Abstract
This study delves into the intricacies of digitalization in the retail industry and how it has evolved with the onset of the industrial revolution. It explores the dynamics of this process and proposes several frameworks for categorizing digital retailing technologies. Additionally, the study highlights the core technologies that are integral to this transformation. Moreover, it examines the shift from conventional retail practices to metaverse retailing, showcasing the distinctive attributes of this model. Lastly, the research delves into the factors that are set to shape the future of retailing and offers recommendations for further exploration in this area.
TopIntroduction
The introduction of technology has brought about a new era of digitalization, making communication possible through telephones, computer networks, the Internet, and mobile phones. One of the most significant outcomes of this shift has been the emergence of e-commerce in the mid-1990s, which transformed essential business activities like purchasing, selling, communicating, and inventory management (Bourlakis et al., 2009; Grewal et al., 2004). As a result, shopping has undergone a paradigm shift, transforming the retail environment, the actors involved in retailing, and the critical issues surrounding it (Hagberg et al., 2016). Moreover, consumers have taken on a more active role in the consumption process, with the power to engage in online activities such as product selection, research, and purchasing (Labrecque et al., 2013). However, retailers have also faced these developments, including changing economic conditions, globalization, and evolving business practices (Dawson, 2000). In this competitive and ever-changing market, retailers must quickly adapt to digitalization to stay competitive and minimize losses. Responding to these challenges, traditional retailers have started adopting digital retail strategies through digital technology, enabling them to use new channels and shopper touch points (Hagberg, et al., 2016; Hokkanen et al., 2020).
In retail, physical stores let customers try products, while digital stores offer ease of use, customization (Baker et al., 1992; Bitner,1992). Srinivasan et al., 2002), website design(Grewal et al., 2004; Wolfinbarger & Gilly, 2003; Yoo & Donthu, 2001), security (Wolfinbarger & Gilly, 2003; Yoo & Donthu, 2001), and speed(Dabholkar, 1996; Yoo & Donthu, 2001). Traditional retailing is suitable for all types of shoppers, including social ones. Electronic retailing is popular with those who seek convenience and embrace technology (Bourlakis et al., 2009). However, this situation has changed with the pandemic process (OECD, 2020). While research shows that 46% of consumers shopped online for the first time during the pandemic period and 71% will continue to shop due to the uncertain course of the epidemic (Retail customer experience, 2020), they predict that sales will reach 6.5 trillion (Blake, 2020; Kazancoglu and Demir, 2021).
Key Terms in this Chapter
Zero Consumers: Zero consumers are a consumer group that operates without traditional constraints or loyalty, actively seeking value in both cost and quality, and placing a high premium on convenience and sustainability in their purchasing decisions.
Chatbots: Chatbots are computer programs that interact with users using natural language.
Customer-Interfacing Retail Technologies: Customer-facing retail technologies are front-end offerings that inform the retail interface with current or potential customers.
Artificial Intelligence (AR): AI refers to the ability of a system to correctly interpret external data, learn from it, and use those learnings to achieve specific goals and tasks through flexible adaptation.
Machine Learning: Machine learning is a powerful tool that enables systems to learn patterns from data, continuously improve performance, and make predictions based on those patterns.
Service Robots: Service robots are physical machines embedded with AI technologies that can interact with one another and contribute to the dynamics of consumers' service experience.
Augmented Reality (AR): AR is a technology that enhances the experience of customers by simulating physical control and embedding environments.
Metaverse: The metaverse is a three-dimensional virtual environment accessed via a downloadable client program, and users can interact using virtual representations in the form of personalized avatars.