Mobile marketing: A literature review on its value for consumers and retailers

The article describes the existing knowledge of how mobile marketing can increase the value for consumers and retailers. Mobile device shopping, and consumers' use of mobile devices while shopping is shown to be both an extension of consumers' shopping behaviours developed on Internet-connected desktop and laptop computers (PC), and potentially new behaviours based on a mobile devices' uniquely integrated features such as camera, scanners and GPS. The article focuses on how mobile marketing creates value for consumers and retailers, enabling more precise research and development of managerial concepts and tools while providing both managers and academics with increased understanding of mobile marketing and its value outcomes for retailers.     

Channels for search and purchase: Does mobile Internet matter?

Recent industry reports indicate that consumers own four digital devices on an average, and switching devices during shopping is the “new normal.” The addition of mobile Internet as a new channel of search and purchase has spurred the adoption of the digital medium, and easy accessibility of the Internet on multiple devices is influencing shopping patterns. A consumer may prefer some channels for search and others for purchase or use a combination of channels to search and purchase simultaneously. As a new channel, it is unclear 1) whether mobile Internet offers greater search or purchase benefits and 2) what type of products are more suitable for mobile Internet search and purchase. In this study, we develop a framework that describes the factors that drive the use of mobile Internet in a multi-channel environment. We test the framework using survey data from a sample of U.S consumers. The main findings from our study indicate that 1) the choice of channel combinations that include mobile relative to other channel combinations increases with an increase in perceived search convenience of mobile channel. 2) in the digital channel, mobile and desktop differ in their utility along search dimensions. The probability of choosing channel combinations that include mobile increases due to search convenience whereas desktop is attractive due to perceived gains of price comparison search; and 3) mobile Internet search increases for consumers searching for utilitarian products. The insights from this study deepen our understanding of how digital media is used in the search-purchase process and have important managerial implications.     

Effects of perceived interactivity of augmented reality on consumer responses: A mental imagery perspective

As the use of technological features is becoming more common in digital retailing, retailers have adopted augmented reality (AR) solutions to help consumers browse their products. This study examines dimensions of perceived interactivity after experiencing shopping with AR and investigates the relationships between perceived interactivity and mental imagery and between mental imagery and other consumer responses in a mobile shopping context. A total of 302 female online consumers in South Korea participated in a survey. After shopping cosmetic products with the AR function in a mobile app, participants completed the questionnaire. The findings reveal that the controllability and playfulness dimensions of perceived interactivity influence mental imagery, which, in turn, affects consumers' attitudes toward a product and their behavioral intentions. The relationship between perceived interactivity and mental imagery differs based on an individual's involvement level. These results provide practical insights for digital retailers in creating effective mobile shopping environments.     

Trauma's effects on shopper choice confusion: The role of psychological hardiness and retailer strategies as mitigating factors

Retailers must understand how trauma influences the consumer shopping journey and identify ways to mitigate any potential adverse effects. Two studies were conducted to explore trauma in the retail environment. First, a conceptual model was tested using structural equation modeling (SEM) based on survey data collected from 324 participants. Findings indicate that consumers who report previously experiencing traumatic events feel anxiety while shopping in retail environments, negatively influencing their ability to make purchase decisions. This outcome is due to challenges in adequately assessing stressful environmental stimuli and developing positive coping mechanisms. Consumer propensity for psychological hardiness was found to moderate this relationship. Next, a follow-up qualitative study from 110 consumers who reported experiencing instances of trauma identified potential ways for retailers to help consumers who have experienced trauma feel more comfortable in shopping environments. These findings extend research on trauma and consumer shopping behavior by identifying its impacts on choice confusion and stress appraisal and suggesting how retailers can support shoppers through a trauma-informed approach.     

Conceptualizing smart shopping with a smartphone: implications of the use of mobile devices for shopping productivity and value

This conceptual paper addresses the implications of the use of mobile devices in an omni-channel retail environment for consumer shopping productivity and shopping value. We reconsider the existing literature on shopping productivity and adopt the perspective of bounded rationality paradigm rather than the classical assumption of customers’ perfect rationality. It enables us to consider both maximizers (those who seek the best outcome) and satisficers (those who stop their information search as soon as an appropriate option is available). After a thorough review of shopping productivity literature, we propose a conceptualization of shopping productivity including four dimensions: time/effort savings, right purchase, money savings, and hedonic benefits from shopping. We then present a conceptual framework relating use of mobile devices in an omni-channel retail environment to consumer shopping productivity and shopping value. The type of goods and consumer tendency to maximize are included in the framework as possible antecedents of the use of mobile devices in an omni-channel retail environment and moderators of the relation between consumer shopping productivity and shopping value.     

