Share:


Multiple criteria approach applied to digital transformation in Fashion stores: the case of physical retailers in Spain

    Miguel Llorens   Affiliation
    ; Ramon Carrasco   Affiliation
    ; Itzcóatl Bueno Affiliation
    ; Enrique Herrera-Viedma Affiliation
    ; Juan Antonio Morente-Molinera Affiliation

Abstract

In a very open competitive context where pure online players are consistently gaining market share, the use of digital devices is a steady trend which is penetrating physical retail stores as a tool for retailers to improve customer experience and increase engagement. This need has increased with the COVID-19 pandemic as electronic devices in physical stores reduce the contact between people providing a greater sense of health safety, hence improving the customer experience. This work develops a multiple-criteria decision-making model for retailers who want to digitize their physical stores, providing a systematic approach to manage investment priorities in the organization. Important decisions should involve all different areas of the organization: Finance, Clients, Internal Processes and Learning & Growth departments. This strategic decision can be made hierarchically to obtain consistent decisions, also the use of the Order Weighted Average operator allows for alternative scenarios to be presented and agreed among the different areas of the business. The authors develop a use case for a Spanish fashion retailer. In the most widely agreed scenario the preferred devices were more technologically complex and expensive, while in the scenarios where the head of Finance is more predominant, cheaper and simpler devices were selected.

Keyword : store digitization, multiple-criteria decision making, customer experience, in-store technology, interactive marketing, retail

How to Cite
Llorens, M., Carrasco, R., Bueno, I., Herrera-Viedma, E., & Morente-Molinera, J. A. (2022). Multiple criteria approach applied to digital transformation in Fashion stores: the case of physical retailers in Spain. Technological and Economic Development of Economy, 28(2), 500–530. https://doi.org/10.3846/tede.2022.16553
Published in Issue
Mar 10, 2022
Abstract Views
958
PDF Downloads
673
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Accenture. (2015, October 27). Improving customer experience is top business priority for companies pursuing digital transformation, according to accenture study. News release. https://newsroom.accenture.com/news/improving-customer-experience-is-top-business-priority-for-companies-pursuing-digital-transformation-according-to-accenture-study.htm

Accenture. (2020). Growth: It comes down to experience. Moving beyond CX to the Business of Experience. https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwjS2MyT2bX0AhWRLewKHXtCCaUQFnoECAQQAQ&url=https%3A%2F%2Fwww.accenture.com%2F_acnmedia%2FThought-Leadership-Assets%2FPDF-3%2FAccenture-Interactive-Business-of-Experience-Full-Report.pdf&usg=AOvVaw1bYMSYOrVBrGBypXb1GVgN

Accenture. (2020b). COVID-19 consumer pulse research. https://www.accenture.com/us-en/insights/retail/coronavirus-consumer-habits

Akkermans, H., & Van Oorschot, K. (2005). Developing a balanced scorecard with system dynamics. Journal of the Operational Research Society, 40(56), 931–941.

Alexander, B., & Alvarado, D. O. (2017). Convergence of physical and virtual retail spaces: the influence of technology on consumer in-store experience. In A. Vecchi (Ed.), Advanced fashion technology and operations management (pp. 191–219). IGI Global. https://doi.org/10.4018/978-1-5225-1865-5.ch008

Appel, O., Chiclana, F., Carter, J., & Fujita, H. (2017). A consensus approach to the sentiment analysis problem driven by support-based IOWA majority. International Journal of Intelligent Systems, 32(9), 947–965. https://doi.org/10.1002/int.21878

Babu, S. R.; Babu, P. R., & Narayana, M. S. (2012). Retail Technology: A competitive tool for customer service. International Journal of Engineering Science and Advanced Technology, 2(1), 110–116.

Barnabè, F. (2011). A “system dynamics-based Balanced Scorecard” to support strategic decision making. International Journal of Productivity and Performance Management, 60(5), 446–473. https://doi.org/10.1108/17410401111140383

Belghiti, S., Ochs, A., Lemoine, J. F., & Badot, O. (2018). The phygital shopping experience: An attempt at conceptualization and empirical inves-tigation. In Academy of Marketing Science World Marketing Congress. Marketing Transformation: Marketing Practice in an Ever Changing World (pp. 61–74). Springer, Cham. https://doi.org/10.1007/978-3-319-68750-6_18

Bentes, A. V., Carneiro, J., da Silva, J. F., & Kimura, H. (2012). Multidimensional assessment of organizational performance: Integrating BSC and AHP. Journal of Business Research, 65(12), 1790–1799. https://doi.org/10.1016/j.jbusres.2011.10.039

