entertainment in retailing: the influences of advanced technologies

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Entertainment in retailing: The influences of advanced technologies

Eleonora Pantano, Giuseppe Naccarato �

Department of Linguistics, via P. Bucci, cubo17b, University of Calabria, 87036 Arcavacata di Rende (CS), Italy

a r t i c l e i n f o

Keywords:

Retailing

Shopping experience

Consumer behavior

Advanced technologies

Entertainment

a b s t r a c t

In recent years, the importance of an enjoyable experience during the shopping activity increased. As a

consequence, many researchers are focusing on the best application of enjoyable elements in the points

of sale in order to maintain existing consumers and attract new ones.

The aim of this paper is to analyze how the introduction of advanced technologies modifies the

retailing context and affects consumers shopping experience. In particular, three aspects of our results

emerge from a theoretical standpoint: new advantages for retailers (the possibility to achieve fast

information on consumer behavior and preferences); the improvement of the point of sale; and the

positive influences on consumers shopping experience.

& 2010 Elsevier Ltd. All rights reserved.

1. Introduction

In recent years, the importance of an enjoyable experienceduring the shopping activity increased (Kim, 2001; Kozinets et al.,2002; Backstrom and Johansson, 2006). In fact, several authorscarried out that consumers who enjoy the shopping experienceengage more purchases if compared to those who not (Kim andKim, 2008). The shopping experience, therefore, can be influencedby the fun provided in the store (Diep and Sweeney, 2008). Inparticular, this experience plays an important role in theconsumers satisfaction process. Indeed, an entertainment contextseems to have a stronger impact on consumers satisfaction than anon-entertainment context (Soderlund and Julander, 2009). Infact, it can add value to the goods and services provided in thestore (Newsom et al., 2009; Roussos et al., 2003).

Moreover, the level of entertainment is a powerful tool toimprove processes, by enhancing users experience. For instance, itis very effective for facilitating learning processes (Cutr�ı et al.,2008; Pantano and Tavernise, 2009).

In this scenario, many studies are focusing on the bestapplication of enjoyable elements in the points of sale in orderto entertain more consumers, improve their shopping experienceand communicate the brand in new and attractive ways (Burke,2002; Chang and Burke, 2007; Michon et al., 2006). To achievethis task, several firms added in their stores entertainmentelements as bar, gyms and restaurants capable to enjoy existingconsumers, as well as to attract new ones.

Meaningful example are the Armani brand, which added in itsmost important Italian store (in Milan, Italy) the famous Nobu

Restaurant, and the Ralph Lauren brand which created the RalphLauren Restaurant in Chicago (USA), where each element of theenvironment reflects and reminds the brand style. With the samepurpose, also other luxury firms are extending their signaturelabel into the landmark hotel (especially in exclusive places): forinstance, BVULGARI opened a hotel in Milan and another one inBali, and Versace opened the Palazzo Versace in the AustralianGold Coast.

Hence, it’s emerging new vision of the shopping places: theshopping places as entertaining places. The current advances intechnologies carried out new powerful tools to improve in-storeconsumers experience.

The aim of this paper is to analyze how the introduction ofadvanced technologies modifies the retailing context, by provid-ing new enjoyable elements, and how these technologies canaffect consumers shopping experience.

The first part is devoted to the most used technologies in thepoints of sale; the second one analyzes the main implications ofthese technologies for marketers and the possible influences onconsumers behavior.

2. Advanced technologies in retailing

The main characteristic of the current technologies applied toretailing is the interactivity. In fact, these technologies giveconsumers the possibility to interact with the products in thestores as in a videogame. For this reason, the interactivetechnologies (such as 3D virtual models) have been alreadyexploited by several e-retailers in order to enhance consumersshopping experience (Kim et al., 2007; Yoo et al., 2010).Furthermore, these tools can be used also in the real stores withsimilar results.

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Journal of Retailing and Consumer Services

0969-6989/$ - see front matter & 2010 Elsevier Ltd. All rights reserved.

doi:10.1016/j.jretconser.2010.03.010

� Corresponding author. Tel.: +39 0984494363; fax: +39 0984494110.

E-mail address: [email protected] (G. Naccarato).

Journal of Retailing and Consumer Services 17 (2010) 200–204

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The advanced technologies applied to retailing are usuallybased on pervasive environments and mobile and ubiquitouscomputing (Wasinger, 2006; Roussos et al., 2003). Pervasivedevices are often embedded into a service infrastructure, likemobiles and RFID tags and sensors. In this case, information likeusers profiles, items description and data from sensors aresynchronized and shared over the network of devices, in thisway the database is constantly updated.

