ThesisPDF Available

An investigation of the impact of BOPIS approach on customer purchase decision in Japanese consumer market. -A case study of Amazon

Authors:

Abstract

This research identifies how the BOPIS approach affects customer purchasing decisions in the Japanese consumer market and identifies what kind of product matches the BOPIS service in the Japanese Amazon market. BOPIS service means "Buy shop pick up in Store". BOPIS means that customers purchase products online and receive products at stores. This strategy in the consumer market is famous as the omni channel strategy of Walmart Inc. Such as Walmart, American companies are starting to adopt BOPIS as their new sales strategy for omni channel, however it seems that Japanese companies have not succeeded in making BOPIS as a new strategy yet.
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An investigation of the impact of
BOPIS approach on customer
purchase decision in Japanese
consumer market.
-A case study of Amazon-
Anglia Ruskin University MBA
Postgraduate Major Project in 2018
NAME: Hideto Tsuchiya
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Abstract
Research purpose
This research identifies how the BOPIS approach affects customer purchasing decisions in the
Japanese consumer market and identifies what kind of product matches the BOPIS service in the
Japanese Amazon market. BOPIS service means "Buy shop pick up in Store". BOPIS means that
customers purchase products online and receive products at stores. This strategy in the consumer
market is famous as the omni channel strategy of Walmart Inc. Such as Walmart, American companies
are starting to adopt BOPIS as their new sales strategy for omni channel, however it seems that
Japanese companies have not succeeded in making BOPIS as a new strategy yet.
Methodology
As a survey of the Japanese consumers market, a quantitative approach was adopted for this study.
This questionnaire survey is conducted for Japanese who have a smartphone and experience of
purchasing products using Amazon Japan. A questionnaire covered 100 people. They answered several
questions related to purchasing products in Amazon Japan. Questionnaire survey results are
quantitatively analyzed to identify the relationship between a variable (independent variable) and
another variable (dependent variable or result variable) to identify the relation of these variable.
Result and findings
The results of this survey will identify the impact of retailers choosing the BOPIS strategy in the
Japanese market. This impact may contribute to retailers in Japan or abroad, when they plan new
sales strategies in the Japanese consumer market.
Benefits and Implications
The benefit of this survey shows that Japanese will know the benefits that BOPIS gives to them by
understanding this research`s conclusion. The impact of online sales given to Japanese consumers may
be important information for Web promotion companies in japan too. For these reasons, this survey
has the enormous potential to improve their knowledge and understanding for all stakeholders
involved in online sales business.
Key words
BOPIS, Omni Channel, O2O, Amazon Market in Japan,
III
Table of contents
1.0 Introduction 1
1.1 Introduction 1
1.2 Research Background 1
1.3 Research Aim 3
1.4 Research Objectives 4
1.5 Research Questions 4
1.6 Research Hypothesis 4
1.7 Dissertation Structure 4
2.0 Literature review 6
2.1 Introduction 6
2.2 Online Marketing for retailer shop 6
2.3 O2O 7
2.4 Omni channel 8
2.5 Buy Online and Pick up in Store (BOPIS) 10
2.6 Conceptual framework 12
2.7 Summery 13
3.0 Research Methodology 14
3.1 Introduction 14
3.2 Research Onion 14
3.3 Research Philosophy 15
3.4 Research Approach 15
3.5 Research Strategy 15
3.6 Data Collection Method 16
3.7 Construction of Questionnaire 16
3.8 Sample Method 17
3.9 Measurement 17
3.10 Data Analysis Plan 17
3.11 Accessibility Issues 18
3.12 Ethical Issues 19
3.13 Research Limitation 19
3.14 Summery 19
IV
4.0 Result Analysis and Discussion 20
4.1 Analysis of the BOPIS user in Amazon Japan Market 20
4.1.1 Analysis of BOPIS service usage in Amazon Japan 20
4.1.2 Analysis of product purchase situation in Amazon Japan 22
4.1.3 Analysis of products purchased using BOPIS in Amazon Japan 23
4.1.4 Correlation analysis of products purchased in Amazon Japan 24
4.2 Analysis of the BOPIS user in Japanese retailer shop 26
4.2.1 Usage situation of Seven Eleven's BOPIS service in the Japanese market 28
4.2.2 Usage situation of Bic camera`s BOPIS service in the Japanese market 28
4.2.3 Usage situation of Yodobashi camera's BOPIS service in the Japanese market 30
4.2.4 Usage situation of Rakuten's BOPIS service in the Japanese market 31
4.2.5 Regression analysis of Amazon's BOPIS users and Japanese retail BOPIS users 32
4.3 Analysis of the BOPIS early adopter characteristics in Japan 34
4.3.1 Analysis of purchase categories of BOPIS users who use BOPIS in other Japanese retailers when
using BOPIS 35
4.3.2 Regression analysis of product categories purchased on Amazon and BOPIS utilization product
categories 36
4.3.3 Analysis of BOPIS location and product unit price of Books, Comics & Audible categories 38
4.4 Summery 40
5.0 Conclusion and Recommendations
5.1 Conclusions 41
5.2 Relationship of Objectives 41
5.2.1 Analysis about the characteristics of BOPIS users on the Japanese Amazon market, further to
investigate the product categories they purchase 41
5.2.2 Analysis about the characteristics of BOPIS users in Japan's online retailer shop moreover to
investigate the product categories they purchase 42
5.2.3 Analysis about how BOPIS approach affects customers' purchasing decisions in the Japanese
consumer market and survey what products are compatible with the BOPIS service in the Japanese
Amazon market 43
5.3 Recommendations 46
5.4 Research Limitations 47
5.5 Suggestions for Future Research 47
Reference 48
V
List of Tables
Table 1: Correlation analysis of products purchased in Amazon Japan 25
Table 2: The number of BOPUS users using BOPIS services managed by Japanese retailers 32
Table 3: The regression analysis for user using BOPIS services managed by Japanese retailers 33
Table 4: The regression analysis for the number of customers in each product categories 37
List of Figures
Figure 1 Conceptual framework 12
Figure 2 Research Onion 14
Figure 3 Scope of questionnaire target 18
Figure 4: Diffusion on innovation model 34
List of Graphs
Graph 1: BOPIS User in Amazon japan 20
Graph 2: Amazon Product categories for Not BOPIS user 21
Graph 3: Product purchase situation in Amazon Japan 22
Graph 4: Products purchase situation using BOPIS in Amazon Japan 23
Graph 5: Purchase price of Book category purchased by customers at Amazon 25
Graph 6: BOPIS User who use Japanese Retailer omni channel 27
Graph 7: Usage situation of 7-Eleven 's BOPIS service in the Japanese market 28
Graph 8: Usage situation of Bic camera`s BOPIS service in the Japanese market 29
Graph 9: Usage situation of Yodobashi camera's BOPIS service in the Japanese market 30
Graph 10: Usage situation of Rakuten's BOPIS service in the Japanese market 31
Graph 11: Purchase categories of BOPIS users who use BOPIS in other Japanese retailers when using
BOPIS 35
Graph 12: BOPIS User in Amazon Japan market 36
Graph 13: unit price of the Books, Comics & Audible categories about BOPIS User 38
Graph 14: BOPIS location of Books, Comics & Audible categories about BOPIS User 39
Graph 15: Reasons not to use BOPIS service 44
Graph 16: Product categories purchased by customers wishing to deliver to the house 45
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1.0 Introduction
1.1 Introduction
Recently, a lot of retailers have started to offer customers the option to buy online and pick up in
store (Gao, F. and X. Su, 2016). In the Omni Channel purchasing flow, BOPIS indicates that
customers pick up products at stores which is bought by them in online. According to eMarketer
(2014), more than one-quarter of the global population will be smartphone users by 2016. However,
Japanese customers using the Internet with smartphones had already exceeded 70% in 2015. Online
shopping based on smartphones is becoming mainstream in japan consumer market. In other words,
smartphone is the buying trigger when a customer purchases a product on the Omni Channel.
Currently, in the Japanese market at least 70% of customers are likely to purchase products on the
Omni Channel. However, there is no service which is the mainstream of the Japanese market with
the BOPIS service developed by Japanese retailer. The top of online market users share in Japan is
Amazon Japan. Researcher feels the necessity to investigate the utilize situation of Japanese
customers of Amazon Japan's BOPIS service. In the light of this, this research focuses on examining
the effect of BOPIS in the omni-channel marketing strategy in the Japanese market.
In this chapter, researcher explains the background information of the research and discuss the
theoretical basis and importance of this research. Moreover, researcher has created questions on
research purpose and set hypotheses to prove this purpose.
1.2 Research Background
In 2010, Macy's in the United States introduced "Shop from store". This activity mean that customers
are able to receive products which purchased at EC closes
t to the store by delivering ordered product previously. This selling method is the origin of BOPIS.
As a result of implementing "Shop from store" service and the Omni Channel strategy, Macy's
succeeded in significantly improving performance. This grateful result has attracted interest from other
retailers in US, and more companies are considering omni channel in the American consumer online
market. Currently, Walmart which is the top retailer in the United States, is the giant in the omni
channel market, and other American retailers are actively selecting the omni channel strategy to
compete with them. For instance, Amazon and Flipkart are excellent examples of this channel where
customers browse for products and order online to have the purchases, then delivered at home (Sunil
2015).
Retailers are often advised that to fully exploit the potential of multi-channel marketing they must
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use the Internet channel (Claas M, et al 2006). In the Japanese market, Amazon Japan has promoted
the omni channel strategy from 2014. After Amazon implement omni channel strategy, then several
Japanese retailers began to develop omni channel strategies to compete with Amazon Japan. Amazon
Japan does not have a real store. They cooperate with convenience stores in Japan and delivery
companies to secure their resources as receiving stores. According to Sunil (2015), the partnership
between the two channels can create a win–win hybrid structure where local retailers increase access
for online retailers while online retail in turn helps strengthen small retailers by providing a wide
variety of products.
According to Santiago Gallino, et al (2014), the implementation of BOPIS is associated with a
reduction in online sales and an increase in store sales. In response to this BOPIS strategy of Amazon
Japan, SEVEN ELEVEN Japan which is a major convenience store in Japan, develop its own omni
channel market cooperate with other japanese retailers. In this service, customers are able to receive
product which buy in SEVEN ELEVEN`s original online mart at SEVEN real stores. Bic camera and
Yodobashi camera, they are famous electronics retailers in japan have developed their own BOPIS
services by using their real shops. Japan's leading online retailer Rakuten also has its own omni channel
market in cooperation with other retail stores. For the retail industry, omni-channel retailing is
becoming a trend, critical for the success of retailers (Jifeng Luo, et al 2016).