Bonetti, F., & Perry, P. (2017). A review of consumer-facing digital technologies across different types of fashion store formats. In A. Vecchi (Ed.), Advanced fashion technology and operations management (pp. 137–163). IGI Global. https://doi.org/10.4018/978-1-5225-1865-5.ch006

Bonetti, F., Perry, P., Quinn, L., & Warnaby, G. (2018, June). Evaluating managerial drivers and barriers to the implementation of in-store technology in fashion retailing: An abstract. In P. Rossi & N. Krey (Eds.), Finding new ways to engage and satisfy global customers (pp. 455–456). Springer, Cham. https://doi.org/10.1007/978-3-030-02568-7_127

Boroushaki, S., & Malczewski, J. (2008). Implementing an extension of the analytical hierarchy process using ordered weighted averaging operators with fuzzy quantifiers in ArcGIS. Computers & Geosciences, 34(4), 399–410. https://doi.org/10.1016/j.cageo.2007.04.003

Carrasco, R. A., Forero, L. N., López, S. X., Herrera-Viedma, E., & Porcel, C. (2018). Using the AHP model to improve the measurement of satisfaction in the ICT sector. In Frontiers in artificial intelligence and applications: Vol. 303. New trends in intelligent software methodologies, tools and techniques (pp. 299–311). https://doi.org/10.3233/978-1-61499-900-3-299

Chan, F. T., & Kumar, N. (2007). Global supplier development considering risk factors using fuzzy extended AHP-based approach. Omega, 35(4), 417–431. https://doi.org/10.1016/j.omega.2005.08.004

Chou, T. Y., Hsu, C. L., & Chen, M. C. (2008). A fuzzy multi-criteria decision model for international tourist hotels location selection. International Journal of Hospitality Management, 27(2), 293–301. https://doi.org/10.1016/j.ijhm.2007.07.029

Cobo, M. J., López‐Herrera, A. G., Herrera‐Viedma, E., & Herrera, F. (2012). SciMAT: A new science mapping analysis software tool. Journal of the American Society for Information Science and Technology, 63(8), 1609–1630. https://doi.org/10.1002/asi.22688

Daniel, J., & Merigó, J. M. (2021). Developing a new multidimensional model for selecting strategic plans in balanced scorecard. Journal of Intelligent & Fuzzy Systems, 40(2), 1817–1826. https://doi.org/10.3233/JIFS-189188

Dennis, C., Brakus, J. J., Gupta, S., & Alamanos, E. (2014). The effect of digital signage on shoppers’ behavior: The role of the evoked experience. Journal of Business Research, 67(11), 2250–2257. https://doi.org/10.1016/j.jbusres.2014.06.013

Dong, J., & Zhang, D. (2002). Supply chain networks with multicritera decision makers. In M. A. P. Taylor (Ed.), Transportation and traffic theory in the 21st century (pp. 179–196). Emerald Group Publishing Limited. https://doi.org/10.1108/9780585474601-010

Dong, Y., Liu, Y., Liang, H., Chiclana, F., & Herrera-Viedma, E. (2018). Strategic weight manipulation in multiple attribute decision making. Omega: The International Journal of Management Science, 75, 154–164. https://doi.org/10.1016/j.omega.2017.02.008

Edelman, D. C., & Singer, M. (2015). Competing on customer journeys: You have to create new value at every step. Harvard Business Review, 93, 88–100.

Fundación Orange. (2016). eEspaña Retail: La transformación digital en el sector retail. Evoca Comunicación. http://www.fundacionorange.es/wp-content/uploads/2016/07/eE_La_transformacion_digital_del_sector_retail.pdf

Fornell, C., Mithas, S., Morgeson, F. V., & Krishnan, M. S. (2006). Customer satisfaction and stock prices: High returns, low risk. Journal of Marketing, 70(1), 3–14. https://doi.org/10.1509/jmkg.70.1.003.qxd

Gil-Lafuente, A. M., Merigó, J. M., & Vizuete, E. (2014). Analysis of luxury resort hotels by using the fuzzy analytic hierarchy process and the fuzzy Delphi method. Economic Research-Ekonomska Istraživanja, 27(1), 244–266. https://doi.org/10.1080/1331677X.2014.952106

Grewal, D., Roggeveen, A. L., & Nordfalt, J. (2017). The future of retailing. Journal of Retailing, 93(1), 1–6. https://doi.org/10.1016/j.jretai.2016.12.008

Gupta, S., Lehmann, D. R., & Stuart, J. A. (2004). Valuing customers. Journal of Marketing Research, 41(1), 7–18. https://doi.org/10.1509/jmkr.41.1.7.25084

Gutierrez-Toranzo, L., & Llorens, M. (2018). Lo 2.0 y 3.0 como herramientas multidisciplinares. In Uso de las nuevas tecnologías durante el proceso de compra en el comercio minorista (pp. 187–198). Ediciones Universitarias. Editorial Tecnos.