2.1. RFID

RFID is a radio frequency identification. It is an efficientautomatic identification technology for a variety of applications(Roussos and Kostakos, 2009). According to Ustundag and Tanyas,2009, the RFID is made up of an unique identification numberassigned to a particular item. A tag (the identity number) isattached to the item through a chip, which provides the uniqueidentification number. As a consequence, the RFID readers collectsignals from multiple tags and process this data through the dataprocessing system. This data contain the product information.

Furthermore, RFID is especially used in the management of thesupply chain to trace products.

From the consumers point of view, RFID allows them to locatethe products in the store, which have been previously labeledwith RFID tags, and achieve other information. In fact, theproducts tags can refer consumers to information held in theproducts database that they can access through special tools.

These systems are usually based on shopping trolleys andhandled devices, equipped with particular drivers which recog-nize RFID tags of each product (Hansmann, 2003; Schneider,2004).

A meaningful example of RFID application in the point of saleis available at Galeria Kaufhof Essen (Germany). In this mall, eachproduct is tagged with an RFID, which reminds to a database withmore details. Consumers can use a particular Personal DigitalAssistant (a portable RFID readers), which shows on the displaythe information related to the products (Fig. 1).

Due to its low cost and ease to manage, RFID is largely used inthe development of shopping assistant systems, in order tosupport consumers during the presence in the store.

2.2. Shopping assistant systems

The most used shopping assistant systems are usually basedon the shopping trolleys available in the stores or on theconsumers mobile devices (smart-phone, pocket pc, iPhone, etc.).

In the evaluation process of different alternatives, theseparticular tools are capable to support consumers, by allowingthem to fast compare different proposals, and providing detailedand complete information on products and services.

From the retailers point of view, these systems allow them toknow the quantity of the product on the shelves in real time; thisinformation can be used to renew stock in a more efficient way,avoiding waits and obstacles for consumers. The consequence isan increasing of both the service level and the consumerspropensity to buy, as well as a general increasing of thequalitative perception of product, shop and brand (Burke, 2002).

Moreover the shopping assistant systems can solve theproblem related to the planning of the target advertising tospecific consumers, which is a key factor in the consumerssatisfaction process (Iyer et al., 2005), by delivering highcustomized information.

The most meaningful example are the IBM Personal ShoppingAssistant and the mobile shopping assistant (MSA) (Pantano,2009). One of the main advantages of these systems is themultimodality of the interaction (Pantano, 2009). This modalitymakes the interaction between consumers and system moreefficient (Oviatt, 2008). In this way, the shopping assistants createa new standout which engages the consumers and enhances thebrand.

In particular, the IBM Personal Shopping Assistant (Fig. 2)consists of a mobile tablet (8.400 display), a bluetooth handheldscanner, a cart mount, a charging rack for the storage of the tabletand an infrared beacon (located throughout store) for providingproducts location information.

The system allows consumers to: choose favorite items, additems to the shopping list and find items in the store.Furthermore, it highlights (graphically) the products, allows tovisualize (graphically) the products on the basket and products onsale, as well as to find their exact location. In this way, it becomesan interactive shopping guide, which supports consumers duringtheir presence in the store. Hence, consumers can save time andenjoy the more efficient shopping experience.

The MSA, realized by the METRO Group Future Store Initiative,instead, consists of a new application for consumersown mobile equipped with a camera, which allows the interactionbetween consumers and the products available in thestore (Fig. 3).

The mobile camera allows to scan the product barcode, whichallows the interaction with the products focusing the camera oneach good. Afterwards, the item can be added to the shoppingbasked and consumers can ask for additional products informa-tion. Furthermore, the system displays the scanned products, andgives consumers the possibility to remove the single item,visualize the total cost of the purchases and search for otheritems in the store.

2.3. Smart mirror

To date, several researches are focusing on the development ofsmart mirrors, which should be available in the point of sale, but

Fig. 1. Application of RFID at Galeria Kaufhof Essen (Germany). Source: METRO

Group Future Store Initiative.

Fig. 2. The IBM Personal Shopping Assistant. Source: IBM.

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only few prototypes are currently available on a limited numberof stores.

The smart mirror consists of an integrated software and ahardware system which recognizes consumer face and body bya web cam and reproduces graphically him/her while wearing acertain product.

A meaningful prototype has been realized by Acep Group foroptical products (Fig. 4).

This particular system allows consumer to visualize howhe/she looks in any frame of the store and to simulate the effectproduced by the good.