Compared to the US online market, the BOPIS service in the Japanese online market has a short
history since its start. Multi-channel that promotes products from online and offline channels penetrate
among consumers even in the Japanese market. However, BOPIS awareness and penetration in the
omni channel market in Japan have been unveiled until now, because it has not taken long time since
companies adopted an omni channel which mixes online and offline.
As a background to this research, researcher investigates the awareness of BOPIS in the omni channel
market in Japan and identifies the impact of the BOPIS approach to consumers.
1.3 Research Aim
This research identifies how BOPIS approach affects customer purchasing decisions in the Japanese
consumer market. Moreover, this research shows what products are compatible with the BOPIS
service in the Japanese Amazon market. Researcher conducts questionnaires to customers in the
Japanese market to achieve a research aim. Researcher quantitatively analyzes the questionnaire which
answered about the usage of the BOPIS service from the target. Based on the results analyzed by
researcher, researcher identifies the usage of BOPIS services for users of Amazon Japan and the
product categories to be purchased by customer. Researcher investigates the same surveys as those
analyzed in Amazon Japan for BOPIS services in Japanese retailers.
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1.4 Research Objectives
The purpose of this research are as follows,
To identify the characteristics of BOPIS users on the Japanese Amazon market, further to investigate
the product categories they purchase
To identify the characteristics of BOPIS users in Japan's online retailer shop moreover to investigate
the product categories they purchase
To identify how BOPIS approach affects customers' purchasing decisions in the Japanese consumer
market and survey what products are compatible with the BOPIS service in the Japanese Amazon
market
1.5 Research Questions
The Research questions are as follows,
What percentage of Japanese consumers purchase products using the BOPIS service?
Where are the shop which is most used by customer as the BOPIS of Amazon in Japan?
What are the advantages of choosing BOPIS approach as a way to receive products for Japanese
consumers ?
What is the merit when Japanese retailers choose BOPIS strategy?
1.6 Research Hypothesis
The Research Hypothesis is as follows,
Customers who use BOPIS in Amazon Japan also use the BOPIS service of a Japanese retailer shop.
They are early adapters in Japan's BOPIS approach.
1.7 Dissertation Structure
This dissertation consists of the following chapters.
1.0 Introduction
In this chapter, researcher shows the background and aims of the thesis theme selected. Researcher
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clearly shows the purpose and question of the paper. Further, the researcher shows the hypotheses of
this paper in advance too.
2.0 Literature review
In this chapter, researcher explains the background which the BOPIS approach was recognized as a
rational way in the consumer market with reference to existing related research.
3.0 Research Methodology
This chapter shows research approach, philosophy, design, strategy, data collection, sampling method,
data analysis, contents of questionnaire, accessibility, ethical issues, and limitations.
4.0 Result Analysis and Discussion
In this chapter, researcher analyzes the data collected in the questionnaire and shows the conclusion.
5.0 Conclusion and Recommendations
In this chapter, researcher discuss how to apply conclusions from analysis to consumers in the
Japanese market. Researcher analyzes the characteristics of early adapters in Japan's BOPIS market
and demonstrates effective approaches to them. Moreover, in this chapter, researcher also shows
limitations and suggestions for research for the future.
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2.0 Literature review
2.1 Introduction
According to Michael Peterson, et al (2009), Companies need new strategies, structures, and
processes to deliver customer value across all channels. A multi-channel, integrative customer model
that delivers customer value and significant return on investment (ROI) requires both a strong
understanding of customer preferences and behaviors and a robust IT architecture which supports the
overarching customer relationship management (CRM) strategy.
In this chapter, researcher discuss the history of BOPIS service based on other research. Researcher
classifies purchasers' channels as single channel, multi-channel, cross channel and omni channel.
Researcher discuss development of each channel in the Japanese market and gather knowledge and
discoveries of BOPIS services on the omni channel.
2.2 Online Marketing for retailer shop
Where properly managed new channels are able to create increased revenues, reduce costs and better
manage relationship [confidence that a multi-channel delivery strategy is cost competitive is high,
with 78% of Eurozone banks (89% of UK banks) and 83% of Eurozone insurers (80% of UK insurers)
agreeing (Gandy, 2001).
Introducing multi-channel for modern enterprises has a lot of merits from the point of cost and
customer acquisition. In the United States alone, nearly 50% of online customers are advanced users
of smartphones, social networks and other emerging tools (Kim & Ko, 2012). As new technologies
opened new paths to market, the practice of multi-channel retailing greatly expanded. Retailers such
as Wal-Mart opened EC websites to supplement their brick-and-mortar stores, and retailers such as
Dell began moving into the shopping mall (Jill Avery, et al 2012).
Because customers who have smartphones think that the Internet is as a purchase channel, companies
need to start to shift single channel to multi-channel as soon as possible. The history of channel where
customers purchase products began with barter, and the channel was only single channel for a long
time. The place where customers purchase products was real shops such as markets and supermarkets.
The consumer Internet has evolved considerably since Jeff Bezos first sold books online in 1994 and
from the “Internet Retailing 1.0” boom and bust in the early 2000s (David R et al 2016). This was a
first selling product in online market. Amazon launched EC service in the US since 1995, and EC
service by Japanese retailers started in Japan since 2000. It was birth of the new channel called EC
channel. Originally, it was treated as a web version of catalog mail order, however now it quickly was
utilized as an important consumer's purchasing channel by customer who have a smartphone.
Gradually, distribution retailers and manufacturing industries opened EC channels, and now have
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multi-channels of real stores and EC channels.
According to Michael Peterson, et al (2009), Companies need to build an IT foundation which
underpins their Customer Relationship Management(CRM) strategy. This CRM IT strategy needs to
enable the transformation from vertical, single channel operations to true horizontal business processes
that deliver cross channel integration.
From the perspective of the cross channel, the presence of a retail store decreases sales in the catalog,
but not the Internet channel in the short run but increases sales in both direct channels over time (Jill
Avery, et al 2012). Moreover, Erik B. et al (2009) show that Internet retailers face significant
competition from brick-and-mortar retailers when selling main products, however are virtually
immune from competition when selling niche products. Hence, the retailer is able to provide more
value to its target clients by shifting to a cross channel strategy, rather than by operating the channels
separately (Lanlan Cao, 2014).
From the customer's point of view, customers switch among multi-channel offered by multiple firms
and this means that multi-channel shopping behavior also depends on the channels offered by
competitors (Jing Li, et al 2017). When customers start using multi-channel, retailers are often advised
that to fully exploit the potential of multi-channel marketing which they have to use the Internet
channel not only to inform consumers about their company and offerings, but also to sell products and
services and to provide additional features, which support channel switching or interactive
communication (Claas M, et al 2006).
When effectively executed, a multi-channel approach is going to smooth the relationship between
customers and companies and give management the capability to leverage all customer touch points
to boost revenues, reinforce customer gratification, and streamline sales and service costs. (Michael
Peterson, et al 2009). On the other side, according to Claas M, et al (2006), next to mirroring offline
offerings in the online channel, several multi-channel retailers exploit the absence of the physical
constraints that they face in traditional retail outlets by offering a wider range of products and services
in the online than in the offline channel, thus becoming online category killers.
2.3 O2O
Economic theory on firm competition has shown that as the number of companies in a market
increases, the competition intensifies and each company`s market share drops strongly (Tirole 1988).
With the spread of omni channel, competition among companies has intensified. O2O was developed
in the United States as a differentiation method among companies who compete with omni channel
each other. "O2O" means "Online to Offline", which is a sales strategy that induces customers who
know the information on the internet to visit real stores. Typical methods include discount coupons
that can be used at stores and delivery of check-in coupons linked with smartphone GPS. Originally,
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O2O spread as a "showrooming" countermeasure to check products at real stores. After checking the
product at real store, customer buy it cheaply on the internet compared real store price. Recently, O2O
is known as an online promotion that the effect of increasing the number of new customers' visits is
high and there is also immediate effect.
The O2O EC business model enables customers to place orders online and receive products or
services offline. The key factor for converting online traffic to offline products and services is a highly
efficient logistics system (Hongyan D, et al 2017). According to Hui Li, et al (2016), such EC
platforms as Amazon and eBay that focus on shifting consumer transactions from offline to online
environment, daily deal platforms are closely tied to local offline markets. Most online business
processes are processed through the offline channel too, such as having website and storefront, having
face book and storefront, having face book and by exhibition events (Vichian Puncreobutr, 2016). One
way to implement O2O is to allow in-store pickup of online orders. For customers who want instant
satisfaction, this is a great option. It also increases traffic to offline store, which may lead to extra sale
(Elnaz J et al 2015). Hence, O2O is the marketing promotion that promotes online and guides
customers to offline.
While customer engagements on social media platforms are easier to record and quantify, it is much
harder to attribute customer values to that engagement – a major problem facing O2O commerce today
(Prasanta B, et al 2016).
It is also known that O2O is not effective to foster repeaters and fans that bring long-term benefits to
retailer. The weak point of O2O is that customers are satisfied with one shopping experience and that
they do not feel attracted to shopping experiences without an event from "accustomed" to the event.
Customers gathered at O2O will be able to visit or purchase at the only one time when the coupon
distributed, and even if they acquire customers online, they will not be able to foster repeaters unless
there is action to encourage next visit.
Companies who run EC and real shops need to guide customers to real shops at O2O and attract
customers to their omni channel.
2.4 Omni-channel
According to eMarketer (2014), more than one-quarter of the global population (i.e., 2 billion people)
will be smartphone users by 2016. Modern consumers customarily switch between a multi-channel
seller online and offline channels while navigating through various stages of the decisions making
process (Hybris 2012). Online browsing is an essential tool for smartphone users, through which they
get useful information and benefit, especially the methods and tools for effective time management of
daily activities and successful completion of these activities (Dong Ling Xu-Priour, et al 2017).
Moreover, the growth of EC and mobile technologies in the consumer market has resulted in the need
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for multi-channel strategies for retailers (Rigby 2011, Brynjolfsson et al. 2013). According to David
R. et al (2016), an omni channel retailer (unlike a single channel counterpart), caters to consumer
heterogeneity in preferences for whether the information and achievement functions should be carried
out online, offline, or in mixed online-offline configurations.
Omni channel retailing refers to the utilize of a variety of channels to interact with customers and
fulfill their orders. The interaction between a customer and a retailer is primarily in terms of three
flows—information, product, and funds. The retailer provides product and pricing information to the
customer who then places an order (Sunil 2015). For the retail industry, technology is breaking down
the barriers between different retail channels and is making omni channel retailing inevitable an
integrated sales experience that melds touch and feel information in the physical world with online
content. Omni channel retailing is becoming a trend, critical for the success of retailers (Jifeng Luo,
et al 2016).
