User Behaviors, User Engagement, and Consequences
Loading...
Paper Type
Completed
Paper Number
2465
Description
When the air quality is bad, people wear anti air pollution masks or restrict their outdoor activities. While this avoidance behavior is beneficial for the customers, it is unclear how air pollution affect other economic activities. We study how air pollution affects the relationship between offline and online sales associated with a retailer in Korea. This retailer offers regular promotion days monthly at both the offline and online channels. We test how air pollution affect the actual demand during these promotion days across the channels. Interestingly, air pollution significantly affects consumer behavior. In general, polluted air boosts online sales and promotion effectiveness. Unexpectedly, air pollution is unlikely to hurt the offline sales, and even increase offline sales and promotion effectiveness. We also find a notion of the inverted-U shaped reaction to the seriousness of polluted air in offline sales. These show the combined effect of channel substitution and recreational shopping.
Recommended Citation
Jeong, Jaehoon; Lee, Dongwon; and Gopal, Anand, "The Effects of Air Pollution and Sales Promotions on Channel Use across Online and Offline Retail" (2020). ICIS 2020 Proceedings. 20.
https://aisel.aisnet.org/icis2020/user_behaviors/user_behaviors/20
The Effects of Air Pollution and Sales Promotions on Channel Use across Online and Offline Retail
When the air quality is bad, people wear anti air pollution masks or restrict their outdoor activities. While this avoidance behavior is beneficial for the customers, it is unclear how air pollution affect other economic activities. We study how air pollution affects the relationship between offline and online sales associated with a retailer in Korea. This retailer offers regular promotion days monthly at both the offline and online channels. We test how air pollution affect the actual demand during these promotion days across the channels. Interestingly, air pollution significantly affects consumer behavior. In general, polluted air boosts online sales and promotion effectiveness. Unexpectedly, air pollution is unlikely to hurt the offline sales, and even increase offline sales and promotion effectiveness. We also find a notion of the inverted-U shaped reaction to the seriousness of polluted air in offline sales. These show the combined effect of channel substitution and recreational shopping.
When commenting on articles, please be friendly, welcoming, respectful and abide by the AIS eLibrary Discussion Thread Code of Conduct posted here.