TY - JOUR
T1 - On the Go
T2 - How Mobile Shopping Affects Customer Purchase Behavior
AU - Wang, Rebecca Jen Hui
AU - Malthouse, Edward C.
AU - Krishnamurthi, Lakshman
N1 - Publisher Copyright:
© 2015 New York University.
PY - 2015/6/1
Y1 - 2015/6/1
N2 - 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.
AB - 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.
KW - Beta regression
KW - Habitual purchases
KW - Mobile shopping adoption
KW - Online grocery retail
KW - Propensity score
KW - Survival analysis
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U2 - 10.1016/j.jretai.2015.01.002
DO - 10.1016/j.jretai.2015.01.002
M3 - Article
AN - SCOPUS:84929261798
SN - 0022-4359
VL - 91
SP - 217
EP - 234
JO - Journal of Retailing
JF - Journal of Retailing
IS - 2
ER -