{"title":"Usage complementarity vs. basket co-occurrence: Discount depth reliance in digitally personalized product recommendations","authors":"Jungsil Choi , Hyun Young Park","doi":"10.1016/j.jretai.2025.01.006","DOIUrl":"10.1016/j.jretai.2025.01.006","url":null,"abstract":"<div><div>The present research investigates how recommending products based on usage complementarity versus basket co-occurrence affects consumers’ purchase decisions. Across seven studies, we find that recommending products based on purchase co-occurrence leads consumers to overly rely on discount depth while neglecting the base price. However, recommending products based on usage complementarity attenuates this tendency. We propose that this occurs because, when products are highly complementary, consumers adopt a comprehensive (vs. topical) mental account that evaluates price information more holistically, considering both discount depths and base prices, thereby reducing the processing bias such as base price neglect. Consistent with our proposal, we find that usage complementarity mitigates another type of processing bias—arising from consumers’ motivation to justify hedonic (vs. utilitarian) purchases—indicating that complementarity promotes a more comprehensive approach to price evaluation. We also find that complementarity triggers a processing style similar to the analytical processing style associated with prevention orientation (vs. promotion orientation), which involves comprehensive price evaluations.</div></div>","PeriodicalId":48402,"journal":{"name":"Journal of Retailing","volume":"101 2","pages":"Pages 177-196"},"PeriodicalIF":8.0,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144272551","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Heath McCullough , Alex Ricardo Zablah , Leah Warfield Smith
{"title":"Identity discounts","authors":"Heath McCullough , Alex Ricardo Zablah , Leah Warfield Smith","doi":"10.1016/j.jretai.2025.02.007","DOIUrl":"10.1016/j.jretai.2025.02.007","url":null,"abstract":"<div><div>Price discounts present a dilemma for managers. Despite being an effective lever for increasing sales, discounts elicit negative quality perceptions and thus ultimately damage the brand. However, discounts based on the customer's identity, such as senior citizen, military, veteran, student, teacher, first responder, and healthcare worker discounts, are becoming increasingly prevalent. As such, this investigation introduces <em>identity discounts</em> – i.e., price discounts made available to consumers based exclusively on an element of their identity– and explores their novel effects on consumer product responses. Across five studies we find that identity discounts elicit an association between the product and the self, resulting in the creation of psychological ownership. Thus, because psychologically owned and self-associated objects are better liked and receive more favorable evaluations, we find that identity discounts mitigate the otherwise harmful effects of discounting on quality perceptions. However, the present research also reveals that the novel effects of identity discounts are dependent on identity congruence, such that psychological ownership and enhanced product evaluations only result when the promoted identity is deemed desirable (congruent) by consumers. For example, senior citizen discounts create psychological ownership and improve product evaluations when offered to older consumers who embrace the senior citizen identity but are as damaging as traditional discounts when offered to younger seniors who do not. Therefore, while our research suggests retailers should continue to include identity discounts in their promotional toolbox as they can confer benefits that traditional discounts do not, it also offers a cautionary warning: as consumer identities are heterogenous, so too are the effects of identity discounts.</div></div>","PeriodicalId":48402,"journal":{"name":"Journal of Retailing","volume":"101 2","pages":"Pages 241-262"},"PeriodicalIF":8.0,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144272555","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Thuy Pham , Frank Mathmann , Felix Septianto , Mathew Chylinski
{"title":"The impact of assortment size and population density on product evaluation","authors":"Thuy Pham , Frank Mathmann , Felix Septianto , Mathew Chylinski","doi":"10.1016/j.jretai.2025.02.004","DOIUrl":"10.1016/j.jretai.2025.02.004","url":null,"abstract":"<div><div>E-commerce firms such as Amazon, eBay and JD.com extend large assortments across diverse geographical areas, operating under the assumption that online shopping behavior is unaffected by physical location. However, this assumption is increasingly questioned by two contrasting perspectives. One suggests that consumers in densely populated areas benefit less from large assortments, while another argues that large assortments help consumers regain a sense of control in densely populated environments, which can lead to more positive product evaluations. Analyzing a large-scale e-commerce dataset and conducting two follow-up experiments with incentive-compatible measures, we find strong support for the latter perspective. Consumers in densely (vs. sparsely) populated areas evaluate products chosen from large assortments more positively. These findings suggest that managers can tailor assortments to align with population density or use advertisements featuring densely populated areas to improve the evaluation of products chosen from a large assortment.