Another meaningful example is the smart mirror developed byde Tommaso Factory. This factory produces handcraft shoes andintroduced in its stores a particular technology based on thetechnique of multidimensional scanning (Fig. 5). In particular, thistechnique is capable to visualize via computer an accurate imageof the consumer’ foot geometry. As consequence, the factory cancreate the plastic form and models used by artisans to produce

the shoes which better fit the consumers foot, and realize the bestcustomized final product.

This system can be located in the stores all over the world. Inthis way, everywhere it is possible to scan the consumer foot,send factory the information and start the production of thecrafted product, made to measure, which will be sent to theconsumer address.

In this scenario, some qualitative researches carried out thatconsumers have a positive response on the introduction of newtechnologies in traditional stores (Pantano, 2009). In fact, due tothe level of innovation, the presence of these technologies attractsconsumers attention and allows them to live new excitingin-store experiences. Furthermore, the shopping experiencebecomes more efficient because the systems support and guideconsumers during the shopping activity, providing customizedmessages and suggestion, and satisfying their informationrequests.

3. Discussion

The current advances in technologies modify the storeappearance and the consumers in-store behavior. In fact, theyinfluence the course of searching for, choosing and comparingproducts, as well as interacting with the products and providingmarketers new tools to understand consumer preferences andneeds.

In particular, three aspects of our results emerge from atheoretical standpoint: (1) the possibility (for retailers) to achievefast information on consumer behavior, (2) the improvement ofthe point of sale by introducing new entertainment tools and(3) the positive influences on consumers shopping experience.

(1) The possibility to achieve fast information on consumerbehavior.Nowadays, several researches show the increasing companiesneed to be constantly informed on consumers preferences andrequests in order to create strategies capable to succeed in thecurrent changing market (Zahay and Peltier, 2008). In thisperspective, the technologies presented are capable to collect,organize and manage information related to consumersbehavior, which can be accessed and updated constantlyand rapidly by retailers. In this way, they can have an efficientfeedback on consumer response about products, services andretailing strategies.In particular, the interaction between consumers and thetechnologies provides information about consumers prefer-ences (i.e. about their favorite color, etc.), useful for improvingthe quality of the products in the store, and shows their ownopinion about the shopping experience (i.e. which kind ofmessages influenced more the buying behavior). In fact, mostof these technologies are connected to databases withinformation related to the products, consumers and relatedpurchases. In this way, an efficient match between databasesallows to investigate consumers preferences, as well as theeffectiveness of the use of the technologies and their willingto use.Furthermore, the use of these technologies allow to decreasethe cost of interaction between consumer and firm, necessaryfor the creation of a product/service which best fits consumersneeds (Syam et al., 2005) and, as a consequence, supports thedevelopment of new customized marketing strategies.

(2) Improvement of the point of sale.The introduction of advanced technologies in the storesmodifies their appearance, in terms of style, layout andatmosphere. In fact, the core of the store becomes the

Fig. 3. The mobile shopping assistant (MSA). Source: METRO Group Future Store

Initiative.

Fig. 4. A prototype of smart mirror for optical products. Source: Acep Group.

Fig. 5. A smart mirror for handcraft shoes. Source: ACL de Tommaso.

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technology, which provides new services for consumers andcommunicates new customized messages. In fact, the storesappearance seems more technological and futuristic. Inparticular, new elements capable to stimulate consumersattention and interest are introduced, by providing a newmerchandise layout, which can also influence the consumersexpectations about the search efficiency. Furthermore, theseelements can affect the consumers in-store experience(Puccinelli et al., 2009).In addition, in this new environment consumers can play withproducts as in a videogame, due to the high level ofinteractivity of the technologies. In particular, consumerscan ask the system for more customized information, virtuallytaste products, focus on some details, compare products andgain useful information for supporting the choice of the bestgood.In this way, these technologies introduce new enjoyable toolsin the stores and, due to their innovative characteristic, theyare capable to stimulate consumers interests.The shopping experience, therefore, could become a funnyexperience for a larger target of population.For instance, the male population is not usually attracted bythe conventional stores, so that they often prefer the e-stores(Otnes and McGrath, 2001), but the presence of thesetechnologies is capable to attract also this segment ofpopulation, by providing tools which can satisfy more theirrequests of the marketplace than a conventional point of sale.In fact, the aim of these technologies is to make the storemore comfortable for consumers, by providing services in afunny way. As a consequence, they can spend more time,engage more purchases and a more frequency of buy.

(3) Influences on shopping experience.The introduction of advanced technologies affects thetraditional decision-making process based on five steps: needrecognition (1), search for information (2), pre-purchaseevaluation (3), purchase/consumption (4), post consumptionevaluation (5) (Solomon and Stuart, 2005; Blackwell et al.,2006).

