Short answer

Design strategies for physical retail spaces must now account for their role in the broader omnichannel customer journey, focusing on experience and information provision that can be leveraged for both online and offline sales.

Field: Innovation & Markets
Source: INTERNATIONAL JOURNAL OF MANAGEMENT & INFORMATION TECHNOLOGY (2021)
Method: Literature Review and Conceptual Analysis
Evidence: Strong effect

Physical retail spaces are increasingly serving as showrooms for online purchases, driven by consumer behavior that leverages in-store product interaction for online price advantages. This innovation & markets research insight is drawn from a 2021 study published in INTERNATIONAL JOURNAL OF MANAGEMENT & INFORMATION TECHNOLOGY. Using Literature review and conceptual analysis, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Design strategies for physical retail spaces must now account for their role in the broader omnichannel customer journey, focusing on experience and information provision that can be leveraged for both online and offline sales.

Study

Innovation & MarketsHigh ImpactStrong effect

Showrooming: Physical Stores as Information Hubs for Online Sales

Physical retail spaces are increasingly serving as showrooms for online purchases, driven by consumer behavior that leverages in-store product interaction for online price advantages.

INTERNATIONAL JOURNAL OF MANAGEMENT & INFORMATION TECHNOLOGY · 2021

Key Findings

01Digitalization and e-commerce have significantly altered consumer purchasing patterns.
02Showrooming, where consumers gather information in-store and purchase online, is a growing practice.
03Consumers engage in showrooming to benefit from lower online prices and to physically interact with products before purchase.
04Physical stores risk becoming mere information providers without direct sales if they do not adapt.

Application

Design takeaway

How to apply

Retailers should consider implementing strategies like in-store exclusive services, personalized consultations, or loyalty programs that reward in-store engagement, even if the final purchase occurs online.

Project actions

01Consider how a physical product display can be enhanced with digital information or interactive elements.
02Explore business models that incentivize customers to complete purchases within the physical store, even after initial research.

Method & Evidence

AimTo understand the implications of e-commerce and showrooming on the changing landscape of retail distribution channels.

MethodLiterature Review and Conceptual Analysis

ProcedureThe research analyzes existing literature and trends in e-commerce, digitalization, and consumer behavior to identify the drivers and consequences of showrooming.

ContextRetail and E-commerce

Variables

IV["Growth of e-commerce","Availability of broadband internet"]

DV["Consumer purchasing patterns","Sales volume in physical stores","Prevalence of showrooming"]

CV["Product type","Brand loyalty","Economic conditions"]

Strengths & Limitations

Strengths

+Highlights a significant contemporary trend in retail.
+Provides a conceptual framework for understanding the interplay between online and offline retail.

Limitations

The study does not quantify the exact percentage of sales lost to showrooming across different sectors.

Reliability & validity

The findings are based on a review of existing literature and trends, suggesting moderate reliability. Validity is strong in identifying the phenomenon but limited in quantifying its precise impact without empirical data.

Think critically

How can physical retailers create unique in-store experiences that cannot be replicated online, thereby mitigating the impact of showrooming?

Design Principles

"Integrate physical and digital touchpoints to create a seamless and value-driven customer experience across all channels."

This phenomenon fundamentally alters the traditional retail model, forcing businesses to re-evaluate the role and profitability of physical stores. Designers and strategists must consider how to integrate online and offline experiences to capture value across channels.

What This Means for Your Design

People are checking out products in real stores but buying them cheaper online. This means stores need to offer more than just products to stay in business.

How to use in your project

1.Use this research to justify the need for integrated online-offline design solutions in your design project.
2.Reference the impact of showrooming when analyzing the market context for your product or service.

Add to My Project

Quick Cite

Paragraph starter

The rise of e-commerce has led to phenomena such as showrooming, where consumers leverage physical retail spaces for product information and then complete purchases online, often due to price differentials. This necessitates a re-evaluation of physical store design and strategy to integrate with digital channels and provide value beyond simple product availability.

Source

INTERNATIONAL JOURNAL OF MANAGEMENT & INFORMATION TECHNOLOGY

E-Commerce And Showrooming: How Retail is Changing

journal · 2021

View source

Questions About This Research

What does the research say about showrooming: physical stores as information hubs for online sales?: Design strategies for physical retail spaces must now account for their role in the broader omnichannel customer journey, focusing on experience and information provision that can be leveraged for both online and offline sales. Evidence: INTERNATIONAL JOURNAL OF MANAGEMENT & INFORMATION TECHNOLOGY (2021).
Why does "Showrooming: Physical Stores as Information Hubs for Online Sales" matter for design?: This phenomenon fundamentally alters the traditional retail model, forcing businesses to re-evaluate the role and profitability of physical stores. Designers and strategists must consider how to integrate online and offline experiences to capture value across channels.
How can designers apply this research?: Design strategies for physical retail spaces must now account for their role in the broader omnichannel customer journey, focusing on experience and information provision that can be leveraged for both online and offline sales.
What were the main findings?: Digitalization and e-commerce have significantly altered consumer purchasing patterns.. Showrooming, where consumers gather information in-store and purchase online, is a growing practice.. Consumers engage in showrooming to benefit from lower online prices and to physically interact with products before purchase.. Physical stores risk becoming mere information providers without direct sales if they do not adapt.
What research method was used?: Literature Review and Conceptual Analysis.
How strong is the evidence?: Evidence strength is rated Strong effect, based on a 2021 journal from INTERNATIONAL JOURNAL OF MANAGEMENT & INFORMATION TECHNOLOGY.
What should I do differently in my next project?: Retailers should consider implementing strategies like in-store exclusive services, personalized consultations, or loyalty programs that reward in-store engagement, even if the final purchase occurs online.
What are the limitations?: The study is largely conceptual and relies on existing literature, lacking primary empirical data on specific retailer outcomes.