How to Survive in a Digital World? A Comprehensive Analysis of Success Factors for Brick-and-Mortar Retail Stores: An Abstract

Abstract

Digital technologies reshape customer behavior. Currently, many customers are shifting their searches about new products, their communication about it, and consequently their buying actions to online channels. Therefore, traditional brick-and-mortar retailers face a massive wave of new online competitors to whom they are continuously losing customers. Past research about this highly relevant issue is deficient as it lacks a comprehensive strategy on how brick-and-mortar retail stores can survive in this new digital world on a long-term and customer-oriented basis. The aim of this research project is to identify measures brick-and-mortar retailers can take to prevent the additional loss of customers to their competitors. To do so, the authors model the real-life decisions of customers between the online and offline retail channels. They investigate the reasons why customers choose brick-and-mortar retailers over online stores. Building on these reasons, the authors derive competitive advantages traditional retailers can profit from potentially. These insights offer important implications for the survival of brick-and-mortar retailers in a digital environment.