The purpose of this Master’s thesis is to present to the reader a comprehensive overview on how the characteristics of grocery products and apparel products influence the customer behavior and the choice of an offline or an online sales channel within an omnichannel marketing strategy. This thesis takes a company’s point of view in order to investigate the reactions and the resulting marketing and channel strategies the different retailers apply while taking into account the varying customer behavior. In order to fulfill this purpose, we formulated and presented two research questions and three propositions that helped to investigate the chosen subject matter of this thesis. The research philosophy of this Master’s thesis is based on an interpretivist epistemological perspective and a subjectivist ontological view. The research conducted within this thesis has an exploratory nature. In addition, the deductive approach is used to study the research questions, while adopting a qualitative research method. The practical method employed in this thesis in order to fulfill the purpose is based on conducting multiple semi-structured, non-standardized interviews. The respondents and the companies they represent are divided according to the industry they belong to, namely the apparel retail or the grocery retail, and the geographically located in Europe. The final results are then gained by the combination of the primary data, yield from the interviews, and secondary data, collected during a literature search and an undertaken literature review. The contribution of this Master’s thesis is represented by an analysis that combines the theoretical perspectives and empirical findings. They provide an overview on how do the characteristics of products influence the customer behavior and the choice of an offline or an online sales channel within an omnichannel marketing strategy while focusing on apparel and grocery retailers in Europe. In addition, the findings also provide an overview on how the apparel and grocery retailers react on the varying behavior of their customers and based on this, what marketing and sales strategies they employ.

Small apparel retailers face extreme competition with larger retailers. Large retailers have the upper hand in resources to stay updated with various trends, specifically social media. Social media has lowered the barriers to enter the retail industry. However, once these small retailers enter, half of them fail because they don't attract and retain customers. Small-medium enterprises (SMEs) greatly impact the economy, so it is important to study various facets of their business to increase performance. The purpose of this study is to investigate customer's development of social capital (i.e. affiliation, responsiveness, shared values, norm of reciprocity) in small apparel retailer's Instagram page that ultimately lead to purchase intentions for the retailer. Perceived benefits (i.e. perceived usefulness, perceived enjoyment) are also investigated in relation to purchase intentions. More specifically, social bonding, brand identification and trust are examined as mediating variables between the perceived level of social capital, perceived benefits and purchase intentions. Over a 3-month period, 200 responses were collected from students at a southern university. The findings reveal that younger customers develop a relationship with retailers on Instagram and it transfers to behavioral outcomes towards the retailer. The theoretical contribution of this study draws from the lack of literature for small apparel retailer and social capital built in Instagram, leading to purchase intentions. Managers can implement the findings into their social media marketing strategies to improve business performance. Lastly, this study has methodological limitations that creates opportunity for future studies.