling……………………………………………………………………...38 3.5.c – Transcribing…………………………………………………………………..39 3.5.d – Analysis……………………………………………………………………….40 3.6 – Research Ethics………………………………………………………………..42 Chapter 4 – Research Findings and Analysis……………………………………..43 4.1 – Quantitative Research Findings and analysis………………………………44 4.1.a – Quantitative Research Conclusion………………………………………...67 4.2 – Qualitative Research Findings and analysis………………………………..70 4.2.b – Qualitative Research Conclusion…………………...……………………..73 Chapter 5 – Conclusions and Limitations…………………………………………..74 5.1 – Conclusions……………………………………………………………………..75 5.1.a – Competitive Advantage……………………………………………………...77 5.2 – Limitations……………………………………………………………………….78 5.2.a – Research Limitations…………………………………………………………78 References……………………………………………………………………………..79 Appendices……………………………………………………………………………..81 Appendix A – Shopping habits and opportunities for 35-44 male shoppers…….81 Appendix B – In-store mobile apps for Walmart……………………………………82 Appendix C – Quantitative research information sheet for participants………....83 Appendix D – Qualitative research information sheet for participants…………...85 Appendix E – Sample consent form for participants……………………………….87 Appendix F – Research Ethics Approval Form……………………………………..88 Appendix G – Quantitative Research Survey……………………………………….90
  • 8. 8 Appendix H – Qualitative Research Interview Questions………………………...94 Appendix I – Qualitative Research Interview Transcripts………………………...95 Appendix J – Reflective Statement………………………………………………….100 List of Tables Table 2.1 – Consumer’s shopping process…………………………………………27 Table 3.1 – Fundamental differences between qualitative and quantitative research strategies………………………………………………………34 Table 3.2 – Advantages and Disadvantages of quota sampling………………….36 Table 3.3 – Advantages of recording and transcribing…………………………….39 Table 4.1 – Crosstabulation 1………………………………………………………...58 Table 4.2 – Crosstabulation 2………………………………………………………...59 Table 4.3 – Crosstabulation 3………………………………………………………...60 Table 4.4 – Crosstabulation 4………………………………………………………...62 Table 4.5 – Pearson’s Correlation Test 1……………………………………………65 Table 4.6 – Pearson’s Correlation Test 2……………………………………………66 Table 4.7 – Quantitative Research Conclusion……………………………………..68 List of Figures Figure 1.1 – Total online market and year-on-year change (%) 2010-20e……….11 Figure 1.2 – UK attitudes, by where they shopped…………………………...….....12 Figure 1.3 – Time spent browsing by male shoppers online……………...…….....13 Figure 1.4 – Shopping habits and opportunities 35-44 males……………......…....14 Figure 2.1 – Multichannel vs. Omni-channel management………………...……....20 Figure 2.2 – Aspects of Omni-channel retail………………………………………....21 Figure 2.3 – Innovations men are most interested in……………………………......24 Figure 2.4 – Consumer’s buying process……………………………………………..26 Figure 2.5 – Konus’s six psychographic stated………………………………………29 Figure 3.1 – Deduction process………………………………………………………..33 Figure 3.2 – Mixed methods in order of sequence and priority……………………..35 Figure 3.3 – Process of analytic induction…………………………………………….40 Figure 4.1 – Topic 1…………………………………………………………………......44 Figure 4.2 – Topic 2………………………………………………………………...…...45 Figure 4.3 – Topic 3……………………………………………………………………..46 Figure 4.4 – Topic 4……………………………………………………………………..47 Figure 4.5 – Topic 5……………………………………………………………………..48 Figure 4.6 – Topic 6……………………………………………………………………..49
  • 9. 9 Figure 4.7 – Topic 7……………………………………………………………………50 Figure 4.8 – Topic 8…………………………………………………………………...51 Figure 4.9 – Topic 9……………………………………………………………………52 Figure 4.10 – Topic 10………………………………………………………………...53 Figure 4.11 – Topic 11………………………………………………………………...54 Figure 4.12 – Topic 12………………………………………………………………...55 Figure 4.13 – Topic 13…………………………………………...……………………55 Figure 4.14 – Topic 14………………………………………………………………...56 Figure 4.15 – Topic 15………………………………………………………………...57 Figure 4.16 – Topic 16………………………………………………………………...61 Figure 4.17 – Topic 17………………………………………………………………...62 Figure 4.18 – Topic 18………………………………………………………………...63 Figure 4.19 – Topic 19………………………………………………………………...64 Figure 5.1 – Analysis of established relations………………………….…………...76
  • 10. 10 Chapter One – Introduction
  • 11. 11 1.1– RESEARCH BACKGROUND – The digital UK market With the advent of technology, the fashion industry has changed, as it has been a rapid adopter of e-commerce (McColl & Moore, 2013 in Pantano, 2015). The UK market in particular has been influenced with consumer online expenditure growing tremendously in the last five years (Fig. 1). Despite this growth it is found that online sales growth will slow down (Verdict, 2015). Consultants from A.T. Kearney (2013) state that brick and mortar stores and store networks are driving customer loyalty and sales for brands in the UK, and will continue to do so. Hence, the significance of this point of physical contact between stores and customers has driven the attention of many fashion brands towards integrating technological innovation into their stores. This integration has been termed as omni-channel retailing (Cummins, Peltier & Dixon, 2016). Omni-channel retailing creates an opportunity for a consistent shopping experience by integrating all retail channels (Rigby, 2011 in Breidbach, Brodie & Hollebeek, 2014). Figure 1.1: Total online market (£m) and year-on-year change (%), 2010-20e (Source: Verdict, 2015) Several luxury brands such as Burberry and Gucci, and department stores like John Lewis have adopted a seamless omni-channel retailing system in the UK. This is perhaps a way to stay relevant in the digital world. Moreover, the 2016 Omni-Channel Summit discussed that retailers need to think more about the entire customer shopping journey, rather than thinking about individual channels, as British shoppers are taking control of the omni-channel shopping environment (The Retail Bulletin). This is possibly a way by which customers are looking for added value created by shopping experiences helping them to reach their goal along with entertainment (Babin, 1994 in Pantano, 2015). Hence the importance of this growing retail channel will be discussed with further specification to relevant segments.
  • 12. 12 1.2– RESEARCH RATIONALE – The UK luxury market Re-emphasising from section 1.1, multi-channel experience is a key desire emerging amongst luxury customers in the UK, and it is proposed that luxury retailers could do well by offering their customers a more ‘integrated multi-channel experience’ (Mintel, 2015). A survey conducted at standalone luxury stores suggests that 42% of consumers shopping online for luxury products said that they would like to see a more joined up experience when buying luxury products online and in-store (Fig. 2) (Mintel, 2015). Moreover, the UK consumer is continuously shifting engagement and buying habits in the digital direction very swiftly (Deloitte, 2015). Thus, luxury brands need to respond and exploit the omni-channel model. Using the example of non-luxury markets, it is clear that adopting this ‘joined-up channel’ approach is leading to more footfall, higher conversion rates and bigger order values (Deloitte, 2015). These benefits come along with one most crucial for luxury brands – brand loyalty. Thus, the following sections explore what luxury segments can potentially be targeted with omni- channel. Figure 1.2: UK, attitudes by where they shopped online and in stores in UK, May, 2015 (Source: Mintel, 2015)
  • 13. 13 1.2.a.) UK menswear market A UK menswear trend report suggests that online competition is increasing within the menswear segment (Verdict, 2016). It could be interesting to explore an integrated shopping experience in-store and online for the menswear luxury customer due to the following: 1.) Over 45% of menswear shoppers are found to spend less than 30 minutes browsing products online (Fig. 1.3) and, 2.) Only 2.9% are shopping on smart phones This perhaps means that multichannel retailers need to look for ways to prevent male customers from abandoning the purchase online (Verdict, 2016). So, it is imperative that luxury brands in the UK understand who their online male shopper is and how they can retain this customer loyalty through omni-channel (Verdict, 2016). Figure 1.3: Time spent browsing by male online menswear shoppers before purchasing an item (%), 2014
  • 14. 14 1.2.b.) The Online Shopper To be precise, while studying age brackets, it is found that e-retail expansion in store is a big opportunity amongst the 35-44 year old male bracket (Fig. 1.4). In this bracket, due to work and family commitments, there is less time and more pressure. As a response, multichannel retailers like the luxury department store – John Lewis are adopting omni-channel services by providing their customers with multiple fulfilment options (Verdict, 2016) (Appendix A). Moreover online pure plays are accounting for 65.4% of this bracket’s shopping destinations (Appendix A). Hence, it is important to discuss how luxury brands can develop strategies for this segment that make their shopping experience more seamless and entertaining, and finally add value. Figure 1.4: Shopping habits and opportunities for 35-44 male shoppers, 2015 (Source: Verdict, 2016)
  • 15. 15 1.3– AIMS & OBJECTIVES As discussed in section 1.2, there is an identified opportunity in digital expansion to serve 35-44 year old male luxury customers (Verdict, 2016). This finding has posed the following aim and objectives for research. AIM - To understand the importance of omni-channel retail in creating customer value for male luxury customers in the UK falling in the age bracket of 35-44 OBJECTIVES – 1.) To explore the technologies that have evolved in omni-channel retail 2.) To identify the gaps in the shopping process of 35-44 year old luxury male customers in the UK 3.) To critically analyse the opportunities and challenges for luxury retailers in adopting omni-channel 4.) To evaluate how these methods will make luxury brands gain competitive advantage amongst 35-44 year old male customers in the UK
  • 16. 16 1.4– RESEARCH METHODOLOGY The literature review and market research will form a theory, which will lead to formation of hypotheses. Therefore the nature of research will be deductive with priority given to quantitative research in terms of sequence and importance. However, a mixed methods approach with qualitative research will help to reiterate findings of, and cover gaps in the quantitative research. Due to its quantitative nature, the research will acquire an epistemological approach of positivism and ontological approach of objectivism. (Bryman & Bell, 2011) The quantitative research will be done through a structured interview conducted in luxury department stores, luxury flagship stores and luxury malls. Findings will be gathered and analysed with the help of SPSS software using pie charts, crosstabulations and correlation analysis. Moreover, statistical significance will also be tested on this software through Pearson’s correlation test. (Bryman & Bell, 2011) On the other hand, qualitative research will be done through a semi-structured interview, which will be developed with the formulation of topics from quantitative research findings. Analytic induction will be used to analyse the findings. (Bryman & Bell, 2011) All interviews will concede with Diener & Crandall’s (1978 in Bryman & Bell, 2011) ethical principles, and an ethics form signed by the supervisor (Appendix F), a research information sheet (Appendices C & D), and a candidate’s consent form (Appendix E) also comply with the University’s research ethics. The research methodology will be discussed in detail in section 3.
