Mays C-CUBES Study: Value And Convenience Emerge As Top Drivers Of Online Shopping
Shifting consumer attitudes are favoring online shopping more and more compared to brick-and-mortar stores, according to the 2017 C-CUBES™ Benchmark Retail Study released by Mays Business School at Texas A&M University.
Even with traditional stores adding more convenience services such as curbside delivery and in-store pickup, the shift toward online shopping has remained steady.
Four out of five consumers (81 percent) agreed with the statement that they “love the convenience of online shopping,” while 78 percent agree that “online shopping saves time and money.” Relative to physical stores, 62 percent agree that “online stores offer better value.”
The study is based on a nationally representative online survey of 5,881 adults conducted during October-November 2017. The margin of error is +/- 1 percent at the 95 percent level of confidence.
“Our study identifies the two big drivers of retail—convenience and value—that are fuelling online growth. Yet, physical stores will not vanish,” said Shrihari Sridhar, Center for Executive Development Professor of Marketing at Mays Business School. “Results show that 69 percent really enjoy going to a store and window shopping. There is also some backlash against online shopping, with 38 percent agreeing that e-commerce has taken out all the pleasure from shopping. Traditional retailers are at a critical strategic juncture. They need to balance the value and convenience of online shopping with the pleasure of in-store browsing.”
To challenge Amazon’s dominance in online sales, traditional retailers are responding to these elevated consumer expectations for convenience.
Retail giant Walmart announced that it will offer same-day store pick up for a greater variety of hot products ranging from the iRobot Roomba robotic vacuum and Xbox One S gaming system, to a 70-inch Vizio 4K television. Not only does Walmart provide the option for customers to receive a text alert once an order is ready, they will also have the ability to collect items in-store as late as 6 p.m. on Christmas Eve.
Target, with 1,834 stores, recently acquired grocery delivery startup, Shipt. The acquisition builds an important same-day delivery network for Target.
“Brick-and-mortar retailers can leverage their physical store locations to get products to customers as quickly as possible,” added Kelli Hollinger, Director of the Center for Retailing Studies at Mays Business School.
The 2017 C-CUBES™ Benchmark Retail Study is conducted by the Collaborative for Customer Based Execution and Strategy, sponsored by the Center for Retailing Studies, and underwritten by the R.C. Barclay Endowed Library Fund. The goal of the study is to provide an evidence-based approach to incorporate the customer’s perspective in strategic planning and execution for retailers. The research team for the Retail Study includes Vikas Mittal and Kyuhong Han at Rice University, along with Biwong Im at Texas A&M University.
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This story originally appeared in Mays Impacts.
