Technology-enabled personalization: Impact of smart technology choice on consumer shopping behavior

Abstract

Smart technologies promise to enhance customer experience to new levels in next-generation retail stores. Offline retailers increasingly employ technology-enabled personalization (TEP) strategies to digitally enhance in-store customer experience. To send personalized messages to in-store customers, retailers can choose from two types of smart devices: customer-owned smartphones or retailer-owned immersive screens. Although these smart devices may largely determine customers’ experiences in future retail, research rarely addresses device-related determinants of the effectiveness of personalized messages in stores. Building on assemblage theory, the authors consider the role of these devices in influencing customer experience and eventually consumer shopping behavior. Through two experiments and a mediated moderation analysis, they investigate the interplay of personalized content and device technology in customers’ response to TEP. The results illustrate that consumers react differently to message content depending on the device through which it is conveyed; that is, personalized (standardized) messages are more effective on customer-owned smartphones (retailer-owned screens) because they become integrated into (remain separate from) the customer's extended self. Relational customer experiences, or the extent to which a customer feels positively connected to store assemblages, mediate the effect on shopping behavior. To build TEP strategies, retailers should therefore use smart devices integrated into customers’ extended selves.