Consequences of personalized product recommendations and price promotions in online grocery shopping |
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| Affiliation: | 1. University of Eastern Finland, Business School PL 111, 80101, Joensuu, Finland;2. University of Agder, Department of Management, School of Business & Law, Kristiansand, Norway;3. The Norwegian School of Hotel Management, Faculty of Social Sciences, Stavanger, Norway;4. North-West University, Optentia Research Focus Area, Vanderbijlpark, South Africa |
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| Abstract: | Shopping convenience can be turned into a competitive advantage for online grocery retailers. Consequently, we study how personalized product recommendations (recommendation agents) and price promotions (algorithmic pricing) compensate for the negative impact that consumer's perceived cognitive effort causes on loyalty. By default, the relationship from perceived cognitive efforts to attitudinal and behavioral loyalty is negative, yet these results demonstrate that personalized price promotions lessen the negative impact, while personalized product recommendations do not have such an influence. The findings contribute to a better understanding of personalized marketing activities in today's data-driven online grocery retailing. |
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| Keywords: | Personalized recommendations and pricing Online grocery retailing Customer loyalty |
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