The challenge for multichannel services: Cross-channel free-riding behavior

Authors:
Hung-Chang Chiu;Yi-Ching Hsieh;Jinshyang Roan;Kuan-Jen Tseng;Jung-Kuei Hsieh
Affiliations:
Institute of Technology Management, National Tsing Hua University, Taiwan, ROC;Department of Information Management, National Central University, Taoyuan, Taiwan, ROC;Department of Business Administration, Soochow University, Taipei, Taiwan, ROC;Department of Business Administration, Soochow University, Taipei, Taiwan, ROC;Department of Information Management, National Central University, Taoyuan, Taiwan, ROC
Venue:
Electronic Commerce Research and Applications
Year:
2011

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Abstract

In multichannel environments, consumers can move easily among different channels. They engage in cross-channel free-riding when they use one retailer's channel to obtain information or evaluate products and then switch to another retailer's channel to complete the purchase. Cross-channel free-riding erodes profits and is one of the most important issues that firms face in the multichannel era. The current study focuses on the most popular type of cross-channel free-riding: searching for product information in an online store and then purchasing in another brick-and-mortar store. It explores antecedents that may contribute to consumer switching behaviors through a questionnaire focused on cross-channel free-riding behavior. The empirical results reveal that when consumers perceive more multichannel self-efficacy, they engage in more cross-channel free-riding behavior. Perceived service quality of competitors' offline store and the reduced risk in the brick-and-mortar channel influence the attractiveness of this behavior and increase cross-channel free-riding intentions. By increasing within-firm lock-in levels, firms can reduce consumers' cross-channel free-riding intentions.