Omnichannel promotions and their effect on customer satisfaction

Abstract

Purpose This paper aims to investigate whether customer satisfaction varies when presented with different types of omnichannel promotions (shopping goal-congruent vs shopping goal-incongruent and monetary vs non-monetary promotions) and if the effect on satisfaction is mediated by service excellence. In addition, this paper examines whether consumers respond differently to these promotions when shopping for utilitarian or hedonic products or when they have an inherent utilitarian or hedonic shopping motivation. Design/methodology/approach Two online shopping scenario experiments are conducted. Study 1 (n = 1,034) differentiates effects of omnichannel promotions between hedonic and utilitarian product categories. Study 2 (n = 345) contrasts hedonic and utilitarian shopping motivation in the same product category. Findings The findings in this paper demonstrate positive effects from both presenting a shopping goal congruent and a monetary promotion in an omnichannel setting on customer satisfaction. The positive effects are explained by service excellence and are demonstrated to be attenuated in the hedonic product category and for consumers with a hedonic shopping motivation. Research limitations/implications The effect of omnichannel promotions was demonstrated using a scenario-based experimental approach, future research should use field experiments. Practical implications The findings in this paper demonstrate practical implications for a retailer who wishes to optimize its omnichannel promotion strategy across channels and touchpoints. Originality/value To date there is little directions for retailers on how to optimize their omnichannel promotion strategy. This paper contributes to research and practice by demonstrating that shopping goal-congruent promotions (vs in-congruent) and monetary promotions (vs non-monetary) increase customer satisfaction more in an omnichannel context. The effects are enhanced for utilitarian (vs hedonic) products/shopping motivation.