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Journal of Services Marketing: Article Information
Journal of Services Marketing: Article Information
Journal of Services Marketing: Article Information
Services purchased at brick and mortar versus online stores, and shopping motivation
Rajasree K. Rajamma Audhesh K. Paswan Gopala Ganesh
Article information:
To cite this document:
Rajasree K. Rajamma Audhesh K. Paswan Gopala Ganesh, (2007),"Services purchased at brick and mortar versus online
stores, and shopping motivation", Journal of Services Marketing, Vol. 21 Iss 3 pp. 200 - 212
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Abstract
Purpose – This study seeks to explore the idea that consumers select a particular shopping mode – i.e. bricks and mortar versus online outlet – based
on their perceptions about whether a product or service is best bought from one or the other. It aims to posit that this perception is associated with the
importance allocated to various shopping motivation dimensions.
Design/methodology/approach – Data for this study were collected using a self-administered mail survey from 689 internet-enabled US households.
They represent a 28 percent response from 2,500 households that received the survey. Extensive non-response analysis ruled out serious bias in the
data.
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Findings – The results from this empirical study suggest that different shopping motivations indeed influence perceptions of service type and shopping
mode congruence differently. In addition, the results also suggest that services are more likely to be associated with the online shopping mode, whereas
more tangible products are likely to be associated with bricks and mortar stores.
Originality/value – The findings have significant implications for services retail managers of both bricks and mortar and online service outlets in the
areas of segmentations, targeting, and retail mix strategies. Apparently, consumers also tend to group related services or products into homogeneous
shopping baskets based on their perception of congruence between the product or service and the shopping mode – online versus bricks and mortar
store. These findings should help a manager plan for retailing mix strategies, catering to various shopping motivation dimensions, thus enhancing
consumer satisfaction. In addition, the results hold important implications in the areas of segmentation and targeting decisions.
An executive summary for managers can be found at virtual shopping environment whereas more tangible products
the end of this article. do not? Is it possible that consumers see a natural affinity
between services that are inherently intangible and the online
Despite the popularity of web-based retailing and its virtues in shopping environment, which is virtual and non-tangible?
popular media (Greenspan, 2003), doubts have been raised as Could it also be possible that perceived congruence between
to whether it is suitable for all types of products or services shopping mode and service category is associated with
(Pandya and Dholakia, 2005; Schwartz, 2002). Trade different consumer shopping motivation factors? This study
statistics indicate that while services such as travel, tourism, explores these questions by linking consumers’ shopping
financial services, and music seem to be flourishing on the motivation with the perceived congruence between service
internet, the more tangible products such as groceries, category and shopping mode (bricks and mortar versus online
clothing, etc. have not performed as well (Halpern, 2004; outlets).
Heung, 2003). For example, by 2009, travel sales bought The current investigation relies on the rich literature
pertaining to consumer shopping motivation (e.g. Rohm and
online are expected to grow and reach a total volume of $91
Swaminathan, 2004; Babin et al., 2003; Lesser and Kamal,
billion or 33 percent of all travel services purchased during the
1991; Nicholls et al., 2002; Dawson et al., 1990; Hibbert and
year (McGann, 2004a, b; Werthner and Ricci, 2004).
