scholarly journals Purchasing decisions making in the context of digital transformation of retail

2020 ◽  
Vol 18 (4) ◽  
pp. 11-18
Author(s):  
Nadiia Proskurnina
Keyword(s):  
Decision Making ◽  
Digital Transformation ◽  
Customer Relationship ◽  
Retail Industry ◽  
Consumer Decision Making ◽  
Contact Center ◽  
Digital Implementation ◽  
Consumer Expectations ◽  
Marketing Activities ◽  
The Impact

The paper analyzes the impact of retail transformation on the consumers’ expectations and behavior in the electronic environment and identifies the main directions of digitalization of the marketing activities of domestic retail enterprises at each stage of the purchasing decision-making process. It also systematizes the consumer expectations in the context of the digital transformation of retail, which made it possible to establish the importance of managing customer acquisition for retailers and demonstrated how technology changes the way customers purchase. The results of an online study of the impact of marketing efforts in retail outlets to highlight digital transformation tools at every stage of consumer decision-making by consumers are presented and the main directions of digitalization of marketing activities of domestic retail enterprises are summarized. The legitimacy of taking consumer expectations into account when determining the impact on the business model of retailers, returning it to the plane of mobility, digitalizing the purchase process, and the integration of digital and physical trading, has been proven. It is suggested to consider the main areas of digital transformation as digital interaction with customers, innovation in the development of products and services, distribution channels, marketing and sales; digital implementation, risk optimization, strengthening corporate control, intelligent information management and customer service, managing customer and contact center experience, customer relationship management. This made it possible to specify promising areas of digital transformation in the retail industry, in particular, optimizing human resources, creating new ways of cooperation, attracting labor and assistance (flexible work, social cooperation, corporate cooperation, integrated communications), as well as employee training for the retail industry.

scholarly journals Online Reviews and Product Sales: The Role of Review Visibility

2021 ◽  
Vol 16 (4) ◽  
pp. 638-669
Author(s):  
Miriam Alzate ◽  
Marta Arce-Urriza ◽  
Javier Cebollada
Keyword(s):  
Decision Making ◽  
Dynamic Models ◽  
Generalized Method Of Moments ◽  
Online Reviews ◽  
Consumer Decision Making ◽  
Product Sales ◽  
The Impact ◽  
The Relationship ◽  
The Empirical Analysis

When studying the impact of online reviews on product sales, previous scholars have usually assumed that every review for a product has the same probability of being viewed by consumers. However, decision-making and information processing theories underline that the accessibility of information plays a role in consumer decision-making. We incorporate the notion of review visibility to study the relationship between online reviews and product sales, which is proxied by sales rank information, studying three different cases: (1) when every online review is assumed to have the same probability of being viewed; (2) when we assume that consumers sort online reviews by the most helpful mechanism; and (3) when we assume that consumers sort online reviews by the most recent mechanism. Review non-textual and textual variables are analyzed. The empirical analysis is conducted using a panel of 119 cosmetic products over a period of nine weeks. Using the system generalized method of moments (system GMM) method for dynamic models of panel data, our findings reveal that review variables influence product sales, but the magnitude, and even the direction of the effect, vary amongst visibility cases. Overall, the characteristics of the most helpful reviews have a higher impact on sales.

The influence of price and promotion on package size propensity

2017 ◽  
Vol 32 (2) ◽  
pp. 93-103
Author(s):  
Amit K. Ghosh
Keyword(s):  
Decision Making ◽  
Product Category ◽  
Relative Price ◽  
Grocery Stores ◽  
Consumer Decision Making ◽  
Content Type ◽  
Household Level ◽  
Packaged Goods ◽  
Package Size ◽  
The Impact

