Customer reactions to self-checkout discontinuance

Self-service technologies (SSTs) increasingly permeate retail space. Yet, sometimes retailers decide to revert to human-delivered service mode by discontinuing their incumbent SST. In this study, we examine how self-checkout (SCO) discontinuance affects customers’ perceptions of SCO technology and purchase behavior. We conduct a natural field experiment by surveying two groups of customers pre- and post- SCO discontinuance: treatment group (who experience discontinuance) and control group (who do not experience discontinuance). Leveraging difference-in-differences analyses, we find that SCO discontinuance results in decreases in customers’ satisfaction with technology, intentions to use technology, perceived simplicity of technology, and basket size. Our results inform managers of the potential downsides of discontinuing SST and provide corroborating evidence of the technology’s benefits.     

How artificial intelligence will affect the future of retailing

Artificial intelligence (AI) will substantially impact retailing. Building on past research and from interviews with senior managers, we examine how senior retailing managers should think about adopting AI, involving factors such as the extent to which an AI application is customer-facing, the amount of value creation, whether the AI application is online, and extent of ethics concerns. In addition, we highlight that the near-term impact of AI on retailing may not be as pronounced as the popular press might suggest, and also that AI is likely to be more effective if it focuses on augmenting (rather than replacing) managers’ judgments. Finally, while press coverage typically involves customer-facing AI applications, we highlight that a lot of value can be obtained by adopting non-customer-facing applications. Overall, we remain very optimistic as regards the impact of AI on retailing. Finally, we lay out a research agenda and also outline implications for practice.     

Management of hybrid organisations: a case study in retailing

Hybrid organisations present important theoretical and managerial opportunities. We examine a large Finnish multichain retail organisation in order to identify and understand the challenges of hybrids in a retailing context. We are especially interested in how these complex firms try to maintain a balance between the centralised corporate control and the local autonomy and initiative of their retailers. The governance forms and processes identified in the case organisation are discussed with the help of a proposed conceptual framework. We believe that the identified governance problems and practices in the three different retail chains and especially our recommendations will facilitate the understanding of retail hybrid organisations and the management of hybrids in general.     

SERVCON: development and validation of a multidimensional service convenience scale

As customers have demanded greater convenience in service exchanges, researchers have responded by incorporating the convenience construct into their conceptual models and empirical studies, but a comprehensive, formally validated measure of convenience remains lacking. This study conceptualizes service convenience as a second-order, five-dimensional construct that reflects consumers’ perceived time and effort in purchasing or using a service. Service convenience dimensions are salient at different stages of the purchase decision process. Given this conceptualization, the study presents the development and validation of the SERVCON scale, a comprehensive instrument for measuring service convenience. The five dimensions are independent within a nomological network that illustrates distinct antecedent and consequent effects, and the results reinforce the multidimensional representation, offering insight into the distinctive relationships between each service convenience dimension and its antecedents, such as competitive intensity, and consequences, such as repurchase behavior. The findings help researchers and managers understand a fully conceptualized convenience construct and facilitate the measurement of convenience in future empirical studies.     

The effect of specific discount pattern in terms of price promotions on perceived price attractiveness and purchase intention: An experimental research

This study aims to investigate consumer perceptions and reactions in terms of specific discount patterns (fixed price, 40% discount, discount from 500 TL to 300 TL and 20% + 25% discount) in price promotion. According to the results, specific discount patterns in price promotion have a significant effect on perceived price attractiveness and purchase intention. When the specific discount patterns in price promotion and gender interaction were analyzed in terms of perceived price attractiveness, the scenario of the “discount from TL 500 to TL 300” significantly differentiated from both the control scenario (fixed price) and experimental scenarios for female. For males, no significant difference was found between the control and experimental scenarios. In terms of purchase intention, a significant difference was found between the fixed price scenario and the discount scenario from 500 TL to 300 TL and between the fixed price and 20% + 25% discount scenario. The theoretical managerial implications of the study were discussed, and future research suggestions were presented.     

