IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v66y2022ics0969698922000522.html
   My bibliography  Save this article

A strategic framework for technological innovations in support of the customer experience: A focus on luxury retailers

Author

Listed:
  • Pantano, Eleonora
  • Pedeliento, Giuseppe
  • Christodoulides, George

Abstract

Luxury organizations have traditionally resisted technology, as they perceived it to be antithetical to the values of luxury. Recently, however, competitive and market pressures, compounded by the global pandemic, have prompted luxury organizations to utilize significant technological innovations to enhance their customer experience, mostly on an ad hoc basis. Across four case studies in the luxury fashion retail sector, we conduct 12 interviews with managers. This paper advances a framework that encourages luxury organizations to consider technological innovation in retailing from a strategic point of view. Such a view involves contemplating questions regarding what technology type to adopt (radical vs. incremental) and when the best timing is to adopt the technology (pioneering vs. following technological leaps). The framework identifies four retailer roles that emerge from the innovation process: facilitator, enabler, explorer, and initiator. Each role comprises a different set of risks, resource implications, and expected returns.

Suggested Citation

  • Pantano, Eleonora & Pedeliento, Giuseppe & Christodoulides, George, 2022. "A strategic framework for technological innovations in support of the customer experience: A focus on luxury retailers," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
  • Handle: RePEc:eee:joreco:v:66:y:2022:i:c:s0969698922000522
    DOI: 10.1016/j.jretconser.2022.102959
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698922000522
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jretconser.2022.102959?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. Holmqvist, Jonas & Wirtz, Jochen & Fritze, Martin P., 2020. "Luxury in the digital age: A multi-actor service encounter perspective," Journal of Business Research, Elsevier, vol. 121(C), pages 747-756.
    2. John E. Ettlie & William P. Bridges & Robert D. O'Keefe, 1984. "Organization Strategy and Structural Differences for Radical Versus Incremental Innovation," Management Science, INFORMS, vol. 30(6), pages 682-695, June.
    3. Lee, Sang-Gun & Koo, Chulmo & Nam, Kichan, 2010. "Cumulative strategic capability and performance of early movers and followers in the cyber market," International Journal of Information Management, Elsevier, vol. 30(3), pages 239-255.
    4. Covin, Jeffrey G. & Slevin, Dennis P. & Heeley, Michael B., 2000. "Pioneers and followers: Competitive tactics, environment, and firm growth," Journal of Business Venturing, Elsevier, vol. 15(2), pages 175-210, March.
    5. 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.
    6. Pantano, Eleonora & Viassone, Milena, 2015. "Engaging consumers on new integrated multichannel retail settings: Challenges for retailers," Journal of Retailing and Consumer Services, Elsevier, vol. 25(C), pages 106-114.
    7. Javornik, Ana & Duffy, Katherine & Rokka, Joonas & Scholz, Joachim & Nobbs, Karinna & Motala, Anisa & Goldenberg, Adriana, 2021. "Strategic approaches to augmented reality deployment by luxury brands," Journal of Business Research, Elsevier, vol. 136(C), pages 284-292.
    8. Sindy Liu & Patsy Perry & Gregory Gadzinski, 2019. "The implications of digital marketing on WeChat for luxury fashion brands in China," Journal of Brand Management, Palgrave Macmillan, vol. 26(4), pages 395-409, July.
    9. 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.
    10. 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.
    11. Dennis A. Gioia & Kumar Chittipeddi, 1991. "Sensemaking and sensegiving in strategic change initiation," Strategic Management Journal, Wiley Blackwell, vol. 12(6), pages 433-448, September.
    12. Marvin B. Lieberman & David B. Montgomery, 1988. "First‐mover advantages," Strategic Management Journal, Wiley Blackwell, vol. 9(S1), pages 41-58, June.
