Convenience or Personalization?
Drivers of consumer adoption of mobile retail apps in the grocery retail landscape
Master thesis defence Marketing Management
Student: Alessandro Fraticelli First supervisor: Dr. Hans Berger Second supervisor: Dr. Martijn Keizer
Date: 28/01/2019
1. Introduction
Grocery retail landscape
Importance of mobile apps’ design
Research question
2. Conceptual framework
Existing literature and TAM
Conceptual model
3. Methodology
Survey and method
PLS-SEM model
4. Results
Measurement model
Structural model
5. General discussion
Study implications
Limitations and future research
Table of contents
1. Introduction
Grocery retail landscape
Rise of Hard discounters
Amazon
entrance
• High competitive pressure on other retailers
• Defined as «worst storm in retail industry»
• Amazon acquisition of whole foods shakes the market
• Innovation race
1.Introduction
Importance of mobile apps’ design
Mobile apps to be competitive Mobile apps
to be competitive
Grocery retail industry in turmoil
Mobile as proper channel
↑ Mobile exp
=
↑ Performance
Low ratings for mobile experience
1.Introduction
Research question
“What are the key features of shopper mobile apps in the grocery retail industry that increase
customer adoption likelihood?”
2. Conceptual framework
Existing literature and TAM
Technology Acceptance Model
• Criticism to TAM Lack of actionable guidance to practitioners
• «Mobile shopping is still in its infancy» (Groß, 2015)
• «How to optimize mobile app design to best influence shoppers?” (Shankar, 2016)
Perceived Usefulness replaced with App features
2. Conceptual framework
Conceptual model
3. Methodology
Survey and method
• Survey with 264 participants
138 (52%) aged between 18-24
189 (72%) Italian
• PLS-SEM statistical technique
Best suited for theory development than confirmation
Allows working with relatively small samples
Constructs can also be formative
3. Methodology
PLS-SEM model
Personalization E-coupons Price checks
Ease of use
Adoption
Attractiveness
Easy_Download
Attractiveness
Attractiveness Adoption
Adoption
Adoption
Price_Dwnld Coupon_Dwnld
Person_Dwnld
STRUCTURAL (INNER) MODEL
MEASUREMENT (OUTER) MODEL
4. Results
Measurement model
• Confirmatory Factor Analysis to assess outer loadings (> .700)
– Easy_uninstall showed low values
• Collinearity analysis (< 4)
– Mental_effort showed high scores
Both Easy_uninstall and Mental_effort were eliminated from the model
4. Results
Structural model
• Both Composite reliability and Average Variance Extracted of constructs showed values above the treshold
• R-square = .603 and R-square adjusted = .589
5. General discussion
Study implications
• Managerial point of view: Shape mobile app experience to shoppers’ requests
Convenience > Personalization
(Price checks > E-coupons > Personalization)
• Theoretical point of view:
Address lack of knowledge (focusing on grocery retail)
Expanding TAM, higher practical guidance
5. General discussion
Limitations and future research
• Failed moderation effect: value ease of use itself, not each feature’s
• Limitations:
Larger and more diverse sample
Familiarity with grocery mobile apps
Privacy concerns on Personalization
• Future research:
Experiment with actual grocery app (real experience)
More features (e.g. Circulars 16%; Product location 10%; Online order 7%; Scan to checkout 7%)
