In-store one-to-one marketing

With the proliferation of electronic media, one-to-one marketing has become more accessible and it is moving toward widespread adoption. It is particularly important for retailers, where several forms of one-to-one marketing are performed either before or after a shopping experience. One-to-one marketing during the shopping experience is still elusive; however, with recent technological advances it could soon become reality. We show how it can be carried out by using either personal digital assistance devices and wireless communication, or radio frequency identification. The main concept is based on providing coupons during a shopping experience and then routing the customer within the facility to possibly redeem them. The novel approach of selecting the coupons based on the already purchased goods enables one-to-one marketing during the actual shopping trip. Several models are presented based on the underlying technology and the option of a loyalty card. The concepts are computationally evaluated based on data obtained from a grocery store. They allude to substantially increased revenue by the store.

Publication: 
Journal of Retailing and Consumer Services
Author: 
Klabjan, Diego; Pei, Jinxiang
Document Type: 
Research
Paywall: 
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