    13. Pantano, Eleonora & Passavanti, Rosanna & Priporas, Constantinos-Vasilios & Verteramo, Saverino, 2018. "To what extent luxury retailing can be smart?," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 94-100.
    14. Chung, Minjee & Ko, Eunju & Joung, Heerim & Kim, Sang Jin, 2020. "Chatbot e-service and customer satisfaction regarding luxury brands," Journal of Business Research, Elsevier, vol. 117(C), pages 587-595.
    15. Pantano, Eleonora & Priporas, Constantinos-Vasilios & Stylos, Nikolaos, 2018. "Knowledge Push Curve (KPC) in retailing: Evidence from patented innovations analysis affecting retailers' competitiveness," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 150-160.
    16. Baker, Jeff & Ashill, Nick & Amer, Noha & Diab, Ekram, 2018. "The internet dilemma: An exploratory study of luxury firms’ usage of internet-based technologies," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 37-47.
    17. Guha, Abhijit & Grewal, Dhruv & Kopalle, Praveen K. & Haenlein, Michael & Schneider, Matthew J. & Jung, Hyunseok & Moustafa, Rida & Hegde, Dinesh R. & Hawkins, Gary, 2021. "How artificial intelligence will affect the future of retailing," Journal of Retailing, Elsevier, vol. 97(1), pages 28-41.
    18. Mélanie Pham & Pierre Valette-Florence & Franck Vigneron, 2018. "Luxury brand desirability and fashion equity: The joint moderating effect on consumers’ commitment toward luxury brands," Post-Print hal-03513407, HAL.
    19. Abernathy, William J. & Clark, Kim B., 1985. "Innovation: Mapping the winds of creative destruction," Research Policy, Elsevier, vol. 14(1), pages 3-22, February.
    20. Bassano, Clara & Piciocchi, Paolo & Spohrer, James (Jim) C. & Pietronudo, Maria Cristina, 2018. "Managing value co-creation in consumer service systems within smart retail settings," Journal of Retailing and Consumer Services, Elsevier, vol. 45(C), pages 190-197.
    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. Aslam, Usman, 2023. "Understanding the usability of retail fashion brand chatbots: Evidence from customer expectations and experiences," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    2. Liu, Chih-Hsing & Dong, Tse-Ping & Vu, Ho Tran, 2023. "Transformed virtual concepts into reality: Linkage the viewpoint of entrepreneurial passion, technology adoption propensity and advantage to usage intention," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    3. Pantano, Eleonora & Viassone, Milena & Boardman, Rosy & Dennis, Charles, 2022. "Inclusive or exclusive? Investigating how retail technology can reduce old consumers’ barriers to shopping," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    4. Lee Park, Camila & Fracarolli Nunes, Mauro, 2024. "Vegan luxury for non-vegan consumers: Impacts on brand trust and attitude towards the firm," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    5. Kullak, Franziska S. & Baier, Daniel & Woratschek, Herbert, 2023. "How do customers meet their needs in in-store and online fashion shopping? A comparative study based on the jobs-to-be-done theory," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    6. Jose Albors-Garrigos & María Miguel Molina, 2023. "The servitization of innovation in the retail grocery sector: The case of Mercadona," Journal of International Entrepreneurship, Springer, vol. 21(2), pages 245-270, June.
    7. Allal-Chérif, Oihab & Puertas, Rosa & Carracedo, Patricia, 2024. "Intelligent influencer marketing: how AI-powered virtual influencers outperform human influencers," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    8. Eleonora Pantano & Jamie Carlson & Konstantina Spanaki & George Christodoulides, 2024. "Guest editorial: More supportive or more distractive? Investigating the negative effects of technology at the customer interface," Post-Print hal-04478502, HAL.
    9. Priporas, Constantinos Vasilios & Vellore Nagarajan, Durga & Kamenidou, Irene (Eirini), 2023. "A technology-people-integrated toolkit for retail care management during a crisis," Journal of Retailing and Consumer Services, Elsevier, vol. 73(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. Souka, Mohamed & Bilstein, Nicola & Decker, Reinhold, 2024. "Give me your data and I’ll dress you: A two-sided messaging approach to address privacy concerns surrounding in-store technologies," Journal of Business Research, Elsevier, vol. 172(C).
