Future Challenges of Marketing Online-to-Offline (O2O)

Future Challenges of Marketing Online-to-Offline (O2O)

Albérico Travassos Rosário (GOVCOPP, IADE, Universidade Europeia, Portugal)
Copyright: © 2023 |Pages: 27
DOI: 10.4018/978-1-6684-5844-0.ch001
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The online and offline environment have come to coexist in the business environment, so the big question is to understand how we should integrate these two environments into marketing strategies. It is clear that online marketing strategies do not need to replace offline marketing strategies and vice versa. The big challenge will be how both will remain complementary to solving each other's shortcomings in view of a marketing strategy. It becomes evident that the techniques complement each other, forming a more robust and complete marketing strategy, bringing more attention to the brand, and increasing the visibility of the company. Therefore, the online-to-offline (O2O) and customer-centric approach will be able to build a stronger reputation, which will generate customer loyalty. In this context, a systematic review of the bibliometric literature on the basis of SCOPUS indexation was carried out. This study aims to understand what are the future designs of O2O Marketing and how they will coexist in a marketing strategy.
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As the world increasingly transitions and embraces the internet, the line between offline and online activities is blurring. Tasks that were primarily done in person in traditional business settings, such as shopping and education, are now happening online. Consequently, businesses and institutions with strong physical and online visibility dominate various industries (Chiang et al., 2018). For example, Amazon's online and offline dominance can be attributed to its effective integration of physical retail locations and retailer websites, enhancing purchase and search convenience, information availability, and product variety (Kao et al., 2020). The hybrid of physical and online shops has led to the emergence of Online-to-Offline Marketing (O2O), which is facilitated by advancements in mobile devices and information and communication technology. O2O refers to integrating online and offline service processes through advanced technologies and devices, allowing providers to engage, interact with, and attract customers (Ryu et al., 2020). The acronym O2O is used in digital marketing to demonstrate how companies in this digital era manage their customers both on the internet and in the physical world. It is primarily used to describe strategies that allure customers in digital environments to make purchases from physical shops (Kao et al., 2020). O2O aims to address consumer needs for safe shopping by allowing them to engage in various online and offline processes, including allowing customers to pick or return items purchased online to physical stores and providing home delivery services for online purchases.

The O2O integration has transformed modern business models. Traditionally, offline and online marketing strategies were used independently to achieve varying goals. However, under O2O, these strategies and processes are used together to achieve shared marketing goals and objectives (Leung et al., 2016). For example, companies such as Amazon and Alibaba, primarily online stores, are increasing their brick-and-mortar investments to enhance consumer experiences by allowing them to touch and try on multiple products before purchase (Ryu et al., 2020). This aspect is impossible to achieve in online shopping. On the contrary, Starbucks and IKEA, primarily offline, are increasing their online presence through apps and websites to increase the personalization of orders and service delivery and efficiency. Besides, the data collected in both online and offline transactions can be used to develop marketing campaigns and attractive promotions based on consumer needs and expectations (Pan et al., 2017). While O2O is associated with multiple advantages and opportunities, research has identified potential challenges such as determining the impact of the model on online and offline sales and traffic (Pan et al., 2019). While numerous studies have been conducted on O2O, there is limited research on O2O challenges and how they impact current and future business performance. Thus, this research essay aims to bridge this knowledge gap through a systematic bibliometric literature review (LRSB) of relevant literature.

Key Terms in this Chapter

Digital Signature: Is a method of authenticating digital information typically treated as a substitute for a physical signature, as it eliminates the need to have a paper version of the document that needs to be signed.

Cookies: Within the framework of the HTTP communication protocol used on the Internet, it is a small computer file or data packet sent by an website to the user's browser when the user visits the website.

Biometric Identification: are body measurements and calculations related to human characteristics.

Marketing Online-to-Offline (O2O): This is a new business model in which retailers using both online and offline channels as an intensive strategy.

Big Data: A rea of knowledge that studies how to treat, analyze and obtain information from data sets that are too large to be analyzed by traditional systems.

Firewalls: Is a device on a computer network, in the form of a program (software) or physical equipment (hardware), which aims to apply a security policy to a certain point on the network, usually associated with TCP/IP networks.

Encryption: is the process of transforming information using an algorithm so that it cannot be read by everyone except those who have a particular identification, usually referred to as a key.

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