</div></div>","PeriodicalId":48402,"journal":{"name":"Journal of Retailing","volume":"101 2","pages":"Pages 227-240"},"PeriodicalIF":8.0,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144272554","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Getting the most for a penny: How retailers can best use left-digit effects","authors":"Gustavo Schneider , Taehoon Park , Abhijit Guha","doi":"10.1016/j.jretai.2025.02.002","DOIUrl":"10.1016/j.jretai.2025.02.002","url":null,"abstract":"<div><div>When designing price promotions, many retailers employ left-digit effects (i.e., when the price is reduced, it changes the leftmost digit of the price). While left-digit effects can influence consumer evaluations, there is little work that examines for which (i) segments of consumers, or (ii) types of managerially relevant display elements are left-digit changes more effective. This paper builds from the insight that the left-digit effect is a heuristic and then—building from work on heuristics—uses multiple studies to examine individual differences and contextual factors that can enhance the effectiveness of price promotions involving left-digit changes. This paper examines an important substantive domain—price promotions—and proposes contributions to both theory and practice by showing that left-digit effects are stronger (i) for consumer segments that rely more on their feelings when making decisions, (ii) when the retail signage induces arousal, and (iii) when retail signage does not indicate the actual percentage discount. Put another way, noting that left-digit effects can be triggered by merely changing prices by a penny or so, this paper outlines how retailers can “get the most for that penny.”</div></div>","PeriodicalId":48402,"journal":{"name":"Journal of Retailing","volume":"101 2","pages":"Pages 217-226"},"PeriodicalIF":8.0,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144272553","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The impact of brand equity on vertical integration in franchise systems","authors":"Mohammad Kayed , Manish Kacker , Ruhai Wu , Farhad Sadeh","doi":"10.1016/j.jretai.2025.01.007","DOIUrl":"10.1016/j.jretai.2025.01.007","url":null,"abstract":"<div><div>Brand equity and vertical integration are focal, strategic elements of a franchise system that can profoundly influence franchise performance. Despite the recognized importance of these two strategic levers and the longstanding research interest in the topic, our understanding of the interplay between brand equity and vertical integration (company ownership of outlets) in a franchise system remains incomplete. In this study, we revisit the five-decade-old question of how brand equity affects vertical integration in a franchise system and present some novel, nuanced insights into the topic. Evidence from a Bayesian Panel Vector Autoregressive model on a large panel data set shows that brand equity has a powerful, lagging inverse effect on vertical integration, such that higher brand equity leads to less downstream vertical integration in a franchise system. Reverse causality analyses identify a less pronounced but present reciprocal effect. Boundary conditions analyses reveal that the negative effect of brand equity on vertical integration is weaker in franchise systems with international presence and in retail-focused (vs. service-focused) franchises, and stronger in franchise systems with more financial resources. These findings (a) challenge traditional views (e.g., transaction cost theory, resource-based view, ownership redirection hypothesis) on the topic by demonstrating a negative effect for brand equity on vertical integration in franchise systems and showing that greater financial resources amplify this effect, and (b) shed new light on the intricate dynamics (temporal causation, reverse causation) and contingencies of this debated effect. Managerially, this research draws attention to the underrecognized strategic benefit of brand equity in mitigating channel governance issues and advise against unnecessary vertical integration, especially when brand equity is robust.</div></div>","PeriodicalId":48402,"journal":{"name":"Journal of Retailing","volume":"101 2","pages":"Pages 197-216"},"PeriodicalIF":8.0,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144272552","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Syed Mahmudur Rahman , Jamie Carlson , Noman H. Chowdhury , Siegfried P. Gudergan , Martin Wetzels , Dhruv Grewal
