Consequences of personalized product recommendations and price promotions in online grocery shopping

2022/08/11 by Heli Hallikainen, Milena Luongo, Amandeep Dhir +1 · 92 citations
Business, Management and Accounting · Social Sciences · #Advertising #Business #Consumer Behavior in Brand Consumption and Identification #Consumer Market Behavior and Pricing #Digital Marketing and Social Media #Grocery shopping #Loyalty #Marketing #Marketing strategy #Personalized marketing #Product (mathematics)

paper · doi:10.1016/j.jretconser.2022.103088

published in Journal of Retailing and Consumer Services 69, 103088 (Elsevier BV)

openalex publication_date 2022/08/11 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/30

Abstract

Shopping convenience can be turned into a competitive advantage for online grocery retailers. Consequently, we study how personalized product recommendations (recommendation agents) and price promotions (algorithmic pricing) compensate for the negative impact that consumer's perceived cognitive effort causes on loyalty. By default, the relationship from perceived cognitive efforts to attitudinal and behavioral loyalty is negative, yet these results demonstrate that personalized price promotions lessen the negative impact, while personalized product recommendations do not have such an influence. The findings contribute to a better understanding of personalized marketing activities in today's data-driven online grocery retailing.

Citations

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