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Explaining consumers' channel-switching behavior in the post-COVID-19 pandemic era

Business

Explaining consumers' channel-switching behavior in the post-COVID-19 pandemic era

A. T. N. Tran, U. Hoang, et al.

Discover how the COVID-19 pandemic has transformed consumer shopping behaviors in Vietnam! This insightful study by Anh Tram Nguyen Tran, Uyen Hoang, Dinh Nguyen, Vu Minh Ngo, and Huan Huu Nguyen uncovers the key drivers steering consumers towards online or traditional shopping channels.

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Playback language: English
Introduction
The COVID-19 pandemic dramatically altered consumer behavior, particularly driving a surge in digital consumption. While the e-Conomy SEA 2020 report highlights the emergence of 40 million new digital consumers in Southeast Asia in 2020, academic research on the determinants of these shifts remains limited. This study addresses this gap by examining channel-switching behavior in Vietnam, a rapidly growing internet economy. The research focuses on understanding the factors that influenced consumers' decisions to switch between online and traditional shopping channels (markets, supermarkets, convenience stores) after the initial pandemic outbreak. The study's importance lies in providing insights into the lasting impact of the pandemic on consumer purchasing habits and informing strategies for businesses operating in both online and offline retail spaces. The research questions explore the key factors influencing channel switching behavior post-pandemic, the prioritization of online channels during the pandemic, and the prioritization of traditional channels during the pandemic.
Literature Review
The study draws upon several theoretical frameworks to explain consumer channel-switching behavior. Belief-attitude theories, particularly the Theory of Planned Behavior (TPB), are employed as the foundation. TPB, an extension of the Theory of Reasoned Action, incorporates perceived behavioral control as a key determinant of behavior. The study also incorporates Expectation Confirmation Theory (ECT), which examines the role of pre-purchase expectations and post-purchase perceptions in shaping satisfaction and future behavior. A unified framework combining TPB and ECT is proposed to model the two stages of channel switching: initial channel selection and channel reuse. The literature review also considers existing research on factors influencing online shopping adoption, including transactional barriers, ease of use, security concerns, and the influence of consumer traits, situational factors, product characteristics, and past experiences. It addresses transactional barriers like slow loading times, inadequate information, and the absence of human interaction, along with the importance of ease of use and security. The study highlights the gap in understanding channel switching specifically in the post-COVID-19 era.
Methodology
This study uses a survey method with a structured questionnaire to collect data. The questionnaire employed a five-point Likert scale to measure various factors, including convenience, information abundance, product availability, freshness of goods, price levels, service quality, time spent, trust, and technological competency. Over 5,000 individuals in Vietnam were contacted between December 2021 and March 2022, resulting in 2,647 valid responses (a 56% response rate). Stratified random sampling was used to ensure sufficient representation across purchasing channels. Data analysis involved descriptive statistics to explore the impact of the pandemic on channel switching and logistic regression models to identify factors significantly influencing channel-switching behavior and channel choice. The logistic regression models included respondents' profiles (education, age, income, gender, marital status, technology competence), channel benefit perceptions (convenience, price, service quality, satisfaction), and channel selection barriers (time, trust, safety, product range, information, technology, freshness). Ordinal independent variables were treated as equally spaced continuous variables in the logistic models.
Key Findings
Descriptive analysis revealed a significant shift towards online channels post-pandemic, particularly from traditional markets and supermarkets. Logistic regression analysis identified several key factors influencing channel-switching behavior: * **Service quality:** Higher service quality in the new channel significantly increased the likelihood of switching. * **Convenience:** Greater convenience in the new channel positively correlated with switching decisions. * **Price:** Lower prices in the new channel were associated with a higher probability of switching. * **Overall satisfaction:** Higher satisfaction with the new channel increased the likelihood of switching. * **Marital status:** Married individuals were more likely to switch channels than unmarried individuals. * **Technological competency:** Higher technology proficiency was associated with a greater tendency to use online channels. Analysis of factors driving online and traditional channel choices showed: * **Online channels:** Convenience, favorable price levels (relative to other channels), product quality, service quality, and information abundance significantly increased online channel selection. Conversely, the inability to assess product quality decreased online channel selection. * **Traditional channels:** Service quality, lower time spent purchasing, and product freshness positively influenced traditional channel selection. Price level (relative to other channels) was also significant for both channels. Income was a significant predictor of online purchasing but not traditional channel choice. Trust was not a significant factor in either case.
Discussion
The study's findings contribute to the understanding of consumer channel-switching behavior by proposing a unified framework integrating TPB and ECT. The results highlight the lasting impact of the COVID-19 pandemic on shopping habits, validating the importance of factors previously identified in pre-pandemic studies (convenience, price, service quality) but also highlighting new influences (technological competency and marital status). The significant impact of technological competency emphasizes the need for user-friendly online platforms and possibly consumer education initiatives. The differences in factors influencing online versus traditional channel selection provide valuable insights for businesses seeking to optimize their strategies across multiple channels. The absence of a significant trust effect contrasts with some previous research, potentially reflecting the evolving nature of trust in online shopping contexts. The study’s findings are relevant for both e-commerce and traditional retail operations, guiding marketing strategies around service quality, convenience, pricing, and technological accessibility.
Conclusion
This research demonstrates a substantial post-pandemic shift towards online shopping in Vietnam and pinpoints key drivers of channel switching and channel choice. Service quality, convenience, price, overall satisfaction, technological competency, and marital status significantly influence channel-switching behavior. This study offers actionable insights for businesses to enhance their competitiveness by focusing on these factors. Future research could explore the long-term impact of the pandemic on consumer behavior, investigate the role of specific product categories, and examine cross-cultural variations in channel-switching patterns.
Limitations
The study's reliance on self-reported data might introduce biases. The cross-sectional nature of the data limits causal inferences. The focus on Vietnam limits the generalizability of findings to other contexts. Further research could employ longitudinal studies and broader geographical scopes to mitigate these limitations.
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