It is particularly important in the multi and omni channel retail landscape, where new alternative
shopping platforms and models are constantly emerging (Simone T. Peinkofer, et al 2016). While the
multi-channel implies a division between the physical and online store, in the omni channel customers
move freely between the online (PC), mobile devices, and physical store, all within a single transaction
process.
Customers expect consistent, uniform, integrated service and experience, regardless of the channel
which they use; they are willing to move seamlessly between channels—traditional store, online, and
mobile—depending on their preferences, their current situation, the time of day, or the product
category. (International Journal of Electronic Commerce 2014).
For traditional store based on retailers, the role of the physical stores in particular should be
reinforced after adopting a cross channel strategy, for two reasons: First, application of advanced
technologies in-store (e.g., free Wi-Fi access, mobile applications, and QR codes) enables physical
stores to become the hubs that link the different channels and to provide an easier, faster, more
convenient and more pleasurable shopping experience for the consumer. Second, compared with
purely Internet based on retailers, store based on retailers are able to use the physical store as an
important resource to differentiate themselves and even to gain competitive advantage (Lanlan Cao,
2014). A true omni channel transformation requires strategic planning on how to configure appropriate
fulfillment strategies in the online and offline channels. Retailers traditionally have employed
transshipment as a strategy to coordinate inventory across various locations. When a customer is not
able to find an item in the store, store clerks are able to fill the order by locating the item in the online
or other stores (Elnaz J A et al 2015). Recent advances in information technologies (IT) have powered
the merger of online and offline retail channels into one single platform. Modern consumers frequently
switch between online and offline channels when they navigate through various stages of their decision
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journey, motivating multi-channel sellers to develop omni channel strategies that optimize their overall
product. By selling only one product through the dual channel and the other through the online channel
exclusively, the firm induces consumer pseudo-showrooming for the online exclusive product (Zheyin
Gu et al 2016).
Physical showroom attracts customers to the store, because they help customers resolve product value
uncertainty regardless of whether the product is in or out of stock. In particular, during stock-out,
customers who learn from the showroom display that they do not like the product can avoid making
an unnecessary purchase online. In this way, physical showrooms help to reduce returns from
customers who encounter a stock-out in store, substitute online, and then return the product (which
may lead to a net loss).
Physical showrooms and availability information both attract customers to the store. Both physical
and virtual showrooms mitigate product value uncertainty. When the shop is out of stock, consumers
may switch back to the retailer's online channel as before. When the online channel is out of stock,
those who are willing to buy online will leave for other websites to buy the product at the same price
(Gao, F. and X. Su, 2016).
Zheyin Gu et al (2016) identify an interesting win-win region, where the multi-channel seller effort to
coordinate product offerings across its online and offline channels benefits both the firm and
consumers. This result highlights the social efficiency gains stemming from multi-channel sellers omni
channel product placement strategies.
Moreover, they further show that the multi-channel sellers profit from selling two products by
adopting the product placement strategy that facilitates consumer pseudo-showrooming is greater than
the total profit of two independent single-product sellers, one selling its product through the dual
channel, and the other selling its product solely through the online channel as long as the fit probability
of products is low (Zheyin Gu et al 2016).
2.5 Buy Online and Pick up in Store (BOPIS)
A seller carrying a uniquely styled product line is able to develop a unique market position against
its competitors and gain monopoly value with consumers who have strong preferences for its unique
style (Zheyin Gu et al 2016). According to a recent UPS study, among those who have used an in-store
pickup option, 45% of them have made a new purchase when picking up the purchase in store (UPS,
2015).
The implementation of BOPIS is associated with a reduction in online sales and an increase in store
sales and traffic. Some brick-and-mortar retailers are exploring integration strategies for their online
and brick-and-mortar channels to enrich the customer value proposition and/or reduce costs. Online–
offline integration efforts are able to occur in a variety of configurations. For example, brick-and-
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mortar retailers often show in-store inventory availability information online. More advanced
integration includes shipping the product ordered from the store closest to its destination or offering
the option to buy products online and pick them up in the store. With this BOPIS, the retailer shows
online viewers the locations at which the items are available and gives customers the option to close
the transaction online and then pick up the products at one of the retailer’s locations shortly after
closing the purchase. Examples include offering customers the options of returning to a store items
that were bought online; placing online orders from the store and having the products shipped to the
customer’s address; buying items online and picking them up later at the store in which they are
stocked; or buying an item online and picking it up at the store once it has been delivered to the store
(Santiago Gallino, et al 2014).
With BOPIS, consumers experience instant gratification, avoid shipping and delivery changes, and
enjoy the convenience of hassle-free shopping (their items have already been picked and packed by
store staff by the time they arrive). The BOPIS option affects consumer choice in two ways: by
reducing the hassle cost of shopping and by providing real-time information about inventory
availability. A lot of retailers have realized the need to integrate their existing channels to enrich
customer value propositions and improve operational efficiency (Fei Gao et al 2017).
When online information search leads to a purchase decision, customers are able to conduct that
purchase in various ways. The informational website is a theme-oriented site that supports offline
activities to increase the likelihood of store purchase. It provides customers with information about
lifestyle issues related to the various product categories of the shop, specific products offered in the
stores, promotions, and the organization itself (J.E.M. van et al 2011). By checking the information on
the price posted online, customer switch channels strategically to best suit their personal convenience
when evaluating and purchasing products. In response, more and more retailers are starting to
transition from the traditional channel-specific management style to omni channel operations, where
different channels are integrated in a seamless way (Gao, F. and X. Su, 2016).
Online and offline channels provide varying levels of distribution services which entail different
levels of direct costs and transaction costs on consumers. According to Pradeep K. et al (2012), direct
costs refer to the sum of shelf prices of the items in the shopping basket; transaction costs are the costs
needed to transfer. Moreover, Chris Forman, et al (2007) show that even controlling for product
specific preferences by location, changes in local retail options have substantial effects on online
purchases. When a store opens locally, they find evidence that people substitute away from online
purchasing, demonstrating that consumers appear to respond to increased convenience in the offline
channel. These estimates are economically large, suggesting that disutility costs of purchasing online
are substantial and that offline transportation costs matter (Chris Forman, et al 2007). Consumer find
clear differences across consumer segments: Those who obtain online price information pay lower
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prices for the same car than do consumers who obtain online product information (Viswanathan et al
2007).
BOPIS can be a good strategy for a retailer to build up its customer base, BOPIS may at the same
time drive existing online customers to the store channel where the profit margin might be reduced
compared to the online channel. However, BOPIS is able to help attract more customers to the store
and thus boost the sales of products that were previously not selling well. (Fei Gao et al 2017).
Moreover, customers who visit the brick-and-mortar stores to pick up an item they bought online using
BOPIS, or individuals accompanying them, might decide to buy extra items during their visit.
(Santiago Gallino, et al 2014).
As a point to note when a company manages BOPIS service, they should be careful with forcing low-
value customers to utilize the E-channel. Low-value customers might also voice these negative
feelings via for example social media, which may potentially harm firm reputation (Umut Konus,2013).
Researcher propose the effectiveness of the BOPIS service in the Japanese market as knowledge gap.
Because, in previous studies so far, there was no effective discussion on BOPIS service in the Japanese
market. If this point can be covered by this research, researcher expect that research on BOPIS service
will move forward.
2.6 Conceptual framework
Figure 1 Conceptual framework
Based on the literature reviewResearcher sets this conceptual framework of this research. There
are two type of BOPIS users in the Japanese market. They are customers who purchase products in
Amazon Japan and receive products at the pickup place of Amazon Japan, and customers who pickup
products at real shop by purchasing products at online shops operated by Japanese retailers. Researcher
identifies the characteristics of customers using the BOPIS service in the Japanese market. As a result
of this research, researcher investigate the volume of early BOPIS Adopter from among Japanese
BOPIS users.
B O P IS U ser in Japan m arket
A m azo n B O P IS U se r in Jap an
C ha racteristics of
rela te d picku p place
Identify the locatio n m ost use d for B O P IS service
C ha racteristics of
rela te d purchasing p rodu ct
category
C ha racteristics of B O P IS user in Jap an
w hich pro duct categ ory they o fte n buy
Japa nese O nline R etailer S ho p B O P IS U ser
C ha racteristics of
rela te d purchasing
betw een A m azon and
Japa nese retailer
C ha racteristics of B O P IS early ad aptor in Ja pan
12
2.7 Summery
Literatures show a lot of knowledge about the history of how to sell products using the Internet.
Before the Internet was utilized by people, retailer sold products to customers with real stores as
service channels. Due to the expansion of the Internet user, an online channel appeared in a single
channel. This is the Electronic Commerce (EC). Researcher confirmed that marketing methods were
introduced to attract customers by mixing online and offline channels with the advent of EC. This is
the Online to offline marketing (O2O). Researcher discovered in this literature evaluation that O2O
approach generated multi-channel and cross-channel. With the expansion of smartphone users, the
number of customers looking for and purchasing products on the Internet has increased. To meet the
needs of these customers, retailer has developed an omni channel. With the advent of the omni channel,
demand for services that customers purchase products online at real stores has increased. This is the
Buy Online and Pickup In Store (BOPIS). In this literature review, researcher discovered that BOPIS
is a Breakthrough service which benefits both companies and customers.
13
3.0 Research Methodology
3.1 Introduction
In this chapter, researcher shows how to conduct research, approaches, strategies and data collected
in this research. Researcher conducts questionnaires to survey this research. The respondents of this
questionnaire are Japanese customers who have purchased products online by accessing their
smartphones. This questionnaire collected by researcher using the online website is analyzed with a
quantitative approach. These are described in this chapter along with other aspects related to sampling
techniques and research methodologies.
3.2 Research Onion
Figure 2 Research Onion
(Source: 2015 Mark Saunders, Philip Lewis and Adrian Thornhill)
This research method adopts a research framework based on research onion. This research onion
explains in detail how this research is carried out.
14
3.3 Research Philosophy
Research philosophy refers to a system of beliefs and assumptions about the development of
knowledge. (Saunders et al 2015). These Assumptions distinguish three philosophies such as ontology,
epistemology and axiology.
In this research, Researcher defines this research`s Assumption from an aspect of Epistemology.
Epistemology concerns assumptions about knowledge, what constitutes acceptable, valid and
legitimate knowledge, and how we can communicate knowledge to others (Burrell and Morgan 1979).