How information processing and mobile channel choice influence product returns: An empirical analysis

The mobile internet is starting to overtake the desktop device‐based internet as a purchase channel. Its impact on consumer behavior is therefore increasingly important to understand. This study seeks to understand and measure, if usage of mobile devices for online purchases leads to a lower decision quality and, in effect, to more product returns. In doing so, the impact of information environments on the end‐to‐end consumer purchase decision‐making process is better understood and it is investigated, if the information environment of mobile devices leads consumers to take more error‐prone purchase decisions. An exclusive data set spanning more than 140 million transactions of a European online retailer is used to empirically analyze changes in product return behavior after mobile channel adoption. The results show that mobile channel usage is positively related to product returns, overall and for both, purchases made with mobile devices and purchases made with desktop devices, although prior literature predicts that returns from desktop purchases should not increase. These findings suggest that through new channels, consumers’ information environment is altered sufficiently to affect their decision accuracy. Moreover, the results indicate that previous research may be overestimating the positive effect of mobile channel adoption on sales by disregarding changes in product return behavior.     

'One brand,three ways to shop': situational variables and multichannel consumer behaviour

To counter the growth in online retailing, high street retailers are increasingly adopting multichannel distribution strategies, seeking to target individual consumers via both physical and electronic channels as multiple routes to purchase. In order to develop successful marketing strategies within this environment, however, an understanding of consumer selection between available purchase channels is clearly needed. This paper explores the issue of shopping mode selection from an environmental psychology perspective, applying a traditional Belkian analysis of situational variables in a longitudinal study of consumer channel selection decisions. Preliminary findings from an empirical study of consumers of a leading UK fashion retailer are reported which reveal significant differences in the prevalence of different Belkian variables between shopping modes, suggesting a major role for situational influence during the channel selection process.     

Optimal checkout strategies for online retailers

Growth in online retailing has driven retailers to focus on optimizing the consumers’ shopping journey. One of the most important aspects of online shopping is the checkout process offered by the retailer. This paper focuses on factors influencing retailers’ choice of providing either a flexible checkout or a restricted checkout option to consumers. We define a checkout strategy as flexible when consumers can purchase items in their shopping cart either as a guest or by logging into their account. In contrast, with a restricted checkout strategy, the consumers must log in to the account to make purchases. With a game-theoretic model and duopolistic framework, the current study identifies conditions in which online retailers might adopt symmetric strategies and those in which two ex-ante symmetric retailers might prefer asymmetric strategies. The analysis suggests that the relative proportion of privacy-conscious (PC) vs. convenience-conscious consumers (CC), additional utility due to account registration, reduction in transaction cost, and additional revenue due to targetability are the crucial determinants of the strategies adopted by online retailers.Specifically, we show that retailers adopt a restricted checkout strategy when additional revenues due to targeted advertising are relatively high. Retailers adopt a flexible checkout strategy when the proportion of CC consumers and additional revenues due to targeted advertising are relatively lower. Furthermore, an asymmetric equilibrium may also exist when the proportion of CC consumers is relatively high and additional revenues due to targeted advertising are in the intermediate range. Our modeling framework provides a consumer demand-based (rather than cost-based) justification as a plausible explanation for why we observe ex-ante identical retailers offering distinct checkout strategies.     

Window displays and consumer shopping decisions

Window displays are an ubiquitous and prominent but under-researched element of retail strategy. This paper explores how the store and product category information communicated by a store's windows are related to consumers’ shopping decisions, such as store entry and product purchase, and how these relationships vary for consumer segments that differ in terms of their knowledge of the retailer's product(s). Results of a study conducted in the context of clothing retailers demonstrate that the store entry decision is related both directly as well as indirectly (through acquisition of inferred, store-related information) to the acquisition of observed, store-related information from window displays. However, it is product category-related information (e.g. fashion and product-self fit) rather than store-related information (e.g. merchandise and store image) that is more strongly associated with the product purchase decision. Moreover, consumers with medium levels of clothing knowledge are more influenced by windows in their shopping decisions than those with low or high levels.     

Search,purchase, and satisfaction in a multiple-channel environment: How have mobile devices changed consumer behaviors?

The rapid adoption of smartphones and increasing reliance on the mobile Internet is influencing consumers’ shopping behavior with traditional Internet devices (e.g., desktop and laptop computers) and in stores. This research examines the effects of consumer perceptions of channels (i.e., mobile devices, computers, and offline stores) on their choices of search channels, purchase channel, and satisfaction level with the purchase channel. Using survey data from a sample of U.S. consumers, we find supplemental effects of mobile devices on computers do not alter the traditional substitution relationship between computers and stores during the search. The cross-channel effects indicate that perceived purchase benefits and costs of stores affect the purchase channel selection of mobile devices and computers, respectively. Satisfaction levels were highest when purchases were made on mobile devices. The insights from this study can help managers increase the effectiveness of advertising in different media and target distinct segments of consumers who rely on multiple channels for search and purchase.     