Purpose The constantly changing prices, promotions, and packaging options have made decision making more complex for consumers of packaged goods. The purpose of this paper is to explore how price and promotions influence consumer propensity to buy a certain package size. Design/methodology/approach Scanner panel data for shelf-stable salad dressing obtained from Information Resources Inc. were used to compute the proportion of large packages bought, the relative price paid for large packages, propensity to use various types of promotions, and a behavioral covariate for each household. Data of over 5,600 households were analyzed using a multiple regression analysis for hypothesis testing. Findings The positive nature of relationship between the relative price of large packages and the proportion of large packages bought demonstrates the suboptimal nature of consumer decision making. The inefficiency is partially attributable to the abundance of promotions, to consumers’ lack of price awareness, and to the use of heuristics by consumers. Also, consumers who are prone to use promotions such as displays and temporary price reductions tend to purchase larger packages. They are more likely to buy impulsively and base their decisions on heuristics. In contrast, consumers who are influenced by featured price cuts and who utilize coupons tend to purchase smaller packages. Research limitations/implications Data were obtained from grocery stores; only a single product category was studied. Practical implications Offer coupons and advertise featured price cuts on small packages to increase the sales of smaller packages. To move large packages successfully, retailers should rely more on in-store displays and temporary price reductions. Originality/value The impact of price and promotions on package size propensity has never been investigated. This study is also one of the few that uses a household-level analysis based on observable purchase data for consumer packaged goods.

scholarly journals An Extended Model of Behavioural Process in Consumer Decision Making

2016 ◽  
Vol 8 (4) ◽  
pp. 87 ◽  
Author(s):  
Nagasimha Balakrishna Kanagal
Keyword(s):  
Decision Making ◽  
Consumer Products ◽  
Extended Model ◽  
Response Model ◽  
Consumer Decision Making ◽  
Consumer Decision ◽  
Stimulus Response ◽  
Economic Decision Making ◽  
Buying Behaviour ◽  
The Impact

<p>The stimulus response model of consumer behaviour is useful to understand the buying behaviour of individual consumers in the context of individuals buying consumer products. An extended stimulus-response model of behavioural processes in consumer decision making is proposed that serves to integrate the influences and interlinkages of buyer psychology, various buyer characteristics, and the impact of the buyer decision process on consumer decision making. The model proposes that the behavioural process of consumer decision making be as a result of the interaction of three aspects of individual buyer behaviour: communication sensitivity; enculturated individuality; and rational / economic decision making. The paper addresses the flip side of the consumer decision making process in terms of the five stages of decision making from need recognition to post-purchase satisfaction. An aggregate level framework of behavioural process in consumer decision making has been provided, that could lead to a richer analysis of micro level factors and relationships influencing consumer decision behaviour.</p>

scholarly journals IMMERSIVE TECHNOLOGIES AS A TOOL OF INNOVATIVE MARKETING IN THE FIELD OF BUSINESS ORGANIZATION

2021 ◽  
Author(s):  
Valentyna Fostolovych ◽  
Tetiana Botsian
Keyword(s):  
Human Life ◽  
Digital Technologies ◽  
Digital Transformation ◽  
Competitive Advantages ◽  
Marketing Activities ◽  
Marketing Tool ◽  
The Cost ◽  
The Impact ◽  
Immersive Technologies

The permeability of all spheres of both economic activity and human life with digital technologies encourages the search for new marketing ideas necessary for the implementation of the product (goods, works and services).  Today's consumer has become more demanding both to the product itself and to the ways of presenting it.  Immersive technologies are becoming one of the tools that contribute to the formation of competitive advantages, especially the organization of business in the field of entertainment, as one of the areas of additional income in the field of hotel and restaurant services and marketing activities of enterprises.  Digital transformation leads to the search for new initiatives that will be a tool to meet customer needs and a way to reach wider market segments.  The process of digitalization must first be integrated into the economy of the whole state and the enterprise as a whole, and in all processes of production of goods, works and services.  Digital-transformation of domestic enterprises will help to obtain additional competitive advantages both in the domestic market and in the international market.  The formation of competitive advantages is associated not only with the maximum involvement of digital technologies in business.  It is important to choose such technologies that will be most effective in the implementation of a particular type of enterprise, under certain conditions and in a particular environment. The expediency of using immersive technologies as a marketing tool is undeniable.  However, in addition to tools, immersive technologies are important as a means of education, a separate milestone in the field of entertainment, a means of psychological influence and more.  That is, the impact of this tool on the level of competitiveness of the enterprise in the environment of the demanding consumer is manifested: in the form of reducing the cost of attracting the client; active covert promotion through their use; improving the quality of the presented product (goods, works, services); ensuring the elasticity of the enterprise to the needs and requirements of consumers; the transition of the enterprise to an innovative type of development and active digitalization.