  • 17. 17 1.5– RESEARCH OUTLINE Chapter 1: Introduction The research opens with research into the digital UK market, and how the menswear and luxury segments are being affected by it. It goes on to identify the prospective growth of omni-channel retail due to the forecasted importance of physical stores. Chapter 2: Literature Review The next chapter studies the theories and trends in omni-channel retailing, consumer’s shopping process and co-creating value. These three topics are then correlated to form a basis for primary research. Chapter 3: Research Methodology This chapter explains and justifies the use of particular methods used in primary research. It also considers the advantages and drawbacks of using these methods. Chapter 4: Findings and Analysis Chapter 4 demonstrates an in-depth analysis of all the research findings, along with conclusive sections, which aid to raise topics and further understand how omni-channel creates value in each step of the shopping process. Chapter 5: Conclusions and Limitations The last chapter provides an overview of the basis and findings of the research. It also opens up prospects into evaluating how the omni-channel methods discussed can help to gain competitive advantage. Finally, some limitations for luxury brands in adopting this, and limitations of research are also mentioned.
  • 18. 18 Chapter 2 – Literature Review
  • 19. 19 2.1 – DEFINITION AND SIGNIFICANCE OF OMNI-CHANNEL One of the latest shifts in retail is from the store being the centre of activity to consumers demanding the store to come to them (Lewis & Dart, 2010). This shift seemingly places consumers in the centre, which compels businesses to heighten their level of retailing expertise (Pantano, 2015). Moreover, customers are expecting a ‘holistic shopping experience’, which they can gain through the shopping environment, atmosphere, and additional entertainment (Kim, 2014). Hence, industry reports suggest that retailers can improve their in-store experiences by integrating the physical and virtual by bringing modern and interactive technology into their stores (Pantano, 2015). American futurist and visionary John Naisbitt forecasted in the 1980’s - “the more high the technology (is) around us, the more the need for (a) human touch.” (Breidbach, Brodie & Hollebeek, 2014:52). Omni-channel, a potential response to this forecast is seen as a means by which customer engagement can be enhanced through communication synergy (Rigby, 2011 in Cummins, Peltier & Dixon, 2016). This makes it essential to understand what omni-channel retailing is. Cummins (2016) defines omni-channel as ‘the synergetic integration of customer touch points and communication opportunities for the purpose of creating a unified brand experience regardless of channel, platform, or stage in the selling process.’ Furthermore, Burghin (2013) suggests that retailers should identify where these ‘interactive touch points’ can stimulate engagement as expectations of interactions between digital and physical grow (Breidbach, Brodie & Hollebeek, 2014). Moreover, the evaluation of brand touch points and integration of channels has been asserted as a crucial success factor (Baine, 2011 in Pantano, 2015). This integration in omni-channel retailing provides consumers with the services available to them online, which include personal recommendation, reviews, price transparency, videos and products mixed with the physical experience that e-retail cannot fulfil (Pantano, 2015). Thus this omni-channel experience blurring lines between physical and online turns the retail world into a showroom (Brynjolfsson, Hu & Rahman, 2014 in Cummins, Peltier & Dixon, 2016), where consumers can start the shopping journey in one channel and complete transaction through a ‘continuous stream of activity’ without any barriers (Kim, 2014). Like any other engagement ecosystem, an omni-channel retailing system aids retailers to incorporate the advantages of the physical store with the ‘information-rich experience’ of e-retail (Breidbach, Brodie & Hollebeek, 2014). Hence, omni-channel has been recognised as the final step of evolution, from a single channel to a full and holistic experience, which combines various touch points (Dorman, 2013).
  • 20. 20 Since the traditional division of communication channels becomes blurred, it becomes important to study the scope of channels by analysing the consumer touch points. These include interactions between consumers and the brand, and also communications through mediums like social media (Verhoef, Kannan & Inman, 2015). The several consumer touch points and aspects of omni-channel will be discussed in section 2.2. 2.1.a.) Difference between multichannel and omni-channel IDC Retail Insights reveal that while multichannel consumers spend 15-30% more than a single channel consumer, omni-channel customers will outdo them by spending an increased 20% on an average (WGSN, 2013). Hence, in order to fully understand how omni-channel retailing is capable of this, it is vital to know the differences between omni-channel and multichannel retailing. While multichannel retailing has a division between physical and online stores, omni- channel retailing helps customers to move between online, mobile devices and physical seamlessly in a single shopping process (Piotrowicz & Cuthbertson, 2014). Verhoef, Kannan & Inman (2015) provide an informative comparison between the two types (Fig. 2.1). Figure 2.1: Multi-channel versus omni-channel management (Source: Verhoef, Kannan & Inman, 2015) It is clear from Fig. 2.1 that omni-channel retailing aims at the overall retail customer experience, with its main focus on brand experience being consistent through all
  • 21. 21 channels. Due to the nature of research focusing on customer experience, the different aspects of omni-channel enhancing this experience will be explored in section 2.2. 2.2 – ASPECTS OF OMNI-CHANNEL Piotrowicz & Cuthberston (2014) study the main areas in which technology is impacting retail (Fig. 2.2). According to this study, the following areas have been considered essential, and have been explored further: Fig 2.2: Aspects of omni-channel retail (Source: Piotrowicz & Cuthberston, 2014) 2.2.a.) Channel Integration In omni-channel retailing, since the channels are managed together, the perceived customer engagement is more to do with the brand rather than the channel (Piotrowicz & Cuthberston, 2014). In the case of luxury brands, the brand equity is usually high, which shows that omni-channel could be of advantage to them. The changes in channel integration have been affected by new technologies like smart mobile devices, IT provision and access to technology, new in-store technologies like virtual screens and aisles. Moreover, customers can access anything, anywhere, anytime (Piotrowicz & Cuthberston, 2014). Channel integration has been perceived as a big challenge for retailers. Retail analysts forecast that omni-channel retailing strategies will eventually lead towards communicating a single marketing message, and at the moment very few retailers are
  • 22. 22 able to implement this successfully (WGSN, 2013). Furthermore, the integration in pricing, promotion, marketing, brand building, supply chain management, and experience provided across all channels is inadequate (Piotrowicz & Cuthberston, 2014). This challenge can be overcome with improvements in data analysis and more targeted advertisements with a unified message (WGSN, 2013). Marketers can also use experience enhancers like visual identity, communication, product presence, websites, atmospherics and services to meet this challenge (Pantano, 2015). The technologies for practising effective channel integration will be discussed from section 2.2.b. on. 2.2.b.) Impact of mobile technologies Research indicates that the future of shopping is going to be purely mobile and tablet- based with shoppers ‘hopping’ between mobile, tablets, web and physical stores (WGSN, 2013). Further, mobile has also become the current rage as results show that 56% customers use mobile technology for research on shopping, and 71% expect to see the in-store merchandise online (Hansen & Sia, 2015 in Cummins, Peltier & Dixon, 2016). The demand for mobile technology is a concern of omni-channel as customers can now use their own smartphone to research and compare products and prices online (Piotrowicz & Cuthberston, 2014). However, in the case of luxury brands, price comparison might not be a big threat due to customers’ disposable income, but product comparison could be a potential threat. Luxury omni-channel retailers can respond to this by adopting integration to deliver marketing materials via mobile channels such as apps, texts, advertisements, coupons, and other encouraging deliveries (Fulgoni, 2014 in Cummins, Peltier & Dixon, 2016). Retailers can also offer customers services such as mobile notifications about orders, or discount coupons for popular items (WGSN, 2013). An example of mobile technologies is called in-store apps, which successfully mix the online and offline experience while shopping in-store in a seamless manner (WGSN, 2013) (Appendix B). Moreover in the future, there will be “over the top” apps in which consumers can use just one app to consolidate throughout many stores and offer ‘intelligent functionality’ (WGSN, 2013). This can give luxury customers a more personalised shopping experience with the convenience of digital technologies.