Hickman, E., Kharouf, H., & Sekhon, H. (2020). An omnichannel approach to retailing: Demystifying and identifying the factors influencing an omnichannel experience. The International Review of Retail, Distribution and Consumer Research, 30(3), 266–288. https://doi.org/10.1080/09593969.2019.1694562

Homburg, C., Jozić, D., & Kuehnl, C. (2017). Customer experience management: Toward implementing an evolving marketing concept. Journal of the Academy of Marketing Science, 45(3), 377–401. https://doi.org/10.1007/s11747-015-0460-7

Hsu, C., & Lin, J. C. (2016). Effect of perceived value and social influences on mobile app stickiness and in-app purchase intention. Technological Forecasting and Social Change, 108, 42–53. https://doi.org/10.1016/j.techfore.2016.04.012

Hussain, W., Merigo, J. M., Gao, H., Alkalbani, A. M., & Rabhi, F. (2021). Integrated AHP-IOWA, POWA Framework for ideal cloud provider selection and optimum resource management. IEEE Transactions on Services Computing. https://doi.org/10.1109/TSC.2021.3124885

Inman, J. J., & Nikolova, H. (2017). Shopper-facing retail technology: A retailer adoption decision framework incorporating shopper attitudes and privacy concerns. Journal of Retailing, 93(1), 7–28. https://doi.org/10.1016/j.jretai.2016.12.006

Jalali, M. S., Ferreira, F. A., Ferreira, J. J., & Meidutė-Kavaliauskienė, I. (2016). Integrating metacognitive and psychometric decision-making approaches for bank customer loyalty measurement. International Journal of Information Technology & Decision Making, 15(4), 815–837. https://doi.org/10.1142/S0219622015500236

Jiang, H., & Eastman, J. R. (2000). Application of fuzzy measures in multi-criteria evaluation in GIS. International Journal of Geographical Information Science, 14(2), 173–184. https://doi.org/10.1080/136588100240903

Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard-measures that drive performance. Harvard Business Review, (January-February), 71–79.

Kaplan, R. S., & Norton, D. P. (2001). The strategy focused organization: How balanced scorecard companies thrive in the new business environment. Harvard Business Press.

Kent, A., Vianello, M., Cano, M. B., & Helberger, E. (2016). Omnichannel fashion retail and channel integration: The case of department stores. In A. Vecchi & C. Buckley (Eds.), Handbook of research on global fashion management and merchandising (pp. 398–419). IGI Global. https://doi.org/10.4018/978-1-5225-0110-7.ch016

Keyes, D. (2018, January 9). Amazon captured 4% of US retail sales in 2017. Business Insider. Retrieved August 6, 2018, from https://www.businessinsider.de/amazon-captured-4-of-us-retail-sales-in-2017-2018-1

Kumar, N., Scheer, L., & Kotler, P. (2000). From market driven to market driving, European Management Journal, 18(2), 129–142. https://doi.org/10.1016/S0263-2373(99)00084-5

Kumar, V., & Reinartz, W. (2016). Creating enduring customer value. Journal of Marketing, 80(6), 36–68. https://doi.org/10.1509/jm.15.0414

Kumar, V., & Shah, D. (2009). Expanding the role of marketing: from customer equity to market capitalization. Journal of Marketing, 73(6), 119–136. https://doi.org/10.1509/jmkg.73.6.119

Leeflang, P. S., Verhoef, P. C., Dahlström, P., & Freundt, T. (2014). Challenges and solutions for marketing in a digital era. European Management Journal, 32(1), 1–12. https://doi.org/10.1016/j.emj.2013.12.001

Lemon, K. N., & Verhoef, P. C. (2016). Understanding customer experience throughout the customer journey. Journal of Marketing, 80(6), 69–96. https://doi.org/10.1509/jm.15.0420

Leung, L. C., Lam, K. C., & Cao, D. (2006). Implementing the balanced scorecard using the analytic hierarchy process & the analytic network process. Journal of the Operational Research Society, 57(6), 682–691. https://doi.org/10.1057/palgrave.jors.2602040

Libai, B., Bolton, R., Bügel, M. S., Ruyter, K. D., Götz, O., Risselada, H., & Stephen, A. T. (2010). Customer-to-customer interactions: Broadening the scope of word of mouth research. Journal of Service Research, 13(3), 267–282. https://doi.org/10.1177/1094670510375600

