Consequences of personalized product recommendations and price promotions in online grocery shopping

Heli Hallikainen · Milena Luongo · Amandeep Dhir · Tommi Laukkanen

98 citations0/0 files storedJournal of Retailing and Consumer Services

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Consumer Market Behavior and Pricing Customer Service Quality and Loyalty Digital Marketing and Social Media

Abstract

Shopping convenience can be turned into a competitive advantage for online grocery retailers. Consequently, we study how personalized product recommendations (recommendation agents) and price promotions (algorithmic pricing) compensate for the negative impact that consumer's perceived cognitive effort causes on loyalty. By default, the relationship from perceived cognitive efforts to attitudinal and behavioral loyalty is negative, yet these results demonstrate that personalized price promotions lessen the negative impact, while personalized product recommendations do not have such an influence. The findings contribute to a better understanding of personalized marketing activities in today's data-driven online grocery retailing.

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