Sustaining shopping momentum in retail malls using real-time messaging

Abstract

Retail malls thrive not only on foot traffic they attract but also on buyers spending at multiple retailers in the mall. While the importance of shopping momentum, i.e., buyers continuing to shop, is known, few studies have examined how mobile promotions can incentivize buyers to sustain their shopping momentum in a mall. This study examines how a mall operator targets buyers in its loyalty program with a real-time message (RTM) to encourage them to sustain their shopping momentum and spend more at the next retailer. We use a quasi-experimental design and show that the RTM has a stronger effect on heavy than light buyers. Specifically, moderate and heavy buyers are more likely to respond favorably to RTMs by sustaining shopping momentum and increasing spending at the next retailer. In contrast, the RTM has no effect on shopping momentum of light buyers, and if they continue to shop, they lower their subsequent spending. The study has important implications for retailers using mobile applications to target buyers with relevant real-time promotions to achieve desired outcomes.