Is bigger better? How the scale effect influences green purchase intention: The case of washing machine

To stimulate purchase of green products, retailers and marketers need to know how to effectively present benefits of green products, specifically by numerical information. Accordingly, the current study provides useful insights on how to use numerical scale to influence consumer perceptions and green purchase intention. Data from a survey of 302 consumers show that green benefits expressed with an expanded scale (versus a contracted scale) increase perceived value of green products, producing in turn an increase in green purchase intention. Furthermore, low skepticism consumers perceive more value from benefits expressed in an expanded scale, but high skepticism consumers are less likely to be influenced by framing of the numerical scale due to heightened involvement. Significant moderation of consumer skepticism reveals its tempering effect on numerosity heuristic thinking in favor of the central processing route. These findings advance knowledge in the fields of numerosity heuristic, consumer decision and green consumption and provide managerial implications for retailers to formulate effective market segmentation strategies and enhance persuasiveness of numerical information to promote green purchase behavior.     

Consumer choice of retail shopping aids

This research investigates how consumer and product category attributes affect consumer interest in using various shopping aids. Research hypotheses were proposed based on a contingency framework of the relationship between consumer characteristics (i.e., purchase need, product knowledge, and brand preference heterogeneity) and shopping aid solutions (expanded selection, additional product information, personalization, and evaluative information). The findings demonstrated the importance of considering consumer characteristics when retailers design and provide shopping aids for consumers to facilitate purchase completion.     

Mediating Role of Company Information in the Relationships among Perceived Risks and Purchase Intentions in an Online Retailing Context

The exponential growth of the online retail sector has attracted the attention of researchers across the globe. Understanding the consumer decision-making process in an online retail context is of vital importance to all online retailers. The objective of this study was to examine the direct and indirect impacts of perceived risks on consumers’ purchase intentions in an online shopping context. This study applied structural equation modeling to test the study model with data from 234 samples. We found a significant negative full mediating impact of performance risk, financial risk, physical risk, and psychological risk on consumers’ purchase intentions. Moreover, we found a partial mediating impact of social risk on purchase intentions. However, we did not find a mediating impact of time risk on purchase intentions. These empirical results may help online retailers to better understand their consumers, their intentions to purchase, and their level of risk perceptions. Accordingly, online marketers can frame contemporary strategies to attract retail customers, leading to greater profitability of the organization.     

Why is Price Dispersion Higher Online than Offline? The Impact of Retailer Type and Shopping Risk on Price Dispersion

When physically similar products, of similar quality, are offered by retailers both online and offline, we often observe that the dispersion in prices of these products online is greater than the price dispersion offline. This observation runs counter to early theories that suggested price dispersion online would be smaller than that offline due to the ease of search and information availability online. This paper investigates and provides an explanation for this puzzling phenomenon by examining the impact of two important drivers of price dispersion: retailer type and consumers’ shopping risk. Retailer type refers to whether a retailer is a pure offline, pure online, or dual channel retailer. Shopping risk is defined as the product of consumers’ perceived risk of shopping and the transaction uncertainty related to shopping at different types of retailers.A game-theoretic approach is adopted to model consumers’ price search and product purchase, as well as price competition within and across retailer types in online and offline markets. Equilibrium pricing strategies are derived for different retailer types competing for different consumer segments with different levels of perceived shopping risk. The impact of retailer type and shopping risk on online versus offline price dispersion are quantified, and conditions when price dispersion is greater online than offline are identified.Results indicate that price dispersion is greater online when the number of pure online retailers is sufficiently large and is increasing in the number of pure online retailers. In addition, a reduction in online shopping risk may actually increase online price dispersion. Results further suggest that even without any online sales, dual channel retailers should maintain their online presence for the purpose of information dissemination, which justifies the importance for pure offline retailer to incorporate webrooming strategies, where consumers can search for prices online but purchase offline.     

Mobile-assisted showroomers: Understanding their purchase journey and personalities

Over the last decade, the retail sector has undergone a dramatic transformation, driven by rapid advances in consumer and retail technologies, an evolution of omnichannel environments, and changing consumers who increasingly use their smartphones inside brick-and-mortar retail stores as personal shopping assistants. In this context, showrooming has become a common practice for omnichannel mobile consumers (Flavián et al., 2020). The present study investigates the under-researched phenomenon of mobile-assisted showrooming behavior. Adopting an exploratory qualitative research approach, 31 semi-structured individual interviews were conducted with consumers in a metropolitan city in Queensland, Australia. The authors propose a shopper journey framework that challenges the sequential consumer decision-making process. Influenced by showrooming predispositions, mobile-assisted showroomers pursue a hybrid product evaluation phase that encapsulates both physical and mobile activities during the brick-and-mortar retail visit. In addition, the research identifies four unique personas of mobile-assisted showroomers. The results contribute to extant literature on omnichannel and showrooming behavior by identifying predispositions, behaviors, and segments of mobile-assisted showroomers. The study provides retailers with new strategies to segment mobile-assisted shoppers more effectively and understand their needs and shopping motivations.     

