IDEAS home Printed from https://ideas.repec.org/a/eee/jouret/v100y2024i2p186-198.html
   My bibliography  Save this article

Digital signage for promoting price discounts: First insights into customer spending on distant and nearby discounted products

Author

Listed:
  • Nanni, Anastasia
  • Ordanini, Andrea

Abstract

Retailers are increasingly using digital signage to promote price discounts. Our research explores a crucial question: Does displaying price discounts on digital screens, in addition to traditional displays, influence customer spending on discounted products? Through two field experiments in grocery stores involving 7,009 customers, we found that promoting price discounts on digital screens has a significant impact on the sales of discounted products located farther from digital screens (i.e., products outside the department in which the screens are located). However, promoting discounted products near screens (i.e., products in the department) do not have a significant effect on sales. Retailers should consider promoting discounted products on digital screens while considering the product's distance from the screen. For products near screens, traditional printed displays might be sufficient to drive sales. This unique insight can guide retailers and brand manufacturers in optimizing their in-store marketing strategies. Our study offers a valuable starting point for future research on the effects of digital signage on retail sales.

Suggested Citation

  • Nanni, Anastasia & Ordanini, Andrea, 2024. "Digital signage for promoting price discounts: First insights into customer spending on distant and nearby discounted products," Journal of Retailing, Elsevier, vol. 100(2), pages 186-198.
    • Handle: RePEc:eee:jouret:v:100:y:2024:i:2:p:186-198
    DOI: 10.1016/j.jretai.2024.05.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0022435924000228
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretai.2024.05.004?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. Dennis, Charles & Joško Brakus, J. & Gupta, Suraksha & Alamanos, Eleftherios, 2014. "The effect of digital signage on shoppers' behavior: The role of the evoked experience," Journal of Business Research, Elsevier, vol. 67(11), pages 2250-2257.
    2. Haans, A.J. & Gijsbrechts, E., 2011. "One-deal-fits-all? : On category sales promotion effectiveness in smaller versus larger supermarkets," Other publications TiSEM 2c1a69db-bdfa-4988-a84c-4, Tilburg University, School of Economics and Management.
    3. Garaus, Marion & Wagner, Udo & Manzinger, Sandra, 2017. "Happy grocery shopper: The creation of positive emotions through affective digital signage content," Technological Forecasting and Social Change, Elsevier, vol. 124(C), pages 295-305.
    4. Roggeveen, Anne L. & Nordfält, Jens & Grewal, Dhruv, 2016. "Do Digital Displays Enhance Sales? Role of Retail Format and Message Content," Journal of Retailing, Elsevier, vol. 92(1), pages 122-131.
    5. Haans, Hans & Gijsbrechts, Els, 2011. "“One-deal-fits-all?” On Category Sales Promotion Effectiveness in Smaller versus Larger Supermarkets," Journal of Retailing, Elsevier, vol. 87(4), pages 427-443.
    6. Inès Chouk & Zied Mani, 2017. "Drivers of consumers’ resistance to smart products," Post-Print hal-02980400, HAL.
    7. Stefan Stremersch & Jorge Gonzalez & Albert Valenti & Julian Villanueva, 2023. "The value of context-specific studies for marketing," Journal of the Academy of Marketing Science, Springer, vol. 51(1), pages 50-65, January.
    8. Greenwald, Anthony G & Leavitt, Clark, 1984. "Audience Involvement in Advertising: Four Levels," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 11(1), pages 581-592, June.
    9. Aydinli, Aylin & Lamey, Lien & Millet, Kobe & ter Braak, Anne & Vuegen, Maya, 2021. "How Do Customers Alter Their Basket Composition When They Perceive the Retail Store to Be Crowded? An Empirical Study," Journal of Retailing, Elsevier, vol. 97(2), pages 207-216.
    10. Garaus, Marion & Wagner, Udo & Rainer, Ricarda C., 2021. "Emotional targeting using digital signage systems and facial recognition at the point-of-sale," Journal of Business Research, Elsevier, vol. 131(C), pages 747-762.
    11. Dennis, Charles & Newman, Andrew & Michon, Richard & Josko Brakus, J. & Tiu Wright, Len, 2010. "The mediating effects of perception and emotion: Digital signage in mall atmospherics," Journal of Retailing and Consumer Services, Elsevier, vol. 17(3), pages 205-215.
    12. Han, Yoonju & Chandukala, Sandeep R. & Li, Shibo, 2022. "Impact of different types of in-store displays on consumer purchase behavior," Journal of Retailing, Elsevier, vol. 98(3), pages 432-452.
    Full references (including those not matched with items on IDEAS)