In particular, it is possible to analyze how these technologiesaffect the different steps in order to understand their possibleinfluence on the consumers shopping experience:

(1) Need recognition: these technologies can inform consumersabout the new arrivals in the stores, and suggest them theproducts capable to stimulate the emerging of new needs;

(2) Search of information: the technologies become a useful toolfor consumers to achieve fast and detailed information aboutthe products in the store, as well as for a further comparisonamong products;

(3) Pre-purchase evaluation: on the basis of information achievedthrough these technologies, consumers have new usefulelements to make their choice. In this way, the technologiessupport the consumers decision-making;

(4) Purchase/consumption: these technologies are capable tosupport consumers during the payment, for instance, theycan automatically calculate the total cost of the purchases andshow the different payment options. If consumer enjoyed, theshopping experience can decide to engage more purchases;

(5) Post consumption evaluation: the presented technologies affectthe consumers evaluation process. In fact, they improve theprovided services and, as consequence, the consumer satisfac-tion; therefore, they are capable to influence consumersloyalty to the point of sale. Moreover the total service qualityimproves, due to the consumers active participation in the

service co-production (Fischer et al., 2009; Bharadwaj et al.,2009; Grant et al., 2010). Indeed, the interactivity of thetechnologies allows them to interact with the products ofthe store and to search customized information. Furthermore,the technologies provide a high and fast customized service,which allows consumers to save time.

In this way, the shopping experience becomes more interestingand exciting and as consequence it can affect positively theconsumer buying behavior.

In addition, consumers can choose to exploit or not the newtechnologies in the point of sale. In particular, this option couldproduce more positive attitudes towards using the system andmore positive attitudes towards the shop which propose thisservice (Reinders et al., 2008).

4. Conclusion

This research analyzes the most used advanced technologies inretail context in order to shed light on how they can affect the in-store shopping experience. The results suggest that consumershave a positive response of their introduction, due to the presenceof new enjoyable elements. Importantly, consumers are willing toengage more purchases due to the fun provided in the store.

In this article, we presented advanced technologies that guide,support, or even enable consumer in-store behavior, as well asadvanced media applications that act as knowledge managementsystems for knowledge communication of products (in addition tothe traditional merchandise layout).

Hence, we can conclude that the introduction of newtechnologies in stores (1) modifies the appearance of thepoint of sales, (2) improves shopping activity by providingnew elements which can attract and excite more consumers,(3) influences their subsequent buying behavior, (4) as well asprovide new tools also which can satisfy a wider segment ofpopulation.

These findings provide insights for retailers, who can increasetheir share of market by exploiting the potentialities of thesetechnologies. As such, they have important implications for thestudy of consumers–computer interaction in the retailing con-texts.

5. Limitation and future works

It should be emphasized that new technologies influences cancome into play in different ways, according to the familiarity withthe specified technology, products and consumers attitude to buybesides what was investigated here.

In addition, in the present research we analyzed only fewtechnologies, which have been introduced in the storesseparately. In fact, it is possible that the integration of moretechnologies in the same place may influence consumers in adifferent way, but how the increasing number of these technol-ogies affect consumers behavior is not fully investigated. More-over, although we focused upon the most used technologies inthis study, the results would likely extend to other technologies,as well as to the consumers response to them.

Indeed, despite the increasing researches on the application ofadvanced technologies to retailing, the researches focusing on theconsumers acceptance of these systems in retailing contexts arestill underdeveloped. Several authors focus on the enjoyment asan important factor which influencing users to use newtechnologies (Ha and Stoel, 2009), but most of the researcheson consumer acceptance of new technologies focus only on

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the e-tailing context, with the purpose to understand how toimprove the e-shopping sites (Ha and Stoel, 2009) or, in somecases, on the introduction of just one (Muller-Seitz et al., 2009). Inorder to understand the detailed factors influencing consumersacceptance, it is possible to exploit the use of the TechnologyAcceptance Model (TAM) (Davies, 1989). In particular, the modelallows to explore which factors affect behavioral intention to usethese systems. Furthermore, the model suggests how thevariables perceived usefulness and perceived ease of use deter-mine the intention to use the systems. Hence, the model can focuson the key questions (Kim and Garrison, 2009): (1) will perceivedease of use have a positive effect on behavioral intention to usethe new technologies in retailing context? (2) Will perceived easeof use have a positive effect on perceived usefulness? (3) Willperceived usefulness have a positive effect on behavioral inten-tion to use the new technologies in retailing?

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