The Impact of Mobile Ordering Service on Offline Store Diversity and Product Diversity

Abstract

Offline retail stores have adopted mobile ordering technology to enhance their customer experience. A mobile ordering channel allows customers to find a nearby store and choose a product by lowering the search costs. However, the impact of mobile ordering services on the diversity of customer experiences has not been examined. In this study, the effects of mobile ordering technology on store and product diversity are measured. We analyzed the transaction data of 170,635 users over 16 weeks of store visits. The effect of mobile ordering technology on store and product diversity was estimated using the difference-in-differences method. We find that mobile ordering services can positively affect store and product diversity. The results are consistent after analyzing the data resampled with propensity score matching. This study provides the managerial implication that mobile ordering technology is valuable for offline retail stores that aim to extend their customers’ shopping and product experiences.