Exploratory analysis of Internet of Things (IoT): revolutionizing the grocery retail industry

Abstract

This dissertation has investigated the consequences of implementing Internet of Things (IoT) technologies in grocery retailing by analyzing customers' perceptions of eight prominent technologies. The objective was to investigate and explore to what degree implementing these technologies would impact the customer experience. Based on secondary research, this thesis focuses on eight prominent technologies that presumably will encounter an increasing utilization in the visible future; Self-Scanning, Smart Robots, Smart Shelves, Smart Shopping Cart, Smart Fridge, Just Walk Out, Personalized Promotion/Pricing, and Mobile Apps. The technology distribution varies across different stages in the customer journey, and research indicates that IoT has the most significant impact in the pre-purchase stage. A comprehensive exploratory survey was conducted through Amazon mTurk with a wide range of respondents (n=204), giving valuable insight into demographic differences' influence on each technology perception. The investigation uncovered vast differences in several areas such as age, attitude, and privacy. Among other findings, the age segment 35-44 is more confident towards IoT technology than the age segment 55+, and shoppers with a positive attitude towards grocery shopping have higher confidence towards the technologies than shoppers with a negative attitude. On a widespread basis, the findings revealed that all eight technologies would positively affect customer experience to a certain level.

Keywords: Internet of Things, Grocery Retailing, Customer Journey, Customer Experience, Autonomous Retail.