IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v49y2019icp371-379.html
   My bibliography  Save this article

Is the information of customer types and preferences to personal selling worth the investment in innovative technology? A modeling approach

Author

Listed:
  • Kurata, Hisashi

Abstract

Personal selling by a salesclerk on a shop floor is an important marketing communication activity in retail business; however, some customers regard face-to-face sales pitch as unnecessary and discouraging. Assuming a certain group of customers that are supersaturated with a high level of service quality, we analyzed how the retailer can improve business profitability by knowing a customer type and the optimal level of service quality. We then proposed managerial implications regarding whether the value of information of hidden customer behavior is worth implementing an expensive RFID system, or a simple service poka-yoke is enough.

Suggested Citation

  • Kurata, Hisashi, 2019. "Is the information of customer types and preferences to personal selling worth the investment in innovative technology? A modeling approach," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 371-379.
  • Handle: RePEc:eee:joreco:v:49:y:2019:i:c:p:371-379
    DOI: 10.1016/j.jretconser.2019.01.020
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S096969891830835X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jretconser.2019.01.020?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Clark Waid & Donald F. Clark & Russell L. Ackoff, 1956. "Allocation of Sales Effort in the Lamp Division of the General Electric Company," Operations Research, INFORMS, vol. 4(6), pages 629-647, December.
    2. Renko, Sanda & Druzijanic, Mirna, 2014. "Perceived usefulness of innovative technology in retailing: Consumers׳ and retailers׳ point of view," Journal of Retailing and Consumer Services, Elsevier, vol. 21(5), pages 836-843.
    3. Sulin Ba & Jan Stallaert & Zhongju Zhang, 2010. "Balancing IT with the Human Touch: Optimal Investment in IT-Based Customer Service," Information Systems Research, INFORMS, vol. 21(3), pages 423-442, September.
    4. Pantano, Eleonora & Migliarese, Piero, 2014. "Exploiting consumer–employee–retailer interactions in technology-enriched retail environments through a relational lens," Journal of Retailing and Consumer Services, Elsevier, vol. 21(6), pages 958-965.
    5. Lieven, Theo, 2016. "Customers' choice of a salesperson during the initial sales encounter," Journal of Retailing and Consumer Services, Elsevier, vol. 32(C), pages 109-116.
    6. Gila Fruchter & Eitan Gerstner & Paul Dobson, 2011. "Fee or free? How much to add on for an add-on," Marketing Letters, Springer, vol. 22(1), pages 65-78, March.
    7. Apostolos Burnetas & Peter Ritchken, 2005. "Option Pricing with Downward-Sloping Demand Curves: The Case of Supply Chain Options," Management Science, INFORMS, vol. 51(4), pages 566-580, April.
    8. Mukherjee, Ashesh & Hoyer, Wayne D, 2001. "The Effect of Novel Attributes on Product Evaluation," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 28(3), pages 462-472, December.
    9. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    10. Cheng, Yi-Ling, 2014. "Vertical product differentiation under demand uncertainty," Economic Modelling, Elsevier, vol. 36(C), pages 51-57.
    11. Girju, Marina & Prasad, Ashutosh & Ratchford, Brian T., 2013. "Pure Components versus Pure Bundling in a Marketing Channel," Journal of Retailing, Elsevier, vol. 89(4), pages 423-437.
    12. Quach, Sara & Jebarajakirthy, Charles & Thaichon, Park, 2017. "Aesthetic labor and visible diversity: The role in retailing service encounters," Journal of Retailing and Consumer Services, Elsevier, vol. 38(C), pages 34-43.
    13. Daniel C. Brannon & Brandon W. Soltwisch, 2017. "If it has lots of bells and whistles, it must be the best: how maximizers and satisficers evaluate feature-rich versus feature-poor products," Marketing Letters, Springer, vol. 28(4), pages 651-662, December.
    14. Sharma, Arun, 2001. "Consumer decision-making, salespeople's adaptive selling and retail performance," Journal of Business Research, Elsevier, vol. 54(2), pages 125-129, November.
    15. Sam K. Hui & Eric T. Bradlow & Peter S. Fader, 2009. "Testing Behavioral Hypotheses Using an Integrated Model of Grocery Store Shopping Path and Purchase Behavior," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 36(3), pages 478-493.
    16. Zhao, Yingxue & Choi, Tsan-Ming & Cheng, T.C.E. & Sethi, Suresh P. & Wang, Shouyang, 2014. "Buyback contracts with price-dependent demands: Effects of demand uncertainty," European Journal of Operational Research, Elsevier, vol. 239(3), pages 663-673.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hossain, Md Afnan & Akter, Shahriar & Yanamandram, Venkata, 2021. "Why doesn't our value creation payoff: Unpacking customer analytics-driven value creation capability to sustain competitive advantage," Journal of Business Research, Elsevier, vol. 131(C), pages 287-296.
