Cross-channel free-riding consumer behavior in a multichannel environment: An investigation of shopping motives, sociodemographics and product categories

• We study the potential relation between channel and retailer switching behavior during the decision-making process stages.
• We identify shopping motives and sociodemographics that characterize the cross-channel free-rider consumer segment and explore the effect of product characteristics on cross-channel free-riding.
• The likelihood of free-riding is higher when consumers adopt cross-channel rather than single-channel behaviors.
• Cross-channel free-riders mainly seek to fulfill price comparison and flexibility needs.

Cross-channel free-riding, in which consumers use one retailer′s channel to prepare a purchase and then switch to another retailer′s channel to purchase, can substantially erode profit margins. This research aims to understand such free-riding from a consumer empowerment perspective, investigating shopping motives and sociodemographic covariates, as well as how this behavior might differ across product categories. A survey study of decision-making behavior shows that cross-channel free-riders mainly seek to fulfill price comparison, convenience and flexibility needs. The likelihood of free-riding is higher when consumers adopt cross-channel rather than single-channel behavior, which highlights a negative outcome of multichannel retailing. The likelihood of cross-channel free-riding differs across products but not sociodemographic covariates. The findings can be used to develop recommendations for managing retention strategies.