Tagg, 2001; Alba et al., 1997; Burke, 1996, 1997; Childers
Financial services have also been impacted in a significant
et al., 2001; Deighton, 1997; Grenberg, 2000; Hoffman and
manner by e-commerce (Hughes and Stone, 2002; Taylor, Novak, 1996; Katz and Aspden, 1997; Koufaris et al., 2001-
2002). Likewise, web-based entertainment services (e.g. 2002; Shim et al., 2000; Peterson et al., 1997; Wolfinbarger
online gaming) are poised for explosive growth (Greenspan, and Gilly, 2001). While the traditional retailing literature and
2004). Why do services like travel and tourism do well in a the related knowledge base is rich, the same cannot be said
about the online literature, especially that pertaining to
The current issue and full text archive of this journal is available at services marketed online. Many studies have investigated the
www.emeraldinsight.com/0887-6045.htm online versus brick and mortar retailing of products –
examples of more recent studies are Burke (2002),
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Services purchased at brick and mortar versus online stores Journal of Services Marketing
Rajasree K. Rajamma, Audhesh K. Paswan and Gopala Ganesh Volume 21 · Number 3 · 2007 · 200 –212
Evanschitzky et al. (2004), Gounaris and Dimitriadis (2003), credence quality (Lovelock, 1983, 1996; Zeithaml, 1981;
Iqbal et al. (2003), Javalgi et al. (2004), Reibstein (2002) and Zeithaml et al., 1993). For instance, Werthner and Ricci
Sweeney and Lapp (2004). However, very few have (2004) classify the travel and tourism service as an
investigated the marketing of services over the internet information-based business and its product as a confidence
versus through bricks and mortar outlets (Ekeledo and good (p. 102), making it relatively easy to market online. At
Sivakumar, 2004; Tsikriktsis et al., 2004; Zinkhan, 2002.) the other end of the scale, tangible products such as clothes,
The investigation of marketing of services over the internet grocery items, shoes, etc., although relatively standardized in
or bricks and mortar outlets is critical because of the inherent terms of shapes and sizes, exhibit a certain tactile orientation
contradictions. The suggested advantages of e-tailing are that in their purchase. Consumers need to be able to “touch it, feel
it is cheaper, more convenient, provides larger selection, it, and often wear it” to make the final purchase decision. This
quicker transactions, reduces processing errors, protects makes it more difficult to market such products over the
consumer anonymity, and results in savings for consumers internet because online retailing lacks the tactile features
(Buford, n.d.) Likewise, some of the perceived disadvantages (Lindstrom, 2001). These arguments help propose our first
of e-tailing are security fears, delayed gratification, lack of hypothesis:
return policies, lower rate of order placement, H1. Services are likely to be perceived as more congruent
impersonalization of shopping, and lack of customer service. with online buying, while more tangible products are
However, if consumers are not enamored by the benefits seen as congruent with brick and mortar stores.
associated with online outlets, they avoid the internet,
We next focus on the consumer’s motivation for selecting one
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Rajasree K. Rajamma, Audhesh K. Paswan and Gopala Ganesh Volume 21 · Number 3 · 2007 · 200 –212
more tangible products, merchandise motivation would be or drive to a store, going to that store might in fact be less of a
more important for consumers who prefer bricks and mortar hassle because, once the purchase is made, the matter is
stores. Similar thoughts have been voiced by Lee and Overby settled. The consumer does not have to bother about when it
(2004). will arrive, did the transaction go through, etc. The hassle
H2a. For services, consumers preferring online store and reduction dimension used in this study includes elements
brick and mortar will not differ in perceived such as stress-free and easy shopping, hassles such as parking,
importance of merchandise motivation. crowds, time required for shopping, shopping close to home,
H2b. For tangible products, consumers preferring brick and store variety at one location, and transportation. We propose
mortar will allocate higher importance to merchandise that consumers preferring to shop at a bricks and mortar store
motivation than consumers preferring online stores. will attach higher levels of importance to the hassle reduction
The notion of assurance is another key motivator and it motivation dimension:
captures dimensions such as confidentiality, shopping H4a. For services, consumers preferring brick and mortar
security, complaint resolution, solution to problems, outlets will perceive hassle reduction motivation to be
warranties, interaction with the seller, and customer service more important than consumers preferring online
(Bitner, 1992; Kotler, 1973-1974; Solomon et al., 1985; outlets.
Crosby and Stephens, 1987; Crosby et al., 1990; Berry and H4b. For tangible products, consumers preferring brick and
Gresham, 1986; Westbrook, 1981). Traditionally, bricks and mortar outlets will perceive hassle reduction motivation
mortar outlets have been associated with these dimensions of to be more important than consumers preferring
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assurance motivation due to their more tangible nature and online outlets.
the presence of human interaction. One can speculate that in Enjoyment as a motivation for shopping has been well
a traditional retail store, there is greater chance of retail investigated in the retailing literature (e.g. Bitner, 1992;
personnel meeting customers face to face and therefore of Burke, 2002; Lee and Overby, 2004; Evanschitzky et al.,
establishing a human rapport. This is likely to lead to a certain 2004; Alba et al., 1997; Hoffman and Novak, 1996). Based on
sense of permanence and a feeling of security in the minds of these studies, we argue that while the internet may be a fun
customers (Solomon et al., 1985; Crosby and Stephens, 1987; place to shop, it is not likely to compare very favorably with
Crosby et al., 1990; Berry and Gresham, 1986; Westbrook, the experience associated with bricks and mortar store
1981). In contrast, online stores have been perceived to be (Arnold and Reynolds, 1997; Hibbert and Tagg, 2001;
lacking in the assurance dimensions, either based on real Kotler, 1973-1974; Rohm and Swaminathan, 2004). Thus,
experience or hearsay. Realizing the importance of the human we propose that consumers preferring bricks and mortar store
element in customer service, more and more online retailers are likely to score high on shopping enjoyment motivation:
are depending on electronic means such as online real-time H5a. For services, consumers preferring brick and mortar
chatting with service representatives, 1-800 numbers that are outlets will perceive enjoyment motivation to be more
answered 24 hours a day by customer service representatives, important than consumers preferring online outlets.
