The Effectiveness of Mobile Applications to Drive In-Store Sales
(A2019-10181)

AUTHORS

Khadija Vakeel, Northwestern University; Vijay Viswanathan, Northwestern University; Mototaka Sakashita, Keio University

KEYWORDS

Mobile Application; Customer Engagement; Online to offline

ABSTRACT

With rapid adoption of smartphones, brick and mortar businesses too are using smartphone technologies such as mobile applications (apps) to engage their customers. This study investigates the case of mobile apps introduced by shopping mall operators to engage potential customers. The main objective of this study is, therefore, to examine the effectiveness of these customer engagement behaviors in driving sales for individual retail store brands in the mall. Using data provided by a large mall operator based in East Asia, the study finds that mobile advertisements from store brands have a positive effect on sales only when customers have a prior positive disposition towards the store brand. The study, therefore, has important implications for academics and practitioners interested in understanding the effectiveness of mobile advertising in driving sales to physical stores.