Value co-creation with Internet of things technology in the retail industry

ABSTRACT

Internet of things (IoT) is a novel paradigm that aims to bridge the digital world with the real world. With the rapid advancements in Internet and communication technology, we are witnessing the dawn of a new era of the IoT in various industries. The retail industry is at the forefront in embracing the IoT, which is expected to change the way customers experience shopping. Drawing on the service-dominant logic, this study proposes that customer interaction with IoT retail technology results in value co-creation. Responses are collected from 289 users of IoT technology in the retail setting. Results of partial least square (PLS) structural equation modelling reveals that ease of use, superior functionality, aesthetic appeal and presence are key determinants of value co-creation for IoT retail technology. Results also show that value co-creation influences customers’ continuance intentions and word-of-mouth intentions. The findings of this study have key implications for retailers in delivering superior customer experience. The limitations and future research directions are discussed.

KEYWORDS:

• Internet of things
• value co-creation
• service-dominant logic
• retail
• continuance intentions
• PLS path modelling

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Notes on contributors

M. S. Balaji

Dr M. S. Balaji is Assistant Professor of Marketing at Nottingham University Business School China. His research interests include Services Marketing, Relationship Marketing and Social Media. He has published in Journal of Business Research, Information & Management, Journal of Services Marketing, Journal of Strategic Marketing, International Journal of Hospitality Management, Service Business, International Journal of Bank Marketing and Asia Pacific Journal of Marketing and Logistics. He was a Visiting Research Scholar at Whitman School of Management, Syracuse University, USA.

Sanjit Kumar Roy

Dr Sanjit Kumar Roy is Assistant Professor of Marketing, The University of Western Australia, Perth, Australia. His research interests include Services Marketing and Consumer-Brand Relationships. He has guest edited a special issue on India for International Journal of Bank Marketing. He has also co-edited Marketing Cases for Emerging Markets. He has published in a wide range of journals including European Journal of Marketing, Journal of Business Research, Journal of Marketing Management, Journal of Strategic Marketing, Journal of Services Marketing, Journal of Brand Management, International Journal of Bank Marketing, Journal of Global Marketing and Managing Service Quality. He was a Visiting Research Scholar at Bentley University, USA and Visiting Research Fellow at Middlesex University, UK.