and even virtual representatives such as “Aunt Ethel” and H5b. For tangible products, consumers preferring brick and
“Billy Buyer” (Mottl, 2000a, b). While we are not too sure mortar outlets will perceive enjoyment motivation to be
how successful these attempts have been in creating a sense of more important than consumers preferring online
assurance, issues such as transaction security, interaction, and outlets.
confidentiality have been explored by existing studies (e.g.
Lee and Overby, 2004; Evanschitzky et al., 2004; Alba et al., Three of the advantages reported for electronic retailing are:
1997; Dembeck, 1999; Grenberg, 2000; Hoffman and 1 attractive prices;
Novak, 1996; Peterson et al., 1997). Here, we argue that 2 convenience of shopping; and
consumers who prefer bricks and mortar stores for either 3 ability to do comparison shopping (Burke, 2002;
product or service would attach higher levels of importance to Evanschitzky et al., 2004; Lee and Overby, 2004).
assurance motivation dimensions: It is an accepted idea that consumers shop around to get the best
H3a. For services, consumers preferring bricks and mortar deal. They compare prices, quality, delivery, discount offered,
outlets will perceive assurance motivation to be more etc. The internet allows consumers to do innumerable such
important than consumers preferring online outlets. comparisons with just a click of a mouse (Alba et al., 1997;
H3b. For tangible products, consumers preferring bricks and Shankar et al., 2003). Since search costs in an online
mortar outlets will perceive assurance motivation to be environment are much less than in an offline context, it
more important than consumers preferring online becomes easier and cost effective for the consumer to engage in
outlets. comparisons (Nelson, 1974; Stigler, 1961; Jensen et al., 2003).
The literature has also identified the convenience dimension One could also argue that consumers who like shopping at
as a key motivator for selecting a retail type (e.g. Lee and bricks and mortar stores do so because the stores do fulfill these
Overby, 2004; Evanschitzky et al., 2004; Alba et al., 1997; pragmatic expectations. Some of the reasons behind such a
Grenberg, 2000; Hoffman and Novak, 1996) and have feeling could be that coupons and advertising pullouts in
associated online retailing with it (Burke, 2002; Evanschitzky newspapers provide consumers with lots of information for
et al., 2004; Lee and Overby, 2004). We argue that while comparison-shopping. Bricks and mortar stores are often
convenience is important, an equally important dimension is located in proximate clusters, enhancing the convenience aspect
hassle reduction motivation. In other words, while shopping and facilitating comparison-shopping, while intense
for anything, we want to do it in a manner that is relatively competition amongst such retailers results in attractive prices.
trouble free. While shopping on the internet may be more Using another example, consumers who associate travel
convenient in terms of not having to change into street clothes services with the internet would find it very pragmatic to shop
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for travel services online. However, consumers who like to use respondents were also compared on age, gender, HH income,
travel agencies or real storefronts for travel services would number of products bought on the internet, and their overall
actually find travel agencies more practical. These factors (e.g. opinion about e-commerce, and even these were found to be
attractive prices, shopping convenience, and comparison insignificant at p , 0:05. These provide assurance that there
shopping) together will be labeled as “pragmatic motivation”, is no serious non-response bias in the data.
