IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v18y2011i1p64-73.html
   My bibliography  Save this article

In-store one-to-one marketing

Author

Listed:
  • Klabjan, Diego
  • Pei, Jinxiang

Abstract

With the proliferation of electronic media, one-to-one marketing has become more accessible and it is moving toward widespread adoption. It is particularly important for retailers, where several forms of one-to-one marketing are performed either before or after a shopping experience. One-to-one marketing during the shopping experience is still elusive; however, with recent technological advances it could soon become reality. We show how it can be carried out by using either personal digital assistance devices and wireless communication, or radio frequency identification. The main concept is based on providing coupons during a shopping experience and then routing the customer within the facility to possibly redeem them. The novel approach of selecting the coupons based on the already purchased goods enables one-to-one marketing during the actual shopping trip. Several models are presented based on the underlying technology and the option of a loyalty card. The concepts are computationally evaluated based on data obtained from a grocery store. They allude to substantially increased revenue by the store.

Suggested Citation

  • Klabjan, Diego & Pei, Jinxiang, 2011. "In-store one-to-one marketing," Journal of Retailing and Consumer Services, Elsevier, vol. 18(1), pages 64-73.
  • Handle: RePEc:eee:joreco:v:18:y:2011:i:1:p:64-73
    DOI: 10.1016/j.jretconser.2010.09.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698910001050
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jretconser.2010.09.012?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. P. Seetharaman & Siddhartha Chib & Andrew Ainslie & Peter Boatwright & Tat Chan & Sachin Gupta & Nitin Mehta & Vithala Rao & Andrei Strijnev, 2005. "Models of Multi-Category Choice Behavior," Marketing Letters, Springer, vol. 16(3), pages 239-254, December.
    2. D. R. Cox, 1972. "The Analysis of Multivariate Binary Data," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 21(2), pages 113-120, June.
    3. Juin-Kuan Chong & Teck-Hua Ho & Christopher S. Tang, 2001. "A Modeling Framework for Category Assortment Planning," Manufacturing & Service Operations Management, INFORMS, vol. 3(3), pages 191-210, January.
    4. McCulloch, Robert & Rossi, Peter E., 1994. "An exact likelihood analysis of the multinomial probit model," Journal of Econometrics, Elsevier, vol. 64(1-2), pages 207-240.
    5. Matteo Fischetti & Juan José Salazar González & Paolo Toth, 1998. "Solving the Orienteering Problem through Branch-and-Cut," INFORMS Journal on Computing, INFORMS, vol. 10(2), pages 133-148, May.
    6. Pradeep K. Chintagunta, 1993. "Investigating Purchase Incidence, Brand Choice and Purchase Quantity Decisions of Households," Marketing Science, INFORMS, vol. 12(2), pages 184-208.
    7. Nitin Mehta, 2007. "Investigating Consumers' Purchase Incidence and Brand Choice Decisions Across Multiple Product Categories: A Theoretical and Empirical Analysis," Marketing Science, INFORMS, vol. 26(2), pages 196-217, 03-04.
    8. Chao, I-Ming & Golden, Bruce L. & Wasil, Edward A., 1996. "A fast and effective heuristic for the orienteering problem," European Journal of Operational Research, Elsevier, vol. 88(3), pages 475-489, February.
    9. Harald J. van Heerde & Peter S. H. Leeflang & Dick R. Wittink, 2004. "Decomposing the Sales Promotion Bump with Store Data," Marketing Science, INFORMS, vol. 23(3), pages 317-334, December.
    10. Helsgaun, Keld, 2000. "An effective implementation of the Lin-Kernighan traveling salesman heuristic," European Journal of Operational Research, Elsevier, vol. 126(1), pages 106-130, October.
    11. Jeongwen Chiang, 1991. "A Simultaneous Approach to the Whether, What and How Much to Buy Questions," Marketing Science, INFORMS, vol. 10(4), pages 297-315.
    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. Saarijärvi, Hannu & Mitronen, Lasse & Yrjölä, Mika, 2014. "From selling to supporting – Leveraging mobile services in the context of food retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 21(1), pages 26-36.
    2. Huddleston, Patricia & Coveyou, Mary Tuski & Behe, Bridget K., 2023. "Visual cues during shoppers’ journeys: An exploratory paper," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    3. Riegger, Anne-Sophie & Klein, Jan F. & Merfeld, Katrin & Henkel, Sven, 2021. "Technology-enabled personalization in retail stores: Understanding drivers and barriers," Journal of Business Research, Elsevier, vol. 123(C), pages 140-155.
