Shelf Sequence and Proximity Effects on Online Grocery Choices

Research on traditional store shelf effects has shown that a product’s absolute and relative shelf position may strongly affect consumer choices. In this paper, we examine whether such shelf effects are still at play in an online grocery store. While traditional ‘eye-level’ placement is no longer predominant, we find that a product’s choice probability increases when presented on the first screen or located near focal (highly-preferred) items. Our results further demonstrate that these primacy and proximity effects depend on assortment size and composition. Larger and more difficult to process assortments complicate the choice process, thereby stimulating the use of shelf-based simplifying choice heuristics.marketing ;

The effects of shelf display on online grocery choices.

Research on shelf effects in traditional grocery stores has shown that a product's absolute and relative shelf position may strongly affect consumer choices. In this paper, we examine whether and how such shelf effects translate into an online grocery context. We find that a product's choice probability increases when presented on the first screen or located near focal items - especially when the latter are out-of-stock. These primacy and proximity effects have a stronger impact on choice decisions when assortments are more difficult to evaluate and when a clear shelf organization facilitates the use of shelf-based choice heuristics.Effects; Shelf; Choice;

Can in-store displays improve category sales and brand market share in online stores? A study on the overall effectiveness and differences between display types in an online FMCG context.

Our study investigates the overall effects of in-store displays (ISD) on category sales and brand market share in an online shopping context, and compares the differences in effectiveness between ISD types. Using data from an online grocer, we examine three online ISD types that match with traditional ones: first screen (entrance), banner (end-of-aisle) and shelf tag (in-aisle) displays. Empirical results for 10 categories confirm that online ISD may substantially increase brand market share and to a lesser extent, category sales. Our results also demonstrate that not all types are equally effective. First screen displays clearly have the strongest effect on market share: they benefit from their placement on the ‘entrance’ location, central on-screen position and direct purchase link. While they only feature 1 SKU, banner displays typically feature all SKUs of a brand, yet, are placed on border-screen positions on traveling-zone pages without a direct purchase link. Based on our results, the advantage of banner displays does not weigh up against the advantages of first screen displays in most cases. Shelf tags, finally, may be very useful in attracting attention to interesting promotions, but appear to have no or at most a limited effect on their own.in-store displays; online grocery shopping; market response analyses;

Can in-store displays improve category sales and brand market share in online stores? A study on the overall effectiveness and differences between display types in an online FMCG context

Our study investigates the overall effects of in-store displays (ISD) on category sales and brand market share in an online shopping context, and compares the differences in effectiveness between ISD types. Using data from an online grocer, we examine three online ISD types that match with traditional ones: first screen (entrance), banner (end-of-aisle) and shelf tag (in-aisle) displays. Empirical results for 10 categories confirm that online ISD may substantially increase brand market share and to a lesser extent, category sales. Our results also demonstrate that not all types are equally effective. First screen displays clearly have the strongest effect on market share: they benefit from their placement on the ‘entrance’ location, central on-screen position and direct purchase link. While they only feature 1 SKU, banner displays typically feature all SKUs of a brand, yet, are placed on border-screen positions on traveling-zone pages without a direct purchase link. Based on our results, the advantage of banner displays does not weigh up against the advantages of first screen displays in most cases. Shelf tags, finally, may be very useful in attracting attention to interesting promotions, but appear to have no or at most a limited effect on their own.marketing ;

Evaluating the impact of VAT-free promotion:the role of loyalty program membership and category characteristics

This study examines the impact of value-added tax (VAT)-free promotions on sales performance. VAT-free promotions are a recently adopted form of price promotions where consumers are exempted from paying the VAT amount across almost all products in the assortment during a limited number of days. They are typically organized once per year and surrounded by a large amount of media attention from the involved retailer. To test the effects of this promotion on store and category sales, and investigate the differences between loyalty program (LP) members and non-LP members, the authors use scanner data from a Dutch durable goods retailer across a range of categories. The results show that VAT-free promotions positively impact store performance. Moreover, the findings indicate that more non-LP members are attracted to the store and that they increase the amount they spend in the store. While LP members also spend more in the store, this increase in shopping basket size does not compensate for the significant drop in the number of LP members that visit the store, leading to an overall decrease in sales coming from LP members during VAT-free days. We furthermore find that the positive effect of VAT-free promotions for non-LP members (rather than LP members) generalizes across all investigated categories. Our results provide key insights for retailers and direct marketers with regard to the effectiveness of VAT-free promotions in order to strategically segment the customer base

Consumer Acceptance of Recommendations by Interactive Decision Aids: The Joint Role of Temporal Distance and Concrete vs. Abstract Communications

Interactive decision aids (IDAs) typically use concrete product feature-based approaches to interact with consumers. Recently however, interaction designs that focus on communicating abstract consumer needs have been suggested as a promising alternative. This article investigates how temporal distance moderates the effectiveness of these two competing IDA communication designs by its effect on consumers’ mental representation of the product decision problem. Temporal distance is inherently connected to IDAs in two ways. Congruency between consumption timing (immediate vs. distant) and IDA communication design (concrete vs. abstract, respectively) increases the likelihood to accept the IDA’s advice. This effect is also achieved by congruency between IDA process timing (immediate vs. delayed delivery of recommendations) and IDA communication design (concrete vs. abstract, respectively). We further show that this process is mediated by the perceived transparency of the IDA process. Managers and researchers need to take into account the importance of congruency between the user and the interface through which companies interact with their users and can further optimize IDAs so that they better match consumers’ mental representations

Advancing research on loyalty programs:a future research agenda

Artículo de publicación ISIDespite the growing literature on loyalty program (LP) research, many questions remain underexplored. Driven by advancements in information technology, marketing analytics, and consumer interface platforms (e.g., mobile devices), there have been many recent developments in LP practices around the world. They impose new challenges and create exciting opportunities for future LP research. The main objective of this paper is to identify missing links in the literature and to craft a future research agenda to advance LP research and practice. Our discussion focuses on three key areas: (1) LP designs, (2) Assessment of LP performance, and (3) Emerging trends and the impact of new technologies. We highlight several gaps in the literature and outline research opportunities in each area