and based on the existing literature and arguments presented The socio-economic profile of the respondents is as follows:
here, we propose that both online stores and bricks and mortar 62 percent are female with an average and median age of 49
stores will be seen as equally pragmatic by consumers who years; 52 percent have a college degree, while 86 percent
associate a particular service or product with a particular store spent at least some time in college; 80 percent are currently
type: married and 93 percent have been living in a single family
H6a. For services, consumers preferring brick and mortar home for the past 13 years; nearly 35 percent report a child
and online outlets will not differ in perceived (, 18 years) living at home with them; and the median
importance of pragmatic motivation. income of the sample is between $60,000 and $69,999. The
H6b. For tangible products, consumers preferring brick and survey also provides detailed insights into surfing-related
mortar and online outlets will not differ in perceived characteristics of the sample. They spend an average of ten
importance of pragmatic motivation. hours a week online (median of six hours) with e-mail (44
percent) as the most popular activity. Sixty percent connect to
The last motivation dimension explored in this study is the
the internet at speeds of 56k or slower, while a quarter report
responsiveness dimension and includes elements such as
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Rajasree K. Rajamma, Audhesh K. Paswan and Gopala Ganesh Volume 21 · Number 3 · 2007 · 200 –212
Table I Principal component analyses – consumer motivation for shopping mode selection
F-1 F-2 F-3 F-4 F-5 F-6 Factor labels
Q02O Merchandise: general availability 0.808 Merchandise
Q02P Merchandise: seasonal availability 0.741
Q02Q Merchandise: reassurance of quality 0.737
Q02S Merchandise: variety 0.647
Q02F Confidentiality of shopping 0.61 Assurance
Q02A Ability to interact with seller 0.584
Q02E Complaint resolution 0.528
Q02H Customer service 0.422 0.516
Q02AC Warranties, ability to fix problems 0.506
Q02V Shopping security 0.493
Q02Y Stress free, easy shopping: parking, crowds, etc. 0.686 Hassle reduction
Q02Z Time required for shopping 0.683
Q02T Shopping close to home 0.657
Q02X Store variety at one location 0.524
Q02AB Transportation to and from store 0.472
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these items in our subsequent analysis because they fitted in stock quotes), were perceived as better bought online. We
with the other items in their respective factors and added to wanted next to investigate whether consumers see some of
the domain of the construct (ensuring construct and content these products and services as complementary to one another.
validity). In addition, eliminating these items did not yield a Using a simple factor analysis we found this to be the case.
better alpha score or higher percentage of variance explained. The groupings for services are as follows:
Moreover, Hair et al. (1998, p. 111) suggest “all loadings of . travel-related service (hotel reservation, travel
0.30” as having “practical significance”. All factors in our arrangement, airlines tickets, and automobile rental);
study met this threshold and were tested for internal .
entertainment services (restaurant reservations, movie
consistency using Cronbach’s alpha, and convergent as well
tickets, and concert and play tickets);
as discriminant validity using inter-item correlation (see .
financial services (banking and financial services,
Appendix). The alpha scores for all the factors were above
brokerage, and stock quotes); and
acceptable range and the inter-item correlation indicate .
real estate and legal (RELI) services (real estate, legal
acceptable levels of convergent and discriminant validity.
In order to measure the congruence between purchase type service, and insurance).
and retail type (online or bricks and mortar), respondents For more tangible goods, the groupings are as follows:
were asked which method of shopping is better for several .
entertainment electronics products (movie purchase,
services and products on a five-point semantic differential music CDs and tapes, video games, and movie rental);
scale, anchored between bricks and mortar outlets (1) and .
functional products (formal and casual clothing and
online outlets (5). On an overall basis, the bricks and mortar shoes, footwear, and furniture); and
outlets were the clear winner, with 61 percent of the .
grocery products (generic and branded grocery, fast-food
respondent in favor of them versus 24 percent for the cyber and other food delivery).
variety. This finding is reinforced by data for the individual
service and products. Only four purchase types, all services The groupings of these products and/or services were found
(airline tickets, hotel reservations, travel arrangements, and to be internally consistent (all the alpha scores were above 0.7,
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Services purchased at brick and mortar versus online stores Journal of Services Marketing
Rajasree K. Rajamma, Audhesh K. Paswan and Gopala Ganesh Volume 21 · Number 3 · 2007 · 200 –212
except for the real estate and legal services group, which had For the merchandise motivation dimension, for all service
an alpha score of 0.63). The results indicate that consumers baskets, the online group and the bricks and mortar group do
do group different products and services into different not differ from one another. This provides support for H2a.
complementary baskets based on their congruence with In contrast, for the two tangible product baskets of
either bricks and mortar or virtual outlets. entertainment electronics products and functional products
The scores for each service or product within each basket or (E and F), the bricks and mortar group scores higher on the
group (measuring the extent to which they are seen as more merchandise motivation dimension than the online group. For
suitable for online or bricks and mortar stores) were next grocery products (G), there is no difference. This provides
averaged to create an overall score for each basket of service or some support for H2b.
goods. These composite scores, which represent consumers’ For the assurance motivation dimension, for all service
perceptions of whether a particular basket is seen as more baskets, the brick and mortar group scored higher than the
suitable for online stores (closer to 5) or brick and mortar online group. A similar scenario was observed for all tangible
store (closer to 1), were compared with one another using product categories. This provides support for H3a and H3b.