Sensory expectations generated by colours of red wine labels

Since there is usually no sales assistance available in supermarkets, wine labels represent the pivotal source of information for consumers at the point of purchase. In particular, it is the colour of the label which largely influences consumers’ wine choice. The purpose of our study was to reveal customers’ sensory expectations in relation to the flavour of red wines based on their label colours. Moreover, our goal was to examine whether there are any differences in the consumers’ expectations according to their frequency of wine purchase and gender. A survey was carried out among respondents who were intercepted in the wine aisles of two stores of an Austrian supermarket chain. The results indicate that label colours have a strong influence on flavour expectations. While, for example, red and black are most likely to create tangy flavour expectations, red and orange are most associated with fruity and flowery flavours. In addition, it appears that frequent buyers have stronger expectations than infrequent buyers with respect to most of the colours analysed. Finally, the customers’ gender seems to have little influence on flavour expectations. The results may be considered by wine producers in their label design to create sensory expectations in accordance with the actual flavour of their wine and, hence, avoid any disconfirmation of consumers’ expectations when they taste the wine. This is of particular importance when wine is sold in retail stores and consumers cannot rely on their taste experience prior to their purchase.     

What drives customer loyalty in grocery retail? Exploring shoppers' perceptions through associative networks

Mental associations play a key role in shaping customer-brand relationships and are critical to the development of favourable attitudes and emotional attachment towards a brand. By exploring shoppers’ knowledge structures, this study identifies what drivers of customer loyalty are more relevant to customers in the context of grocery retail. A mix-method study on shoppers’ perceptions and values associated to their most patronised grocery store is presented. Through focus group discussions, concept maps and associative network analysis, three types of associations are identified: functional, relational and premium store associations. Salience and relationships among these dimensions are also discussed.     

Retail career attractiveness to college students: Connecting individual characteristics to the trade-off of job attributes

This study examines how U.S. business college students evaluate the attractiveness of potential job opportunities by making trade-offs among important job attributes. Using a conjoint approach, we examine the relative importance of industry type, starting salary, five-year salary, training, benefits, and work-life balance in job choice decisions. We also examine the effects of job applicants' career expectations and core competencies on their job choice determinants. An analysis of 162 business students' evaluations of 27 job profiles indicates that five-year-salary outweighs all other attributes. Their career expectations and core competencies have a substantial influence on their ensuing job choice. We suggest recruitment strategies to target recent college graduates with consideration of individuals' different career expectations and core competencies.     

Older shopper types from store image factors

This study aims to characterise the older shopper by exploring unobserved heterogeneity within the segment and developing an older shopper typology from an empirically derived store image scale. Store attribute theory informed a two-stage research design. Firstly, a ‘pool’ of salient store attributes was identified through in-depth interviews. Scales were then developed and quantitatively tested using data collected through a household postal survey. Seven store image factors emerged, forming the basis of the typology. Five clusters were subsequently profiled using behavioural and demographic variables: Prudent neutrals, All-Round demanders, Reluctant casuals, Demanding sociables, and Affluent utilitarians. A discussion of the resultant classification's utility in terms of retail strategy, including opportunities for better targeting through adjustment of the retail offer, is presented. This study develops a store image scale that reflects the importance of store choice decisions of older shoppers, extending store image research by providing contemporary insights into the requirements of older shoppers in a changing retail environment.     

Understanding the role of situational factors on online grocery shopping among older adults

This paper seeks to identify the situational factors that drive the adoption of online grocery shopping among older adults. A two-step research process is employed. First, exploratory qualitative research is carried out to identify situational factors that older adults take into account when deciding whether to buy groceries online. This is followed by a conjoint experiment to determine which situational factors are considered most important when making such a decision. The sample consisted of 9 participants in the in-depth individual interviews and 206 respondents in the conjoint experiment. The findings indicate that health, mobility issues, and distance to a store are the most important situational factors driving older adults to buy groceries online. Moreover, the findings confirm that the adoption of online grocery shopping among older adults is a result of a complex trade-off of situational variables. The findings contribute to managerial practice by providing online grocery retailers with insight that can be applied when designing promotional programs targeted at older adults.