{"title":"Share of time in omnichannel retailing: Definition and measurement","authors":"Syed Mahmudur Rahman , Jamie Carlson , Noman H. Chowdhury , Siegfried P. Gudergan , Martin Wetzels , Dhruv Grewal","doi":"10.1016/j.jretai.2025.04.001","DOIUrl":"10.1016/j.jretai.2025.04.001","url":null,"abstract":"<div><div>The time that consumers spend shopping represents a valuable resource. When consumers engage with multiple omnichannel retailers, they divide this limited resource among them, such that the retailers must compete for shares of consumers’ time. Previous explorations of the effects of time-related variables on consumer behavior rarely address the <em>relative</em> time that consumers devote to different channels associated with competing omnichannel retailers. To introduce this idea, the current research proposes an “omnichannel share of time” (OSoT) concept. With four mixed-method studies, the authors derive and validate an easy-to-administer, four-item measure of OSoT. A nomological network analysis also demonstrates its positive mediating role in the relationship between omnichannel customer experience and customer engagement. By proposing and validating OSoT, this article introduces a valuable tool that retail managers can leverage to evaluate the effectiveness of their customer experience strategies and drive value co-creation through greater customer engagement.</div></div>","PeriodicalId":48402,"journal":{"name":"Journal of Retailing","volume":"101 2","pages":"Pages 279-297"},"PeriodicalIF":8.0,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144272576","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Clear views, clear gains: Exterior transparency's role in increasing consumer entry for retail environments","authors":"Kevin L. Sample , Julio Sevilla , Kelly L. Haws","doi":"10.1016/j.jretai.2025.01.005","DOIUrl":"10.1016/j.jretai.2025.01.005","url":null,"abstract":"<div><div>The exterior of retail environments is crucially important for eliciting consumer entrance and traffic, but what drives entry? We examine a prominent design element for every exterior – the level of transparency, proposing that more transparency enhances the informativeness provided to consumers and consequently increases the likelihood of consumer entrance. In contrast, whereas less transparency decreases informativeness about a place, foot traffic for less transparent places can be increased by providing consumers with more information about the interior via other means than transparency (e.g., a floorplan). Alternative information through brand familiarity can also increase entry for more and less transparent places. This proposed process shifts from the traditional emotionally focused paradigm of stimulus-organism-response in environmental psychology and instead recognizes the importance of providing more information within any marketplace interaction, even when it pertains to the built environment. Utilizing varying store types (e.g., retail, restaurants, fitness centers) and modalities (images, virtual reality), our studies provide support for these effects and the underlying mechanism. Consequently, we demonstrate an optimal design configuration of transparency for managerial guidance while providing crucial insights for an under-researched component of retail design.</div></div>","PeriodicalId":48402,"journal":{"name":"Journal of Retailing","volume":"101 2","pages":"Pages 158-176"},"PeriodicalIF":8.0,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144272550","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"FM ii: Copyright/ ID Statement","authors":"","doi":"10.1016/S0022-4359(25)00045-4","DOIUrl":"10.1016/S0022-4359(25)00045-4","url":null,"abstract":"","PeriodicalId":48402,"journal":{"name":"Journal of Retailing","volume":"101 2","pages":"Page ii"},"PeriodicalIF":8.0,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144270748","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Ozan Ozdemir , Feyzan Karabulut , Paul R. Messinger
{"title":"Can(’t) touch this: The effect of form realism and product domain in virtual influencer endorsements","authors":"Ozan Ozdemir , Feyzan Karabulut , Paul R. Messinger","doi":"10.1016/j.jretai.2025.04.002","DOIUrl":"10.1016/j.jretai.2025.04.002","url":null,"abstract":"<div><div>The prevalence of virtual agents across various domains has led to the emergence of virtual influencers on social media platforms as computer-generated alternatives to human social media influencers. This research sheds light on the factors that influence virtual influencers’ effectiveness in brand endorsements by examining their form realism and its interaction with the product domain. Four experiments show that virtual influencers’ form realism and the domain (physical vs. non-physical) of the products they endorse affect virtual influencers’ effectiveness as brand endorsers. Virtual influencers with high (vs. low) form realism generate a more positive attitude toward the brand. The underlying process driving this effect is the perceived lack of proximal sensory capabilities of virtual influencers with low form realism compared to those with high form realism. Importantly, there are no differences in brand attitudes for high (vs. low) form realism when virtual influencers endorse products belonging to non-physical (vs. physical) domains, where the proximal sensory capabilities of virtual influencers are less prominent. This research contributes to the literature by examining an emerging influencer type within the brand endorsement context. This research also offers practical implications for retailers regarding selecting the right influencer and crafting effective endorsement campaigns.</div></div>","PeriodicalId":48402,"journal":{"name":"Journal of Retailing","volume":"101 2","pages":"Pages 298-310"},"PeriodicalIF":8.0,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144272577","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}