Researcher conducts a quantitative questionnaire to investigate whether the BOPIS approach is
effective in the Japanese market. Researcher analyzes their quantitative data based on hypotheses.
Researcher expects that customers using BOPIS at Amazon Japan also use BOPIS services at retail
stores in Japan. The demand for customers who purchase products in online market is increasing in
the world. Amazon Japan who is the best BOPIS retailer provides BOPIS services to Japanese
customers. However, as opposed to Amazon Japan, investigation by customers using BOPIS services
operated by Japanese retailers has not been conducted for a long time. Researcher identifies
characteristics of customers using BOPIS services offered by Amazon Japan and Japanese retailers.
For that purpose, researcher conducts quantitative questionnaires to Japanese customers. This
approach covers the positivism part of research philosophy.
3.4 Research Approach
According to (Yin, 2003a), there are two types of approaches to research, namely inductive approach
and deductive approach (Saunders et al 2015). Researcher adopts the deductive approach in this
research. Researcher analyzes the data which responded by questionnaire respondents and identify
premise facts.
In this research, researcher analyzes the characteristics of BOPIS users in the Japanese market from
quantitative data. Researcher investigates what kind of product categories which users purchase
products in Amazon Japan by using the BOPIS service. Moreover, researcher identifies customers who
use BOPIS service in Japanese retailers from Amazon Japan users. Researcher investigates their
characteristics as BOPIS early adopters with these features. Moreover, Researcher draw conclusions
from the identified facts.
3.5 Research Strategy
The research strategies are principally linked quantitative, and mixed methods research designs,
respectively. (Saunders et al 2015). According to Research onion, research strategies distinguish
Experiment, Survey, Archival research, Case study, Ethnography, Action Research, Grounded Theory,
Narrative Inquiry. In this research, Researcher chooses survey research. This survey strategy allows
15
researcher to collect quantitative data which he or she can analyses quantitatively using descriptive
and inferential statistics. (Saunders et al 2015).
As a quantitative data, researcher conducts a questionnaire in this research. The target of this
questionnaire survey is a Japanese who has a smartphone and has experience of purchasing products
using Amazon Japan. Researcher conducts this questionnaire for 100 Japanese customers who are
randomly chosen on the online website. They answer some questions about products which purchased
on Amazon Japan, and questions about products which purchased in the online market managed by
Japanese retailers. Researcher analyzes the usage situation of BOPIS service in the Japanese market
from the quantitative data which collected by questionnaire research. Researcher identifies the
relevance of users using BOPIS in Amazon Japan and users using BOPIS on products purchased in
the online market developed by Japanese retailers.
3.6 Data Collection Method
Researcher adopts quantitative approaches in this research. The type of data in the quantitative
approach is distinguished between a primary data and a secondary data. Researcher collects primary
data by questionnaire, and checks a secondary data refer to contents from magazines, textbooks, etc.
The primary data consists of questionnaires which is answered by Japanese who have smartphones
and have the experience of purchasing products using Amazon Japan. This primary data is used to
understand the utilize situation of BOPIS service in Japan. Secondary data are collected from papers,
magazines, textbooks, newspapers, etc. By using these secondary data, Researcher is able to add
rationale facts related to primary data. Researcher uses quantitative questionnaires to collect primary
data. Researcher collects this questionnaire by answered customers who randomly extracted on the
Internet. The collected data is analyzed by researchers. Researcher investigates related literature on
the Internet to collect secondary data. Moreover, researcher confirms books, newspapers, etc., and
gather information necessary for this research.
3.7 Construction of Questionnaire
Researcher composes the questionnaire in three subsections. Researcher picks up parts related to the
purpose of the research from the data which obtained from the answers of this questionnaire. (please
refer to the questionnaire in appendix for more clarity);
The place of BOPIS services provided by Amazon Japan is each Yamato Transport sales office and
convenience store (Family Mart, Lawson, Mini stop). Yamato is a famous delivery company in
japan. Researcher asks customers about the usage status of BOPIS services provided by Japanese
companies in Section 3. The explanation of the company in Japan are as follows.
16
SEVEN ELEVEN Japan: This company run a major convenience store in Japan, and
develop Omni7 which is their own omni channel market cooperate with other
Japanese retailers (Loft, Akachan Honpo, Ito-Yokado, Seibu)
Bic camera: This company run famous electronics shops in town and country area of
japan.
Yodobashi camera: This company run famous electronics shops in town area of japan.
Rakuten: This company run famous online shopping website in japan.
The questionnaire section are as follows.
Section 1
In this section researcher collects customer's age, gender and basic information.
Section 2
In this section researcher asks customers about the usage of Amazon Japan's BOPIS service.
Researcher also asks the category of products which customers frequently purchase and the average
unit price of the products. Researcher asks the reasons to customers who do not use BOPIS service of
Amazon Japan.
Section 3
In this section, researcher asks customers about the use of BOPIS services which managed by Japanese
retailers. Researcher picks up companies which run BOPIS service in Japan and ask customers about
usage status of each BOPIS service.
3.8 Sample Method
The sampling techniques available to you can be divided into two types. There are probability or
representative sampling and non-probability or judgemental sampling (Saunders et al 2015).
Researcher selects a probability sample in this research. Probability sampling as opposed to non-
probability sampling design was used, since it is more severe and all participants have an equal
selection chance (Uprichard, 2011). Researcher carries out a questionnaire equally to the subjects and
collect samples. The probability sample of this research is based on the data of 100 customers who
purchased products by accessing Amazon Japan from smartphones in the Japanese market. Researcher
utilized this sample technique because of resource constraints in terms of time and accessibility.
17
3.9 Measurement
Researcher instructs the target to select an answer from some questions in questionnaire.
Researcher analyzes the part 3.( Customer who buy product online shop in japan and pickup it on
real store) among the questions selected by the target.
Figure 3 Scope of questionnaire target
In order to identify the part 2, Researcher instructed the target to select an answer whether they have
experience of using the BOPIS service in the Amazon. After that, Researcher changed the theme to
the Japanese retail industry and asked similar questions to the target.
3.10 Data Analysis Plan
In this research, Researcher adopts multiple cross tabulation as a data analysis method.
Researcher collected quantitative data from the target by questionnaire. Researcher analyzes the
numerical value by summing up the number of answer which is answered by target. Quantitative data
is represented by graphs, pie charts and tables. Researcher analyzes the research objectives based on
the quantitative data collected in the questionnaire.
Next, researcher analyzed the correlation between products that customers frequently purchase at
Amazon Japan and products purchased by customers by using BOPIS service in Amazon Japan. By
investigating the relevance of products that BOPIS service uses and consumers do not use, researcher
identifies which product categories are the best that match the BOPIS service in the Japanese market.
Finally, researcher analyzes two regression analysis in this research. In the first regression analysis,
researcher investigates the relation between the number of customers using BOPIS service in Amazon
Japan and the number of customers who do not use BOPIS service in Amazon Japan. In the second
regression analysis, researcher investigates the relation between customers who purchase the Books,
18
Comics & Audible category in Amazon Japan and customers who purchase the Books, Comics &
Audible categories using BOPIS service in Amazon Japan.
3.11 Accessibility Issues
This research investigated the utilize situation of BOPIS service by Japanese customers. Accessibility
issues are one of crucial factors in conducting research and the research outcome could be vague if the
researcher cannot access the required data (Li, Wang and Cai, 2011). Researcher lives in Japan. As this
survey was conducted in Japan, Accessibility issues have improved. Moreover, Researcher could
access effective request data by collecting questionnaires online in Japan.
3.12 Ethical Issues
Researcher asks the target person to confirm Participant Information Sheet and Participant Consent
Form in the questionnaire of this research. Researcher confirms the confidentiality and anonymity of
the information provided by the target when the questionnaire is collected. Only those who agreed
with Participant Information Sheet and Participant Consent Form are participating in this research.
Researcher explains to the target that researcher safely keep the data collected in this research safely
and discard it after one year. The target has the freedom to respond to the questionnaire requested by
the researcher, and the target who can`t agree with the Participant Consent Form doesn`t participate in
this research.
(Please refer to Appendix2,3 for Participant Information Sheet and Participant Consent Form used by
researcher in this research.)
3.13 Research Limitation
Researcher recognized time restrictions as a limitation of this research. However, Researcher
achieved resolving the time limit by concentrating the scope of the research on the BOPIS service in
Japanese markets.
Researchers thought that it was a limitation of the research that there was not enough lack of prior
research on BOPIS services in Japan. As a countermeasure, researcher examined papers related to the
BOPIS approach in countries other than Japan. This research is expected to be the first research on
BOPIS service in Japanese markets.
3.14 Summery
Researcher adopts deductive approach in this research and use quantitative data. Quantitative data
used in this research is made from questionnaires created by researcher. Quantitative data are analyzed
by researcher in multiple cross tabulation. Researcher has solved the ethical issues and research
limitations assumed in this research.
19
4.0 Result Analysis and Discussion
4.1 Analysis of the BOPIS user in Amazon Japan Market
According to Jifeng Luo, et al (2016), to keep up the pace of change, existing retailers need to build
an omni channel strategy and develop more omni channel innovations. In this chapter, researcher
investigates the use situation of Japanese customers of BOPIS service provided by Amazon Japan. In
this research, researcher collected quantitative data by questionnaire. The survey target of this
questionnaire is randomly extracted on the Internet. The target of this questionnaire is a customer who
has a smartphone and has the experience of purchasing products in Amazon Japan. The characteristic
of this questionnaire is that it is a customer experiencing multi-channel or omni channel from the
viewpoint of purchasing products using the Internet. Researcher collected 100 customer questionnaires
in this survey. Depending on the content of the question, there were cases where target answers did
not gather, however researcher gathered sufficient quantitative data to identify the theme of this
research. Researcher founds the following from this quantitative data.
4.1.1 Analysis of BOPIS service usage in Amazon Japan
This graph shows the result of using the BOPIS service in Amazon Japan.
Graph 1: BOPIS User in Amazon japan
This graph shows that about 28.2% of customers currently use the BOPIS service in Amazon Japan.
As a feature of these customers, the ratio of the product category is high in the Books, Comics &
Audible category, and then the DVD, Music & Games are at a high ratio.
Although Amazon's BOPIS service can be received at the shipper's shop, customers are 1% using
20
BOPIS service for large-sized products such as Electronics & Camera categories because there are
few stores which can pick up product.
