Smart Shopping Carts: How Real-Time Feedback Influences Spending

Smart Shopping Carts: How Real-Time Feedback Influences Spending

Basic Research Question

The basic research question in this article examines how real-time spending feedback influences the shopping and spending behavior of shoppers who have a budget (budget shoppers) and those who do not (nonbudget shoppers).

Method

The authors used three studies to answer their research question. The first study, Budget Shoppers’ Spending Behavior, used a computer-simulated shopping task where 66 university students were given a pretested shopping list with 16 product categories and asked to make their choices. In each of the product categories, participants were presented with one store brand and one national brand product.

The second study, Real-Time Spending Feedback in an Online Grocery Store, involved 194 participants who were randomly assigned to either a budget constraint, no constraint, available real-time spending feedback, or unavailable feedback. They were then asked to shop using a pretested shopping list with 15 common product categories.

The third study, Field Study in an Atlanta Grocery Store, involved 198 adult shoppers who were shopping for ten or more items. Participants were asked whether there was a maximum amount of money they intended to spend. Half of the participants were randomly asked to shop using an iPad with a tracker that enabled them to accurately track their in-store spending. After they finished shopping, their final receipt was copied to determine the actual total price as well as the number and type of products and brands purchased.

Conclusion

After reviewing the results of a lab experiment, a field study in an experimental online grocery store, and a field study in a brick-and-mortar grocery store, the authors conclude that real-time spending feedback has a different effect on spending behavior based on if the customer is a budget shopper or nonbudget shopper.

Budget Shoppers

Budget shoppers who receive real-time spending...