  • 23. 23 2.2.c.) Influential role of social media With the growth of social media, consumers are increasingly sharing information about their choices in fashion. These consumers are sharing evaluations of goods and services on social media, which is taking over product and service branding through ‘cyber-branding’ structures (Javed, 2009 in Piotrowicz & Cuthberston, 2014). This poses opportunities for brands allowing them to research more into their customers and identifies their omni-channel shopper (WGSN, 2013). The one-to-one relationship between the retailer and customer has become more important as the customer is now serving as an intermediary between himself and social media (Piotrowicz & Cuthberston, 2014). Omni-channel retailers can take advantage of this relationship in the following ways: • Employing customers as brand advocates • Involving them at various stages of product design • Getting target customers to try and test new products • Using social media as a transactional channel (Piotrowicz & Cuthberston, 2014) These methods could make the customer experience more personalised and add value to the purchasing process. Hence, retailers must understand that social media is a channel that is credible for the omni-channel experience (WGSN, 2013). 2.2.d.) Changing role of the physical brick-and-mortar store Several omni-channel retailers are placing their store as the main hub for representing their brand (WGSN, 2013). In-store technologies such as digital signage and interactive walls have created an additional dimension to the physical stores (Piotrowicz & Cuthberston, 2014). Luxury brands like Gucci and Burberry are found to have advanced omni channel strategies (Fig. 8) (drapersonline.com). These technologies can be perceived by customers as ‘experiential cues’ as customers picture them as ‘high-tech. modern and attractive’ (Newman & Dennis, 2010 in Pantano, 2015). Other than digital signage, customers can be offered free Wifi to access merchandise information and video demonstrations. In-store apps can also be developed to smoothly mix the online and offline experience within the store (WGSN, 2013). This could help the customer to receive real-time messages from the retailer like deals, events and products directly to devices (Kim, 2014). Hence these will be analysed in relation to the customer in section 4.
  • 24. 24 Fig 2.3: Innovations men are most interested in when buying clothes in-store or online, December 2015 (Source: Mintel, 2016) Mintel (2016) identifies some of the key innovations that men are becoming increasingly interested in while shopping (Fig. 2.3). The most relevant to in-store technology are: • Sizing technologies that help with buying clothes online that fit • Smart fitting rooms in-store • Options to personalise clothes • Latest payment technology • Styling tips • Personalised campaigns or special offers sent to smartphones while in-store • Personal shopper or stylist to help decide what to buy Some of these innovations could be ones that the target customer is looking for.
  • 25. 25 2.2.e.) Diverse customer requirements The purpose of any new technology is to enhance the customer’s experience, rather than being a barrier for those unfamiliar with it (Piotrowicz & Cuthberston, 2014). This shows that there is diversity in customer requirements, which can be overcome by many in-store options. These include digital seamless touchpoints, sales assistants, and availability of the physical product (Piotrowicz & Cuthberston, 2014). In the case of luxury brands, customer expenditure is high, which shows that customers are willing to pay more for a premium service. Therefore, luxury brands can use this as a differentiating factor in omni-channel. However, in order to satisfy these customers, retailers need to be careful that the same content is able to flow across all channels, and customers must be provided with all the information required to make a purchase decision (Lewis & Dart, 2010). 2.2.f.) Personalisation vs. Privacy Advances in CRM technology have aided detailed customer segmentation and improved the salesforce performance by specialising customer experiences (Cummins, Peltier & Dixon, 2016). This is because it allows the collection of larger data on customers, which can be assessed to ensure reflex responses to individual customer needs and ultimately engage them more (Ramaswamy & Gouillart, 2010 in Cummins, Peltier & Dixon, 2016). Hence sales assistants can provide the customer with a more personalised and consistent experience (WGSN, 2015). But, while this collection of data creates opportunities, it could be perceived as a breach of privacy as customers are increasingly interested in being aware of information others have about them (Piotrowicz & Cuthberston, 2014). Hence retailers need to be careful while using these technologies. 2.2.g.) Supply chain redesign In order to build an “anywhere, anytime, any product” experience, retailers need to be aware of what they have in store, distribution center and supply chain (Hardgrave, 2012). Contrary to this, online and in-store channels have always been operated separately. However, omni-channel requires an integration of all channels. For example, products can be ordered in-store and delivered to the customer’s home address (Piotrowicz & Cuthberston, 2014). Hence an assimilation of physical and information flows is essential for omni-channel (Piotrowicz & Cuthberston, 2014). Further, it is important to study the consumer’s buying process so as to understand how the aspects of omni-channel discussed above can create value for the shopper.
  • 26. 26 The significance of consumer buying process in omni-channel will be discussed in section 2.3. 2.3 – CONSUMER DECISION-MAKING PROCESS Varley & Rafiq (2004) suggest that the retailer has a major role to play in the consumer’s buying process. Figure 9 demonstrates the different steps involved in this. Figure 2.4: Consumer’s buying process (Source: Varley & Rafiq, 2004)
  • 27. 27 The 5 phases in this process can be related to Pantano’s (2015) shopping process (Table 2.1). Table 2.1: Consumer’s shopping process – Varley & Rafiq (2004) vs. Pantano (2015) Step Varley & Rafiq (2004) Pantano (2015) 1 Needs recognition Stimulation – consumers become inspired by a product 2 Search for information Consumer knows what they’re looking for because they are already inspired 3 Evaluate product Consumer determines which product or service is actually purchased for what price and from which supplier 4 Select and purchase product Delivery – Few options depending on the channel where the product is bought 5 Post-Purchase evaluation After sales service From section 2.2 it is clear that consumers are making use of different omni-channel technologies in their shopping process. According to Pantano (2015), retailers must focus on the service aspect of consumer experience through the use of relevant technology that gives real value to these consumers. Therefore, to find out the effect of these technologies on each step in the buying process, the co-creation of value will be studied in section 2.4.
  • 28. 28 2.4 CO-CREATING VALUE In the case of shopping process, perceived value does not portray an object, but rather an ‘interactive relativistic preference experience’ (Holbrook, 1999 in Pantano, 2015). While value is ideally between a consumer and a product, this interaction concerns a ‘distanced appreciation of products’ (Pantano, 2015). Hence, this perceived value could be considered as preferential as it is a consequence of a judgement (Pantano, 2015). Lewis & Dart (2010) explain that due to customer expectations today, businesses need to create an interaction that leads to neurological connectivity: “It must be a holistic experience consisting of pre-shopping anticipation, shopping ecstasy and consumption satisfaction, and it must be so emotionally compelling that the customer wants to repeat upon the mere mention of the brand or retailer’s name.” (Lewis & Dart, 2010:231) Hence one of the suggested rules for transforming retail is to change one’s value proposal become becoming a ‘branded neurological experience’ (Lewis & Dart, 2010). This experience can provide consumers with two types of benefits: utilitarian and hedonic, which can explain perceived shopping value (Babin, 1994 in Nsairi, 2012). Both informational and recreational motivations are found to influence hedonic and utilitarian values. Thus, in order to create such value, retailers need to build an environment that stimulates senses, provokes interaction between consumers and salespersons, and imaginations (Nsairi, 2012). Schmitt (1999) gives a list of experience providers while shopping (Pantano, 2015). Some examples of this include visual identity, communication, product presence, websites, atmospherics, and services. While thinking about these providers in the case of luxury brands, when consumers will perceive the brand to be the source of all these experiences, it adds more perceived value to their overall experience (Pantano, 2015). Hence while transforming retail strategies, providing a branded experience in omni- channel can prove beneficial for luxury brands.