Researcher has identified that consumers do not purchase Drugstore & Beauty categories using
BOPIS service. Drugstore & Beauty categories was 3% against the ratio of BOPIS users overall. This
number is the same ratio as the Baby, Toys & Hobby and Computers & Office categories. The DVD,
Music & Games categories are 5%. This is the same category as content that can be purchased at the
recipient of BOPIS service, however it occupies a large proportion among BOPIS users.
The Books, Comics & Audible categories are the largest proportion in Amazon's BOPIS service for
japan customer. This graph indicates that about 10% of customers using Amazon in Japan are using
the BOPIS service to purchase the Books, Comics & Audible categories.
In this investigation, researcher is able to identify the result of research that about 30% of customers
who use the BOPIS service in Japan and have purchased Books, Comics & Audible categories.
Among customers purchasing products in Amazon Japan, 71.7% users did not utilize BOPIS service.
The products that they frequently buy on Amazon japan are as follows.
Graph 2: Amazon Product categories for Not BOPIS user
Surprisingly, the product most purchased by users who do not use BOPIS in Amazon Japan was the
Books, Comics & Audible categories. The Books, Comics & Audible categories accounted for 64.8%
of the total ratio. It shows that customer who purchases products in Amazon Japan purchase the Books,
Comics & Audible categories, however 80% of customers do not use BOPIS service in Amazon Japan.
21
Next, the categories that used less BOPIS service was Food, Beverage & Alcohol. It shows that fresh
foods and large foods are not product categories matched to BOPIS service.
The Electronics & Camera, Drugstore & Beauty, Clothing, Shoes & Jewelry, and Computers & Office
categories were almost the same ratio as customers using BOPIS service.
Characteristically, in this survey, none of customers wanted to deliver the DVD, Music & Games
categories to their homes. It shows that Amazon's products in the DVD, Music & Games categories
are purchased by customers using the BOPIS service.
4.1.2 Analysis of product purchase situation in Amazon Japan
Researcher investigated product categories purchased by customers in Amazon Japan.
Graph 3: Product purchase situation in Amazon Japan
From this graph, researcher has specified that the category most purchased by customers in Amazon
Japan are the Books, Comics & Audible categories.
As explained in the previous chapter, the Books, Comics & Audible categories are also the most
categorized product category for customers who use BOPIS on Amazon Japan. Researcher identified
in this study that the Books, Comics & Audible categories are 59% of the total ratio. It indicates that
6 out of 10 consumers purchase the Books, Comics & Audible categories, when consumers who have
smartphones use Amazon Japan.
The Food, Beverage & Alcohol categories which purchased by customers in Amazon Japan was the
22
second highest ratio in this graph. This result may suggest that when a customer purchases The Food,
Beverage & Alcohol categories at a supermarket, the products which is difficult for customer to carry
to their house is purchased in the Amazon Japan. In the previous chapter, Researcher discussed that
the benefits of customers using the BOPIS service are small about the Food, Beverage & Alcohol
categories
The Baby, Toys & Hobby, Drugstore & Beauty, Home & Kitchen & Pet & DIY, Electronics & Camera
categories were 5-6% in this graph. This result also suggests that when a customer purchases a product
at a real store, a product that is difficult for customer to carry to their house may have been purchased
in Amazon Japan.
The Clothing, Shoes & Jewelry categories is the lowest ratio in this research. Researcher suggested
that The Clothing, Shoes & Jewelry categories could be offered to customers only at real stores, based
on these results. The DVD, Music & Games categories was a high ratio in the survey of BOPIS users
of Amazon Japan, however it was a low ratio in the purchase situation at Amazon Japan. From this
result, The DVD, Music & Games categories shows that there are many customers who purchase using
the BOPIS service.
4.1.3 Analysis of products purchased using BOPIS in Amazon Japan
The product categories purchased by Amazon customers using BOPIS service in Japan are as follows.
Graph 4: Products purchase situation using BOPIS in Amazon Japan
23
The Books, Comics & Audible categories is the best product category which BOPIS service is used
most among users who purchase products in Amazon Japan. The Books, Comics & Audible categories
accounts for 35.7% of the whole. This result shows that 3 users select the Books, Comics & Audible
categories among 10 users who use BOPIS service in Amazon Japan.
The DVD, Music & Games categories were the No.2 product categories in BOPIS users who
purchase products in Amazon Japan. The DVD, Music & Games categories does not occupy a
particularly high ratio among users who purchase products in Amazon Japan. However, as a result of
investigating the purchase category of users who use BOPIS in Amazon Japan, researcher identified
that the DVD, Music & Games categories is frequently purchased by customers using BOPIS service.
In this research, researcher discovered that the Baby, Toys & Hobby Computers & Office and
Drugstore & Beauty categories account for similar proportions. The Home & Kitchen & Pet & DIY,
Electronics & Camera and Sports & Outdoors categories occupy a low ratio of less than 10% in this
research. This result suggest that these product categories do not have the features matching BOPIS
service in Amazon Japan.
Although not shown in this graph, there were no customers who purchased the Food, Beverage &
Alcohol categories using the BOPIS service. Hence, there is a high possibility that the Food category
does not have features matching the BOPIS service in Amazon Japan.
4.1.4 Correlation analysis of products purchased in Amazon Japan
Correlation analysis is to statistically analyze the correlation between two or more variables, one
relationship changes as the other changes accordingly. Researcher analyzed the correlation between
the product which the customer frequently purchases at Amazon Japan and the product which the
customer purchases using BOPIS service at Amazon Japan. The product category that customers
frequently purchase on Amazon Japan are the Books, Comics & Audible. The product category that
customers purchase mostly by using BOPIS service on Amazon Japan was the Books, Comics &
Audible too. The correlation analysis result using these two variables is as follows.
24
Table 1: Correlation analysis of products purchased in Amazon Japan
This table shows the correlation between product categories frequently purchased by customers in
Amazon Japan and product categories purchased using BOPIS service in Amazon Japan. Researcher
confirmed that the Books, Comics & Audible categories most purchased using BOPIS service has
strong correlation with Computers & Office, DVD, Music & Games, and Home & Kitchen & Pet &
DIY categories.
It shows that customers using BOPIS in Amazon Japan also purchase the Computers & Office, DVD,
Music & Games, and Home & Kitchen & Pet & DIY categories in Amazon Japan. If these product
categories match BOPIS service, these products are highly product categories that customers are likely
to purchase using BOPIS service.
Researcher analyzes the purchase unit price of customers who purchase the Books, Comics &
Audible categories in Amazon Japan as follows.
Graph 5: Purchase price of Book category purchased by customers at Amazon
N = 100
Baby, Toys
& Hobby
Books,
Comics
& Audible
Computers
& Office
Drugstore
& Beauty
DVD,
Music
& Games
Electronics
& Camera
Home &
Kitchen
& Pet &
DIY
Sports
& Outdoors
No Use
Baby, Toys & Hobby 1
Books, Comics & Audible -0.051546 1
Computers & Office 0.391254 0.5708992 1
Drugstore & Beauty -0.195652 -0.154638 -0.270868 1
DVD, Music & Games -0.203597 0.4827534 0.1315381 -0.203597 1
Electronics & Camera -0.139876 -0.110554 -0.193649 -0.139876 -0.145556 1
Home & Kitchen & Pet & DIY 0.173762 0.6592176 0.2405626 -0.208514 0.2603778 -0.149071 1
Sports & Outdoors -0.139876 -0.110554 -0.193649 -0.139876 -0.145556 -0.1 -0.149071 1
No Use -0.147562 0.9801976 0.4896949 -0.111756 0.4301761 0.0395606 0.6695217 -0.139626 1
25
Researcher identified that 72.4% of customers purchasing the Books, Comics & Audible categories
in Amazon Japan have chosen a price range of 1,000 to 3,000 JPY. In Amazon Japan, used books are
also sold in the Books, Comics & Audible categories, however customers who choose ~ 999 JPY were
15.5% in this research.
Researcher anticipates users who use the BOPIS service will have similar results from the viewpoint
of the correlation between products which customers frequently purchase in Amazon Japan and
products which customers purchase using BOPIS service in Amazon Japan. If a BOPIS user buying
the Books, Comics & Audible categories purchases Computers & Office, DVD, Music & Games, and
Home & Kitchen & Pet & DIY categories using the BOPIS service, researcher has identified that the
price range of 1,000 to 3,000 JPY is the most acceptable condition for these categories.
4.2 Analysis of the BOPIS user in Japanese retailer shop
Following the opening of the shop, more first-time customers begin purchasing in the direct channels.
This result suggests that adding a retail shop to direct channels yields different results from adding an
Internet channel to a retail shop channel (Jill Avery, et al 2012). In this chapter, researcher investigates
the Japanese customer usage situation of BOPIS service in Omni Channel operated by Japanese
retailers. In this research, researcher extracted companies that manage omni-channel in the Japanese
market as follows. All of this company develops BOPIS service with its own resources.
SEVEN ELEVEN Japan: This company run a major convenience store in Japan, and
develop Omni7 which is their own omni channel market cooperate with other
Japanese retailers (Loft, Akachan Honpo, Ito-Yokado, Seibu)
Bic camera: One of the most popular electronics shops in suburb and cities area of
japan.
Yodobashi camera: This company run famous electronics shops in town area of Japan.
Rakuten: This company run famous online shopping website in Japan.
The status of the usage situation of BOPIS service by Japanese customer is as follows. This graph
shows that customers who have experienced purchasing products in Amazon Japan are receiving
similar services at Japanese retailers.
26
Graph 6: BOPIS User who use Japanese Retailer omni channel
From this result, among customers who purchase products in Amazon Japan, about 21% used
Japanese companies' BOPIS service. Researcher confirmed that about 78.8% of Japanese customers
have no experience of using BOPIS service in Japanese retailer. Yodobashi.com's BOPIS service used
6% of customers, however customers using BIC.com`s BOPIS service was only 1%. From this result,
researcher founds that Yodobashi.com which has many real stores in the city area is more acceptable
to BOPIS users than BIC.com.
Omni 7 is a BOPIS service provided by Seven Eleven Inc, which runs the best convenience stores in
Japan, however the ratio to the whole was only 4% user of their Omni 7 BOPIS service. From this
result, even if the customer is able to choose the pickup store from many BOPIS services, it is expected
that variations of products that can be purchased on the website and corporate image are more likely
to attract BOPIS users for Japanese retailer.
27
4.2.1 Usage situation of Seven Eleven's BOPIS service in the Japanese market
The usage status of the omni channel strategy provided by 7-Eleven is as follows.
