Now showing 1 - 10 of 21
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    Retailing in the metaverse: A framework of managerial considerations for success
    Despite substantial buzz about the Metaverse-a computer-mediated environment in which people act in realtime as avatars in virtual worlds-retailers remain unclear about whether and how they should integrate the Metaverse into their business. Nor has academic research offered clear answers. The current research therefore explores the phenomenon of Metaverse retailing from a managerial perspective, using three qualitative studies involving top-and mid-level managers to understand key managerial considerations for entering the Metaverse in the short-and long-term, as well as one survey of Metaverse users to understand important design factors for the customer experience. A proposed research agenda also offers guidance for generating further insights into areas of strategic importance for managers.
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    CROSS-BUYING IN RETAILING: THE ROLE OF CUSTOMER INSPIRATION
    The disruption in the retail industry makes businesses struggle to stay profitable. Retaining existing customers is cheaper than acquiring new customers and long-tenured customers are more profitable. Thus, retailers are urged to leverage existing customer relationships. One way of doing so is to cross-sell additional products to current customers. However, among the most frequently studied antecedents, scholars found conflicting evidence about the direction and significance of the effects. Under what circumstances antecedents have robust implications on cross-buying behavior remains unclear. We try to address this gap in the existing literature by investigating the most frequently used drivers of cross-selling in past literature, along with an underlying psychological mechanism of cross-selling. We argue that cross-selling decisions are driven by customer inspiration. Three key findings emerge from the study. First, customers’ inspirational state is an essential predictor of cross-buying. Second, the study shows that customer inspiration must be viewed as a mediator rather than an additional driver. Third, some driving forces of cross-selling indirectly affect cross-buying behavior through inspiration.
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    Emotionalizing the Point of Sale: Evidence from a Quasi-Experimental Field Study
    Most retailers place their top-selling products (oftentimes also their promotional products) in the best locations in stores (i.e., A-places) to maximize revenue. The purpose of this research project is to examine the impact of placing emotional advertising (instead of product displays) in retailers' A-places on consumer spending behavior. In a quasiexperiment, we manipulated the store layout in two stores of a large European grocery chain (hereafter referred to as test stores). During the experimental period, we replaced product displays at 12 to 16 A-places (endcaps) in two stores with emotional advertising displays. We introduced different seasonal advertising campaigns for one to two months each. The campaigns were thematically diverse and ranged from product-related (e.g., pumpkin) to more abstract topics (e.g., sustainability). The results provide evidence for increased customer satisfaction and better net promoter scores when faced with emotional advertisements instead of product placements. Using difference-indifference estimation, we conclude that the average daily revenue per store increased by 2.96 percent (p = .021), and the revenue margin increased by 0.49 percentage points (p = .006). Academic and managerial implications are discussed.
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    CONNECTING RETAIL EDUCATION TO RETAIL PRACTICE: HOW INNOVATIVE TEACHING FORMATS INFLUENCE STUDENTS’ AND EMPLOYEES’ TRANSFORMATIVE LEARNING
    The abundance of new touchpoints (e.g., mobile apps, price comparison portals), stakeholders (e.g., manufacturers, other customers), and technologies (e.g., artificial intelligence, virtual reality) that shape today’s customer journey have rendered retailing more complex, fast-moving, and competitive than ever before. In light of the high demands on retail managers of tomorrow to use innovative practices and service solutions for delivering customized and delightful customer experiences, educational institutions struggle to make their courses more relevant for the challenges that students are about to be confronted with in their professional life. With the help of two qualitative studies, this paper investigates the role of experiential learning in triggering transformative learning, i.e., the process of continuous critical reflection and perspective transformation, among students, retail managers, and frontline employees. Findings reveal that experiential learning formats may induce students’ transformative learning along five different categories centered on the students’ self and the interaction between the self and others. Our results extend research on retailing and experiential and transformative learning and derive valuable implications for retailers and educators alike.