  • 29. 29 2.4.a.) Atmospherics Amongst the experience providers discussed in section 2.4, atmospherics are most recognised for manipulating perceived value by consumers (Babin, 1994 in Pantano, 2015). Atmospherics can be divided into three cues: design, ambient and social cues (Puccinelli, 2009 in Pantano, 2015). One example of design and ambient cues in omni- channel is digital signage, which was analysed in section 2.2.d. While consumers are attracted to digital signage due to its high-tech and modern feel, it is helpful to think about the message it sends to consumers. Hedonic messages are found to be more affective than utilitarian messages (Pantano, 2015). However, utilitarian messages can be beneficial while consumers search for information to be inspired. Furthermore, while these cues can create value, to fully understand shopping behaviour in an omni-channel setup, Konus (2008) considers six psychographic states, which suggest what channels consumers are likely to use (Fig. 2.5) (Pantano, 2015). The most apt characteristic for the researched target customer between 35-44 years of age is time pressure (Verdict, 2016). According to Konus (2008), online shopping saves time for them, but the relation between omni-channel and time pressure is unclear (Pantano, 2015). Hence all aspects of omni-channel need to be analysed in relation to each step in the consumer’s buying process to understand how to create value in tight time situations. Figure 2.5: Konus’s six psychographic states (Source: Konus, 2008 in Pantano, 2015)
  • 30. 30 Moreover, there needs to be a certain control over the value chain, which can help brands to transform their shopping experience models (Lewis & Dart, 2010). Section 2.4.b. will consider the importance of value chain control. 2.4.b.) Value Chain Control Lewis & Dart (2010) discuss 3 steps in the principled cycle of value chain: 1.) Define – Luxury brands need to identify what their consumer desires, which includes research like sales tracking, in-store interaction and testing. This can be possible by making use of advances in CRM technologies discussed earlier in section 2.2.f. The right execution of this step can guide brands towards innovation and finally value creation 2.) Develop – This includes developing on the knowledge received from the first step and making a plan to improve the neurological experience 3.) Delivery – This is when the brand has maximum control of the final step, its presentation and experience at point-of-sale Therefore, luxury brands must have full control of their value chain as: “The key objective of value chain control is to create and control pre-emptive distribution of a neurologically connective experience all the way through to its consumption, including the all-important point-of-sale.” (Lewis & Dart, 2010:103) Hence this control can provide luxury customers with a neurologically branded experience and conclusively add value to their shopping process.
  • 31. 31 2.5 THEORY CONCLUSION It is clear that the targeted customer, i.e. 35-44 year old male luxury customers in the UK, falls into the psychographic state of time pressure, which does not have a clear relation with omni-channel retailing. Therefore, the assumed theory for research will be: “Omni-channel retailing technologies can create value for the time-constrained 35-44 year old male luxury customer through their shopping process.” Two hypotheses can be derived from this theory: 1.) Omni-channel retailing is useful to 35-44 year old UK male luxury customers while shopping 2.) Omni-channel retailing can create value for these customers in situations of constrained time The first hypothesis is about which omni-channel innovations are useful, while the second is about how and why these innovations can create value. Three concepts can be derived from the theory and hypotheses: 1.) Aspects of Omni channel retail 2.) Consumer’s buying process 3.) Co-creation of value These concepts will be used in correlation while data collection. Hence the research will first focus on which aspects of omni-channel are used for each step in the shopping process. Consequently, these findings will further configure how omni-channel can create value for the time-constrained consumer. The next section (3) will elaborate on methods used for research.
  • 32. 32 Chapter 3 – Research Methodology
  • 33. 33 3.1 RESEARCH APPROACH It is clear from section 2.5 that secondary research and existing theory have led to a formulation of hypotheses, which makes the nature of primary research deductive (Bryman & Bell, 2011). The two hypotheses have concepts embedded in them, which need to be converted into researchable systems in order to be regulated to ‘empirical scrutiny’ (Bryman & Bell, 2011). These theory and hypotheses will drive the process of gathering data. Bryman & Bell’s (2011) process of deduction will be followed along the course of research (Fig). In this process, studying different theories successfully generates one or more hypotheses, which can be converted into surveys or questionnaires to guide data collection. The findings are then used to confirm whether the hypotheses are confirmed or rejected. The last step of research will involve induction, where these quantitative research findings will be fed back into the theory and expand on this correlation (Bryman & Bell, 2011). Figure 3.1: Deduction process (Source: Punchhi, 2016 derived from Bryman & Bell, 2011) Theory Hypothesis Data Collection Findings Hypothesis confirmed or rejected Revision of Theory
  • 34. 34 3.2 EPISTEMOLOGICAL AND ONTOLOGICAL CONSIDERATIONS Table 3.1: Fundamental differences between qualitative and quantitative research strategies (Source: Punchhi, 2016 derived from Bryman & Bell, 2011) Quantitative Qualitative Principle orientation to the role of theory in relation to research Deductive; testing of theory Inductive; generation of theory Epistemological orientation Natural science model in particular positivism Interpretivism Ontological orientation Objectivism Constructionism Table 3.1 shows the fundamental differences between quantitative and qualitative research strategies. Due to the deductive nature of research, data will be gathered in a quantitative manner. The research orientation will be as follows: 1.) Epistemological Considerations: This questions what is or should be considered as an acceptable judgement in a discipline (Bryman & Bell, 2011). According to table 3.1, quantitative research acquires a positivist approach. This approach applies methods of natural sciences to social reality and beyond. The theory has generated a hypothesis that will be tested in order to further aid assessment of laws (Bryman & Bell, 2011). While this method will study the relation between natural sciences and social reality, there will be a clear division between what is scientific and normative. 2.) Ontological Considerations: While epistemology is about acceptable knowledge, ontology considers whether social bodies can be entities that have an existing reality other than social phenomenon, or whether they are simply built up from social perceptions and actions (Bryman & Bell, 2011). Bryman & Bell (2011) suggest that a deductive approach represents an objectivist orientation. This ontological position claims that social phenomenon has an existence that is separate from social actors. These exist as external facts that are beyond social influence (Bryman & Bell, 2011). Thus it can be assumed that there is a probability of
  • 35. 35 value creation (fact) through omni-channel for the time-pressured target segment (social phenomena). 3.3 MIXED METHODS APPROACH A mixed method approach in which quantitative research facilitates qualitative research will be devised due to the following: 1.) Quantitative research and analysis will give a generic understanding of what technologies are apt for each particular step in the shopping process and how these can create value 2.) This will be followed by qualitative research, which will look at the more personal aspect of how these technologies can create value for these customers, and simultaneously reiterate the findings of quantitative research This approach has an added advantage as it helps to shortlist interviewees for qualitative research. These candidates will be used as case studies through an in- depth semi-structured interview, which will give a more qualitative understanding of the theory in reality. (Bryman & Bell, 2011) In terms of priority and sequence this approach will take on a concurrent structure (Fig 3.2). In this mixed methods structure, quantitative research is followed by qualitative research, and it is also given more priority over the latter (Bryman & Bell, 2011). Figure 3.2: Mixed methods in order of sequence and priority (Source: Punchhi, 2015 derived from Bryman & Bell, 2011)
  • 36. 36 3.4 QUANTITATIVE RESEARCH 3.4.a) Sampling The representative sample size of quantitative research will be 100. It will adopt quota sampling, which is a non-probability sampling method. The aim of this is to produce a sample that is representative of the chosen target population characteristics such as age, gender, location and socio-economic status in this case. In this, the interviewer asks people available about their characteristics in order to form a subgroup, and the choice of candidates is in the interviewer’s hands. (Bryman & Bell, 2011) This research will be carried out near the following locations: ! Luxury department stores – Harrods and Selfridges ! The village at Westfield mall, Shepherd’s Bush ! Luxury flagship stores – Gucci, Burberry Table (3.2) interprets advantages and disadvantages of quota sampling. Table 3.2: Advantages and disadvantages of quota sampling (Source: Punchhi, 2016 derived from Bryman & Bell, 2011) ADVANTAGES DISADVANTAGES It is cheaper and quicker than an interview survey on a comparable probability sample The proponents of probability sampling argue that a quota sample cannot be representative as interviewers may be unduly influenced by how approachable people are Interviewers do not have to keep calling back on people who were not available at the time they were first approached People who are in an interviewer’s vicinity at the time of conducting interviews may not be typical It is easier to manage since candidates do not need to be recontacted Judgements made about whether or not to approach someone in terms of interpreting their age, etc. may sometimes be incorrect It is valuable in terms of speed when compared to the cumbersome probability sample Widespread use of social class as a quota control can introduce difficulty It is useful for conducting development It is not permissible to calculate a
  • 37. 37 work on new measures or on research instruments standard error of the mean from a quota sample, because the non-random method of selection makes it impossible to calculate the range of possible values of a population The researcher can calculate the amount of sampling error and does not have to be concerned about its potential impact While drawbacks such as quota sampling not being representative are unavoidable, the research will be carried out in locations where UK receives a large amount of luxury footfall. Moreover, social class will not be used as a quota control, which helps overcome some of the disadvantages in table 3.2. 3.4.b) Interview A structured interview will be formed (Appendix G), in which all interviewees will be given exactly the same questions. It will be a face-to-face interview with possible target customers walking in and out of the stores mentioned in section 3.4.a. The aim of this is to aggregate interviewee replies, which will be achieved accurately only with identical questioning. The questions will be read out in exactly the same order and will be very specific. Further there will be no probing or prompting. (Bryman & Bell, 2011) 3.4.c) Data analysis The data will be collected using coding in SPSS. It will be analysed using pie charts and bar charts. Further bivariate analysis will be done through crosstabulations, which will aid to study several relationships. The statistical significance and proving of hypotheses will be done via Pearson’s correlation test. The significance of this test will be discussed in section 4.1.