scholarly journals Effect of Perfectionistic and Brand Conscious on Consumer Decision-making Style of Young Adult in Batam in Mobile Phone Purchase

2019 ◽  
Vol 8 (6S3) ◽  
pp. 309-312
Keyword(s):  
Decision Making ◽  
Mobile Phone ◽  
Quantitative Research ◽  
Sampling Technique ◽  
Consumer Decision Making ◽  
Purchasing Decisions ◽  
Consumer Decision ◽  
Quality Product ◽  
Marketing Activities ◽  
Independent Variable

Mobile phone business competition moves faster and more complex. This situation forces mobile phone manufacturers to be more creative and innovative in creating new products. Perfectionistic difference is one of the reasons consumers are willing to pay more for a brand of mobile phone products that are considered quality product. Marketing activities play a role in consumer purchasing decisions in addition to customer confidence in a product so that confidence arises in the purchasing actions taken. This research is quantitative research, a type of research with the characteristics of the problem in the form of influence relations. This study uses perfectionistic, and brand conscious as an independent variable and consumer decision-making style as a dependent variable. This study is aimed to look at the regression relationship between perfectionistic and brand conscious variable and the consumer decision making style of the young adults in Batam in purchasing mobile phone products. 393 private college students in Batam were taken as respondents by using proporsive sampling technique. The results of data analysis and hypothesis testing showed that Perfectionistic significantly influenced Consumer Decision-making Style, Brand Conscious had an influence on Consumer Decision-making Style and Perfectionistic and Brand Conscious simultaneously influenced Consumer Decision-making Style.

scholarly journals Constructing a Sustainable and Dynamic Promotion Model for Fresh Foods Based on a Digital Transformation Framework

2021 ◽  
Vol 13 (19) ◽  
pp. 10687
Author(s):  
Tsung-Yin Ou ◽  
Guan-Yu Lin ◽  
Chin-Ying Liu ◽  
Wen-Lung Tsai
Keyword(s):  
Decision Making ◽  
Business Models ◽  
Simulation Analysis ◽  
Real Data ◽  
Digital Transformation ◽  
Retail Industry ◽  
Management Decision ◽  
Sustainable Business ◽  
Use Of Resources ◽  
Convenience Stores

The emergence of digital technology has compelled the retail industry to develop innovative and sustainable business models to predict and respond to consumer behavior. However, most enterprises are crippled with doubt, lacking frameworks and methods for moving forward. This study establishes a five-step decision-making framework for digital transformation in the retail industry and verifies it using real data from convenience stores in Taiwan. Data from residential type and cultural and educational type convenience stores, which together account for 75% of all stores, underwent a one-year simulation analysis according to the following three decision models for promotions: the shelf-life extended scrap model (SES), the fixed remaining duration model (FRD), and the dynamic promotion decision model (DPD). The results indicated that the DPD model reduced scrap in residential type stores by 12.88% and increased profit by 15.43%. In cultural and educational stores, the DPD model reduced scrap by 10.78% and increased profit by 7.63%. The implementation of the DPD model in convenience stores can bring additional revenue to operators, and at the same time address the problem of food waste. With the full use of resources, sustainable operation can be turned into a concrete and feasible management decision-making plan.