    2. Saxena, Neha & Sarkar, Biswajit, 2023. "How does the retailing industry decide the best replenishment strategy by utilizing technological support through blockchain?," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    3. Hossain, Md Afnan & Akter, Shahriar & Yanamandram, Venkata, 2020. "Revisiting customer analytics capability for data-driven retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 56(C).
    4. Chen, Mu-Chen & Hsu, Chia-Lin & Lee, Li-Hung, 2020. "Investigating pharmaceutical logistics service quality with refined Kano's model," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    5. Cambra-Fierro, Jesús & Polo-Redondo, Yolanda & Trifu, Andreea, 2021. "Short-term and long-term effects of touchpoints on customer perceptions," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Willems, Kim & Smolders, Annelien & Brengman, Malaika & Luyten, Kris & Schöning, Johannes, 2017. "The path-to-purchase is paved with digital opportunities: An inventory of shopper-oriented retail technologies," Technological Forecasting and Social Change, Elsevier, vol. 124(C), pages 228-242.
    2. Petschnig, Martin & Heidenreich, Sven & Spieth, Patrick, 2014. "Innovative alternatives take action – Investigating determinants of alternative fuel vehicle adoption," Transportation Research Part A: Policy and Practice, Elsevier, vol. 61(C), pages 68-83.
    3. Granot, Elad & Greene, Henry & Brashear, Thomas G., 2010. "Female consumers: Decision-making in brand-driven retail," Journal of Business Research, Elsevier, vol. 63(8), pages 801-808, August.
    4. Peggy J. Liu & Kelly L. Haws & Cait Lamberton & Troy H. Campbell & Gavan J. Fitzsimons, 2015. "Vice-Virtue Bundles," Management Science, INFORMS, vol. 61(1), pages 204-228, January.
    5. Fengying Hu & Zhenglong Zhou, 2022. "Monopoly or competition: strategic analysis of a retailing technology service provision," Electronic Commerce Research, Springer, vol. 22(4), pages 1651-1689, December.
    6. Kirshner, Samuel N. & Shao, Lusheng, 2018. "Internal and external reference effects in a two-tier supply chain," European Journal of Operational Research, Elsevier, vol. 267(3), pages 944-957.
    7. Benjamin Barann & Jan H. Betzing & Marco Niemann & Benedikt Hoffmeister & Jörg Becker, 2022. "Exploring customers’ likeliness to use e-service touchpoints in brick and mortar retail," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 523-545, June.
    8. Ozuem, Wilson & Howell, Kerry E. & Lancaster, Geoff, 2019. "The impact of digital books on marketing communications," Journal of Retailing and Consumer Services, Elsevier, vol. 50(C), pages 131-137.
    9. Chun Liu & Kam Hung, 2020. "A comparative study of self-service technology with service employees: a qualitative analysis of hotels in China," Information Technology & Tourism, Springer, vol. 22(1), pages 33-52, March.
    10. Elena Katok & Diana Yan Wu, 2009. "Contracting in Supply Chains: A Laboratory Investigation," Management Science, INFORMS, vol. 55(12), pages 1953-1968, December.
    11. Atasoy, Özgün & Trudel, Remi & Noseworthy, Theodore J. & Kaufmann, Patrick J., 2022. "Tangibility bias in investment risk judgments," Organizational Behavior and Human Decision Processes, Elsevier, vol. 171(C).
    12. Otterbring, Tobias & Bhatnagar, Roopali & Samuelsson, Peter & Borau, Sylvie, 2021. "Positive gender congruency effects on shopper responses: Field evidence from a gender egalitarian culture," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    13. Chen, Xu & Hao, Gang & Li, Ling, 2014. "Channel coordination with a loss-averse retailer and option contracts," International Journal of Production Economics, Elsevier, vol. 150(C), pages 52-57.
    14. Adam Bockelie & Peter Belobaba, 2017. "Incorporating ancillary services in airline passenger choice models," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 16(6), pages 553-568, December.
    15. Liu, Zhongyi & Chen, Lihua & Li, Ling & Zhai, Xin, 2014. "Risk hedging in a supply chain: Option vs. price discount," International Journal of Production Economics, Elsevier, vol. 151(C), pages 112-120.
    16. Kurata, Hisashi & Nam, Seong-Hyun, 2010. "After-sales service competition in a supply chain: Optimization of customer satisfaction level or profit or both?," International Journal of Production Economics, Elsevier, vol. 127(1), pages 136-146, September.
    17. Yao Cui & Izak Duenyas & Ozge Sahin, 2018. "Unbundling of Ancillary Service: How Does Price Discrimination of Main Service Matter?," Manufacturing & Service Operations Management, INFORMS, vol. 20(3), pages 455-466, July.
    18. Seow Eng Ong & Davin Wang & Calvin Chua, 2023. "Disruptive Innovation and Real Estate Agency: The Disruptee Strikes Back," The Journal of Real Estate Finance and Economics, Springer, vol. 67(2), pages 287-317, August.
    19. Herrmann, Tabea & Hübler, Olaf & Menkhoff, Lukas & Schmidt, Ulrich, 2016. "Allais for the poor," Kiel Working Papers 2036, Kiel Institute for the World Economy (IfW Kiel).
    20. Christiane Goodfellow & Dirk Schiereck & Steffen Wippler, 2013. "Are behavioural finance equity funds a superior investment? A note on fund performance and market efficiency," Journal of Asset Management, Palgrave Macmillan, vol. 14(2), pages 111-119, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:49:y:2019:i:c:p:371-379. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.