  • 38. 38 3.5 QUALITATIVE RESEARCH 3.5.a) Interview A semi-structured interview will facilitate qualitative research (Appendix H). Findings from quantitative research will help develop a list of topics to be covered, which will act as an ‘interview guide’. The interviewee will have a great deal of margin in how he or she wants to reply. This will provide a personal account of how the target customers feel about omni-channel retail. Moreover, the questions do not have to be in the same order and can be modified during the course of the interview. (Bryman & Bell, 2011) Additionally, Bryman & Bell (2014), discuss some of the advantages of qualitative interviewing over carrying out participant observations. The ones relevant to this research project are: • Issues resistant to observation – When there is a wide range of issues that are not possible to analyse through observation, qualitative interviewing fits in better • Ethical considerations – Some areas cannot be observed due to ethical reasons. For example, observing shopping behaviours of customers in luxury stores could be an invasion of privacy • Reactive effects – Moreover, if people are aware that they are being observed they might act differently • Less intrusive in people’s lives – Observation can be very intrusive. Qualitative interviewing might take more time but the impact on the participants’ lives will be lesser than having to deal with observers • Greater breadth of coverage – Unlike participant observation, the research is not constricted to interactions and observations of people, incidents and localities, hence it can allow research into more variety of situations 3.5.b) Sampling The sample size for qualitative research will be three. These structured interviews will follow a convenience non-probability sampling method. This is due to its simple availability. The chances of a good response rate are high and the problem of population being unrepresentative is eliminated, as candidates will be picked from the sample used in quantitative research. Conjointly, the participants used for this research will not be working in the fashion industry, which will eliminate any kind of bias in responses.
  • 39. 39 3.5.c) Transcribing The responses of the interview will be transcribed in order of each participants reply to each question. This will be put together as 3 different replies under each question (Appendix I). Transcribing the interview responses will have many advantages mentioned in table 3.3. Table 3.3: Advantages of recording and transcribing (Source: Punchhi, 2016 derived from Heritage, 1984 in Bryman & Bell, 2011) 1. It will help to correct the natural limitations of our memories and of the intuitive glosses that we might place on what people say in interviews 2. It allows more thorough examination of what people say 3. It permits repeated examinations of the interviewee’s answers 4. It opens up the data to public scrutiny by other researchers, who can evaluate the analysis that is carried out by the original researchers of the data (that is, secondary analysis) 5. It therefore helps to counter accusations that an analysis might have been influenced by a researcher’s values or biases 6. It allows data to be reused in other ways from those intended by the original researcher, for example, in the light of new theoretical ideal or analytic strategies
  • 40. 40 3.5.d) Analysis The qualitative rsearch analysis will follow the process of analytic induction (Fig.3.3). “Analytic induction is an approach to the analysis of data in which the researcher seeks universal explanations of phenomena by pursuing the collection of data until no cases that are inconsistent with a hypothetical explanation (deviant or negative cases) of a phenomenon are found.” (Bryman & Bell, 575:2011) Figure 3.3: Process of Analytic induction (Source: Punchhi, 2016 derived from Bryman & Bell, 2011)
  • 41. 41 Analytical induction will be a good method for this research, as it will encounter each single case discussed in qualitative research that is either inconsistent or insufficient with the hypothesis (Bryman & Bell, 2011). However, this method does have some disadvantages too. These are: • The final results arrived at through this process do specify the conditions that are sufficient for the phenomenon, but the necessary conditions are rarely specified. However, this qualitative analysis will only be followed after quantitative analysis, hence the necessary conditions would have already been specified • It does not aid the researcher with guidelines as to the number of cases that need to be investigated prior to the absence of negative cases and how far is the validity of the hypothesis to be confirmed (Bryman & Bell, 2011). But, as mentioned above, quantitative research would have already determined and collected the required number of responses in order for the hypothesis to be valid. Thus, this analytical induction will only provide further validity of the hypothesis by addressing issues that were brought up through quantitative research
  • 42. 42 3.6 RESEARCH ETHICS Both quantitative and qualitative research interviews will abide by Diener & Crandall’s (1978:128 in Bryman & Bell, 2011) ethical principles. These are classified into four main areas: 1.) Harm to participants – There will no physical harm, no harm to self esteem, no stress, harm to career prospects or subjects inducing disgraceful acts 2.) Informed consent – For both quantitative and qualitative research, candidates will be signing a consent form (Appendix E), and they will be provided with a research background. Further they will be made aware that they are free to withdraw from the interview at any time 3.) Privacy – ‘Privacy is very much linked to the notion of informed consent’ (Bryman & Bell, 2011). Hence none of the research questions will in any manner try to breach privacy of candidates 4.) Deception – The interview will not be deceptive in nature, as it will purely represent none other than the research topic. For this purpose, candidates will be given a research information sheet (Appendices C & D), which provides them with concise details of the interview and research topic. Additionally, prior to carrying out the research, a research ethics form conceding with University of the Arts, London’s College Research body and the Research Ethics Sub- Committee (Appendix F) will be signed both by the research supervisor and researcher. Moreover, all participants will be offered anonymity according to the ‘Code of Conduct’ by the United Kingdom Market Research Society. As these guidelines state, research will not be used for the purpose of marketing. (MRS, 2014)
  • 43. 43 Chapter 4 – Research Findings and Analysis
  • 44. 44 4.1 QUANTITATIVE RESEARCH FINDINGS AND ANALYSIS 100 candidates were interviewed in a structured format (Appendix G) in several luxury market locations as mentioned in section 3.4.a. All candidates from the research were luxury male customers fitting into the target of 35-44 years of age. Gucci (14%), Burberry (13%) and Salvatore Ferragamo (10%) were found to be the most popular luxury brands, and department stores like Selfridges (7%), Harrods (7%) and John Lewis (9%) had a significant number of candidates too. Other luxury brands included Versace (6%), Hugo Boss (6%), Balmain (5%), Armani (4%), Ralph Lauren (4%), Zegna (3%), Bally (2%), Givenchy (2%), Dolce & Gabbana (2%), and Lanvin, Paul Smith, Tom Ford, Thom Browne, Canali and Pal Zileri constituting 1% each (Fig.4.1). This showed that there was a wide spread in candidates and locations chosen for the survey. Moreover, since a significant number of participants shopping at omni-channel adopters like Burberry and Gucci, the research was able to give credible views on the topic. Figure 4.1: Topic 1: What luxury brands candidates shop at most (Source: Punchhi, 2016)
  • 45. 45 Figure 4.2: Topic 2: Do candidates find it hard to find time to shop (Source: Punchhi, 2016) Taking into consideration that time pressure was one of the key psychographic states of the target customer, when interviewed, a majority of 82% agreed that they find less time to shop (Fig. 4.2). Hence the following survey questions focused on their shopping patterns, and how their buying process can be made quicker and more seamless.
  • 46. 46 Figure 4.3: Topic 3: Which platform customers use for shopping research and whether they follow luxury brands on social media (Source: Punchhi, 2016) As the research aimed to follow a consumer’s shopping process, the next question was about one of the first steps, which includes research. A majority of 69% were found to do this on brands’ own websites or department store websites. This was followed by 18% using mobile apps for brands, and 13% using social media (Fig. 4.3). Moreover, a minority of only 35% follow a luxury brand on social media. This shows that the target generation is less prone to using social media, and brand websites are perhaps more reliable. Luxury brands could engage with these customers through social media more proactively by using Piotrowicz and Cuthberston’s (2014) suggestions as mentioned in section 2.2.c. Due to time pressure, the most apt out of these could be to get these customers to try and test new products through social media, or use social media as a transactional channel.
  • 47. 47 Figure 4.4: Topic 4: Whether inspirational or collections on social media have led candidates to shop (Source: Punchhi, 2016) Social media posts about the design process have influenced further only 19% of the participants (Fig. 4.4). Hence these types of posts would not appeal to this market.
  • 48. 48 Figure 4.5: Topic 5: Have candidates searched online and eventually visited stores to look at the physical product (Source: Punchhi, 2016) Further, 78% were found to eventually visit the store after doing online research (Fig. 4.5). Hence it can be said that these customers are interested in feeling and seeing the physical product prior to making a purchase. This relates back to the importance and changing role of bricks and mortar stores discussed in section 2.2.d. Luxury brands using an integrated omni-channel experience in store can provide these customers with both online and the physical product on one platform.
  • 49. 49 Figure 4.6: Topic 6: Would candidates find personal tablets in-store useful to look for a product, and would they compare products (Source: Punchhi, 2016) As was indicated by research in section 2.2.b, the future of shopping will be completely mobile and tablet-based. It can be said that this will be true of 35-44 year old male luxury customers as 66% agreed that if they were given a personal tablet in a store, it would be easier for them to look for a new product (Fig. 4.6). Conjointly, 53% of the candidates tend to compare products on these tablets (Fig. 4.6), and a majority of 48% would rate this service at 9 on a scale of 1 to 10 (Fig. 4.7). Further according to market research, mobile technology could be a threat to brands as customers may use this for product and price comparison (Section 2.2.b.) (Piotrowicz & Cuthberston, 2014). Reiterating from section 2.2.b, luxury retailers could deliver marketing material via mobile channels such as apps, texts, personal advertisements, coupons, and other encouraging deliveries, so as to overcome this threat.
