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Do Digital Displays Enhance Sales? Role of Retail Format and Message Content

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  • Roggeveen, Anne L.
  • Nordfält, Jens
  • Grewal, Dhruv

Abstract

This research examines the impact of in-store digital displays on retail sales across four different store formats. The results of three field experiments show that sales in hypermarkets are enhanced when digital displays are on. However, in supercenters and supermarkets, having the digital displays on has a minimal effect on sales, and in smaller stores (e.g., convenience stores), the digital displays have a negative impact on sales. A follow-up study confirms that the lift in sales in larger stores when the digital displays are on continues five months after their initial installation, though the lift does diminish somewhat. Furthermore, for the digital display to result in a sales lift, the message content must promote the price.

Suggested Citation

  • Roggeveen, Anne L. & Nordfält, Jens & Grewal, Dhruv, 2016. "Do Digital Displays Enhance Sales? Role of Retail Format and Message Content," Journal of Retailing, Elsevier, vol. 92(1), pages 122-131.
    • Handle: RePEc:eee:jouret:v:92:y:2016:i:1:p:122-131
    DOI: 10.1016/j.jretai.2015.08.001
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    Cited by:

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    2. Roggeveen, Anne L. & Grewal, Dhruv & Schweiger, Elisa B., 2020. "The DAST Framework for Retail Atmospherics: The Impact of In- and Out-of-Store Retail Journey Touchpoints on the Customer Experience," Journal of Retailing, Elsevier, vol. 96(1), pages 128-137.
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    5. Muhammad Fazal Ijaz & Wu Tao & Jongtae Rhee & Yong-Shin Kang & Ganjar Alfian, 2016. "Efficient Digital Signage-Based Online Store Layout: An Experimental Study," Sustainability, MDPI, vol. 8(6), pages 1-20, May.
    6. Grewal, Dhruv & Roggeveen, Anne L. & Sisodia, Rajendra & Nordfält, Jens, 2017. "Enhancing Customer Engagement Through Consciousness," Journal of Retailing, Elsevier, vol. 93(1), pages 55-64.
    7. Xiaolan Xie & Xun Zhang & Jingying Fu & Dong Jiang & Chongchong Yu & Min Jin, 2018. "Location Recommendation of Digital Signage Based on Multi-Source Information Fusion," Sustainability, MDPI, vol. 10(7), pages 1-21, July.
    8. Garaus, Marion & Wagner, Udo & Manzinger, Sandra, 2017. "Happy grocery shopper: The creation of positive emotions through affective digital signage content," Technological Forecasting and Social Change, Elsevier, vol. 124(C), pages 295-305.
    9. Gabriele Pizzi & Gian Luca Marzocchi, 2020. "Consumer-defined assortments: application of card-sorting to category management," Italian Journal of Marketing, Springer, vol. 2020(1), pages 67-84, March.
    10. Herhausen, Dennis & Henkel, Sven, 2018. "Smart Inspiration at the Point of Sale - Connecting In-Store Ad-Impressions with Purchase Data," Marketing Review St.Gallen, Universität St.Gallen, Institut für Marketing und Customer Insight, vol. 35(6), pages 26-33.
    11. Grewal, Dhruv & Roggeveen, Anne L. & Nordfält, Jens, 2017. "The Future of Retailing," Journal of Retailing, Elsevier, vol. 93(1), pages 1-6.
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    13. Schweiger, Elisa B. & Ahlbom, Carl-Philip & Nordfält, Jens & Roggeveen, Anne L. & Grewal, Dhruv, 2023. "In-store endcap projections and their effect on sales," Journal of Retailing, Elsevier, vol. 99(1), pages 5-16.
    14. van de Sanden, Stephanie & Willems, Kim & Brengman, Malaika, 2020. "How do consumers process digital display ads in-store? The effect of location, content, and goal relevance," Journal of Retailing and Consumer Services, Elsevier, vol. 56(C).
    15. Gopalkrishnan R. Iyer & Markus Blut & Sarah Hong Xiao & Dhruv Grewal, 2020. "Impulse buying: a meta-analytic review," Journal of the Academy of Marketing Science, Springer, vol. 48(3), pages 384-404, May.
    16. Namin, Aidin & Dehdashti, Yashar, 2019. "A “hidden†side of consumer grocery shopping choice," Journal of Retailing and Consumer Services, Elsevier, vol. 48(C), pages 16-27.
    17. Brengman, Malaika & De Gauquier, Laurens & Willems, Kim & Vanderborght, Bram, 2021. "From stopping to shopping: An observational study comparing a humanoid service robot with a tablet service kiosk to attract and convert shoppers," Journal of Business Research, Elsevier, vol. 134(C), pages 263-274.
    18. Röding, Tobias & Steinmann, Sascha & Wagner, Gerhard & Schramm-Klein, Hanna, 2023. "A classification of information-oriented PoS technology from customer perception," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    19. Veronica Digiorgio, 2016. "Impact of promotional tools on reservation channels management: a descriptive model of Italian accommodation facilities," Information Technology & Tourism, Springer, vol. 16(4), pages 347-373, December.
    20. Bonfrer, André & Chintagunta, Pradeep & Dhar, Sanjay, 2022. "Retail store formats, competition and shopper behavior: A Systematic review," Journal of Retailing, Elsevier, vol. 98(1), pages 71-91.
    21. Mareike Sachse & Sebastian Oetzel & Daniel Klapper, 2023. "I'll Try That, Too - A Field Experiment in Retailing on the Effect of Variety During Display Promotions," Rationality and Competition Discussion Paper Series 404, CRC TRR 190 Rationality and Competition.
    22. Garaus, Marion & Wagner, Udo & Rainer, Ricarda C., 2021. "Emotional targeting using digital signage systems and facial recognition at the point-of-sale," Journal of Business Research, Elsevier, vol. 131(C), pages 747-762.
    23. Grewal, Dhruv & Herhausen, Dennis & Ludwig, Stephan & Villarroel Ordenes, Francisco, 2022. "The Future of Digital Communication Research: Considering Dynamics and Multimodality," Journal of Retailing, Elsevier, vol. 98(2), pages 224-240.
    24. Villanova, Daniel & Bodapati, Anand V. & Puccinelli, Nancy M. & Tsiros, Michael & Goodstein, Ronald C. & Kushwaha, Tarun & Suri, Rajneesh & Ho, Henry & Brandon, Renee & Hatfield, Cheryl, 2021. "Retailer Marketing Communications in the Digital Age: Getting the Right Message to the Right Shopper at the Right Time," Journal of Retailing, Elsevier, vol. 97(1), pages 116-132.

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