Channel-switching behaviour and customer deviance

The rise of unacceptable behavior in retailing, known as negative customer deviance (NCD), poses a significant threat to the financial stability of retailers. While existing research has examined the various forms of NCD primarily through its impact on employees, it has largely neglected the effects on bystander-customers and their preferences for different retail channels. As the phenomenon of channel switching continues to escalate, it becomes essential to explore how encounters with NCD influence customers' choices between shopping in-store and online. This study employs structural equation modeling to analyze data collected from a web-based survey involving 1,008 customers aged 16 and above, effectively addressing the research model. The results of this investigation shed light on previously unexplored forms of NCD as perceived by bystander-customers and reveal the consequences of such behavior. Notably, the findings highlight a clear link between encounters with NCD and adverse outcomes for bystander-customers, including increased ill-being, dissatisfaction with the shopping experience, diminished store commitment, and a heightened intention to switch retail channels. Furthermore, the research identifies various moderating variables that influence these dynamics. From a practical standpoint, the insights gained underscore the urgent need for retailers to reconsider their approach to shopping values, customer attitudes, and commitment. Implementing corrective, proactive, and long-term strategic actions will be crucial in addressing the challenges posed by NCD. This study stands out as one of the forerunners in examining the correlation between NCD experiences and bystander-customers' intentions to transition from traditional store-based shopping to online alternatives. The strategies developed from this research aim to help retailers mitigate and manage the potential threats that NCD poses to bystander-customers, ultimately fostering a more positive shopping environment.