  • 50. 50 Figure 4.7: Topic 7: Candidates’ rating on the usefulness of tablets on a scale of 1-10 (Source: Punchhi, 2016)
  • 51. 51 Figure 4.8: Topic 8: Would candidates use an in-store app to navigate, find and learn about products, and would this save their time and energy (Source: Punchhi, 2016) Taking the in-store journey into consideration, 63% of the shoppers would use an in- store app to navigate, find and learn about products (Fig. 4.8). This means that luxury brands could launch these navigation apps to make this time-bound customer’s shopping process quicker. Additionally, these apps could add value to these customers as 72% think that they would save time and energy (Fig.4.8).
  • 52. 52 Figure 4.9: Topic 9: Do candidates compare prices on websites or mobile apps (Source: Punchhi, 2016) According to a WGSN (2013) report, “over the top” apps will be developed in the future where customers can use just one app throughout numerous stores, offering intelligent functionality (section 2.2.b). This could be a threat as 73% of the candidates use mobile apps and websites to make price comparisons (Fig.4.9). With new apps, customers could abandon their purchase, as they are able to find more reasonable luxury products at ease. As discussed earlier, brands can send coupons and other attractive deliveries through mobile technologies in order to sustain their customer and add value to their purchase.
  • 53. 53 Figure 4.10: Topic 10: Do candidates find digitally interactive walls useful in a store to understand product features? (Source: Punchhi, 2016) The next result found that 68% of the customers found digitally interactive walls useful in a store to understand product features (Fig. 4.10). Like it was said in section 2.2.d, customers can view these innovations as ‘experiential cues’ that are ‘high-tech, modern and attractive’ (Newman & Dennis, 2010 in Pantano, 2015). Therefore digitally interactive walls can probably create value for these customers.
  • 54. 54 Figure 4.11: Topic 11: Would candidates find it useful to scan through products on a wall? (Source: Punchhi, 2016) Likewise, 68% of these customers would find it useful to scan through products on these walls, but they would still like to touch and feel a physical product (Fig. 4.11). This shows that the integration of online to a physical store through digitally interactive walls could prove very successful to create value for this market in the UK. Conjointly, atmospherics are considered to be most popular for creating perceived value for consumers, and digital signage is an ambient cue that customers are attracted to (section 2.4.a). Section 2.2.d mentioned some of the key innovations that men in the UK are becoming interested in while shopping. These revolve around services like personal styling, sizing technologies online or other ways to help with sizing and personal shoppers or stylists. Hence the next few questions were based on this.
  • 55. 55 Figure 4.12: Topic 12: Would candidates like to have the option of having their purchases recorded for future in case of repeat purchase? (Source: Punchhi, 2016) In order to save customers the inconvenience of looking for their constant basic products every time they shop, the candidates were asked whether they would like to have their purchases recorded for future in case of a repeat purchase. An outstanding 62% approved of this service (Fig. 4.12). This is perhaps related to the target customer’s psychographic state of time pressure. Hence this service probably can create value for this customer. Figure 4.13: Topic 13: Would candidates like to have their size details recorded for personal advice and styling tips on a tablet? (Source: Punchhi, 2016)
  • 56. 56 According to the Mintel (2016) report discussed in section 2.2.d, 47% males wanted to see sizing technologies to help buying clothes online that would fit, 33% wanted options to personalise clothes and 24% wanted a personal shopper or stylist to assist with shopping. Hence candidates were questioned about an innovative service, which could have their size details recorded on an online system in order to get personal advice and styling tips. The response was in favour of this service with 67% of the candidates wanting to avail it (Fig. 4.13). Also, 71% of the candidates agreed that this would give customers a more personalised experience (Fig. 4.14). While there was a missing 4% that would not avail the service, they still did agree that it would be a more personalised experience. Therefore, UK luxury brands can promote this service well to ensure that customers use it in order to save time and create value through their shopping journey. Figure 4.14: Topic 14: Would recording size details for personal advice and styling tips give candidates a personalised experience? (Source: Punchhi, 2016)
  • 57. 57 Figure 4.15 Topic 15: Could the process of personalisation be a breach of privacy? (Source: Punchhi, 2016) One of the issues raised on personalisation in section 2.2.f was that while CRM technologies in omni-channel can improve and personalise sales assistants’ services to customers, it could also be perceived as a breach of privacy as customers have a growing interest in information others have about them (Piotrowics & Cuthberston, 2014). However, on being asked, majority (68%) of them said that this would not be an invasion of privacy (Fig. 4.15). Hence if luxury brands are able to initiate this very carefully, the personalisation services discussed can be beneficial in creating value for these customers.
  • 58. 58 Table 4.1: Crosstabulation 1 – Would recording size for personal advice give a personal experience, and would it be a breach of privacy (Source: Punchhi, 2016) Would this kind of service give you a more personalised experience? * Do you think this personalised experience could be a breach of privacy if companies use an overall analysis with anonymity? Crosstabulation Count Do you think this personalised experience could be a breach of privacy if companies use an overall analysis with anonymity? Yes No Total Yes 32% 39% 71%Would this kind of service give you a more personalised experience? No 0% 29% 29% Total 32% 68% 100% Furthermore, on carrying out a crosstabulation, it was found that 39% of the candidates who would make use of service think that it would not be a breach of privacy, while 32% think that it would (Table 4.1). So, as mentioned above, luxury brands will have to implement such personal services in a very cautious manner in order to provide perceived value to the target research customer.
  • 59. 59 Table 4.2: Crosstabulation 2 – Would candidates like to have the option of having their purchases recorded for future in case of repeat purchase, and if they find it hard to find time to shop (Source: Punchhi, 2016) Crosstab Would you like to have the option of having your purchases recorded for future in case of repeat purchases? Yes No Total % within Do you find it hard to find time to shop? 75.6% 24.4% 100.0 % % within Would you like to have the option of having your purchases recorded for future in case of repeat purchases? 100.0% 52.6% 82.0 % Yes % of Total 62.0% 20.0% 82.0 % % within Do you find it hard to find time to shop? 100.0% 100.0 % % within Would you like to have the option of having your purchases recorded for future in case of repeat purchases? 47.4% 18.0 % Do you find it hard to find time to shop? No % of Total 18.0% 18.0 % % within Do you find it hard to find time to shop? 62.0% 38.0% 100.0 % % within Would you like to have the option of having your purchases recorded for future in case of repeat purchases? 100.0% 100.0% 100.0 % Total % of Total 62.0% 38.0% 100.0 %
  • 60. 60 Another crosstabulation was carried out, which was with the aim to find out how many time-bound candidates would like to benefit from the service of having their purchase history stored. 75.6% of the time-constrained participants said that they would use this (Table 4.2). This perhaps means that such a service could indeed give value to their shopping process in luxury stores. Table 4.3: Crosstabulation between – Would candidates like to have their size details recorded for personal advice and styling tips on a tablet, and if they find it hard to find time to shop (Source: Punchhi, 2016) Crosstab Would you like to have your size details recorded for personal advice and styling tips on a tablet? Yes No Total % within Do you find it hard to find time to shop? 81.7% 18.3% 100.0% % within Would you like to have your size details recorded for personal advice and styling tips on a tablet? 100.0% 45.5% 82.0% Y e s % of Total 67.0% 15.0% 82.0% % within Do you find it hard to find time to shop? 100.0% 100.0% % within Would you like to have your size details recorded for personal advice and styling tips on a tablet? 54.5% 18.0% Do you find it hard to find time to shop? N o % of Total 18.0% 18.0% % within Do you find it hard to find time to shop? 67.0% 33.0% 100.0% % within Would you like to have your size details recorded for personal advice and styling tips on a tablet? 100.0% 100.0% 100.0% Total % of Total 67.0% 33.0% 100.0%
  • 61. 61 Crosstabulation analysis also showed that 81.7% of the candidates who find it hard to make time to shop are interested in having their size details recorded for personal advice and styling tips on mobile technology (Table 4.3). In consequence, it can be said that luxury brands can benefit by providing their customers such personalised services, which adds value to the customer journey. Figure: 4.16: Topic 16 Would candidates like smart fitting rooms in luxury or department stores? (Source: Punchhi, 2016) Another innovation desired by 37% of the male customers in the UK was smart fitting rooms (section 2.2.d). On being surveyed, 52% customers said that they would like to have these in luxury stores and department stores (Fig. 4.16). Thus, this is another in- store aspect that could be taken into consideration while understanding how omni- channel technologies can create value for these luxury customers in the UK.