pair-wise t-tests (see Table II). The results indicate that the For the hassle reduction motivation dimension, the bricks
average scores for the service baskets are statistically different and mortar group scored higher than the online group for
from one another, except for entertainment services (2.449) some of the service and product baskets, i.e. entertainment
and entertainment electronic products (2.405). Travel services, financial services, entertainment electronic products,
services (3.454) were seen as most suitable for online stores, and functional products. However, the two groups did not
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followed by financial services (2.674), entertainment services differ for travel-related, RELI, and grocery baskets. This
(2.449), and the RELI services (1.685). The more tangible provides some support for H4a and H4b.
goods, on the other hand, were seen as more suitable for For the enjoyment motivation dimension, the brick and
bricks and mortar stores. Within the product groups, mortar group scored significantly higher than the online
group for all service and product baskets, except for RELI and
entertainment electronic products (2.405, statistically similar
groceries, where the two groups did not differ significantly.
to entertainment services) were seen as least suitable for
This provides some support for H5a and H5b.
bricks and mortar stores. Functional products (1.377) and
For the pragmatic motivation dimension, the bricks and
grocery products (1.341) were both seen as equally suitable
mortar group did not differ from the online group for all but
for bricks and mortar stores. This provide support for the first
one of the service and product baskets. The exception was the
proposition, indicating that consumers do see a congruence
RELI basket, where the bricks and mortar group scored
between purchase type (service or product) and retail store
higher than the online group. This provides support for H6a
type (online versus brick and mortar) with services seen as and H6b.
more congruent with online buying, and tangible goods with Finally, for the responsiveness motivation dimension, the
brick and mortar stores. bricks and mortar group did not differ from the online group
The scores for products and services within each individual for all service and product categories, except for travel-related
basket were next used to cluster respondents into online services. For travel services, the online group scored higher on
versus bricks and mortar store congruence groups (for that importance attached to the responsiveness dimension than the
particular basket). The resultant seven set of clusters (for brick and mortar group. This provides substantial support for
travel related services, entertainment services, financial H7a and H7b.
services, RELI services, entertainment electronics products,
functional products, and grocery products) were next used for
repetitive testing of the remaining hypotheses (H2-H7) using
Discussion
ANOVA and discriminant analysis. The results of these The results in Table I indicate that consumer motivation for
analyses for service categories are presented in Table III retail outlet selection is multidimensional, manifesting here as
(A-D) and for product categories in Table IV (E-G). the factors of merchandise, assurance, hassle reduction,
Table II Service or product groups and consumer perception of their congruence with retail type (online versus bricks and mortar)
n Mean SD Skewness Kurtosis
statistic statistic statistic statistic statistic
Travel and tourism services: hotel, travel, airline, and auto rental services 661 3.454 1.323 20.498 20.950
Financial services: banking, financial, brokerage, and stock quotes services 657 2.674 1.301 0.344 20.957
Entertainment services: movie tickets, concert and play tickets, restaurant reservation
services 633 2.449 1.188 0.395 20.731
RELI services: real estate, legal, and insurance services 645 1.685 0.873 1.130 0.480
Entertainment electronic products/services: movie purchase and rental, video games,
music CDs, tapes, etc. 640 2.405 1.191 0.393 20.864
Functional products: clothes, shoes, and furniture products 664 1.377 0.758 2.437 6.232
Grocery products: grocery and food products 653 1.341 0.745 2.615 7.109
Notes: Pair-wise (t-test) comparisons indicate that most pairs were significantly different at p , 0:05; two exceptions were entertainment services and
entertainment electronic products/services (p ¼ 0:102), and functional and grocery products (p ¼ 0:802). Scale range: 1 ¼ bricks and mortar store is much
better, 5 ¼ online store is much better
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Rajasree K. Rajamma, Audhesh K. Paswan and Gopala Ganesh Volume 21 · Number 3 · 2007 · 200 –212
Table III Service basket: shopping mode congruence and consumer motivation for selecting a shopping mode (online versus bricks and mortar store)
Bricks and
Online mortar
Independent variable Mean SD Mean SD ANOVA p value Structural matrix Discriminant analysis results
