How mobile applications affect consumption in grocery stores

Abstract

This paper examines how utilitarian and hedonic values drive customer recommendation behavior and engagement with a mobile grocery shopping application. The study further examines whether customer engagement, in terms of the usage frequency of the mobile application, influences the customer's actual spending behavior. The study tests hypothesized effects with a total sample of 541 responses from users of a mobile grocery shopping application, and among sub-samples of gender and three generational groups. The results show that the usage frequency of the mobile application has a statistically significant positive effect on money spent on the retail chain. The results further indicate gender and generational differences in the role that perceived value plays in customers' recommendation behavior and engagement with mobile grocery shopping applications.