Liljiander, V., Gillberg, F., Gummerus, J., & van Riel, A. (2006). Technology readiness and the evaluation and adoption of self-service technologies. Journal of Retailing and Consumer Service, 13(3), 177–191. https://doi.org/10.1016/j.jretconser.2005.08.004

Lin, C., Kou, G., Peng, Y., & Alsaadi, F. E. (2020). Two-stage prioritization procedure for multiplicative AHP-group decision making. Technological and Economic Development of Economy, 26(2), 525–545. https://doi.org/10.3846/tede.2020.12037

Linares‐Mustarós, S., Ferrer‐Comalat, J. C., Corominas‐Coll, D., & Merigó, J. M. (2019). The ordered weighted average in the theory of expertons. International Journal of Intelligent Systems, 34(3), 345–365. https://doi.org/10.1002/int.22055

Malczewski, J., & Rinner, C. (2005). Exploring multicriteria decision strategies in GIS with linguistic quantifiers: A case study of residential quality evaluation. Journal of Geographical Systems, 7(2), 249–268. https://doi.org/10.1007/s10109-005-0159-2

Marin-Garcia, A., Gil-Saura, I., & Ruiz-Molina, M. E. (2021). Do innovation and sustainability influence customer satisfaction in retail? A question of gender. Economic Research-Ekonomska Istrazivanja. https://doi.org/10.1080/1331677X.2021.1924217

Merigó, J. M., & Wei, G. (2011). Probabilistic aggregation operators and their application in uncertain multi-person decision-making. Technological and Economic Development of Economy, 17(2), 335–351. https://doi.org/10.3846/20294913.2011.584961

Merigó, J. M., Gil-Lafuente, A. M., Zhou, L. G., & Chen, H. Y. (2012). Induced and linguistic generalized aggregation operators and their application in linguistic group decision making. Group Decision and Negotiation, 21(4), 531–549. https://doi.org/10.1007/s10726-010-9225-3

Merigó, J. M., Gil-Lafuente, A. M., & Yager, R. R. (2015). An overview of fuzzy research with bibliometric indicators. Applied Soft Computing, 27, 420–433. https://doi.org/10.1016/j.asoc.2014.10.035

Mintel. (2021). UK Fashion: Technology and innovation market report 2021.

Modak, M., Pathak, K., & Ghosh, K. K. (2017). Performance evaluation of outsourcing decision using a BSC and Fuzzy AHP approach: A case of the Indian coal mining organization. Resources Policy, 52, 181–191. https://doi.org/10.1016/j.resourpol.2017.03.002

Nielsen. (2016). Is e-tail therapy the new retail therapy?

Nielsen, S., & Nielsen, E. H. (2015). The balanced scorecard and the strategic learning process: A system dynamics modeling approach. Advances in Decision Sciences, 2015, 213758. https://doi.org/10.1155/2015/213758

Oliva, G., Scala, A., Setola, R., & Dell’Olmo, P. (2019). Opinion-based optimal group formation. Omega, 89, 164–176. https://doi.org/10.1016/j.omega.2018.10.008

Park, J. S., Ha, S., & Jeong, S. W. (2020). Consumer acceptance of self-service technologies in fashion retail stores. Journal of Fashion Marketing and Management, 25(2), 371–388. https://doi.org/10.1108/JFMM-09-2019-0221

Pine, B. L., & Gilmore, J. H. (1999). The experience economy: Work is theater & every business a stage. Harvard Business School Press.

Poncin, I., & Ben-Mimoun, M. S. (2014). The impact of “e-atmospherics” on physical stores. Journal of Retailing and Consumer Services, 21(5), 851–859. https://doi.org/10.1016/j.jretconser.2014.02.013

Rawson, A., Duncan, E., & Jones, C. (2013). The truth about customer experience. Harvard Business Review, 91(9), 90–98.

Reinartz, W., Wiegand, N., & Imschloss, M. (2019). The impact of digital transformation on the retailing value chain. International Journal of Research in Marketing, 36(3), 350–366. https://doi.org/10.1016/j.ijresmar.2018.12.002

Richardson, A. (2010). Using customer journey maps to improve customer experience. Harvard Business Review, 15(1), 2–5.

