Influence of Technologically Enabled Retail Environments on Consumers’ Perceived Benefits of Digital Technologies

Abstract

This research aims to examine the effect of Technological Retail Environment on Consumer Perceptions of the Benefits of Digital Technologies. The study reflects an increasing impact of new age technologies such as AI, AR and IoT that have transformed the way processes run and how a consumer behaves in retail. The research investigates how these technological developments enhance the customer shopping experience by enabling them to access more customizable and convenient options for their product selection and purchases (eg, digital wallet implementation, interactive browsing of a store). Using a combination of Exploratory Factor Analysis (EFA) and Structural Equation Modeling (SEM), the study identifies Perceptions of the Benefits of Digital Technologies (PB) and Technological Retail Environment (DRE) as two separate but correlated constructs which significantly impact consumer behavior. Findings show that consumer perceptions of the value and benefits of digital technology: perceived ease of use, perceived usefulness, and enjoyment have direct effect on their intentions to adopt digital tools in retail. This paper contributes to the existing literature by drawing attention on why it is important for retailers to adopt omnichannel retail strategies and some issues that need to be taken into account such as data protection or ethical considerations, when using digital technologies in the context of the shop floor environment.