Studies on the impacts of innovation and emerging technologies on marketing

Abstract

The advent of the digitized economy and the emerging technologies are 'reshaping' the consumption patterns and the markets as we know them. With the combination of the biometric technologies, e.g,. face recognition, voice recognition, or fingerprint scanning, and the mobile technologies, e.g., smartphones or phablets, mobile payment services such as Google Pay, WeChat Pay, and Kakao Pay are gathering a strong customer base. These newly emerging mobile payments have the potential to influence customers' purchase behavior especially under the changing consumption environments where the customers can directly `interact' with the products and make purchases in an offline store using their smartphones. Also, with the rise of the online commerce giants such as Amazon, customers are constantly exposed to an ever-increasing variety from which to make a choice. Given these changes in the consumption environment, this dissertation attempts to investigate the influences of two important innovation-driven phenomena in two separate chapters: i.e., 1) the adoption of mobile payment services and its influences on in-store mobile shopping behavior and 2) the size and the extremeness of customers' consideration sets on compromise effect. Drawing from the transaction cost theory and the literature on consumer psychology, therefore, chapter two delineates and empirically analyzes the behavioral consequences of the mobile payments under the setting where the customers purchase books in offline stores using their mobile phones. The results confirm that the adoption of a mobile payment significantly increases consumer spending and consumption variety, but decreases concentration on personal favorites from the in-store mobile purchase channel. Interestingly, the adoption increases purchase frequency per trip and maximum price of the books purchased as well. Based on an online experiment, Chapter three provides evidence that the compromise effect is relatively weaker in a large consideration set (i.e., boundary condition), but that this negative effect of consideration set size on compromise effect is mitigated by attribute extremeness. The implications for the relevant stakeholders, e.g., consumers who are using a mobile payment or are shopping from the online commerce platform, or the retailers who are planning on introducing a mobile payment or an online sales channel, are discussed.