Graph 7: Usage situation of 7-Eleven 's BOPIS service in the Japanese market
This graph shows that Customers using BOPIS services at 7-Eleven are 6% of the total survey. 7-
Eleven runs the most famous convenience store in Japan, and the number of stores is the largest in
Japan. This result indicates that 7-Eleven is able to prepare the most BOPIS pickup place for Japanese
consumers.
Family Mart, Lawson, and Mini stop are the BOPIS pickup places for Amazon Janan`s BOPIS service.
Even with these convenience stores summed up, 7-Eleven have more convenience store as their
resource compared these stores. However, customers who use 7-Eleven as a place to receive BOPIS
are only 6% of the total. According to Michael Peterson, et al (2009), marketers need to optimize the
online channel, which is fast becoming the primary platform for accessing product and service
information and completing a growing number of transactions. 7-Eleven could potentially promote
BOPIS service by using its own store. In addition, 7-Eleven has fewer product categories available for
sell than Amazon Japan. From this result, researcher identified that Amazon Japan and Omni 7 operate
BOPIS which prepare the similarly convenience store channel as a pickup point for BOPIS service,
however the usage situation of customers is different.
4.2.2 Usage situation of Bic camera`s BOPIS service in the Japanese market
Bic camera is a famous electronic retailing business in Japan and has stores in town and country area
of japan. According to Lanlan Cao (2014), the presence of online shops pushed retailer to restructure
28
its physical shop network to avoid cannibalization and maximize the synergy across channels.
Researcher thought the BIC camera was a good example of Lanlan's idea. The ratio of customers using
the BOPIS service managed by BIC camera is as follows.
Graph 8: Usage situation of Bic camera`s BOPIS service in the Japanese market
Customers using the BOPIS service with BIC camera are 7% of the total survey. Bic camera is good
at business as a retail business, however there may be room for improvement for BOPIS service in the
online market.
According to Santiago Gallino, et al (2014), it is possible BOPIS implementation does not result in
such a substantial shift from the online channel to the store channel. As a result of analyzing the BOPIS
user of the BIC camera, researcher identified that BIC camera online users do not shift to the real shop.
They sell home appliances in real stores. They are good at delivering those stocks directly from the
warehouse to the customer if they receive order from customer in online market. However, this result
shows that it is not the mainstreams for customers who purchased products from their website and
pick up it in their real store. Furthermore, the BIC camera has a real store in the local area. Japanese
customers living in local areas tend to be far away from their homes to real stores compared Japanese
customers living in town areas. For this reason, it can be expected that few customers use the BOPIS
service by using the real store of the Big Camera in the local area.
According to Sunil (2015), the physical channel is able to also serve as a showroom and pickup
29
location for the online channel. This hybrid structure will be able to be particularly effective in
emerging markets where new online players are able to partner with existing local retailers to benefit
both parties and the consumer. There is also a possibility that the needs of the function as the physical
channel may be higher than the customer using the BOPIS service in the BIC camera.
4.2.3 Usage situation of Yodobashi camera's BOPIS service in the Japanese market
Yodobashi Camera is a famous home electronics retailing business in Japan and has stores in city
area. The customers who receive products purchased with BOPIS service by Yodobashi.com are as
follows.
Graph 9: Usage situation of Yodobashi camera's BOPIS service in the Japanese market
Customers using BOPIS services at Yodobashi.com are 14% of the total survey. Yodobashi Camera
is characterized by a high percentage of customers who use BOPIS service in the entire Japanese
market. According to Claas M, et al (2006), next to mirroring offline offerings in the online channel,
multi-channel retailer exploits the absence of the physical constraints they face in traditional retail
outlets by offering a wider range of products and services in the online than in the offline channel, thus
becoming online category killers. Researcher thought the Yodobashi camera was a good example of
Clsss's idea.
In this research, it shows that 28% of customers use BOPIS service in Amazon Japan. Yodobashi.com
covers about half of BOPIS users in Amazon Japan. This feature indicates that retailers with real stores
30
in city areas have a good environment matched with BOPIS service. Compared to the BIC camera
which operates the same likes business, the number of BOPIS users of Yodobashi camera is about
twice of BIC camera`s BOPIS user. From this result, retailers with real stores in city areas can attract
customers who purchased products from their website to real stores.
According to Hongyan et al (2017), Online-to-offline (O2O) is a new form of EC which enables
customers to place orders online and receive products or services offline, especially applicable to
services that demand immediate or timely fulfillment. Yodobashi.com may offer Japan's most
advanced O2O service to Japanese customers.
4.2.4 Usage situation of Rakuten's BOPIS service in the Japanese market
Rakuten is the most famous company developing online malls in Japan. The usage status of Rakuten's
BOPIS service is as follows.
Graph 10: Usage situation of Rakuten's BOPIS service in the Japanese market
Customers using Rakuten BOPIS service are 1% of the whole survey. Regarding Rakuten it is a
company that operates a famous online mall in Japan, however this research shows that it is a difficult
situation for developing BOPIS service in Japanese markets. Since Rakuten consigns the BOPIS
service to other companies, it is difficult for users using Rakuten services to understand the usage of
the BOPIS service. Rakuten also offers its own delivery method that matches the merit of Rakuten
users. For these reasons, the ratio of users using Rakuten BOPIS may be low.
The case such as Rakuten shows online retailers that do not require the introduction of BOPIS service.
By building their own delivery channels, they offer services that are more beneficial to customers than
BOPIS services. For example, the delivery service offered by them is characterized by early product
31
arrival and package compactness or so. Rakuten is also aware of the importance of logistics and has
changed the method of strengthening logistics. Rakuten cooperated with the Japanese post office
company and set up a locker for BOPIS service at their branch office. Rakuten users are characterized
by a very high ratio of women. Rakuten sets up their lockers in various places such as stations and
branches as a countermeasure against cases where it is difficult for a female user to receive products
at home on weekdays or if they feel resistant to coming to the delivery in the middle of the night. From
these actions of Rakuten, Researcher have identified that few users use Rakuten's BOPIS service.
4.2.5 Regression analysis of Amazon's BOPIS users and Japanese retail BOPIS users
Regression analysis means expressing the objective variable Y(dependent variable) with an
expression using the explanatory variable X (independent variable). Regression analysis predicts one
objective variable with one explanatory variable and expresses the relationship between the bivariate
in the form of a linear equation “Y = aX + b”. If it is a (slope) and b (Y intercept) in this equation, it
is able to predict Y from X.
In this research, researcher set the objective variable Y the amount of Yes BOPIS user, and the
explanatory variable X to the amount of No BOPIS user. The number of BOPUS users using BOPIS
services managed by Japanese retailers is as follows.
Table 2: The number of BOPUS users using BOPIS services managed by Japanese retailers
The result of the regression analysis related to the number of these customers is the following.
Japanese Retailer No / BOPIS in Amazon Yes / BOPIS in Amazon TTL
Bic.com 1 0 1
BOPIS for Rakuten 0 1 1
Omni 7 2 2 4
Other 4 2 6
Yodobashi.com 2 7 9
No use 61 16 77
TTL 70 28 98
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Table 3: The regression analysis for user using BOPIS services managed by Japanese retailers
This regression result shows that the value of R (Pearson’s correlation coefficient) is 0.94, which
suggests there is a positive linear relationship between the amount of No BOPIS user (independent
variable) and the amount of Yes BOPIS user (dependent variable).
The R square value is 0.892, which infers that 89.2% of the variance in the amount of Yes BOPIS
user (dependent variable) is explained by the amount of No BOPIS user (independent variable). The
closer the value is to 1 then the better the regression line fits with the data.
Adjusted R Square shows how many% of the event can be explained in this model. As this numerical
value is closer to 1, it indicates that it is a perfect model. Adjusted R Square of this regression analysis
was 0.871490513. This result shows that the amount of Yes BOPIS user in Amazon Japan can be
explained from the amount of No BOPIS user.
The F test confirms how statistically significant (reliable) the data is. The significance F value is
0.00132623, which is less than 0.05. Similarly, the p value is 0.0013263, which is less than 0.05,
therefore the results are statistically significant.
The coefficient is used to form the regression line formula:
Y = 0.3X + 1.698
This means that:
the amount of Yes BOPIS user = 0,3 * (the amount of No BOPIS user) (dependent variable)
(Independent variable) + 1.698 For each unit increase the amount of No BOPIS user, the amount of
Yes BOPIS user increase by 0.3 units. The p-value for the amount of No BOPIS user (independent
variable) is 0.0013263 which is also smaller than the alpha value of 0.05.
The t-stat tests the null hypothesis that the coefficient is zero, which suggests that there is no
correlation between the two variables. Since the p-values for both the intercept and difference the
SUMMARY OUTPUT
No / BOPIS Yes / BOPIS TTL
Regression Statistics Bic.com 1 0 1
Multiple R 0.944938496 BOPIS for Rakuten 0 1 1
R Square 0.892908761 Omni 7 2 2 4
Adjusted R Square 0.871490513 Other 4 2 6
Standard Error 3.731201027 Yodobashi.com 2 7 9
Observations 7 No use 61 16 77
Y = 0.3X+1.698 TTL 70 28 98
ANOVA
df SS MS F Significance F
Regression 1 580.3906945 580.3907 41.68915997 0.0013263
Residual 5 69.60930551 13.92186
Tatal 6 650
Coefficients Standard Error s Stat P-value Lower 95% Upper 95% Lower 95% Upper 95%
Intercept 1.698255217 1.715054156 0.990205 0.36754209 -2.710431844 6.106942279 -2.710431844 6.106942279
the amount of No BOPIS user 0.315087239 0.048799935 6.456714 0.0013263 0.189643013 0.440531465 0.189643013 0.440531465
33
amount of No BOPIS user are many times smaller than the significant level of 0.05, it can be concluded
that the coefficients are statistically significantly different from zero and so the regression model is
valid.
4.3 Analysis of the BOPIS early adopter characteristics in Japan
In this chapter, researcher identifies the early adapters that are using BOPIS service among Japanese
customers. According to E. M. Rogers (1962), Early Adopters are people who enjoy leadership roles,
and embrace change opportunities.
By analyzing the characteristics of the early adapter using BOPIS in the Japanese market, there is a
possibility that researcher could identify how to effectively promote BOPIS services to Japanese
customers. Diffusion on innovation model developed by E. M. Rogers in 1962. It is one of the oldest
social science theories. It came from communication that over time, how the ideas and products gained
momentum, explaining how to diffuse (or diffuse) through specific populations and social systems.
These sections are able to classify five parts.
