Retail Futures

Cover of Retail Futures

The Good, the Bad and the Ugly of the Digital Transformation

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Synopsis

Table of contents

(17 chapters)

Prelims

Pages i-xvii
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Section 1 Theoretical and Technological Background

Abstract

In an increasingly technology-driven retail landscape, retailers face the challenge of making the most effective decisions regarding the selection and use of innovative technology. Although previous research provides insights into the added value of technology, it does not directly guide retailers in overviewing and selecting technology that supports their sales operations. This chapter contributes to the field of retail technology studies by introducing a sales-oriented model intended to assist retailers in inventorying available technologies and making decisions regarding the selection and use of these technologies for their physical stores. The model uses an updated version of the seven steps of selling as a foundation and, in line with the resource life cycle, decision support system and self-service technology literature streams, proposes applying technology in such a way that it supports the stages of the retailer's sales process. This chapter concludes with a discussion of practical guidelines for applying the model.

Learning Outcomes

  • Service robots (SRs) in retail is an emerging topic for both scholars and practitioners.

  • Most of the studies are performed in the field using observational methods.

  • To date, there is a lack of using uniform frameworks in order to fully understand customer–robot interactions.

  • The dark side of robots in retail is still an underexplored area.

Service robots (SRs) in retail is an emerging topic for both scholars and practitioners.

Most of the studies are performed in the field using observational methods.

To date, there is a lack of using uniform frameworks in order to fully understand customer–robot interactions.

The dark side of robots in retail is still an underexplored area.

Learning Outcomes

  • Retail agglomerations are predestined to capitalise on the combination of the strengths of traditional retailing and digital service innovations.

  • Digital touchpoints can enhance the visitor experience throughout the whole customer journey, that is not only on-site but also before reaching as well as after having left the agglomeration.

  • Digital service innovations can provide additional value to visitors of a retail agglomeration through four elements of the digital marketing mix: Information, orientation, communication and atmosphere.

  • Technologies like augmented reality (AR) or virtual reality (VR) can create unique and memorable customer experiences, ensuring that retailers and service providers as well as the retail agglomeration as a whole continue to thrive.

  • Key success factors for the implementation of digital services in the context of retail agglomerations include participative innovation processes, cooperation and the communication of clear benefits to stakeholders.

Retail agglomerations are predestined to capitalise on the combination of the strengths of traditional retailing and digital service innovations.

Digital touchpoints can enhance the visitor experience throughout the whole customer journey, that is not only on-site but also before reaching as well as after having left the agglomeration.

Digital service innovations can provide additional value to visitors of a retail agglomeration through four elements of the digital marketing mix: Information, orientation, communication and atmosphere.

Technologies like augmented reality (AR) or virtual reality (VR) can create unique and memorable customer experiences, ensuring that retailers and service providers as well as the retail agglomeration as a whole continue to thrive.

Key success factors for the implementation of digital services in the context of retail agglomerations include participative innovation processes, cooperation and the communication of clear benefits to stakeholders.

Section 2 Changes in Retail Management and Strategy

Learning Outcomes

  1. Innovative technologies, such as DS, can engage different human senses and play an important role in enhancing the store atmosphere.

  2. The majority of DS networks feature content that is generic and is rarely tailored to the audience passing by the screens. As a result, digital displays are often ignored.

  3. DS coupled with sensors and Artificial Intelligence allow for more relevant and personalized experiences.

  4. Relevance through personalization can help retailers overcome display blindness, but challenges in terms of legal restrictions and ethical concerns exist to unlock its potential.

  5. Nontouch interaction technologies, such as voice assistants, gesture controls, facial recognition, and augmented reality, present new ways of interacting with digital screens.

Innovative technologies, such as DS, can engage different human senses and play an important role in enhancing the store atmosphere.

The majority of DS networks feature content that is generic and is rarely tailored to the audience passing by the screens. As a result, digital displays are often ignored.

DS coupled with sensors and Artificial Intelligence allow for more relevant and personalized experiences.

Relevance through personalization can help retailers overcome display blindness, but challenges in terms of legal restrictions and ethical concerns exist to unlock its potential.

Nontouch interaction technologies, such as voice assistants, gesture controls, facial recognition, and augmented reality, present new ways of interacting with digital screens.

Learning Outcomes

  • Connecting with customers at the organizational frontline is not only a matter of transaction but is also a matter of emotional connection

  • Customers interact with retailers to seek social contact in order to recover their affective and cognitive balance

  • Chatbots are well suited to resolve simple problems; they keep social interactions simple, and they provide cognitive clarity and personalized answers without engaging customers in socioaffective interactions

  • Chatbots must develop the ability to read customers' emotions in order to identify the exact point at which the conversation must be managed by a human agent

Connecting with customers at the organizational frontline is not only a matter of transaction but is also a matter of emotional connection

Customers interact with retailers to seek social contact in order to recover their affective and cognitive balance

Chatbots are well suited to resolve simple problems; they keep social interactions simple, and they provide cognitive clarity and personalized answers without engaging customers in socioaffective interactions

Chatbots must develop the ability to read customers' emotions in order to identify the exact point at which the conversation must be managed by a human agent

