Case Study $1-2$ Mobile Technology: A Key Player for

Future Shopping

Finance $|$ Technology in Society $|$Application $|$ Reflective Thinking

Faced with strong competition by online stores, retailers are looking for new ways to improve customer

service and lower operating costs. They have found mobile technology to be the key for achieving this

goal. Scan$-$as$-$you$-$go mobile devices are a logical next step after the self$-$checkout used by many retailers.

Retail experts predict the new mobile$-$based retail devices could eventually bring about the end of

traditional cash register systems. The mobile checkout stations pioneered at Apple stores appear to be the

future. The goal is to speed up and improve customer service and to keep consumers in stores and

spending.

Ahold USA's Stop & Shop retail stores use a mobile device called Scan It that hangs on the handle of the

shopping cart and allows customers to shop and scan as they go through the aisles. If there is a coupon for

an item, the device quickly gives the customer a credit and the total is recalculated. The device is smart

enough to alert the customer if there is a coupon for a complementary item, such as coffee creamer if the

customer has purchased coffee. Shoppers who use the Scan It device spend about $10$ percent more than

average.

Clothing retailer Nordstrom is also using mobile devices, which it issues to its sales associates on the floor

so they can scan items on the spot and let customers pay without going through the cash registers. Home

Depot uses a device called First Phones as an inventory tracker. If an item is out of stock, First Phones

quickly notifies the customer whether a nearby store has it$,$ then holds the item for the customer to pick

up$.$ Starbucks is using a digital wallet model that allows customers to pay using their smartphones. ${?}^{*}$

Answer the Following Questions:

How will scan$-$as$-$you$-$go mobile devices and digital wallets impact the retail sector?

Which of Porter's three strategies are evident in the use of scan$-$as$-$you$-$go mobile devices and digital

wallets in these examples?

What will be the role of smartphones in the future of shopping?