On the Go: How Mobile Shopping Affects Customer Purchase Behavior

Rebecca Jen Hui Wang*, Edward C. Malthouse, Lakshman Krishnamurthi

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

217 Scopus citations

Abstract

Mobile shopping (M-shopping) has become increasingly important in marketing and retailing. Using a unique dataset from an Internet-based grocery retailer, we evaluate changes in customers' spending behavior upon adopting M-shopping, i.e., using smartphones or tablets to compose, modify, or place orders online. We find that order rate, i.e., number of orders placed per year, increases as customers adopt M-shopping. Especially for low-spending customers, both their order rate and order size, i.e., the amount of the order in dollars, increase as they become accustomed to M-shopping. In addition to the effect on customer's spending behavior, we also find that M-shoppers tend to use mobile devices to shop for habitual products that they already have a history of purchasing. We propose that customers utilize mobile devices because the technology provides convenient access, which leads them to incorporate M-shopping into their habitual routines. Managerially, we recommend that firms should fully leverage their mobile platforms, but they should also keep in mind that mobile devices may not be the most optimal channel for launching new products or promoting products that require more consideration during the buying process.

Original languageEnglish (US)
Pages (from-to)217-234
Number of pages18
JournalJournal of Retailing
Volume91
Issue number2
DOIs
StatePublished - Jun 1 2015

Keywords

  • Beta regression
  • Habitual purchases
  • Mobile shopping adoption
  • Online grocery retail
  • Propensity score
  • Survival analysis

ASJC Scopus subject areas

  • Marketing

Fingerprint Dive into the research topics of 'On the Go: How Mobile Shopping Affects Customer Purchase Behavior'. Together they form a unique fingerprint.

Cite this