A. Service basket – travel related service (hotel, travel, airlines, auto rental, etc.)
Merchandise 1.87 0.53 1.80 0.63 0.19 0.23 Wilks’ lambda p value ¼ 0:00
Assurance 2.04 0.61 1.91 0.57 0.02 0.44 Box’s M p value ¼ 0.004
Hassle reduction 2.25 0.60 2.18 0.63 0.18 0.24 Hit ratio:
Enjoyment 2.93 0.72 2.70 0.71 0.00 0.63 65.2 percent in the original group
Pragmatism 1.80 0.53 1.82 0.61 0.76 20.06 64.1 percent in the holdout group
Responsiveness 2.54 0.87 2.69 0.86 0.04 20.36
Distribution (percent) 63.5 36.5
B. Service basket – entertainment services (restaurants, movies tickets, concert tickets, etc.)
Merchandise 1.83 0.56 1.81 0.57 0.65 0.11 Wilks’ lambda p value ¼ 0:009
Assurance 2.01 0.58 1.93 0.58 0.07 0.43 Box’s M p value ¼ 0:055
Hassle reduction 2.27 0.59 2.16 0.62 0.03 0.54 Hit ratio:
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Enjoyment 2.89 0.69 2.75 0.74 0.02 0.56 58.6 percent in the original group
Pragmatism 1.82 0.55 1.78 0.54 0.44 0.19 56.4 percent in the holdout group
Responsiveness 2.53 0.88 2.65 0.87 0.11 20.39
Distribution (percent) 45.5 54.5
enjoyment, pragmatism, and responsiveness. Even though the Garton, 1995; Samli, 1989), as well as for the assertion made
percentage of variance explained is only about 56 percent, the by Werthner and Ricci (2004) that travel and tourism and
factors make intuitive sense and have significant implications financial services constitute information-based services and
for retail (brick and mortar or online) managers. This finding that is one reason why these are doing rather well on the
is corroborated by the existing literature on shopping internet.
motivation (e.g. Dawson et al., 1990; Evanschitzky et al., The results from the ANOVA and discriminant analyses
2004; Lee and Overby, 2004; Rohm and Swaminathan, 2004; provide good support for our last five sets of hypotheses. The
Lesser and Kamal, 1991; Nicholls et al., 2002). The grouping results suggest that services and tangible goods are similar in
of products and services, i.e. baskets, although not some respects and different in others. However, these
hypothesized, is also interesting. It tells us that consumers similarities and differences are not just across service and
do bundle services and tangible goods into complementary goods baskets, but also within individual service and good
baskets. baskets. In other words, not all motivation dimensions are
The pair-wise comparison of congruence (between service equally important for all consumers across different service
or product baskets and retail types) indicates that consumers and product baskets. For all tangible goods (entertainment
associate services with the online shopping mode and more electronics, functional products, and grocery products) the
tangible products with the bricks and mortar outlets. This online and brick and mortar groups did not differ on the
provides some support for the congruence perspective (cf. pragmatism and responsiveness motivation dimensions. In
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Services purchased at brick and mortar versus online stores Journal of Services Marketing
Rajasree K. Rajamma, Audhesh K. Paswan and Gopala Ganesh Volume 21 · Number 3 · 2007 · 200 –212
Table IV Tangible product basket – shopping mode congruence and consumer motivation for selecting a shopping mode (online versus bricks and
mortar store)
