Description
In an era of information overload, relevance is key. Even more so in the physical store, where consumers are in a ‘shopping state of mind’ (Shankar et al., 2010), and where still a significant proportion of all purchase decisions is being made.Relevance can be achieved by filtering information and targeting shoppers with context-aware messages (Riegger at al. 2022). A commonly studied example is that of location-based messaging (i.e. aligning the message with the consumers’ geographic position; Meents et al. 2020). An alternative approach is to adapt the message to the characteristics and behavior of the in-store receiver in question, implying personalization of communication. Various technological devices can be used by retailers to transfer personalized messages to shoppers in their stores. The focus of this study is on digital signage (DS) in stores, as these are commonly used by retailers for their digital in-store communication.
While the personalization of DS messages may benefit customers (e.g. message relevance), it also comes with high perceived risk to individual privacy (Hess et al. 2020) To employ these type of personalized messages effectively, it is important to understand how customers feel and respond. The present study has four objectives, examining (1) whether the perceived benefits of varying levels of personalized DS communication at the point-of-sale outweigh the perceived risks, (2) why or why not, and (3) who is more and less open to it, and (4) for which specific situations is it more accepted. We address these objectives both from a practitioner and consumer perspective, using a mixed-methods approach.
First we have conducted 16 exploratory expert interviews with various specialists in the domain of artificial intelligence, shopper marketing, data management and consumer privacy. Transcripts have been content-analyzed using NVIVO 12 software. Insights emerged in terms of how to implement personalized targeting via DS in retail stores, minding legal as well as ethical challenges in preserving consumer privacy. For example, the level of personalization via in-store digital screens differs greatly; DS content can be adapted based on customers’ demographics, emotions, preferences and shopping behavior, and all possible combinations of such personal information. It is expected that customers will respond differently, depending on the level of personalization.
In Spring 2023, these results will be complemented based on a consumer survey. That way, consumers and a multitude of specialists in the smart services context of personalized communication at the point-of-sale have been investigated, allowing for setting the boundaries in terms of desirability and feasibility (technology- and privacy preservation-wise).
| Period | 27 Jul 2023 |
|---|---|
| Event title | Recent Advances in Retailing and Consumer Science Conference |
| Event type | Conference |
| Location | Lyon, FranceShow on map |