Learning Outcomes

  • Appreciate the scope and pervasiveness of fake reviews in retailing

  • Recognise the causes of fake reviews in retailing

  • Understand consumer responses to fake reviews in retail

  • Understand how retailers can and should manage fake reviews

  • Understand better the expected future of retail with fake reviews

Appreciate the scope and pervasiveness of fake reviews in retailing

Recognise the causes of fake reviews in retailing

Understand consumer responses to fake reviews in retail

Understand how retailers can and should manage fake reviews

Understand better the expected future of retail with fake reviews

Learning Outcomes

  • Customers expect retail companies to adapt their strategies to their behaviour, so they should use different channels and devices in interaction;

  • Multichannel and omnichannel strategies represent two distinct approaches to managing relationships with the customers;

  • The key to developing a successful omnichannel strategy is to integrate channels and touch points that will create a frictionless experience for the customer;

  • Introducing omnichannel interaction requires organizational and IT changes within the company.

Customers expect retail companies to adapt their strategies to their behaviour, so they should use different channels and devices in interaction;

Multichannel and omnichannel strategies represent two distinct approaches to managing relationships with the customers;

The key to developing a successful omnichannel strategy is to integrate channels and touch points that will create a frictionless experience for the customer;

Introducing omnichannel interaction requires organizational and IT changes within the company.

Section 3 Changes in Consumers' Experience, Behavior and Decision-making

Learning Outcomes

By the end of this chapter on minors, internet-enabled devices and online shopping behaviour, readers will be able to

  • Identify fundamental benefits and harm engendered when minors have unlimited access to internet-enabled devices

  • Locate the main catalysts of benefit and harm to minors due to internet usage

  • Show how a priori studies have created a rich and balanced narrative in the field of benefits and harm of the internet to minors

  • Argue how the benefits outweigh the harm (or vice versa) impacting on minors in unlimited use of the internet

  • Develop strategies to enhance the benefits and limit the harm caused by unlimited access to the internet

Identify fundamental benefits and harm engendered when minors have unlimited access to internet-enabled devices

Locate the main catalysts of benefit and harm to minors due to internet usage

Show how a priori studies have created a rich and balanced narrative in the field of benefits and harm of the internet to minors

Argue how the benefits outweigh the harm (or vice versa) impacting on minors in unlimited use of the internet

Develop strategies to enhance the benefits and limit the harm caused by unlimited access to the internet

Learning Outcomes

  • To identify the social elements that emerge from interactions with the virtual fitting room in e-retailing applications

  • To debate the influence of the socialisation of the virtual fitting room (SVFR) in brand experience

  • To discuss the implications of the SVFR for retailers, consumers and managers

  • To envision the future of e-retailing brand experience through the SVFR

To identify the social elements that emerge from interactions with the virtual fitting room in e-retailing applications

To debate the influence of the socialisation of the virtual fitting room (SVFR) in brand experience

To discuss the implications of the SVFR for retailers, consumers and managers

To envision the future of e-retailing brand experience through the SVFR

Learning Outcomes

  • Explain what a smart consumer is through Generation Z views

  • Understanding the nature of decision-making process with the use of smart technologies

Explain what a smart consumer is through Generation Z views

Understanding the nature of decision-making process with the use of smart technologies

Section 4 Future Challenges

Learning Outcomes

This chapter attempts to provide answers to the following questions:

  • What is artificial intelligence (AI)? Moreover, what is AI-based retail innovation?

  • How does AI work?

  • What are the applications of AI in retail services innovation?

  • What are the ethical aspects, considerations and issues regarding the employment of AI in retail?

What is artificial intelligence (AI)? Moreover, what is AI-based retail innovation?

How does AI work?

What are the applications of AI in retail services innovation?

What are the ethical aspects, considerations and issues regarding the employment of AI in retail?

Learning Outcomes

  • Learn about ethical dilemmas in retailing with the advances in artificial intelligence (AI)

  • Be able to reflect critically about the use and potential misuse of AI within the retailing industry

  • Learn about the history of AI

  • Be able to define and classify AI

Learn about ethical dilemmas in retailing with the advances in artificial intelligence (AI)

Be able to reflect critically about the use and potential misuse of AI within the retailing industry

Learn about the history of AI

Be able to define and classify AI

Learning Outcomes

Upon reading this chapter, the reader will understand

  • How consumers perceive a privacy loss when exposed to retailers' big data analytics

  • The role played by the social environment in terms of the opinions of relatives and friends largely influence how youth perceive the risk of privacy loss

  • What makes the information about retailers' usage of data not entirely accessible by consumers

  • Consumers perception of retailers' usage of their data

How consumers perceive a privacy loss when exposed to retailers' big data analytics

The role played by the social environment in terms of the opinions of relatives and friends largely influence how youth perceive the risk of privacy loss

What makes the information about retailers' usage of data not entirely accessible by consumers

Consumers perception of retailers' usage of their data

Acknowledgements

Pages 207-207
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About the Authors

Pages 209-216
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Index

Pages 217-220
Content available
Cover of Retail Futures
DOI
10.1108/9781838676636
Publication date
2020-10-07
Editor
ISBN
978-1-83867-664-3
eISBN
978-1-83867-663-6