  • 62. 62 Figure 4.17: Topic 17: Have candidates used click & collect service before? (Punchhi, 2016) The survey progressed on to the next step in a consumer’s shopping process, which was selecting and purchasing a product or service. This involves choosing delivery options depending on the channel where the product is bought. When questioned, 69% were found to have used ‘click and collect’ service before (Fig. 4.17). Hence it can be stated that this service is popular amongst this market. Further, the candidates were asked whether this service saves time or not. Table: 4.4: Crosstabulation 4 – Have candidates used click and collect service, and do they think it saves time (Source: Punchhi, 2016) Have you used click & collect service before? * Do you find that this service saves time? Crosstabulation Count Do you find that this service saves time? Yes No Total Yes 69% 0 69%Have you used click & collect service before? No 13% 18% 31% Total 82% 18% 100% On carrying out a crosstabulation analysis, 69% of the candidates who have used this service agreed that it saves time, and 13% who haven’t availed this service feel that it could save their time (Table 4.4). Hence click and collect could be an important delivery service for this age group of luxury male customers. Moreover, luxury brands
  • 63. 63 will need to redesign their supply chain in order to deliver a complete omni-channel experience. This would include combining online and in-store (section 2.2.g). Piotrowicz & Cuthberston (2014) give an example of this discussed in section 2.2.g. According to them, customers can order products in-store and have them delivered to their home address. Hence, the next question was about whether the customers would adopt such a service. It was discovered that 37% of the customers have used this before (Fig. 4.18). However, 67% customers feel that not many luxury brands offer this service (Fig 4.18). Ergo, if luxury brands in the UK can redesign their supply chain by integrating online and in-store in an efficient manner, this service can become more widespread and benefit 35-44 year old male customers who are constricted due to time. This will perhaps create perceived value for these customers during the last stage of their shopping process, which is after sales service. Figure 4.18: Topic 18: Have candidates purchased something in store and had it delivered home, and do they think that many luxury stores offer this service? (Source: Punchhi, 2016)
  • 64. 64 Moreover, an exceptional 78% of the candidates said that they would avail the service if they had the option (Fig. 4.19). Consequently, as Pantano (2015) suggests, luxury consumers will view the brand as the source of this overall seamless experience offered to them, which will add more perceived value to their shopping procedure (section 2.4). Figure 4.19: Topic 19: Would candidates avail the service of ordering something in store and delivering it home? (Source: Punchhi, 2016)
  • 65. 65 In order to test the hypothesis, two correlations were done through Pearson’s correlation test on SPSS. The first was based on the crosstabulation between customers using click and collect, and whether it saves time for them or not. Both the variables had only two values, i.e. yes and no, hence they were dichotomous. Therefore this test seemed most appropriate (Pallant, 2010). As a result of the test it was found that the correlation coefficient was 1, which means that it is a perfect correlation (Table 4.5). Moreover, table 4.5 shows that the correlation is significant at the 0.01 level. Table 4.5: Pearson’s correlation test 1 – Have you use click & collect service before; Do you find that this service saves time (Source: Punchhi, 2016) Correlations Have you used click & collect service before? Do you find that this service saves time? Pearson Correlation 1 .699 ** Sig. (2-tailed) .000 Have you used click & collect service before? N 100 100 Pearson Correlation .699 ** 1 Sig. (2-tailed) .000 Do you find that this service saves time? N 100 100 **. Correlation is significant at the 0.01 level (2-tailed).
  • 66. 66 The second correlation studied the relationship between whether customers would like a personalized service and whether they think that it is a breach of privacy or not. Similar to the previous test, these two variables are also dichotomous. The result showed a coefficient of 1 resulting in a perfect correlation, and the correlation was significant at the 0.01 level as well. (Table 4.6) Table 4.6: Pearson’s correlation test 2 – Would a service of recording size details for personal advice and styling tips give candidates a personalised experience; Would it be a breach of privacy if companies use an overall analysis with anonymity (Source: Punchhi, 2016) Correlations Would this kind of service give you a more personalised experience? Do you think this personalised experience could be a breach of privacy if companies use an overall analysis with anonymity? Pearson Correlation 1 .438 ** Sig. (2-tailed) .000 Would this kind of service give you a more personalised experience? N 100 100 Pearson Correlation .438 ** 1 Sig. (2-tailed) .000 Do you think this personalised experience could be a breach of privacy if companies use an overall analysis with anonymity? N 100 100 **. Correlation is significant at the 0.01 level (2-tailed).
  • 67. 67 4.1.a. Quantitative research conclusion From the quantitative research findings and analysis, it is clear that the target 35-44 year old male luxury customers in the UK are interested in a seamless omni-channel service that will aid them to accelerate their shopping journey. The services discussed in section 4.1 include the following: • Personalisation services about size and repeat orders • Smart fitting rooms • Mobile vouchers • Personalised advertising • Digitally interactive walls for product information • Mobile technology for navigation • Trying and testing products through social media • Delivery services – click and collect • Integrating online and offline for more delivery options The response received for all these services was positive, which shows that omni- channel can perhaps create value for this time-bound shopper. Conjointly, both the correlation tests were significant. Thus, the two hypotheses that 1.) Omni-channel retailing is useful to this target; and 2.) It can create value for these time-constrained customers; have been proved. As examined in section 2.4.b, luxury brands need to define what this consumer needs, develop on this knowledge, and deliver at the point of sale, so as to have full control of their value chain, and provide these customers with a ‘neurologically branded experience, and finally add value (Lewis & Dart, 2010). As an outcome of quantitative research, table 4.7 defines which innovative service fits best into each step in the shopping process derived from Varley & Rafiq (2004) in order to understand what luxury brands need to focus on in each channel.
  • 68. 68 Table 4.7: Quantitative research conclusion: Omni-channel services fit into each phase in the Varley & Rafiq’s (2004) shopping process (Source: Punchhi, 2016) SR. NO. PHASES IN SHOPPING PROCESS OMNI-CHANNEL SERVICES 1. Needs recognition • Test and try through social media • Personalised advertising • Mobile vouchers 2. Search for information • Brands own websites • Department store websites • Mobile apps • Enhancing social media posts 3. Evaluate product/service • Personalisation services about size and repeat orders • Smart fitting rooms • Digitally interactive walls for product information • Presence of physical product • Mobile technology for in-store navigation 4. Select and purchase product • Click and collect service • Order in-store and deliver home • Integrating online and offline by redesigning supply for better delivery options 5. Post-purchase evaluation • Personalised advertising
  • 69. 69 Apart from proving the hypotheses, the findings also brought about some issues, which need to be researched upon in more detail in order to fully understand how to create value for the chosen target customer. These are: • Improvement in integration of online and offline delivery services - for e.g. – customers might find it hard to return an online click and collect order in-store. • Installation of smart fitting rooms – what features customers would like in these to make their trying on process quicker, and why? • Online sizing technologies – how these will help the customer to make luxury purchase online • Personal advice and styling tips – what details would customers like to give to luxury brands and how these would help them • Potential breach of privacy – how far should luxury brands go with recording customers’ shopping details for this personalised service and at what point it would be a breach of privacy • Digitally interactive walls – how would digitally interactive walls help customers while shopping • In-store tablets – why and how they would use personal tablets in a store Based on these 7 points, the qualitative research was carried out. The findings of this will be analysed in the next section (4.2).