Ryding, D. (2010). The impact of new technologies on customer satisfaction and business to business customer relationships: evidence from the soft drinks industry. Journal of Retailing and Consumer Services, 17(3), 224–228. https://doi.org/10.1016/j.jretconser.2010.03.008

Roig-Tierno, N., Baviera-Puig, A., Buitrago-Vera, J., & Mas-Verdu, F. (2013). The retail site location decision process using GIS and the analytical hierarchy process. Applied Geography, 40, 191–198. https://doi.org/10.1016/j.apgeog.2013.03.005

Saaty, T. L. (2008). Decision making with the analytic hierarchy process. International Journal of Services Sciences, 1(1), 83–98.

Saaty, T. L. (1980). The analytic hierarchy process. McGraw Hill.

Sánchez-Gutiérrez, J., Cabanelas, P., Lampón, J. F., & González-Alvarado, T. E. (2019). The impact on competitiveness of customer value creation through relationship capabilities and marketing innovation. Journal of Business & Industrial Marketing, 34(3), 618–627. https://doi.org/10.1108/JBIM-03-2017-0081

Siregar, Y., & Kent, A. (2019), Consumer experience of interactive technology in fashion stores. International Journal of Retail & Distribution Management, 47(12), 1318–1335. https://doi.org/10.1108/IJRDM-09-2018-0189

Sorensen, H. (2016). Inside the mind of the shopper: The science of retailing. Pearson Education inc.

Sundharam, V. N., Sharma, V., & Stephan Thangaiah, I. S. (2013). An integration of BSC and AHP for sustainable growth of manufacturing industries. International Journal of Business Excellence, 6(1), 77–92. https://doi.org/10.1504/IJBEX.2013.050577

Tomar, S., & Saha, S. (2016). In-store digitization and technology advocacy among retail consumers. Amity Journal of Management, 1(1), 40–49.

Verhoef, P. C., Kannan, P., & Inman, J. J. (2015). From multi-channel retailing to omni-channel retailing. Journal of Retailing, 91(2), 174–181. https://doi.org/10.1016/j.jretai.2015.02.005

Verhoef, P. C., Stephen, A. T., Kannan, P. K., Luo, X., Abhishek, V., Andrews, M., Bart, Y., Datta, H., Fong, N., Hoffman, D. L., Hu, M. M., Novak, T., Rand, W., & Zhang, Y. (2017). Consumer connectivity in a complex, technology-enabled, and mobile-oriented world with smart products. Journal of Interactive Marketing, 40, 1–8. https://doi.org/10.1016/j.intmar.2017.06.001

Wolpert, S., & Roth, A. (2020). Development of a classification framework for technology based retail services: A retailers’ perspective. The International Review of Retail, Distribution and Consumer Research, 30(5), 498–537. https://doi.org/10.1080/09593969.2020.1768575

Yager, R. R. (1988). On ordered weighted averaging aggregation operators in multicriteria decision making. IEEE Transactions on Systems, Man, and Cybernetics, 18(1), 183–190. https://doi.org/10.1109/21.87068

Yager, R. R. (1996). Quantifier guided aggregation using OWA operators. International Journal of Intelligent Systems, 11(1), 49–73. 3.0.CO;2-Z> https://doi.org/10.1002/(SICI)1098-111X(199601)11:1<49::AID-INT3>3.0.CO;2-Z

Yager, R. R., & Kelman, A. (1999). An extension of the analytical hierarchy process using OWA operators. Journal of Intelligent & Fuzzy Systems, 7(4), 401–417.

Yıldız, N., & Tüysüz, F. (2019). A hybrid multi-criteria decision making approach for strategic retail location investment: Application to Turkish food retailing. Socio-Economic Planning Sciences, 68, 100619. https://doi.org/10.1016/j.seps.2018.02.006

Zabihi, H., Alizadeh, M., Kibet Langat, P., Karami, M., Shahabi, H., Ahmad, A., Nor Said, M., & Lee, S. (2019). GIS multi-criteria analysis by Ordered Weighted Averaging (OWA): Toward an integrated citrus management strategy. Sustainability, 11(4), 1009. https://doi.org/10.3390/su11041009

Zadeh, L. A. (1983). A computational approach to fuzzy quantifiers in natural languages. Computers & Mathematics with Applications, 9(1), 149–184. https://doi.org/10.1016/B978-0-08-030253-9.50016-0

Zhang, Y., Bouadi, T., Wang, Y., & Martin, A. (2021). A distance for evidential preferences with application to group decision making. Information Sciences, 568, 113–132. https://doi.org/10.1016/j.ins.2021.03.011

Zwilling, M. (2015, June 9). “Customer experience” is today’s business benchmark. Forbes Magazine. https://www.forbes.com/sites/martinzwilling/2014/03/10/customer-experience-is-todays-business-benchmark/