The effect of shopping goals and in-store mobile device use on purchase outcomes in brick-and-mortar stores

The present study examines the effect of using a mobile device on search and evaluation by a shopper in a brick-and-mortar store. A conceptual model that proposes inter-relationships between shopping goals, the amount and type of in-store mobile device use, and purchase outcomes is developed. Data from a national quota sample of 1034 mobile shoppers is used to test hypotheses derived from the proposed model. The findings provide several new insights into the impact of in-store mobile device use on the consumer decision journey in a brick-and-mortar store. Depending upon the shopping goals of the consumer, the use of a mobile device by shoppers in a brick-and-mortar store can either decrease or increase search, lead to more deferred purchases or in-store-now purchases, and more online or physical store purchases. The study is among the first to model the pathway to purchase for mobile device assisted shoppers in brick-and-mortar stores.     

Engaging consumers on new integrated multichannel retail settings: Challenges for retailers

The rapid diffusion of more channels for shopping posits new challenges for retailers, who need to compete in a complex environment for avoiding the problem of consumer cross-channel free riding. To discourage this behaviour, we propose a new environment where one retailer simultaneously handles more channels. The emerging integrated environment would engage more consumers if compared to the single handled channel, which in turn would avoid switching behaviours towards competitors' channels. Our empirical research, based on the stimulus–organism–response paradigm, involves a sample of 237 consumers who were asked to explore the new retail settings simulated in a university lab. The results lead us to suggest the effective combination of multiple channels managed by one retailer as the new challenge for scholars and practitioners. We note that our participants showed positive emotional reactions towards the environment, which lead them to choose this environment for purchases.     

Intermediate Choice Lists: How Product Attributes Influence Purchase Likelihood in a Self-Imposed Delay

Many online retailers enable consumers to postpone a purchase decision by placing a desired item onto an intermediate choice list, such as a wish list or saved-for-later list. This research demonstrates that using a list in this way decreases purchase intent for the wait-listed products, relative to the same choice made without the option to delay the decision. The findings of five experiments show that purchase likelihood is affected by a shift in the importance, or weight, of product attributes. Specifically, the attributes that are weighted more heavily in the decision to place an item on an intermediate choice list are then weighted less heavily in the decision to purchase an item from that list. This shift in attribute weighting suggests that consumers may switch from more noncompensatory to more compensatory decision-making between the initial decision to use an intermediate choice list, and the later decision of whether to purchase the item from the list. This process tends to diminish the importance of the attractive attributes that encouraged consumers to put these items on lists in the first place. These findings have implications for retailers who wish to understand the risks and benefits of wish lists and related tools, and for consumers who desire to reduce impulsive purchases.     

Influence of hedonic and utilitarian motivations on retailer loyalty and purchase intention: a facebook perspective

Social networks are an innovative tool that people use to communicate with family, friends and, increasingly, businesses. To optimize social networks as a marketing strategy, apparel retailers must understand consumers׳ motivations to interact with retailers via social media. We argue consumers׳ motivations for shopping on Retail Facebook Pages (RFP) compared to traditional retail formats may differ. The purpose of the study was to examine the influence of utilitarian and hedonic motivations (i.e., time savings, information access, bargain perception, and experiential shopping) on purchase intention and loyalty among consumers that use RFP. Using SEM, we show that experiential shopping influences loyalty, but not purchase intention, that bargain perception influences neither purchase intention nor loyalty, that information access influences time savings and loyalty, and that loyalty impacts purchase intention.     

Retail Market Power in a Shopping Basket Model of Supermarket Competition

Supermarket retailers typically operate with relatively low margins, suggesting a highly competitive retail environment. However, despite the fact that consumers purchase an entire shopping basket at a time from supermarkets, this evidence is largely based on models of retail competition with single-category purchases. In this paper, we develop and test an empirical model of retail price competition that explicitly accounts for the effect of demand complementarity among items in consumer shopping baskets. Relative to the case where consumers purchase products with independent demands, we demonstrate that equilibrium prices are higher for all items when retailers take demand-complementarity into account. Our findings indicate that non-price strategies intended to encourage complementarity, such as co-merchandising, strategic shelf-positioning, or featuring complementary goods tend to soften price competition, and lead to higher equilibrium prices.