Scanning While Shopping: Assessing the Impact of Mobile Consumer Scanning Technology on Retail Performance

ABSTRACT The rise of online shopping compelled physical retailers to improve their customers' shopping experience to remain competitive. Mobile Consumer Scanning Technology (MCST) has been employed by physical retailers to lower labor costs and reduce customer checkout times. MCST allows shoppers to use mobile devices to scan products as they are picked from shelves and placed into shopping carts. Checkout time can be saved since payments are made without the need for further product scanning. Thus, the technology transfers logistics functions from the retailer to the consumer with the promise to expedite the shopping experience. This study uses traffic data to examine the impact of MCST on performance metrics of a major US retailer, including visit frequency, the customer base, and in‐store customer dwell time. Our findings reveal that MCST results in increased customer visits while expanding the retailer's customer base and market area. Moreover, MCST shortens in‐store dwell time, offering time savings for shoppers. An extended analysis conducted to deepen the understanding of MCST shows that some impacts are short lived, while others are longer lasting. In summary, our findings advance the literature on consumer‐centered retail technologies, highlighting both theoretical and managerial implications from the implementation of MCST.