    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. Garaus, Marion & Wagner, Udo & Rainer, Ricarda C., 2021. "Emotional targeting using digital signage systems and facial recognition at the point-of-sale," Journal of Business Research, Elsevier, vol. 131(C), pages 747-762.
    2. Garaus, Marion & Wagner, Udo & Manzinger, Sandra, 2017. "Happy grocery shopper: The creation of positive emotions through affective digital signage content," Technological Forecasting and Social Change, Elsevier, vol. 124(C), pages 295-305.
    3. Garaus, Marion & Wagner, Udo, 2019. "Let me entertain you – Increasing overall store satisfaction through digital signage in retail waiting areas," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 331-338.
    4. Schweiger, Elisa B. & Ahlbom, Carl-Philip & Nordfält, Jens & Roggeveen, Anne L. & Grewal, Dhruv, 2023. "In-store endcap projections and their effect on sales," Journal of Retailing, Elsevier, vol. 99(1), pages 5-16.
    5. van de Sanden, Stephanie & Willems, Kim & Brengman, Malaika, 2020. "How do consumers process digital display ads in-store? The effect of location, content, and goal relevance," Journal of Retailing and Consumer Services, Elsevier, vol. 56(C).
    6. Bonfrer, André & Chintagunta, Pradeep & Dhar, Sanjay, 2022. "Retail store formats, competition and shopper behavior: A Systematic review," Journal of Retailing, Elsevier, vol. 98(1), pages 71-91.
    7. Chadwick J. Miller & Daniel C. Brannon & Jim Salas & Martha Troncoza, 2021. "Advertising, incentives, and the upsell: how advertising differentially moderates customer- vs. retailer-directed price incentives’ impact on consumers’ preferences for premium products," Journal of the Academy of Marketing Science, Springer, vol. 49(6), pages 1043-1064, November.
    8. H. R., Ganesha & Aithal, Sreeramana & P., Kirubadevi, 2020. "Changes in Consumer Perspective towards Discount at Brick-and-Mortar Stores owing to Emergence of Online Store Format in India," MPRA Paper 104023, University Library of Munich, Germany.
    9. Raza, Ali & Wasim, Manahil & Ishaq, Muhammad Ishtiaq, 2024. "Virtual reality-based product displays to inspire consumers’ purchase intentions: An experimental study," Journal of Business Research, Elsevier, vol. 175(C).
    10. Guyt, Jonne & Gijsbrechts, Els, 2018. "On consumer choice patterns and the net impact of feature promotions," International Journal of Research in Marketing, Elsevier, vol. 35(3), pages 490-508.
    11. Mareike Sachse & Sebastian Oetzel & Daniel Klapper, 2023. "I'll Try That, Too - A Field Experiment in Retailing on the Effect of Variety During Display Promotions," Rationality and Competition Discussion Paper Series 404, CRC TRR 190 Rationality and Competition.
    12. Phillips, Megan & Parsons, Andrew G. & Wilkinson, Helene J. & Ballantine, Paul W., 2015. "Competing for attention with in-store promotions," Journal of Retailing and Consumer Services, Elsevier, vol. 26(C), pages 141-146.
    13. Gázquez-Abad, Juan Carlos & Martínez-López, Francisco J., 2016. "Understanding the impact of store flyers on purchase behaviour: An empirical analysis in the context of Spanish households," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 263-273.
    14. Roggeveen, Anne L. & Nordfält, Jens & Grewal, Dhruv, 2016. "Do Digital Displays Enhance Sales? Role of Retail Format and Message Content," Journal of Retailing, Elsevier, vol. 92(1), pages 122-131.
    15. Xiaolan Xie & Xun Zhang & Jingying Fu & Dong Jiang & Chongchong Yu & Min Jin, 2018. "Location Recommendation of Digital Signage Based on Multi-Source Information Fusion," Sustainability, MDPI, vol. 10(7), pages 1-21, July.
    16. Guyt, Jonne, 2015. "Consumer choice models on the effect of promotions in retailing," Other publications TiSEM c310f652-d725-4764-aac7-b, Tilburg University, School of Economics and Management.
    17. Ieva, Marco & Ziliani, Cristina & Gázquez-Abad, Juan Carlos & D'Attoma, Ida, 2022. "I read, therefore I buy? Analyzing the impact of flyer distribution and readership on purchase behaviour," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    18. North, Adrian C. & Sheridan, Lorraine P. & Areni, Charles S., 2016. "Music Congruity Effects on Product Memory, Perception, and Choice," Journal of Retailing, Elsevier, vol. 92(1), pages 83-95.
    19. Koll, Oliver & Plank, Andreas, 2022. "Do shoppers choose the same brand on the next trip when facing the same context? An empirical investigation in FMCG retailing," Journal of Retailing, Elsevier, vol. 98(4), pages 576-592.
    20. Klein, Andreas & Schmitz, Gertrud, 2016. "Main-format dominance in consumers’ FMCG cross-format shopping patterns," Journal of Retailing and Consumer Services, Elsevier, vol. 30(C), pages 105-115.

    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:jouret:v:100:y:2024:i:2:p:186-198. 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 .

    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.