Impact of Digital Communication on Consumer Behaviour Processes in Luxury Branding Segment

2018 ◽  
pp. 132-157
Author(s):  
Harsha Gupta
Keyword(s):  
Decision Making ◽  
Consumer Behavior ◽  
Consumer Behaviour ◽  
Digital Communication ◽  
Consumer Decision Making ◽  
Online Questionnaire ◽  
Consumer Decision ◽  
Luxury Branding ◽  
Buying Behaviour ◽  
The Impact

With a boom in digital marketing and the luxury sector in India, research in both the segments have become crucial for mining insights that guide consumer buying behaviour. However, both these constructs are comparatively new and have not been researched much. Hence, research in this field will help marketers across the corporate and academic sectors to understand deeper insights about consumer decision making process. This research will help in understanding how different vehicles of digital communication impact consumer behavior processes in the luxury brand apparel segment. The data for this research has been collected using an online questionnaire from respondents across India. Hence, this chapter will enable the readers in identifying which digital vehicles are most suitable for the different stages of the consumer behaviour process when marketing to luxury consumers; identifying the ranking of digital vehicles during consumer buying behaviour process; and analyzing the impact of various digital communications at different stages of the consumer behaviour process.

scholarly journals The impact of product presentation on decision-making and purchasing

2019 ◽  
Vol 22 (3) ◽  
pp. 365-380 ◽  
Author(s):  
Rosy Boardman ◽  
Helen McCormick
Keyword(s):  
Decision Making ◽  
Eye Tracking ◽  
Visual Information ◽  
Age Groups ◽  
Target Market ◽  
Consumer Decision Making ◽  
Consumer Decision ◽  
Content Type ◽  
Product Presentation ◽  
The Impact

Purpose This paper aims to investigate how apparel product presentation influences consumer decision-making and whether there are any differences between age groups. Design/methodology/approach A mixed methodology was used including eye-tracking and qualitative in-depth interviews, with a purposive sample of 50 participants between age 20 and 70. Findings A higher number of product presentation features resulted in increased positive visual, cognitive and affective responses as consumers wanted as much visual information as possible to aid decision-making. Images of models attracted the most attention and were the most influential product presentation feature, followed by mannequin images and the zoom function. The 20 s spent much less time viewing and interacting with the product presentation features than middle age groups (30 s-50 s), had minimal fixations on mannequin images and had a much quicker decision-making process than other age groups. Practical implications The research informs retailers which product presentation features are the most effective for their target market to aid consumer decision-making with the aim of reducing returns. Originality/value The paper contributes to the literature by providing more in-depth insights than previous studies into the impact of online product presentation on consumer decision-making by using qualitative research and eye-tracking. The research also explores more product presentation features than previous research and investigates the presentation of apparel products, which are notoriously the most difficult products for consumers to assess online. The research is unique in its exploration of age differences in relation to product presentation features.

Exclusive books: applying a behavioural economics perspective

2020 ◽  
Vol 10 (3) ◽  
pp. 1-30
Author(s):  
Thiroshnee Naidoo ◽  
Charlene Lew
Keyword(s):  
Decision Making ◽  
Learning Outcomes ◽  
Consumer Choice ◽  
Behavioural Economics ◽  
Choice Overload ◽  
Consumer Decision Making ◽  
Consumer Decision ◽  
Content Type ◽  
The Impact

Learning outcomes The learning outcomes are as follows: understanding of the principles of choice overload and the impact of consumer choice overload on company sustainability and growth prospects; understanding of how several heuristics inform consumer decision-making; applying nudge theory to interpret and clarify the impact and consequences of nudges on consumer decision-making; and considering the challenge of a newly appointed CEO to influence consumer choice. Case overview/synopsis The case study and teaching note offers insights into the use of behavioural economics principles in consumer choice. The case study methodology was used to design, analyse and interpret the real-life application of behavioural economics in the retail sector. The case demonstrates how choice overload, dual process theory, decision heuristics and nudge theory play a role in consumer decision-making. The case offers insights into the application of behavioural economics to support the sustainability of a company in an emerging market context. Managers can use the findings to consider how to use behavioural economics principles to drive consumer choice. The application of behavioural economics to an industry facing challenges of sustainability offers new insights into how to design spaces and cues for consumer choice. Complexity academic level The case study is suitable for course in business administration, specifically at postgraduate level. Supplementary materials Teaching notes are available for educators only. Subject code CSS 8: Marketing

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