    2. Zach, Florian J. & Nicolau, Juan L. & Sharma, Abhinav, 2020. "Disruptive innovation, innovation adoption and incumbent market value: The case of Airbnb," Annals of Tourism Research, Elsevier, vol. 80(C).
    3. Torres de Oliveira, Rui & Indulska, Marta & Steen, John & Verreynne, Martie-Louise, 2020. "Towards a framework for innovation in retailing through social media," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    4. Maxim Kotsemir & Alexander Abroskin & Dirk Meissner, 2013. "Innovation concepts and typology – an evolutionary discussion," HSE Working papers WP BRP 05/STI/2013, National Research University Higher School of Economics.
    5. Donald F. Kuratko & Greg Fisher & James M. Bloodgood & Jeffrey S. Hornsby, 2017. "The paradox of new venture legitimation within an entrepreneurial ecosystem," Small Business Economics, Springer, vol. 49(1), pages 119-140, June.
    6. Molina-Morales, Francesc Xavier & Martínez-Cháfer, Luís & Valiente-Bordanova, David, 2017. "Disruptive Technological Innovations as New Opportunities for Mature Industrial Clusters. The Case of Digital Printing Innovation in the Spanish Ceramic Tile Cluster," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 39, pages 39-57.
    7. Yuan, Chunlin & Zhang, Chenlei & Wang, Shuman, 2022. "Social anxiety as a moderator in consumer willingness to accept AI assistants based on utilitarian and hedonic values," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    8. Sharma, Amalesh & Soni, Mauli & Borah, Sourav Bikash & Haque, Tanjum, 2022. "From silos to synergies: A systematic review of luxury in marketing research," Journal of Business Research, Elsevier, vol. 139(C), pages 893-907.
    9. Watanabe, Chihiro & Akhtar, Waleed & Tou, Yuji & Neittaanmäki, Pekka, 2021. "Amazon's New Supra-Omnichannel: Realizing Growing Seamless Switching for Apparel During COVID-19," Technology in Society, Elsevier, vol. 66(C).
    10. Sohn, Stefanie, 2024. "Consumer perceived risk of using autonomous retail technology," Journal of Business Research, Elsevier, vol. 171(C).
    11. Savastano Marco & Anagnoste Sorin, 2020. "Pioneering Strategies in Retail Settings: An Empirical Study of Successful Practices," Management & Marketing, Sciendo, vol. 15(4), pages 643-663, December.
    12. Hubert Gatignon & Michael L. Tushman & Wendy Smith & Philip Anderson, 2002. "A Structural Approach to Assessing Innovation: Construct Development of Innovation Locus, Type, and Characteristics," Management Science, INFORMS, vol. 48(9), pages 1103-1122, September.
    13. Javornik, Ana & Duffy, Katherine & Rokka, Joonas & Scholz, Joachim & Nobbs, Karinna & Motala, Anisa & Goldenberg, Adriana, 2021. "Strategic approaches to augmented reality deployment by luxury brands," Journal of Business Research, Elsevier, vol. 136(C), pages 284-292.
    14. 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.
    15. Ugo Rizzo & Nicolò Barbieri & Laura Ramaciotti & Demian Iannantuono, 2020. "The division of labour between academia and industry for the generation of radical inventions," The Journal of Technology Transfer, Springer, vol. 45(2), pages 393-413, April.
    16. Iansiti, Marco, 1995. "Technology integration: Managing technological evolution in a complex environment," Research Policy, Elsevier, vol. 24(4), pages 521-542, July.
    17. Linda F. Tegarden & Ann E. Echols & Donald E. Hatfield, 2000. "The Value of Patience and Start-up Firms: A Re-Examination of Entry Timing for Emerging Markets," Entrepreneurship Theory and Practice, , vol. 24(4), pages 41-58, July.
    18. 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.
    19. Li, Sixian & Peluso, Alessandro M. & Duan, Jinyun, 2023. "Why do we prefer humans to artificial intelligence in telemarketing? A mind perception explanation," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    20. Mary Tripsas, 2009. "Technology, Identity, and Inertia Through the Lens of “The Digital Photography Company”," Organization Science, INFORMS, vol. 20(2), pages 441-460, 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:66:y:2022:i:c:s0969698922000522. 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.