Bricks and
Online mortar store
Mean SD Mean SD ANOVA p value Structural matrix Discriminant analysis results
E. Product basket – entertainment electronics products (movies, CDs, tapes, video games, etc.)
Merchandise 1.88 0.55 1.78 0.59 0.03 0.38 Wilks’ lambda p value ¼ 0:00
Assurance 2.09 0.59 1.89 0.59 0.00 0.71 Box’s M p value ¼ 0:085
Hassle reduction 2.28 0.63 2.15 0.59 0.01 0.45 Hit ratio:
Enjoyment 2.89 0.70 2.77 0.73 0.04 0.37 59.4 percent in the original group
Pragmatism 1.84 0.52 1.77 0.56 0.14 0.26 58.0 percent in the holdout group
Responsiveness 2.55 0.87 2.66 0.88 0.13 20.28
Distribution (percent) 47.0 53.0
Hassle reduction 2.37 0.62 2.16 0.60 0.00 0.66 Hit ratio:
Enjoyment 2.93 0.75 2.78 0.71 0.03 0.36 71.8 percent in the original group
Pragmatism 1.82 0.59 1.79 0.53 0.47 0.12 71.5 percent in the holdout group
Responsiveness 2.50 0.87 2.63 0.86 0.11 20.27
Distribution (percent) 28.1 71.9
G. Product basket – grocery products (generic and branded grocery, fast food delivery)
Merchandise 1.85 0.58 1.82 0.58 0.57 0.22 Wilks’ lambda p value ¼ 0:321
Assurance 2.06 0.61 1.96 0.60 0.09 0.65 Box’s M p value ¼ 0:409
Hassle reduction 2.27 0.60 2.19 0.63 0.19 0.49 Hit ratio:
Enjoyment 2.93 0.71 2.80 0.73 0.06 0.71 76.6 percent in the original group
Pragmatism 1.83 0.55 1.79 0.56 0.45 0.28 76.6 percent in the holdout group
Responsiveness 2.57 0.97 2.61 0.84 0.69 20.15
Distribution (percent) 23.4 76.6
Note: Scale range: 1 ¼ very important; 5 ¼ not important
contrast, for service purchases, only entertainment services goods, consumers preferring bricks and mortar stores attach
and financial services exhibit such a lack of difference between higher importance to the merchandise mix, at least for
two groups on these two dimensions. The online and bricks entertainment electronic and functional goods. Finally, the
and mortar groups do not show any difference on the bricks and mortar consumers attached a higher importance
pragmatism dimension for travel services, and on the (than online consumers) to the hassle reduction dimension for
responsive dimension for RELI services. In comparison, the entertainment services, financial services, entertainment
online shoppers of travel services associated a higher level of electronics, and functional product baskets. They did not
importance to the responsiveness dimensions and the bricks differ on this dimension for travel services, RELI services, and
and mortar group attached a higher importance to the grocery baskets.
pragmatism dimension. The online group and bricks and Viewed from a slightly different perspective, the results also
mortar groups differ on the assurance and enjoyment provide motivational profiles of service and product
motivation dimensions for all the service and goods purchases. For travel related services, bricks and mortar
purchase categories. This suggests that, in general, consumers attached a higher importance to the assurance and
consumers who prefer to shop at a bricks and mortar store enjoyment motivational dimensions than the bricks and
attach a higher importance to the assurance and enjoyment mortar store group, and a lower importance to
aspects of shopping in comparison to consumers who feel responsiveness. One possible reason could be that travel-
comfortable purchasing on the internet. On the merchandise related services are information products (Werthner and
motivation dimension, for services, both online and bricks Ricci, 2004) and can be easily purchased on the internet.
and mortar group had similar scores; however, for tangible However, if someone decides buy it through a bricks and
goods, the bricks and mortar group scored higher than the mortar store then he/she would probably do it because it gives
online group, except for grocery products. This suggests that him/her more assurance and enjoyment. For both financial
service consumers generally expect the same level of and entertainment services, assurance, hassle reduction, and
merchandise mix (availability, quality and variety) enjoyment seem to be significant discriminators, with bricks
irrespective of where they purchase the service from – and mortar customers attaching higher importance to these.
bricks and mortar or online store. However, for tangible For RELI services, the bricks and mortar consumers attached
207
Services purchased at brick and mortar versus online stores Journal of Services Marketing
Rajasree K. Rajamma, Audhesh K. Paswan and Gopala Ganesh Volume 21 · Number 3 · 2007 · 200 –212
a higher importance to assurance, enjoyment, and services in order to enhance the merchandise and be more
pragmatism dimensions than the online consumers. In responsive to consumers’ needs.
summary, for service purchases, the assurance and Finally, the results linking consumer motivation dimensions
enjoyment motivation dimensions are common and the perceived shopping mode-product/service basket
discriminators between bricks and mortar and online congruence should help a retail manager plan for retailing mix
groups, with the former attaching a higher importance to strategies, catering to various shopping motivation
these. Hassle reduction motivator was significant dimensions, thus enhancing consumer satisfaction. In
discriminator for both financial and entertainment services. addition, the results also hold important implications in the
Finally, responsiveness was significant for travel-related areas of segmentation and targeting decisions.
services and pragmatism for RELI services. This study
suggests that entertainment services and financial services are Limitations and research implications
closest in terms of the motivational profile of their bricks and
mortar and online consumers. Similarly, travel-related One limitation of this study is its one metro orientation.
