Smart Shopping Carts: How Real-Time Feedback Influences Spending

Van Ittersum, Koert, Brian Wansink, Joost M.E. Pennings, and Daniel Sheehan (2013), “Smart Shopping Carts: How Real-Time Feedback Influences Spending,” Journal of Marketing, 77:6, 21-36.

48 Pages Posted: 22 Jul 2013 Last revised: 30 Apr 2017

See all articles by Koert van Ittersum

Koert van Ittersum

University of Groningen

Brian Wansink

Cornell University

Joost M. E. Pennings

Maastricht University; Wageningen UR

Daniel Sheehan

Georgia Institute of Technology

Date Written: July 22, 2013

Abstract

While the interest in smart shopping carts is growing, both retailers and consumer groups have concerns about how real-time spending feedback will influence shopping behavior. Building on budgeting and spending theories, the authors conduct three lab and grocery store experiments, which robustly show that real-time spending feedback has a diverging impact on spending depending on whether a person is budget constrained (“budget” shoppers) or not (“nonbudget” shoppers). Real-time spending feedback stimulates budget shoppers to spend more (by buying more national brands). In contrast, this feedback leads nonbudget shoppers to spend less (by replacing national brands with store brands). Furthermore, smart shopping carts increase repatronage intentions for budget shoppers while keeping them stable for nonbudget shoppers. These findings underscore fundamental unexplored differences between budget and nonbudget shoppers. Moreover, they have key implications for both brick-and-mortar and online retailers, as well as app developers.

Keywords: real-time spending feedback, grocery shopping behavior, smart shopping carts, budget shoppers, nonbudget shoppers

JEL Classification: M31, D1, D12

Suggested Citation

van Ittersum, Koert and Wansink, Brian and Pennings, Joost M. E. and Sheehan, Daniel, Smart Shopping Carts: How Real-Time Feedback Influences Spending (July 22, 2013). Van Ittersum, Koert, Brian Wansink, Joost M.E. Pennings, and Daniel Sheehan (2013), “Smart Shopping Carts: How Real-Time Feedback Influences Spending,” Journal of Marketing, 77:6, 21-36.. Available at SSRN: https://ssrn.com/abstract=2296753 or http://dx.doi.org/10.2139/ssrn.2296753

Koert Van Ittersum (Contact Author)

University of Groningen ( email )

Postbus 72
9700 AB Groningen
Netherlands

Brian Wansink

Cornell University ( email )

Ithaca, NY 14853
United States

Joost M. E. Pennings

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

Wageningen UR ( email )

Hollandseweg 1
Wageningen, 6706KN
Netherlands

Daniel Sheehan

Georgia Institute of Technology ( email )

800 West Peachtree St.
Atlanta, GA 30308
United States

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