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    Do, Undo, Redo: How Experiential Teaching Formats Prepare Marketing Students for Retail Practice
    The abundance of new touchpoints, stakeholders, and technologies that shape today's customer journey have rendered retailing more complex than ever before. In light of the high demands on retail managers of tomorrow to use innovative practices and service solutions for delivering customized and delightful customer experiences, business schools struggle to make their courses more relevant to the challenges that students are about to be confronted with in their professional life. With the help of an ethnographic study, this paper investigates the role of experiential learning formats in preparing marketing students for business practice. Findings reveal that experiential learning formats may induce vital skills in students and strengthen their empathy, discourse with others, critical self-reflection, perspective transformation, and adapted behaviors. Our results extend research on experiential learning in marketing and derive valuable implications for retail practice and educators alike.
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    The Role of Emotions in Masked Service Encounters
    A smile alone does not guarantee excellent customer service, but excellent customer service almost always starts with a smile. However, face mask obligations in nearly all service interactions all around the world cover around 60-70% of the face area during COVID-19, and this newly covered face area is crucial for facial emotional reading, including friendly smile detection. Results from two online studies and one field study indicate that most customers can decode employee smiles even when covered with a face mask. If employees express a neutral or negative emotion, mask-wearing covers the unfavorable emotions and, thus, increases perceived warmth. This effect can be mitigated by wearing smiling masks. Smiling masks increase perceived warmth, leading to higher customer inspiration through a serial mediation with rapport, and finally end up in more successful service evaluations (i.e., higher customer satisfaction, more positive word-of-mouth communication, and higher average ticket sizes). These findings enrich our understanding of face masks in service encounters. We extend the literature on emotional services and show that emotional contagion may occur through artificially created facial expressions (i.e., a smile printed on a mask). Furthermore, we recommend that managers empower their employees to display friendly smiles, even under masks.
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    Service with a Smile: The Effects of Face Masks in Service Encounters
    A smile alone does not guarantee excellent customer service, but excellent customer service almost always starts with a smile. However, mask-wearing obligations in nearly all service interactions cover friendly smiles during COVID-19. Results from two studies indicate that customers can decode employee smiles even when covered with a face mask. If employees express a neutral or negative emotion, mask-wearing covers the unfavorable emotions and increases perceived warmth. Wearing a smiling mask, increases perceived warmth even more strongly, leading to better service evaluations through a serial mediation with rapport. These findings enrich our understanding of face masks in service encounters.
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    Dumb Smiles: How Positive Emotions Negatively Influence Purchase Intentions in Live Shopping
    (American Marketing Association, 2022-02-10) ; ;
    Social commerce and live shopping are on the rise. Major retailer across the globe have started marketing their products on live streams directly to billions of customers. Still, live shopping has not yet received much attention in marketing research. In this article, we build upon findings from service and marketing research to study the role of the salesperson in live shopping. In an online experiment, we show that the excessive expression of positive emotions trough smiling negatively affects perceived expertise of the salesperson and purchase intentions for the advertised hedonic product. For utilitarian products, we find no influence of positive emotions on purchase intentions. Implications for research and practice are being discussed.
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    The Influence of the Season on Consumers’ Feeling of Groundedness and Product Attractiveness
    Feeling grounded or emotionally and deeply rooted gives consumers a sense of safety, strength and stability. Products can make consumers feel grounded by connecting them to their physical, social and historical surroundings. Products that provide consumers with a feeling of groundedness are more attractive than products that do not. Recent research suggests that the season can influence consumers' need and feeling of groundedness. However, the question of when and why this effect appears remains open. We employ an online experiment with 220 participants from the UK to investigate the influence of the season on consumers need and feeling of groundedness. Using structural equation modelling, we show that consumers' having a higher need for groundedness also have a stronger feeling of groundedness. We demonstrate that consumers have a higher feeling of groundedness during colder seasons. We discuss theoretical and practical implications and propose promising avenues for future research.
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