Generational Differences in Perceived Value in Showrooming: Examining Offline Search, Online Purchase Benefits, and Consumer Factors

Purpose: Technology advancement has made customers practice a new habit where they inspect products in physical stores, i.e., through an offline channel, before purchasing the same product through online channels (i.e., through websites or apps), and this is known as showrooming. This research paper focuses on generational differences, particularly Gen Z and Gen Y.

Methods: Data were collected from 1,000 female respondents in India belonging to the Gen Y and Gen Z age groups who were involved in the purchase of makeup and colour cosmetics products, with 804 valid responses retained after excluding incomplete questionnaires. Judgmental sampling was adopted because of the nature of the study, as this research needed participants who had prior showrooming experience. For analysis purposes, MICOM and MGA techniques were used.

Findings: The findings reveal generational differences in perceived value: price consciousness significantly influences Gen Y consumers, whereas the need for touch and social interaction exerts stronger effects among Gen Z shoppers. Both generations, however, demonstrate similar preferences toward technology-based features such as AI-based chatbot problem solving and entertainment through smart shopping carts.

Implications: This study contributes to the literature of retail management by examining a new type of buying behaviour known as showrooming. The findings indicate that Gen Z and Gen Y behave differently in some aspects but similarly when it comes to technology. Retailers, entrepreneurs, and managers can develop strategies based on these findings in order to attract more customers and satisfy their needs.

Originality: This research makes use of MICOM and MGA techniques to study the behaviour of different generations while practicing the showrooming phenomenon, which is one of its kind.