Figure 4: Diffusion on innovation model
This model shows how the company`s product is able to expand their market share if they develop
products from the viewpoint of targeting customers who belong to which part in the market. The
innovator challenges to accept new services and technologies when it launched onto the market at the
first time. after that, Early adapters consider their behavior based on the innovators action, and
takeovers the same action likes innovators. Early majority refers to the behavioral result of early
adapter and selects whether to accept the product or service. In this way, actions spread from
innovators to Early Majority will promote new products or service products in the consumer market.
Previous chapter 4-2 shows that about 28% of customers who used BOPIS service in Amazon Japan.
In this chapter, researcher investigate whether customers using BOPIS in Amazon Japan are using
BOPIS services operated by Japanese retailers. Moreover, researcher analyzes regression analysis on
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products purchased by customers using BOPIS in Amazon. Researcher investigates deeply about
product categories that customers purchase using Amazon BOPIS most in Amazon Japan.
4.3.1 Analysis of purchase categories of BOPIS users who use BOPIS in other Japanese retailers
when using BOPIS
Researcher investigated what kind of product category purchased by Amazon Japan BOPIS users
who use BOPIS service in Japanese retailor. This research shows what kinds of product categories the
Japanese retailer is able to prepare as a product and attract customers.
Graph 11: Purchase categories of BOPIS users who use BOPIS in other Japanese retailers when using
BOPIS
The Books, Comics & Audible and DVD, Music & Games categories account for a high percentage
of the whole, and this ratio occupies almost half of the share. Based on these results, researcher
identified that customers who use BOPIS service in Amazon Japan purchase the Books, Comics &
Audible and DVD, Music & Games categories with confidence.
In Amazon Japan, the most popular product category purchased using Japanese BOPIS service is the
Books, Comics & Audible categories.
However, in this research, researcher finds that customers who use BOPIS services of Japanese
retailers purchase the DVD, Music & Games categories of the same volume as the Books, Comics &
35
Audible categories.
In this research, the percentage of the Drugstore & Beauty categories as a whole is 16.7%. The
Drugstore & Beauty categories is a lower priority to use the BOPIS service in Amazon Japan. However,
in this research, researcher found cases in which customers using BOPIS services of Japanese retailers
purchase Drugstore & Beauty categories using the BOPIS service.
According to Erik B. et al (2009), information technologies and Internet markets in particular have
reduced consumer search costs. As a result, niche products account for a large percentage of Internet
sales.
The Sports & Outdoors, Electronics & Camera, Computers & Office, Baby, Toys & Hobby categories
were the same ratio. The proportion of those product categories are 8.3%.
In this research, researcher was unable to discover cases where customers using BOPIS services of
Japanese retailers purchase the Food, Beverage & Alcohol categories using BOPIS service in Amazon
Japan.
4.3.2 Regression analysis of product categories purchased on Amazon and BOPIS utilization
product categories
In this research, the sum of product categories purchasing objective variable Y using BOPIS in
Amazon Japan is the sum of product categories purchased in Amazon Japan. The scatter plot of these
variables is as follows.
Graph 12: BOPIS User in Amazon Japan market
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From this graph, researcher found a strong numerical association in the Books, Comics & Audible
categories. Customers who purchase the Books, Comics & Audible categories in Amazon Japan and
customers who purchase the Books, Comics & Audible categories using Amazon BOPIS service in
Amazon Japan are strongly related.
Moreover, although researcher could not confirm strong associations like the Books, Comics &
Audible categories, researcher could confirm the average relevance in other product categories.
Next, the results of regression analysis related to the number of customers in these product categories
are as follows.
Table 4: The regression analysis for the number of customers in each product categories
This regression result shows that the value of R (Pearson’s correlation coefficient) is 0.92, which
suggests there is a positive linear relationship between Amount of BOPIS user by product category in
Amazon Japan (independent variable) and Amount of Customer by product category in Amazon Japan
(dependent variable).
The R square value is 0.862, which infers that 86.2% of the variance in Amount of Customer by
product category in Amazon Japan (dependent variable) is explained by Amount of BOPIS user by
product category in Amazon Japan (independent variable). The closer the value is to 1 then the better
the regression line fits with the data.
Adjusted R Square shows how many% of the event can be explained in this model. As this numerical
value is closer to 1, it indicates that it is a perfect model. Adjusted R Square of this regression analysis
was 0.845376. Hence, this regression analysis indicates that it is a perfect model
The F test confirms how statistically significant (reliable) the data is. The significance F value is
0.00010345, which is less than 0.05. Similarly, the p value is 0.0001, which is less than 0.05, therefore
Regression Statistics
Multiple R 0.92873963
R Square 0.862557301
Adjusted R Square 0.845376963
Standard Error 1.16942 5012
Observations 10
Y = 0.73X+0.746
ANOVA
df SS MS F
Significance F
Regression 1 68.65956113 68.65956 50.20607 0.00010345
Residual 8 10.94043887 1.367555
Tatal 9 79.6
Coefficients Standard Error s Stat P-value Lower 95% Upper 95% Lower 95% Upper 95%
Intercept 0.746081505 0.469873174 1.587836 0.150986 -0.33744798 1.829610988 -0.33744798 1.829610988
Amount of Customer by product category
in Amazon Japan
0.73354232 0.10352543 7.085624 0.0001 0.494812251 0.972272388 0.494812251 0.972272388
37
the results are statistically significant.
The coefficient is used to form the regression line formula:
Y = 0,73 X + 0.746
This means that:
Amount of BOPIS user by product category in Amazon Japan = 0,73 * (Amount of Customer by
product category in Amazon Japan) (dependent variable) (Independent variable) + 0.746
For each unit increase Amount of BOPIS user by product category in Amazon Japan, Amount of
Customer by product category in Amazon Japan increase by 0.73 units.
The p-value for Amount of Customer by product category in Amazon Japan (independent variable) is
0.0001 which is also smaller than the alpha value of 0.05.
The t-stat tests the null hypothesis that the coefficient is zero, which suggests that there is no
correlation between the two variables. Since the p-values for both the intercept and difference
Amount of Customer by product category in Amazon Japan are many times smaller than the significant
level of 0.05, it can be concluded that the coefficients are statistically significantly different from zero
and so the regression model is valid.
4.3.3 Analysis of BOPIS location and product unit price of Books, Comics & Audible categories
Researcher analyzed the price range of customers who purchase the Books, Comics & Audible
categories using BOPIS service in Amazon Japan.
Graph 13: unit price of the Books, Comics & Audible categories about BOPIS User
38
The price range most frequently purchased in the Books, Comics & Audible categories which
customers purchased using BOPIS service in Amazon Japan was 1,000 ~ 3,000 yen. The ratio of the
price range of ~ 999 yen was 30%. From this result, researcher identified that the price range of
products purchased mainly by BOPIS service in Amazon Japan is less than 3000 yen.
Researcher identified that the Books, Comics & Audible categories purchased using Amazon's
BOPIS service is the same as the average unit price of books sold at real shops such as book stores.
BOPIS service is not just a service that provides convenience to consumers. In some cases, customers
who come to stores to use the BOPIS service may purchase additional products at real stores. Moreover,
customers who came to the store may purchase products of the same category as products purchased
with BOPIS service too.
Next, the researcher investigated the nearest pickup place from the customer's home who purchases
the Books, Comics & Audible categories using BOPIS service in Amazon Japan.
Graph 14: BOPIS location of Books, Comics & Audible categories about BOPIS User
Amazon Japan offers customers Yamato, Family Mart, Lawson and Mini stop as a pickup place for
BOPIS service. In this research, Yamato and Mini stop were not the closest receiving place from the
user’s house purchasing the Books, Comics & Audible categories. The nearest pickup place from their
house was Family Mart.
Researcher have identified that Yodobashi Camera, which has many stores in city areas, is the most
39
used for customers in BOPIS service in Japan's retailer. However, there is almost no difference
between Family Mart and Lawson as a place to receive BOPIS service of Amazon Japan. Both
convenience stores have many stores in city area of Japan. Researcher considers the possibility that
Family Mart's point card service is affecting as a reason why Family Mart is supported by Amazon
Japan's BOPIS users. Customers using the BOPIS service pay the price of products at Family Mart.
At this time, when the customer presents a Family Mart point card, points of several percentage points
are given to the customer's point card from the price of the product which purchased in Amazon Japan.
The points granted are able to be used by customers when purchasing products at Family Mart. For
these reasons, researcher has identified that many users using Amazon Japan 's BOPIS service are
more likely to choose Family Mart from other channels.
From this result, researcher identified that if Japanese retailers would like to expand their BOPIS
pickup place, it would be most effective to cooperate with Family Mart. Moreover, researcher also
discovered that if Japanese retailers could offer the Books, Comics & Audible categories like Amazon
Japan on their website, they could also gain access to their website.
4.4 Summery
Online shopping attracts to consumers for its convenience, information abundance, and possible
lower price. Spurred by rapid development and expand of Internet and mobile technologies, online
shopping has expanded exponentially (Elnaz J A et al 2015). Researcher was able to prove the
following research hypotheses from the results of this analysis.
Among customers who purchased products using BOPIS service in Japan is 28% of the total ratio.
Customers purchasing products using BOPIS services operated by Japanese retailers is 21% of the
total ratio. Customers purchasing products using the BOPIS service of Amazon Japan and Japannese
retailers accounted for 12% of the total ratio.
From these results, researcher has proved that about 12% of Amazon Japan users who are most using
BOPIS service exist in online Japanese markets. Hence, the hypothesis of researcher in this research
is proved. Next, the researcher identified that 12% of BOPIS early adopters in the Japanese market
purchased the Books, Comics & Audible and DVD, Music & Games categories in Amazon Japan with
a 50% chance and received with Family Mart with a 70% chance. Based on these results, researcher
is expecting Japanese retailers who construct an omni channel market which matches the
characteristics of purchasing BOPIS early adapter.
40
5.0 Conclusion and Recommendations
5.1 Conclusions
In this research, researcher was able to analyze BOPIS users in the Japanese market and identify the
characteristics of the early adapter among them. They purchase products freely in the online market
using both BOPIS service of Amazon Japan and BOPIS service of Japanese retailer. Researcher
discovered common points the customer`s behavior of purchasing products using BOPIS service in
Amazon Japan. From this result, researcher has drawn the conclusions of the research purpose.
In addition, researcher could effectively verify purchasing behavior of customers using BOPIS in
Japan Amazon. Products which sold in Amazon Japan are classified into about 11 product categories.
Researcher categorized the products purchased using the BOPIS service and products not purchased
from the product category in Amazon Japan. Researcher also investigated the same verification for
purchasing behavior of customers using BOPIS in Japan's retailer. Four retailers provide BOPIS
service in Japan. By classifying the product categories sold by these companies into product categories
of Amazon Japan, researcher was able to identify the product categories purchased using the BOPIS
service in Japan's retailer. Hence, researcher could achieve great results in this research.