    4. Schnack, Alexander & Wright, Malcolm J. & Elms, Jonathan, 2021. "Investigating the impact of shopper personality on behaviour in immersive Virtual Reality store environments," 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. Zhang, Qin & Gangwar, Manish & Seetharaman, P.B., 2017. "Polygamous Store Loyalties: An Empirical Investigation," Journal of Retailing, Elsevier, vol. 93(4), pages 477-492.
    2. Kim, Chul & Jun, Duk Bin & Park, Sungho, 2018. "Capturing flexible correlations in multiple-discrete choice outcomes using copulas," International Journal of Research in Marketing, Elsevier, vol. 35(1), pages 34-59.
    3. Nitin Mehta, 2007. "Investigating Consumers' Purchase Incidence and Brand Choice Decisions Across Multiple Product Categories: A Theoretical and Empirical Analysis," Marketing Science, INFORMS, vol. 26(2), pages 196-217, 03-04.
    4. Ma, Yu & Seetharaman, P.B. & Narasimhan, Chakravarthi, 2012. "Modeling Dependencies in Brand Choice Outcomes Across Complementary Categories," Journal of Retailing, Elsevier, vol. 88(1), pages 47-62.
    5. Ailawadi, Kusum L. & Beauchamp, J.P. & Donthu, Naveen & Gauri, Dinesh K. & Shankar, Venkatesh, 2009. "Communication and Promotion Decisions in Retailing: A Review and Directions for Future Research," Journal of Retailing, Elsevier, vol. 85(1), pages 42-55.
    6. Baltas, George & Doyle, Peter, 2001. "Random utility models in marketing research: a survey," Journal of Business Research, Elsevier, vol. 51(2), pages 115-125, February.
    7. Jean-Pierre Dubé, 2004. "Multiple Discreteness and Product Differentiation: Demand for Carbonated Soft Drinks," Marketing Science, INFORMS, vol. 23(1), pages 66-81, September.
    8. Marshall Freimer & Dan Horsky, 2008. "Try It, You Will Like It—Does Consumer Learning Lead to Competitive Price Promotions?," Marketing Science, INFORMS, vol. 27(5), pages 796-810, 09-10.
    9. Jean-Pierre H. Dubé, 2018. "Microeconometric Models of Consumer Demand," NBER Working Papers 25215, National Bureau of Economic Research, Inc.
    10. Harikesh Nair & Jean-Pierre Dubé & Pradeep Chintagunta, 2005. "Accounting for Primary and Secondary Demand Effects with Aggregate Data," Marketing Science, INFORMS, vol. 24(3), pages 444-460, November.
    11. Baohong Sun, 2005. "Promotion Effect on Endogenous Consumption," Marketing Science, INFORMS, vol. 24(3), pages 430-443, July.
    12. Andrews, Rick L. & Currim, Imran S., 2009. "Multi-stage purchase decision models: Accommodating response heterogeneity, common demand shocks, and endogeneity using disaggregate data," International Journal of Research in Marketing, Elsevier, vol. 26(3), pages 197-206.
    13. Wei‐Lin Wang & Demetrios Vakratsas, 2021. "The Dual Impact of Product Line Length on Consumer Choice," Production and Operations Management, Production and Operations Management Society, vol. 30(9), pages 3054-3072, September.
    14. Ma, Shaohui & Fildes, Robert & Huang, Tao, 2016. "Demand forecasting with high dimensional data: The case of SKU retail sales forecasting with intra- and inter-category promotional information," European Journal of Operational Research, Elsevier, vol. 249(1), pages 245-257.
    15. David R. Bell & Jeongwen Chiang & V. Padmanabhan, 1999. "The Decomposition of Promotional Response: An Empirical Generalization," Marketing Science, INFORMS, vol. 18(4), pages 504-526.
    16. Pradeep Chintagunta & Jean-Pierre Dubé & Vishal Singh, 2003. "Balancing Profitability and Customer Welfare in a Supermarket Chain," Quantitative Marketing and Economics (QME), Springer, vol. 1(1), pages 111-147, March.
    17. Jaehwan Kim & Greg M. Allenby & Peter E. Rossi, 2002. "Modeling Consumer Demand for Variety," Marketing Science, INFORMS, vol. 21(3), pages 229-250, December.
    18. Bhat, Chandra R., 2005. "A multiple discrete-continuous extreme value model: formulation and application to discretionary time-use decisions," Transportation Research Part B: Methodological, Elsevier, vol. 39(8), pages 679-707, September.
    19. Michael Lewis & Yanwen Wang & Chunhua Wu, 2019. "Season Ticket Buyer Value and Secondary Market Options," Marketing Science, INFORMS, vol. 38(6), pages 973-993, November.
    20. Richards, Timothy J. & Hamilton, Stephen F. & Yonezawa, Koichi, 2018. "Retail Market Power in a Shopping Basket Model of Supermarket Competition," Journal of Retailing, Elsevier, vol. 94(3), pages 328-342.

    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:18:y:2011:i:1:p:64-73. 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.