  • 70. 70 4.2 QUALITATIVE RESEARCH FINDINGS AND ANALYSIS The interview included 8 questions based on the points discussed in section 4.1.a, and was carried out with 3 participants individually (Appendices H & I). All three participants belonged to the category of 35-44 year old male luxury customers in the UK. As mentioned in section 3.5.b, none of the responses were biased, as the participants did not work in the fashion industry. The research findings and analysis have been done through analytical induction (section 3.5.d). Since the interview comprised of 8 questions, each questions will be addressed as a different issue. 1.) The first question addressed whether customers find it hard to return products in a luxury store when they have purchased them online. The responses recorded showed that interviewee 1 and 3 did not have an issue with returning products, while interviewee 2 did. According to interviewee 1, the service of offering to try on click & collect items is lacking, and interviewee 2 feels that salespeople do not look happy taking online returns in-store, which makes the customer feel uncomfortable (Appendix I). Hence the following issues should be addressed by brands: - Better integration of online and offline supply chain to avoid disappointments - Offering to try on click & collect products, which would also require better integration of the two channels While the suggestions above can help improve the process, it is clear that it complies with the hypotheses, as customers would like to see a better integration as mentioned. 2.) The second question aimed to find out what kind of features these time- constrained customers would like in a smart-fitting room in luxury flagship or department stores. The following services were desired by the interviewees: - Size – checking for another size in-store while in the fitting room - Fit – Advice and opinion on fit through smart technology in the fitting room - More in number – Interviewee 1 and 2 expressed that department stores need more fitting rooms as they have concessions from numerous brands, and all brands must not share these. Moreover, in seasons of high customer footfall, these stores could have temporary fitting rooms - Product features – Interviewee 3 said that they would like these rooms to help with understanding product features
  • 71. 71 - Product alternatives – interviewee 3 would also like to see if the fitting rooms could provide one with ideas on product alternatives - Calling for assistance – these smart fitting rooms could also have a button to call for assistance according to interviewee 3 (Appendix I) Overall, smart fitting rooms were found desirable amongst these responses as customers felt that this would make the shopping process more personal, convenient, it would save time, and make it more enjoyable (Appendix I). Hence it can be said that this further validates the hypotheses, as it will create perceived value for customers by providing these benefits. 3.) The next question was regarding whether online sizing technologies would help to improve their understanding of what they’re buying while looking for clothing or shoes online. Interviewee 1 felt that it would help with clothing online; interviewee 2 thought it would help with shoes. These two participants said that it would save time, help with decision-making, help to try many options at the same time, gives a better understanding of the fit, and could make one purchase more. Contrastingly, interviewee 3 thinks that sizing features could be very deceptive as the fit suggested online might not match ones taste. Moreover, these technologies are not always accurate, which could result in a bad purchase (Appendix I). Hence while implementing such a service luxury brands need to be very careful and have the best features to aid their customers online. However, this feature still adheres to the hypotheses, as it does give customers the advantages noted above. 4.) Next the participants were asked about what kind of details they would like to give to luxury brands in order for them to provide customers with personal advice and styling tips on an online account that can be accessed in-store, online and on mobile. Customers were found to face problems like finding the right size and fit, and the process taking long. Hence they would like to give details like size, height, colours they prefer, complexion, and other personal details. They would also like to know how a mixed and matched outfit would look on them. (Appendix I)
  • 72. 72 5.) Customers were then asked how these services would help them. The following were the observed advantages of such a service: - Saves time - Makes shopping less stressful - More enjoyable - Better for the impatient - More exciting due to a digital feel (Appendix I) Hence this service could create value for the customers. 6.) One of the points discussed in quantitative research was that this service could be a breach of privacy. Interviewees felt that giving these details would not be a breach of privacy as luxury brands are aware of how far they can go with asking for details. Moreover, they suggest that as long as this service is kept optional, it would not invade privacy. (Appendix I) 7.) The next topic inquired about what features customer would like on digitally interactive walls, and how these would help them. Appendix I indicated the following: - Interviewee 1 would like this to aid random browsing. According to them, this would help to understand products and find them without much difficulty of having to wait for salespeople. Additionally, it would eliminate the stress factor in shopping and save time. - Interviewee 2 would like styling tips especially while shopping for suits. They would like to mix and match products on these walls to visualise how these would look as an outfit - Interviewee 3 said that digitally interactive walls would not help them with products such as clothing and footwear, as presence of the physical product is very essential. However, they did find it useful for browsing through accessories. This would save them time. Thus it can be said that these innovative walls in store can help the target customers in luxury brand or department stores 8.) The last question reflects upon a feature where customers would be given a tablet to navigate in big luxury flagship stores or department stores. The responses recorded show that this service could be useful, as interviewee 1 would use it to navigate in the store. They feel that modern day staff in luxury
  • 73. 73 stores is not reliable. Moreover, they suggest that they could use this service in the form of an app, which they would also use to compare prices within the store. Interviewee 2 stated that they would also use it for navigation and it would save their time. (Appendix I) Interviewee 3 would also use this for navigating to a particular concession in department stores. Another suggestion would be to see whether a nearby fitting room is vacant or not. Most importantly, it would save time. (Appendix I) 4.2.a) Qualitative research conclusion The qualitative research findings show that there is a gap in luxury services for the target customer, which can be fulfilled via omni-channel services listed in section 4.2. These were found to benefit the customers by: • Increase in convenience • Less stressful • More personalised • More interactive • More exciting due to a digital feel • And finally save time, which was the key psychographic state the target customer belonged to (Konus, 2008 in Pantano, 2015) Due to these added advantages, the customer’s shopping experience could indeed become a “holistic experience consisting of pre-shopping anticipation, shopping ecstasy and consumption satisfaction” (Lewis & Dart, 2010) (section 2.4). Therefore, this further proves the hypotheses as these omni-channel innovations can add value to the target customer.
  • 74. 74 Chapter 5 – Conclusions and Limitations
  • 75. 75 5.1 CONCLUSIONS According to secondary research and theory, it was found that there is a growing opportunity to expand e-retail services for the 35-44 year old male shopper in the UK. With many luxury brands adopting online retail and omni-channel retail, the research was done with a specific aim to evaluate whether, and how omni-channel can create perceived value for luxury male customers in the UK falling in this age group. The research first showed that omni-channel could perhaps be essential for this target due to their psychographic state of time-pressure, as it is known to seamlessly integrate all channels by making the shift from one channel to another more convenient. Hence the aim was to understand its importance in creating customer value for this target. Following this, the first part of theoretical research explained that the importance of omni-channel is growing due to the ‘need for a human touch’ (Breidbach, Brodie & Hollebeek, 2014). This need was identified in particular due to the rise in e-retail. Further, studying the different aspects of omni-channel in relation to the consumer’s shopping process aided to carry out primary research through quantitative and qualitative analysis. The findings show a positive response as it is made clear that omni-channel can perhaps create value for this target. Fig 5.1 shows the different aspects and how they were found to create value in each step of the consumer’s shopping process derived from Varley & Rafiq (2004).
  • 76. 76 Figure 5.1: Analysis of the established relations: between phases in shopping process, omni-channel innovations and value creators (Source: Punchhi, 2016) As is shown in the figure 5.1, all aspects of omni-channel discussed in section 2.2 can create value for 35-44 year old male luxury customers in the UK (Piotrowicz & Cuthberston, 2014). While most of the innovations in figure 5.1 include channel integration, there are mobile solutions like tablets for navigation, mobile vouchers, mobile apps, etc. Social media could have a role to play by getting customers to test and try products, changing the physical bricks and mortar store could have an introduction of smart fitting rooms, with some features discussed in section 4.2. Moreover, qualitative analysis shows the diversity in customer requirements, which could be taken care of through personalisation services and CRM technologies. Personalised services also include personalised advertising, customisations about size, fit and taste, and personal advice. The last aspect, which was supply chain redesign, can also create value for these customers by integrating the online and offline services better through a new supply design.
  • 77. 77 Hence this seamless integration of retail channels can improve this target’s shopping experience by making it more convenient, personalising it, helping in decision-making, making it interactive and attractive, and most of all saving time (Fig. 5.1). Moreover, the research was able to fulfil all the objectives of exploring the technologies evolving in omni-channel, identifying the gaps in the shopping process of the chosen target, and the opportunities and challenges for luxury retailers in adopting omni-channel. However, as part of the fourth objective, an interesting area to explore further could be to evaluate how these methods can create competitive advantage for luxury brands, which will be evaluated in the next section (5.1.1.). Moreover, section 5.2 answers objective number three in more detail by focusing on some more challenges luxury brands could face in adopting omni-channel retail. 5.1.a. Competitive advantage According to Nsairi (2012), it is possible for retailers to gain competitive advantage, by giving their customers a store image that provides interesting browsing experiences. This would not be easily imitable by competitors because if a luxury brand is able to build their store image beyond merchandise, atmosphere and services, and add entertainment through a seamless omni-channel experience, it will be an added benefit. This is so as entertainment is a powerful tool to enable learning, and customers will be able to perceive these features as something that saves their time. Thus adding entertainment and omni-channel services, for example - digitally interactive walls can create value for customers, and if executed in the right way can create competitive advantage. (Nsairi, 2012) Hence adding entertainment will be a differentiating factor for luxury brands while offering their customers with omni-channel services. Luxury companies could further create value and gain competitive advantage in the target market by adding entertainment services that are sensitive about time.
  • 78. 78 5.2 LIMITATIONS While the overall research response was positive there are still a few limitations. Firstly, channel integration can be very challenging for luxury brands due to the following reasons: • Lack of unanimity in regard to the future of digital channels; • Lack of customers having a unified view across channels; • Difficulties while managing inventory and mobile access (Verhoef, Neslin & Vroomen, 2007) Moreover, while the chosen target customer might find technological changes in-store very useful for shopping, not all luxury customers might find it appealing. Hence luxury brands should try and implement the technology in an invisible manner as these could alienate other customers (Verhoef, Neslin & Vroomen, 2007). One of the key challenges that luxury brands could also face will be to sustain this quality of a shopping experience derived from all the channels. For example, luxury companies may not always be able to offer each customer with a tablet to navigate in- store. Hence, such a service could be given as an option to customers, or customers could book it in times of need. 5.2.a. Research Limitations Although the research fulfilled its aim and objectives, there were some inevitable limitations. Due to the time limit, only luxury shopping areas in London could be used as research locations. Likewise, the size of the population for quantitative research was limited to a 100 people adhering to time-constraint as well. Therefore, to develop a generalised observation of the chosen target in the UK, the research should have ideally covered more regions in the country and had a larger population. Also, due to the word limit, only certain aspects of omni-channel retailing could be covered in the project, while there are many more. However, the basic essence of the subject was covered within the research. Thus, the research was able to accomplish the aim with some minor limitations.