Is the information of customer types and preferences to personal selling worth the investment in innovative technology? A modeling approach

Hisashi Kurata

Journal of Retailing and Consumer Services, 2019, vol. 49, issue C, 371-379

Abstract: Personal selling by a salesclerk on a shop floor is an important marketing communication activity in retail business; however, some customers regard face-to-face sales pitch as unnecessary and discouraging. Assuming a certain group of customers that are supersaturated with a high level of service quality, we analyzed how the retailer can improve business profitability by knowing a customer type and the optimal level of service quality. We then proposed managerial implications regarding whether the value of information of hidden customer behavior is worth implementing an expensive RFID system, or a simple service poka-yoke is enough.

Keywords: Personal selling; Value of information; Service supersaturation; Retailing; Service quality (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:49:y:2019:i:c:p:371-379

DOI: 10.1016/j.jretconser.2019.01.020

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