services are more similar to RELI services (except for the Naturally, it needs to be replicated in diverse market
pragmatism and responsiveness dimensions) than the other environments. There is a possibility that the two zip code
two focal services. In terms of congruence, a large number of clusters selected for data collection in this study may have
respondents (64 percent) associate travel services with online introduced a systematic bias because people recognize the
stores. This figure is 47 percent for financial services, 45 author’s university. When we compared the respondents from
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percent for entertainment services, and 35 percent for RELI these two zip codes, we found that the respondents from one
services. were relatively more technophile (they were more favorable
In comparison, the motivational profiles of bricks and towards internet-based shopping) than the respondents from
mortar and online shoppers for tangible product categories the other. The technophile sub-group was also younger and
are slightly different. For both (i.e. entertainment electronics more educated, and had a higher HH income. However, they
and functional products), merchandise, assurance, hassle were not different in terms of gender and their scores on the
reduction, and enjoyment motivation factors show a six shopping motivation dimensions. Thus we believe that
significant effect, with bricks and mortar consumers while these two zip codes do not represent the entire country,
attaching a higher importance to these, whereas the they do represent most large metropolitan cities. Moreover,
practicality and responsiveness dimensions do not. These there does not seem to be a systematic bias (i.e. everyone in
products – entertainment electronics and functional products the sample leaning one way or the other). We believe that the
– are experiential and are often bought using discretionary sample captures both groups of people – one with positive
income. They are quite often bought on impulse and moods, opinions about internet shopping and other with not so
and returns are not uncommon. Thus, it is not surprising that positive opinions. Another limitation could be that we may
merchandise, assurance, hassle reduction, and enjoyment have missed some shopping motivation dimensions. Future
emerge as significant determinants of the consumer studies should incorporate additional motivational
perception of product-shopping mode congruence. dimensions. However, despite these limitations, we strongly
Interestingly, their motivational profile is somewhat similar believe that the findings of this study have significant
to entertainment electronics and financial services. For managerial implications for retail managers of both online
grocery products, we find that none of the shopping and bricks and mortar stores.
motivation factors (in terms of importance accorded) differ This study makes a contribution by investigating the
across the online versus bricks and mortar store clusters relationship between shopping motivation dimensions and the
(although assurance and enjoyment have p values of 0.086 perceived congruence between services (travel, entertainment,
and 0.061, respectively). These are staple goods that financial, and RELI) as well as goods (entertainment
consumers buy very frequently, probably for similar reasons electronics, functional products, and grocery products)
irrespective of the mode of purchase (i.e. bricks and mortar or baskets and shopping mode, and provides several industry-
online stores). In terms of congruence, 53 percent of the specific motivational profiles. The study investigated and
respondents associate entertainment electronics with bricks reported on the notion that consumers do in fact group
and mortar stores. This figure is 72 percent for functional different services in a complementary basket. We hope that
items, and 77 percent for grocery products. future studies will investigate these relationships further, in
other service contexts, and bring in additional motivational
Managerial implications constructs into this framework. This may help us avoid the
mistake of trying to sell everything to everyone in their
While we have corroborated the well established finding that bedrooms. Online shopping may indeed not be everyone’s cup
consumers perceive services to be more congruent with online of tea.
stores and tangible products with bricks and mortar stores,
managers need to go beyond the obvious and try to find what
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Rajasree K. Rajamma, Audhesh K. Paswan and Gopala Ganesh Volume 21 · Number 3 · 2007 · 200 –212
211
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Rajasree K. Rajamma, Audhesh K. Paswan and Gopala Ganesh Volume 21 · Number 3 · 2007 · 200 –212
Executive summary and implications for with online outlets, they avoid the internet, preferring instead
managers and executives to shop at traditional outlets.
Their study is based on the argument that consumers
This summary has been provided to allow managers and executives driven by different shopping motivations associate different
a rapid appreciation of the content of the article. Those with a purchase types with different shopping modes (online versus
particular interest in the topic covered may then read the article brick-and-mortar). Findings suggest that services are likely to
in toto to take advantage of the more comprehensive description of be perceived as more congruent with online buying, while
the research undertaken and its results to get the full benefit of the more tangible products are seen as congruent with bricks-
material present. and-mortar stores.
For services, both consumers liking brick-and-mortar and
One of the biggest questions facing marketers is why people those preferring online were found not to differ in their
choose to shop via the internet or go to a real store. The perceived importance of factors such as availability, quality
problem is that there are probably as many opinions as there and variety. However, there was only some support for a
are websites and high-street shops selling goods and services. hypothesis that, for tangible products, customers preferring
Some might choose a shop simply because they don’t have a the bricks-and-mortar outlets would allocate a higher
computer. When they do get “online” and become familiar importance to those factors than consumers preferring
with the ways of internet shopping, perhaps they will desert online stores.
the real shops they were once loyal to. Or maybe they’ll just
Traditionally, bricks-and-mortar outlets have been
do what most people do – both.
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212
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