5.2 Relationship of Objectives
5.2.1 Analysis about the characteristics of BOPIS users on the Japanese Amazon market, further
to investigate the product categories they purchase
Researcher identified in this research that 28% of customers purchase products using Amazon BOPIS
service in Amazon Japan. They are able to access the Internet from smartphones, select products,
purchase products and pickup them at the pickup place where is the nearest from their house. Moreover,
Researcher investigated what kinds of product categories these BOPIS users selected in Amazon Japan.
As a result of this research, researcher proved that 10% of users who purchase the Books, Comics &
Audible categories using Amazon BOPIS service in Amazon Japan. 90% of BOPIS users purchasing
the Books, Comics & Audible categories in Amazon Japan purchase products under 3,000 Yen, and
70% pickup products at Family Mart. Moreover, researcher investigated users who use the BOPIS
service of Japanese retailer among users who use the BOPIS service in Amazon Japan. From the results
of this research, researcher identified that 12% of the users who use both BOPIS services in Amazon
41
Japan and Japanese retailer. From these results, researcher was able to investigate the following points.
· Amazon Japan BOPIS users are 28%.
· 10% of BOPIS users who buy the Books, Comics & Audible categories in Amazon Japan purchase
products with 90% less than 3000 Yen and 70% pickup products at Family Mart.
· 12% of users using BOPIS in both Amazon Japan and Japanese retailer.
This result revealed that many users who use Amazon Japan 's BOPIS service purchase the Books,
Comics & Audible categories and choose Family Mart as place to receive. On the other hand,
becoming the existence of customers with these characteristics to clear, researcher was able to identify
purchase status of product categories other than the Books, Comics & Audible categories purchased
by customers in Amazon Japan. In addition, researcher found product categories purchased by
customers without using BOPIS service in Amazon Japan. From these points, researcher analyzed the
characteristics of BOPIS users in the Japanese Amazon market and identified the most categorized
product categories. Hence, researcher was able to succeed this research purpose from these findings.
5.2.2 Analysis about the characteristics of BOPIS users in Japan's online retailer shop moreover
to investigate the product categories they purchase
In this research, researcher identified 21% of customers using BOPIS services in Japan's retailer.
Moreover, the BOPIS service of the Japan`s retailer most used for customers was Yodobashi camera.
BOPIS users using Yodobashi.com was 9.09%. Researcher analyzed product categories purchased in
Amazon Japan by users using BOPIS services in Japan's retailer. The product categories that they
purchase most in Amazon Japan are the Books, Comics & Audible and DVD, Music & Games
categories, both of which are about 25%.
From these results, researcher was able to investigate the following points.
· The most used service by BOPIS service in Japan's retailer is Yodobashi.com.
· Product categories that are most likely to be sold in the BOPIS service of Japanese retailers are the
Books, Comics & Audible and DVD, Music & Games categories.
42
Researcher was able to identify the spread of Japan's retailer BOPIS service to the Japanese market.
The share of users using Amazon Japan BOPIS service and the share of users using BOPIS service in
Japan's retailer were more than 20% of the total ratio respectively. The BOPIS service in Japan's
retailer was introduced to the Japanese market later than Amazon Japan, however there was no big
difference in market share each other. Researcher has suggested that there is room for improvement
concerning expansion of Japanese retailer`s BOPIS services other than Yodobashi.com into the
Japanese market. Researcher identified purchasing categories which the largest among Japanese
retailers' BOPIS were the Books, Comics & Audible and DVD, Music & Games categories.
Researcher hopes that this result will be useful information for Japanese book stores and DVD shops
when they need to build a new omni channel.
From these points, researcher analyzed the characteristics of BOPIS users of Japanese online retailers
and identified products that customers most frequently purchase. Hence, researcher succeeded in
investigating the purpose of this research based on these findings and was able to fully discuss the
purpose of this research too.
5.2.3 Analysis about how BOPIS approach affects customers' purchasing decisions in the
Japanese consumer market and survey what products are compatible with the BOPIS service in
the Japanese Amazon market
Researcher analyzed customer's impact on purchase decision making for customers who do not use
BOPIS service in Amazon Japan. In this research, researcher identified reasons for customers who do
not use the BOPIS service.
43
Graph 15: Reasons not to use BOPIS service
Surprisingly, 80% of customers who do not use the BOPIS service in Amazon Japan already knew
the BOPIS service. Researcher has identified facts that are easier for services that they deliver directly
to their homes than they use BOPIS services by customer. Moreover, researcher investigated that 70%
of customers are not considering using BOPIS service of Amazon Japan.
From this result, researcher considers that Japanese customers need to understand the merits of
BOPIS service. Many Japanese customers expect shippers to deliver goods quickly and accurately
rather than using the BOPIS service. Japanese shippers have improved their service levels to meet for
these customer needs. However, due to the influence of service requests from excessive customers
recently, Japanese shippers feel the limit of improvement of their business model. For these reasons,
it is possible to predict that Japanese shippers may demand customers a wage equivalent to their
service level. Researcher expects Japanese consumers to consider using BOPIS services from the
results of this research.
Next, researcher analyzed product categories purchased by customers who want products delivered
to their homes without using the BOPIS service.
44
Graph 16: Product categories purchased by customers wishing to deliver to the house
Researcher identified that the most BOPIS service unused in Amazon Japan is the Books, Comics &
Audible categories. The ratio of this category is 64.3% of the total. Researcher investigated that the
second largest of BOPIS service unused is the Food, Beverage & Alcohol categories. The ratio of this
category is 10.7% of the total. From these results, researcher was able to investigate the following
points.
· 80% of customers who do not use BOPIS service in Amazon Japan wish to deliver products to their
homes directly.
· 64.3% of Amazon customers who do not use BOPIS service in Japan purchase the Books, Comics
& Audible categories.
From these points, researcher analyzed how Japanese customers decide to purchase by the BOPIS
approach and identified the possibility that Japanese retailers are able to sell product categories which
purchased by customers in Amazon Japan.
For example, book stores and DVD stores have opportunities to sell their products to customers using
BOPIS services. They are able to effectively approach BOPIS users by collaborating with Amazon
Japan to introduce BOPIS services or to build their own omni channel market. On the other hand,
researcher was unable to identify effective approaches to supermarkets and clothing shops customers
using BOPIS services. Especially the introduction of supermarket BOPIS service has many difficult
matters. They need to cover the fixed costs, shipping costs, and administrative expenses of BOPIS
services with the profits collected from BOPIS users only. It is still difficult to solve this problem in
45
the Japanese market. Researcher could classify retail industries in which BOPIS services function
effectively and discuss their respective effects. Hence, researcher succeeded in identifying the purpose
of this research from these findings.
5.3 Recommendations
Effective approach to BOPIS users of Amazon Japan
The result of this research shows the possibility that Amazon Japan will be able to make an effective
approach to users using BOPIS service in Amazon Japan. Since BOPIS service uses real stores as the
receiving place of products, it is possible to lower the time and price cost spent on delivery compared
with direct delivery to customers. Moreover, since customers go to real stores to pick up products, it
will happen opportunities for products to be purchased at real stores by customer. The convenience
store which operate as a pickup place will be able to get this merit. Moreover, customers using the
BOPIS service do not have to wait for products to be delivered to their homes. They will be able to
receive the product at the pickup place at the timing when they want to pick up it.
72% of customers are likely to gain the benefits of such BOPIS services. It is important for Amazon
Japan to propose the merits of BOPIS to these customers. Researcher has already identified that 10%
of BOPIS users in Amazon Japan purchase the Books, Comics & Audible categories, 70% of which
are receiving products at Family Mart. From this result, to accelerate the provision of BOPIS services
in Amazon Japan, they need to cooperate with Family Mart in order to make it easier to purchase
products at Family Mart stores.
Effective approach to BOPIS users of Japanese retailers
The result of this research shows the possibility that Japanese retailers will also be able to make
effective approaches to customers using BOPIS service in Amazon Japan. There were 21% of
customers who used BOPIS service in Japan's retailer. About the remaining 79% of customers who
they do not use the BOPIS service, Japanese retailers have the opportunity to draw this customers into
their omni channel. The product category that BOPIS service is most used in Amazon Japan was the
Books, Comics & Audible categories. From these results, Japanese retailer can accelerate the use of
customers' BOPIS services by selling product categories similar to those of Amazon Japan at their
online malls.
46
Effective omni channel strategy of Japanese retailer
Japanese retailers have many real stores in japan. With customers receiving products sold on the
Internet at their real store, Japanese retailers will be able to attract customers to real stores. Moreover,
80% of customers who do not use BOPIS service in Amazon Japan wish to deliver product to their
homes. From this result, retailers which have many real stores in Japan will be able to further accelerate
the use of BOPIS services by covering this need. By centrally managing inventory of real stores and
stocks of warehouses, Japanese retailers can deliver products from closest real stores to their
customers' homes. This service matches the needs of customers who want products to be delivered to
their homes quickly. As a recommendation for this research, researcher suggests the effectiveness of
BOPIS services and omni channel strategy provided by Japanese retailers in this way.
5.4 Research Limitations
As a research limitation, Researcher was considering time constraints in this research. Although the
time spent on this research may not have been sufficient, researcher could effectively survey within
limited time resources. The questionnaire collected by researcher needed to gather more detailed
quantitative data from targets. Researcher may need to make quantitative data on how Japanese
customers understood the BOPIS service. Researcher had room to discuss the contents of the
questionnaire question. Moreover, researcher also had to gather qualitative data from customers in
interviews.
Since this research focuses on BOPIS service in Amazon Japan, there is a possibility that the BOPIS
service managed by other Japanese retailer may not be analyzed in detail. From these point of
limitations, researcher provide suggestions for future research.
5.5 Suggestions for Future Research
This research found that the BOPIS service has not been recognized as a major service in Japan yet.
Researcher consider the needs which concentrate on BOPIS service product categories used in
Amazon Japan and verify the omni channel strategy which can use BOPIS services in other product
categories.
Researcher identifies that 80% of Amazon`s BOPIS user do not use the BOPIS service managed by
Japanese retailers. Researcher feels some reasons that there are tight constraints from customers on
Japan's specific delivery service. Researcher recognizes that this research is the limitation and suggest
that future researchers focus on these issues. In the future, BOPIS researchers will be able to focus on
the use of BOPIS services in product categories other than the Books, Comics & Audible categories,
and verify if BOPIS services in specified retailers in Japan.
47
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