Impact of retailing technology during business shutdown

Abstract

Purpose This study explores the causes and effects of technology usefulness on shopping behavior of consumers in Mexico by measuring inter-relationships between the constructs of shopping with new-normal following coronavirus disease 2019 (COVID-19) business shutdown and online retail technology. Design/methodology/approach This study has been conducted in six online retail stores with the online survey of 342 buyers in Mexico. Data have been analyzed using two regression models with dependent variables, perceived usefulness of technology and buying decision of customers. Multiple correlations across the variables were computed. Findings Results of this study reveal that as customers found higher ease of use of online shopping, they perceived higher usefulness of online retailing technology. The perceived quality of retailing website positively influences impulsive buying behavior of customers. The study observed that increase in coupon promotions has positively enhanced the perceived buying impulsiveness of consumers in online stores. The perceived usefulness of online redemption of coupons has also positively benefited the attitude of customers toward buying. Research limitations/implications Online shopping has attracted a large section of customers during the COVID-19 business shutdown, and peer interactions have motivated them to experience the retailing technology of virtual stores. This study offers important insights for managers working in the retailing industries. Online strategies of retailers with unified customer experiences during the pandemic and business shutdown has provided extensive online retail space. Practical implications Managers of virtual retail stores need to build their business on customer-centric propositions, encourage 3D visions of products, develop “do-it-yourself” kiosks with augmented reality technology and enhance the value-based online business model. Online retailers need to prioritize developing an easy to navigate and quality website with comprehensive product information and instant messaging facilities over the sales promotion strategies. Online retailers need to establish quick response (QR) technology to improve the ease of use for navigation. Originality/value This study finds out the perceived usefulness in using online retail technology, and how customers have experienced it as a single wide option during the COVID-19 pandemic.

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