Enhancing consumer trust in displayed information through digital price tags in retail marketing

Abstract

Although digital price tags have been widely adopted in many brick-and-mortar retailers, our understanding of their optimal use remains limited. Considering their ability to easily update prices and promotional messages remotely, concerns have emerged regarding consumer trust in the displayed information. This study examines the role of digital price tags in retail marketing, with a particular focus on their effectiveness in building consumer trust in displayed information. To explore this, three online experiments are conducted to investigate strategies for enhancing consumer trust in the use of digital price tags. Studies 1a and 1 b provide evidence that digital price tags are more effective when they align with the attributes of the endorsed product. Specifically, consumers exhibit greater trust in information when digital price tags promote digital products rather than non-digital ones. Study 2 replicates these findings in a different product category, reinforcing the robustness of this effect. Study 3 further explores the strength of consumer trust in price tag information under matched conditions, demonstrating that this alignment acts as a buffer against potential distrust. The study concludes by outlining the theoretical contributions and practical implications for both retail scholars and industry practitioners.