CIQ: Channel integration quality (CSC: Channel-service configuration, BCSC: Breadth of channel-service choice, TCSC: Transparency of channel-service configuration, InI: Integrated interactions, CC: Content consistency, PC: Process consistency)

CCI: Cross-channel integration HCM: Ho Chi Minh

PLS-SEM: Partial least squares structural equation modeling CMB: Common method bias

VIF: Variance inflation factor

SRMR: Standardized root mean square residual FIMIX-PLS: Finite mixture PLS

HTMT: Heterotrait-Monotrait ratio AVE: Average variance extracted

LIST OF TABLES

Table 2.1. Definitions and examples of the sub-dimensions of CIQ……………. 9

Table 3.1. Measurement scales……………………………………………………..33 Table 3.2. Sample demographic characteristics…………………………………….39 Table 4.1. Scale accuracy analysis………………………………………………….44 Table 4.2. Scale accuracy analysis: Discriminant validity assessment……………..45 Table 4.3. Test for common method bias (CMB)…………………………………..46 Table 4.4. Inner VIF value………………………………………………………….48 Table 4.5. Significance testing results of the structural model path coefficients……49 Table 4.6. Significance testing results of the total indirect effects…………………50 Table 4.7. FIMIX-PLS results for the relative segment sizes and retention criteria..52

LIST OF FIGURES

Figure 2.1. Research model of Lee et al. (2019)……………………………………15 Figure 2.2. Research model of Zhang et al. (2018)…………………………………16 Figure 2.3. Research model of McLean et al. (2018)……………………………….17 Figure 2.4. Research model of Shen et al. (2018)…………………………………..19 Figure 2.5. Research model of Li et al. (2018)………………………………………20 Figure 2.6. Research framework and hypotheses……………………………………28 Figure 3.1. Research process……………………………………………………….31 Figure 4.1. Research model in Stage I………………………………………………42 Figure 4.2. Research model in Stage II……………………………………………..43 Figure 4.3. Analysis results…………………………………………………………51

ABSTRACT

Title

Thesis title: “How does channel integration quality enrich customer experiences with omnichannel retailers? An examination of mediating and moderating mechanisms”.

Presented by: Nguyen Le Xuan Doanh Supervisor: Dr. Le Nhat Hanh

Submitted to: University of Economics Ho Chi Minh City

2. Abstract

While omnichannel has been a bloated retail buzzword for years, little is known about the dynamic mechanism of forming customer experience and the subsequent patronage behavior in the context of omnichannel retailers. Drawing upon the stimulus-organism-response (SOR) framework, this thesis fills this important research gap by examining the effects of channel integration quality (CIQ) on customer experience through the mediating role of customer empowerment as well as the moderating role of internet usage, which in turn results in patronage intention. The partial least squares structural equation modeling (PLS-SEM) with two-stage approach is employed to empirically test the research framework with 312 customers of the omnichannel retailers in Vietnam. The findings reveals that two dimensions of CIQ (i.e., channel-service configuration and integrated interactions) significantly affect customer experience, which in turn leads to patronage intention. Moreover, customer empowerment complementarily mediates the impacts of CIQ dimensions on customer experience, while internet usage strengthens the positive relationships between customer experience and its precursors. This thesis was concluded with the meaningful practical implications for omnichannel retailers to optimize their channel management that delivers a seamless shopping experience to their customers.

Keywords: Omnichannel retailers; Channel integration quality; Customer experience; Customer empowerment.

CHAPTER 01: INTRODUCTION

1.1. Research background and statement of the problem

Over the last few years, retailing has advanced dramatically, while technological advancement has enabled retailers to connect and conduct transactions with their customers through various channels such as websites, mobile apps, social media, and so on. The way retailers interact with their customers has also been reshaped completely. For instance, with artificial intelligence, it is predicted that 90% of traditional human retail interactions will be replaced by online shopbots; meanwhile, virtual and augmented reality will allow customers to see and touch merchandise virtually (Pilkington, 2019). With multiple channels and interactive touchpoints during customer shopping journeys, it is crucial for retailers to apply omnichannel strategies to serve customers with seamless switching among all available channels and across every touchpoint (Shen et al., 2018). According to Walk-Morris (2019), about 67% of U.S. retailers consider the omnichannel strategy to be a top priority, as it helps them capture the contemporary showrooming and webrooming shopping trends of customers while maintaining competitive advantages (Graham, 2017; Radial, 2016; Lee et al., 2019). A recent report by IDC Retail Insights indicates that retailers have gained an increase in 15–35% in average transaction size and 5–10% in loyal customer profitability by using the omnichannel strategy (Winkler, 2019).

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HOW DOES CHANNEL INTEGRATION QUALITY ENRICH CUSTOMER EXPERIENCES WITH OMNICHANNEL RETAILERS? AN EXAMINATION OF MEDIATING AND MODERATING MECHANISMS

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